Online Resources Posts Fourth Quarter and Annual 2005 Results; Revenue and Operating Earnings Increase Sharply

Online Resources Corporation, a leading outsourcer of Internet financial services, today reported financial and operating results for the three months and full year ended December 31, 2005.

Net income results are preliminary, pending completion of a tax analysis of any possible limitations on the use of the Company’s net operating loss carryforwards and therefore, how much valuation allowance should be released.

Fourth Quarter 2005

• Revenue for the fourth quarter of 2005 was $15.8 million, a 38 percent increase over fourth quarter 2004 revenue of $11.4 million.

• Earnings before interest, taxes, depreciation and amortization (EBITDA) was $3.9 million compared to $1.9 million in the prior year. EBITDA per share was $0.14, a 56 percent increase compared to $0.09 in the prior year.

• Preliminary net income was $2.9 million versus $929,000 the prior year. Preliminary net income per share was $0.10, a 100 percent increase over $0.05 the prior year.

Full Year 2005

• Revenue for the full year 2005 was $60.5 million, a 43 percent increase over full year 2004 revenue of $42.3 million.

• EBITDA was $13.9 million compared to $7.6 million in the prior year. EBITDA per share was $0.54, a 42 percent increase compared to $0.38 in the prior year.

• Preliminary net income was $9.0 million versus $3.9 million in 2004. Preliminary net income per share was $0.35, a 75 percent increase over $0.20 the prior year.

“It was a break-out year for Online Resources, as we delivered on all of our key operating and strategic goals. Though our final after-tax net income has yet to be determined, there will be no change in our revenue and pre-tax operating earnings,” stated Matthew P. Lawlor, chairman and chief executive officer of the Company.

Lawlor added, “We ended the year strongly, as robust billpay adoption drove revenue to the high end of our guidance and we achieved expected high operating earnings growth. I look forward to another excellent year in 2006, and believe we are well positioned strategically for future growth.”

2005 Highlights

• Achieved record revenue and earnings, the 7th consecutive year as a public company with double-digit revenue and earnings/(loss) per share improvement;

• Met quarterly guidance and the Company’s original earnings guidance for the year, despite a significant change in unclaimed payments policy;

• Strengthened cash position and balance sheet through increased operating cash flow and the successful follow-on offering of 5.1 million common shares;

• Completed second acquisition, adding distribution, specialized applications and enhanced professional service capabilities;

• Increased end-users, with 32 percent increase in banking account presentation, 27 percent increase in banking billpayers, and 42 percent increase in active cardholders;

• Expanded potential service distribution, increasing the total client base to 829 including a 16 percent increase in the pool of potential banking and cardholder users;

• Set record levels of client satisfaction, as reflected in 92 percent client retention and 44 percent of contract renewals for 5 or more years;

• Continued operating excellence with 94 percent online banking consumer satisfaction, and a completed billpay transaction speed (CBTS) of only 1.8 days;

• Increased web channel profitability for clients, conducting over 10,000 consumer marketing programs, resulting in an industry-leading 32 percent billpay up-sell rate;

• Introduced several innovative, new products that enable our clients to differentiate themselves, including award-winning web-based collections and enhanced security.