Direct Insite Announces First Quarter 2009 Results

Market Wire, May, 2009

Direct Insite Corp. (OTCBB: DIRI), a global SaaS provider of financial supply chain automation across procure-to-pay, order-to-cash, and shared services business processes, today announced financial results for the quarter ended March 31, 2009. Revenue for the three months ended March 31, 2009 increased $340,000 (17.4%) to $2,294,000 compared to revenue of $1,954,000 for the first quarter 2008. Recurring revenue increased $404,000 (22.1%) to $2,233,000 in the first quarter of 2009 compared to recurring revenue of $1,829,000 in the first quarter 2008. Professional Services revenue was $61,000 for the first quarter of 2009, a decrease of $64,000 (51.2%) compared to Professional Services revenue of $125,000 in the first quarter of 2008.

Income before income taxes was $263,000 for the three months ended March 31, 2009 compared to net income before taxes of $45,000 in 2008. Net income for the three months ended March 31, 2009 was $248,000 compared to net income of $2,912,000 for the three months ended March 31, 2008. During the three months ended March 31, 2008 the Company recorded a benefit from income taxes of $2,867,000 as a result of reducing the valuation allowance on its deferred tax asset as the Company concluded that it would utilize this future tax benefit.

Basic income per share attributable to common shareholders for the three months ended March 31, 2009 was $0.02 compared to a basic net income per share of $0.38 for the same period in 2008. Diluted income per share attributable to common shareholders for the quarter ended March 31, 2009 was $0.02 compared to diluted income per share attributable to common shareholders of $0.26 for the quarter ended March 31, 2008. The earnings per share for 2008 include the effect of the tax benefit discussed above.

"Our strong growth in recurring revenue has come from both new customers and expansion of services to existing customers and is a positive indicator of future revenue growth," said James A. Cannavino, Chairman and Chief Executive Officer. He added, "We expect professional services revenue will also grow through the remainder of 2009."

About Direct Insite:

Direct Insite provides best practice financial supply chain automation and workflow efficiencies for procure-to-pay and order-to-cash processing. The Company's global eInvoice Management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing. Direct Insite solutions are used by more than 7,000 corporations across 62 countries, 15 languages and multiple currencies. For more information, call (631) 873-2900, or visit www.directinsite.com

The financial information stated above and in the tables below has been abstracted from Direct Insite Corp.'s Form 10-Q for the three months ended March 31, 2009, filed with the Securities and Exchange Commission on May 14, 2009, and should be read in conjunction with the information provided therein.

Summarized Financial Information

                                FOR THE THREE MONTHS  FOR THE THREE MONTHS
    STATEMENT OF OPERATIONS     ENDED MARCH 31, 2009  ENDED MARCH 31, 2008
                                --------------------  --------------------
Revenue from continuing
 operations                     $          2,294,000  $          1,954,000
                                --------------------  --------------------
Operating income                $            248,000  $             57,000
                                --------------------  --------------------
Other income (expenses), net    $             15,000  $            (12,000)
                                --------------------  --------------------
Income before income taxes      $            263,000  $             45,000
                                --------------------  --------------------
Provision for (benefit from)
 income taxes                   $             15,000  $         (2,867,000)
                                --------------------  --------------------
Net income                      $            248,000  $          2,912,000
                                --------------------  --------------------
Preferred Stock Dividends       $            (79,000) $           (173,000)
                                --------------------  --------------------

Net income attributable to
 common shareholders            $            169,000  $          2,739,000
                                --------------------  --------------------

Basic net income per share
 attributable to common
 shareholders                   $               0.02  $               0.38
                                ====================  ====================
Diluted net income per share
 attributable to common
 shareholders                   $               0.02  $               0.26
                                ====================  ====================




                                                    March 31,  December 31,
                 BALANCE SHEET                        2009         2008
                                                  ------------ ------------
Total Current Assets                              $  3,329,000 $  3,093,000
                                                  ------------ ------------
Total Assets                                      $  7,025,000 $  6,880,000
                                                  ------------ ------------
Total Current Liabilities                         $  1,901,000 $  2,179,000
                                                  ------------ ------------
Total Shareholders’ Equity                        $  4,889,000 $  4,420,000
                                                  ------------ ------------