Online Resources Provides Banks and Credit Unions Entree to Merchant Gift Card Market in Time...

Card HQ(SM) Is First of Stored Value Account Applications

CHANTILLY, Va. -- Online Resources Corporation (Nasdaq:ORCC), a leading provider of Web-based financial services, announced today the release of CardHQ(SM), an online gift card store that enables consumers to purchase retail gift

The first available service of its kind, Card HQ synthesizes two primary consumer payment platforms, the checking and card account, to create a virtual transaction account for the purchase and re-loading of stored value gift cards, which are provided in either physical or virtual form. Financial institutions receive fee income for the distribution and funding of gift card purchases, thereby monetizing their web channel.

Consumers simply log on to their financial institutions' online banking web site and select a gift card from one of the nation's leading retailers. Participating retailers include JCPenney, Marriott Hotels, SpaWish, and major coffee, electronics, restaurant and clothing retailers. Consumers enter shipping and personalization instructions, then the order is processed and the purchase amount is debited in real-time, without risk, from their checking account via Online Resources' proprietary payments gateway. Other than paying for shipping fees, consumers get the Card HQ service free and the gift cards carry no expiration date.

"It was a natural next step to offer CardHQ to our customers, who are accustomed to looking to us for a majority of their online payments, and as their guardian of personal financial information," said Sherry Sitton, executive vice president of First Command Bank. "Beyond the potential fee income, we believe this secure, convenient service will enable us to deepen our relationships with our customers. CardHQ is ideal for our many active duty military customers, who are located all over the world and therefore particularly value the immediacy of online transactions."

"Our integration expertise across three major payment constituencies -- banking service providers, card issuers and billing merchants - enables us to deliver to our clients this new payment capability," stated Matthew P. Lawlor, Online Resources' chairman and CEO. "In addition to gift cards, Card HQ can potentially support providers of other prepaid and stored value card applications, such as virtual wallets, telephone and payroll cards. We are in a unique position where we marry the payment and distribution capabilities of both financial and commercial clients."

About Online Resources

Online Resources powers web-based financial services for 2600 financial institutions, billers and credit service providers. Its proprietary suite of account presentation and payment services are branded to its clients, and augmented by marketing services to drive consumer and business end-user adoption. The Company serves over 8 million end-users and processes $100 billion in bill payments annually. Founded in 1989, Online Resources (Nasdaq:ORCC; www.orcc.com) is recognized as one of the nation's fastest growing companies.

This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.