NextCard Exceeds One Million Customers; Growth Reaffirms Strength of Online Credit Card Business Model

Business Wire, June 26, 2001

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--June 26, 2001

NextCard (Nasdaq:NXCD), the leading issuer of consumer credit on the Internet, announced today that earlier this month it had surpassed one million customer accounts. Since its introduction in December of 1997, the NextCard Visa has redefined the marketplace for consumer credit. NextCard was the first to introduce an instant, online approval system for a Visa card. Since then, the Company introduced several other technology-based innovations including online balance transfers, online bill payment and account management, and a 100% safe shopping guarantee that protects purchase activity.

"The Internet is a proven and fast-growing direct marketing channel for credit cards," said John Hashman, chief executive officer at NextCard. "NextCard's achievement of the million customer milestone is further validation of the strength of our business model."

"We intend to remain the premier choice for consumers who prefer to select a credit card through the Internet," said Hashman. "NextCard remains focused on building a truly differentiated and valuable customer experience. We are very happy that these million customers have chosen the NextCard Visa, and we will continue to innovate to provide them with even greater value."

"The Company is on track to meet our stated goal of break-even by the fourth quarter of this year. Our continued focus on our core business strategy and leadership position in Internet-based credit card lending is allowing us to build the foundation for a large and profitable business," he added.

NextCard has the greatest share of online credit card applications, at 26 percent, according to Brittain Associates. NextCard is also benefiting from the growth in consumer preference to obtain a credit card through the Internet. Eleven percent of all adults who use the Internet have applied for a credit card online and seven million credit card holders will look for a new credit card online over the next six months, up from six million in the last two years, according to Gomez Inc.

About NextCard

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, 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 NextCard Concierge(SM) online shopping service, 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 90,000 online affiliates, and has exclusive card relationships with leading online brands, including Amazon.com and MyPoints.com.

NextCard has been named the No. 1 Internet credit card by Gomez. According to the 2001 Brittain Associates "Credit Cards on the Net" study, NextCard leads the online credit card market with a 26 percent share. NextCard, Inc. issues credit cards through NextBank N.A., a wholly owned subsidiary.

THE SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Information contained herein as to NextCard's expectations and goals are forward-looking statements. Actual results could differ from those projected in these statements due to portfolio characteristics, economic conditions, competition in the industry and other factors detailed from time to time in the Company's Securities and Exchange Commission filings. Trademarks are the property of their respective owners.