Online Resources Provides Analyst Day Highlights

Online Resources Corp., a leading outsourcer of Internet financial services, announced highlights of its investment Analyst Day event held at its headquarters on Friday, September 23, 2005.

The Company outlined key goals and areas of potential growth as follows:

• For the next several years, the goal is to double consumer bill payment adoption and introduce new premium products in the bank and credit union distribution channels;
• Over the mid-years, the Company is looking for growth in new card and credit-based products, particularly its web-based collections and card payments inquiry services;
• For the out-years, growth plans center on e-commerce applications of patented real-time debit capabilities, particularly for biller direct and stored-value funding;
• The Company is also focusing on building its market share, and expects to augment organic growth with acquisitions;
• Financial goals for year-end 2008 include organic reve nue growth of 20 percent or more, gross margin of 60-63 percent and operating (EBIT) margin of 22-25 percent. In addition to these strategic growth plans and goals, the Company addressed the following:
• Due to its financial restatement, the Company expects to continue reporting on a nontaxed basis, and will not tax-adjust earnings until mid- or late-2006 at the earliest;
• It expects to sign a financial institution with $1 billion in assets for Internet banking in third quarter;
• By the end of 2006, the Company expects that the percentage of its clients offering free bill payment will be approximately 70 percent, up from the present 56 percent;
• The Company expects that its current mix of new clients that convert from some other platform will increase, to perhaps as high as 70 percent over the next several years;
• Adoption goals were reiterated, with Internet banking targeted at 35 to 40 percent, and billpay adoption targeted at 14 to 18 percent in the YE06-YE07 timeframe;
• Security systems are being expanded to include end-to-end data encryption, twofactor authentication, alerts and additional detection tools;
• Pilot results of the new web-based Collections product with a top-3 card issuer indicated over 300 basis point improvement in collections versus the control group;
• The Company’s new web-based card payment inquiry service is now being piloted with a top-5 debit card issuer;
• A specialized government payments provider is piloting the Company?s patented ecommerce pin-less real-time debit capability. Analyst Day presentation slides are available on the Company?s web site at www.orcc.com.