Official Payments Launches New Website Accepting IRS Tax Payments; Federal Balance-Due, Estimated, and Extension Payments Can Now Be Made On the Internet, Via Credit Card, at Lowest Price

Business Wire, Jan 18, 2001

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, 17 state governments, and well over 650 county and municipal governments in 40 states across the United States. In the first three quarters of 2000, Official Payments Corp. processed and collected over $630 million in federal balance-due, estimated, and extension tax payments on behalf of individual taxpayers making payments to the IRS.

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 reported 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.

Official Payments Corp. (Nasdaq: OPAY) will announce Fourth Quarter 2000 and full fiscal year 2000 financial results on Thursday, January 25, 2001 at 4:30 PM (EST) the company will provide an audio web cast of the call at www.officialpayments.com

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

Safe Harbor Statement

Statements in this release are current only as of the time the release is issued and may be deemed to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current economic environment and current expectations that involve risks and uncertainties, including, but not limited to statements regarding the Company's competitive position, expected operating and financial performance, business model and expected growth of electronic payments to government entities. All forward- looking statements included in this report are based upon information available to the Company as of the date hereof. You are cautioned that these statements are not guarantees of future performance. The company's actual results and the timing of certain events may differ significantly than those anticipated in, or caused by, any forward-looking statements as a result of certain risks and uncertainties, including without limitation, the general economic and business conditions, major systems failure, constraints in capacity, rapid technological changes, ability to remain existing government contracts and enter into new government contracts, competitive nature of the market in which the Company competes, the early stages of development of the Company's products. A more complete description of these and other risks and uncertainties associated with the Company's business can be found in the Company's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1999. The Company does not undertake any obligation to update publicly any forward-looking statement in this release, or any statement which was accurate at the time the release was issued, whether as a result of new information, future events or otherwise.