Electronic Clearing House Comments on Patent Infringement Suit

Business Wire, July 19, 2004

CAMARILLO, Calif. -- Please replace the release with the following corrected version due to revisions in the second paragraph:

The corrected release reads:

ELECTRONIC CLEARING HOUSE COMMENTS ON PATENT INFRINGEMENT SUIT

Electronic Clearing House, Inc. (Nasdaq:ECHO), a leading provider of electronic payment and transaction processing services, commented earlier today on the patent infringement suit filed in the U.S. District Court for the District of Delaware by LML Patent Corp. ("LML"), a wholly owned subsidiary of LML Payment Systems, Inc. In the suit, LML alleges that Telecheck Services Inc., Nova Information Systems, Inc., Electronic Clearing House, Inc. and XPRESSCHEX, Inc. infringed U.S. Patent Nos. 5,484,988; 6,164,528 and 6,283,366. This press release is intended to correct, modify and supersede certain statements made in error in today's earlier press release.

ECHO has not had an opportunity to review the complaint. However, ECHO has been aware of the LML patents for some time and has previously retained outside patent litigation counsel at the 1,500-attorney law firm of Sidley Austin Brown & Wood LLP. ECHO strongly believes that it does not infringe any valid or enforceable patent rights of LML and that LML's claims lack merit.

"ECHO adheres to the highest quality business practices and intends to vigorously defend itself against the claims made and to protect its right to lawfully compete in the marketplace," commented Joel M. Barry, ECHO's Chairman and CEO. "To the extent possible, ECHO intends to work with the other parties identified as defendants to actively defend against the LML action."

About Electronic Clearing House, Inc. (ECHO)

ECHO (www.echo-inc.com) provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO's services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, and check collection.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Examples of forward-looking statements included in this press release include statements regarding the strength of ECHO's intellectual property and processes. Potential risks and uncertainties that may cause actual results to differ materially include, but are not limited to, such factors as fluctuations in demand for the Company's products and services, the introduction of new products and services, the Company's ability to maintain customer and strategic business relationships, technological advancements, impact of competitive products and services and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information detailed from time to time in the Company's filings with the United States Securities and Exchange Commission.