Online Resources Refinances Acquisition Debt

New $100 Million Facility to Save Company $3.6 Million in Annual Interest Expense

CHANTILLY, Va., February 21, 2007 – Online Resources Corp. (Nasdaq: ORCC), a leading provider of Web-based financial services, today announced it has refinanced the $85 million senior secured debt incurred to finance its July 2006 acquisition of Princeton eCom, and established a new $15 million revolving line of credit, which the Company did not borrow under at closing.   

The refinancing, obtained from a syndication group headed by administrative agent Bank of America and syndication agent Silicon Valley Bank, reduces the rate on the Company’s debt by 4.25 percentage points.  The new senior secured debt carries a rate of LIBOR +2.75 percent, with up to an additional 0.5 percentage points in rate declines possible based on declining leverage.  This facility has a five year term with repayment beginning in the second half of 2008. 

In conjunction with the refinancing, the Company wrote off $3.9 million in debt issuance costs and paid $1.7 million in prepayment fees related to the original debt.  These charges were anticipated and were included in the Company’s previously issued first quarter and full year 2007 guidance.

"Replacing our bridge acquisition debt with a market-rate facility will have a positive impact on the Company’s ongoing cash flow, and it is an important first step in strengthening our capital structure after the acquisition of Princeton eCom," stated Catherine A. Graham, executive vice president and chief financial officer of the Company.  "We chose to extend the refinancing period a little longer than expected in order to consider all our options, but we are pleased with the final results and appreciate the confidence of our new lenders."

About Online Resources
Online Resources powers web-based financial services for 2600 financial institutions, billers and credit service providers.  Its proprietary suite of account presentation and payment services are branded to its clients, and augmented by marketing services to drive consumer and business end-user adoption.  The Company serves over 8 million end-users and processes $100 billion in bill payments annually.  Founded in 1989, Online Resources (Nasdaq: ORCC; www.orcc.com) is recognized as one of the nation’s fastest growing companies.

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; dependence on the marketing efforts of third parties; potential fluctuations in operating results; ability to make and successfully integrate acquisitions of new businesses; potential need for additional capital; potential inability to prevent systems failures and security breaches; potential inability to expand services and related products in the event of substantial increases in demand; competition; ability to attract and retain skilled personnel; reliance on patents and other intellectual property; exposure to the early stage of market adoption of the services it offers; exposure to the consolidation of the banking and financial services industry; and additional 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
Mng. Dir., Corporate Communications
703.653.2248
bhalloran@orcc.com

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