Press Releases, Online Resources

Online Resources Updates First Quarter and 2005 Guidance

CHANTILLY, Va., March 18, 2005

Online Resources Corp. (Nasdaq: ORCC), a leading outsourcer of Internet financial services, today announced revised guidance for the first quarter and full year 2005.

The Company increased its revenue and EBITDA expectations for the first quarter and full year 2005. It also narrowed its earnings expectations after considering an increase in non-cash equity compensation expense resulting from the acceleration of certain options tied to the Company's share price and an increase in expected fully diluted share count. The information presented below is in millions except for per share information. This information is forward-looking, and actual results may differ materially.

	First Quarter			Full Year
	2004 Actual	Prior 2005 Guidance	Revised Guidance	2004 Actual	Prior 2005 Guidance	Revised Guidance
Revenue	$9.8	$13.9-14.3	$14.5-14.7	$42.3	$55.5-57.5	$56.5-58.0
Gross Profit Margin	56%	60-62%	60-62%	62%	60-62%	60-62%
EBITDA (1)	$1.4	$2.9-3.3	$3.4-3.6	$8.7	$12.5-13.5	$13.0-14.0
Per share	$0.07	$0.13-0.15	$0.16-0.17	$0.43	$0.58-0.63	$0.59-0.64
Net Income	$0.4	$1.3-1.6	$1.5-1.7	$5.0	$6.4-7.1	$6.5-7.2
Per share	$0.02	$0.06-0.08	$0.07-0.08	$0.25	$0.30-0.33	$0.30-0.33
Fully Diluted Shares	20.1	21.4	21.6	20.1	21.4	22.0

Equity Compensation Expense	$0.00	$0.2-0.3	$0.4-0.6	$0.00	$1.0-1.2	$1.3-1.6
Per share	$0.00	$0.02-0.03	$0.02-0.03	$0.00	$0.05-0.06	$0.06-0.07

(1) EBITDA is defined as earnings before interest, taxes, depreciation and amortization, including non-cash equity compensation expense.

"We anticipate moving forward with our equity financing and want to get our latest expectations to the capital markets," stated Matthew P. Lawlor, chairman and chief executive of Online Resources. "Our first quarter is shaping up better than expected. For the second quarter, we continue to expect a sequential decline in revenue and earnings resulting from the previously announced departure of several acquired clients, all of which was anticipated in the Company's previous guidance. Thereafter, we expect that strong quarterly sequential growth will resume."

About Online Resources

Online Resources powers Internet financial services for 700 firms nationwide. The Company's proprietary account presentation, payment and relationship management services are branded to its client banks, credit unions, card issuers and payment acquirers. The Company serves over three million consumer and small business end-users and processes over $10 billion in payments annually. Founded in 1989, Online Resources (Nasdaq: ORCC, Website: www.orcc.com) has been widely recognized as one of the nation's fastest growing technology firms.

This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

Media Contact: Beth Halloran,
Director, Corporate Communications
703.653.2248
bhalloran@orcc.com

Investor Contact: Catherine Graham,
EVP & Chief Financial Officer
703.653.3155
cgraham@orcc.com