Official Payments Corp. Wins West Virginia RFP

Business Wire, Dec 12, 2000

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 12, 2000

Award Entails Business With Many State Agencies

OPAY Signs 16th State Client

Official Payments Corporation (NASDAQ: OPAY) announced today the company has won a new business award from the state of West Virginia.

The Office of the State Treasurer issued Request for Proposal No.STO44E in August, which called for companies to present proposals for providing the state with a service for the payment of various taxes, fees, fines, and other payments via the Internet. Official Payments was the sole winner of the award, and was selected from a field of five companies.

The award authorizes Official Payments Corp. to work directly with any state agency in West Virginia to provide a credit card payment service via the Internet. Official Payments Corp. provides a variety of credit card payment services to the Internal Revenue Service, the District of Columbia, and the states of Alabama, Arkansas, California, Connecticut, Illinois, Kansas, Maryland, Minnesota, New Jersey, New York, Ohio, Oklahoma, Virginia, Washington, as well as over 650 county and municipal governments in 40 states across America.

"We are delighted with this award from West Virginia," said Thomas R. Evans, Chairman and CEO of Official Payments Corp. "We will be working with the Treasurer and various state agencies to bring these payment systems online as soon as possible," Mr. Evans added.

"Our goal is to provide the citizens of West Virginia with the highest level of service," said John D. Perdue, West Virginia State Treasurer. "This new program will allow officials at agencies throughout the state to give taxpayers a safe, secure, and reliable system to make their state payments from the comfort of their home or business," Mr. Perdue added.

Official Payments Corp. will charge West Virginia citizens a convenience fee for processing these credit card transactions. Fee schedules will be announced and published prior to launch of the systems. American Express, Discover Card, and MasterCard are currently the credit cards accepted by the program. Consumers using credit cards with bonus rewards programs can, depending on the rules of their card's program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company's principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments Corp. is the incumbent in contracts with the Internal Revenue Service, 16 state governments, and well over 650 county and municipal governments in 40 states across the United States. In the first three quarters of 2000, the company collected and processed over $630 million in federal balance-due, estimated, and extension tax payments on behalf of the Internal Revenue Service.

Official Payments Corp. was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments Corp. in the summer of 1999. Mr. Evans brought Official Payments Corp. public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past five quarters in all of its reporting metrics including revenue, new client acquisition, and addition of incremental services to existing clients. The company's success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.

Note: Official Payments Corp. and the Official Payments Corp. logo are service marks of Official Payments Corporation.