ECHO's USPS Pilot Program Feels Effects of Y2K and Other Issues

Business Wire, May 19, 1999

AGOURA HILLS, Calif.--(BUSINESS WIRE)--May 19, 1999--

The United States Postal Service ("USPS") has advised Electronic Clearing House, Inc. (NASDAQ:ECHO) that it is in the process of evaluating the numerous USPS projects to 1) meet their strategic goals; 2) reduce duplication of effort; 3) confirm they are Y2K compliant; and 4) provide potential cost savings.

Until this evaluation is complete, the USPS has advised the company that

further development effort is on hold and to prepare an invoice for the work completed to date in accordance with USPS directions previously received by the company.

It was emphasized to the company that the delay of active development under the pilot program should not imply that a decision has been made on the merits of the pilot program but that other issues are requiring the full resources of the USPS at this time.

No commitment or indication was given regarding when the USPS would complete its evaluations and dedicate resources to the pilot program but it was evident, in management's opinion, from the conversations held with the USPS that it is still very interested in the Company's system that serves the small volume USPS offices.

Electronic Clearing House, Inc. provides credit card processing, check guarantee, inventory tracking services and various Internet services to over 19,000 retail merchants and U-Haul dealers across the nation.

ECHO also designs, develops and manufactures software and point-of-sale hardware that is utilized as credit card processing terminals, automated money order dispensers, inventory tracking devices, and casino cash advance systems.

To take advantage of the new "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, readers are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ materially from those expressed in the forward-looking statements made by the company.