NextCard Named No. 1 Internet Credit Card By Gomez Advisors

Business Wire, May 18, 2000

Business Editors, High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--May 18, 2000

NextCard Recognized for Easy to Use Instant Application Process, Extensive Transaction Management Tools, and Highly Competitive Pricing

NextCard (Nasdaq:NXCD), the leading issuer of consumer credit on the Internet, today announced that Gomez Advisors(TM) selected it as the No. 1 online credit card in its Spring 2000 Internet Credit Card Scorecard(TM).

NextCard (www.nextcard.com) prevailed over 17 other firms, including larger, well-established credit card companies such as American Express, Citibank, Bank of America, MBNA and Discover. The Gomez Internet Credit Card Scorecard can be viewed at www.gomez.com.

This inaugural Gomez Internet Credit Card Scorecard focuses on five criteria: ease of use, customer confidence, on-site resources, relationship services and overall cost. In addition to earning the No. 1 ranking overall, NextCard earned the No. 1 ranking in ease of use, No. 1 ranking in relationship services, No. 2 ranking in customer confidence, and No. 3 ranking in overall cost.

"The NextCard site's breadth and depth of online tools, such as interactive e-mail alerts, that allow consumers to enter their own credit limit thresholds, are leading edge," according to the Gomez review. "You can access Nextcard's online customer service through e-mail, secured e-mail or live chat. We found all to be responsive and accurate."

"The firm continues to leverage its online experience to lead the industry in initiatives to create a totally unique and personal consumer credit card experience, such as a multiplicity of card designs and offers," according to the review.

"NextCard is focused on providing a convenient, time saving experience for users of credit cards that they just can't get in the offline world," said Jeremy Lent, chairman and CEO of NextCard. "We'll stay focused on consumers and continue to innovate in the e-commerce arena."

"Our strategy has been to establish and maintain our leadership in the Internet credit card marketplace through an exclusive focus on the Internet channel," Lent added. "We are very proud to have received this validation from Gomez Advisors that we are continuing to succeed in this strategy."

"As other credit card companies see the tremendous growth potential of the Internet, they will continue to try to emulate NextCard's success," continued Lent. "Our understanding of the Internet consumer and our unique integration of both credit card and technology expertise give us a natural advantage to maintain our leadership in this rapidly growing channel."

In the review, Gomez.com cited NextCard's extensive security and privacy policy as a demonstration of its sensitivity to consumers' primary online concerns. Recently, NextCard became the first credit card company to be approved for the TRUSTe mark. The appearance of the TRUSTe mark on a website signifies that the site meets the privacy policy criteria of TRUSTe, a nonprofit organization dedicated to promoting privacy policy disclosure by websites.

The Gomez Internet Credit Card Scorecard looks at credit card issuing banks that offer the ability for a consumer to apply online and view their credit card transactions within a single site independent of other integrated online products. Currently, the Scorecard focuses on firms that can demonstrate to have either $1 billion in managed credit card receivables or be an Internet-only bank. Lastly, only firms that issued their own credit cards and extend loans to the pubic at large were considered. This Scorecard ranked 17 firms, out of a total of over 300, in over 175 different criteria. The 17 firms, in rank order for overall score, are NextCard, American Express, Security First Network Bank, Bank of America, Wells Fargo, First USA, Chase Manhattan, Direct Merchants Bank, Discover, First Bankcard Center, MBNA, Capital One, Citibank, First Union, TD Waterhouse Bank, Household Bank, and Providian Aria.

NextCard, Inc.

NextCard, Inc. (www.nextcard.com) is considered the leading issuer of consumer credit on the Internet. Launched in 1997, the company was the first to offer instant online credit card approval, a choice of customized credit card offers, personalized PictureCard(SM) designs, and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its complete GoShopping!(SM) service, NextCard Concierge(SM) one-click shopping companion, online bill payment services, and comprehensive rewards program.

NextCard is also one of the leading direct marketers on the Internet, operates a network of more than 40,000 online affiliates, and has exclusive card relationships with leading brands, including Amazon.com and Priceline.com. The Company owns minority stakes in Flooz.com, the premier online gift currency, and Paytrust.com, the leader in online bill payment.

Ranked the No. 1 credit card that Internet consumers would consider for use (according to ZDNet's 1999 BrandIQ study), NextCard was named a top 50 financial Web site by Money magazine, a Hot 100 company by Upside magazine, and one of The Standard 100 most important and influential companies in the Internet economy by The Industry Standard in 1999. NextCard was nominated for a 2000 Webby Award in the finance category.