14 Texas Localities Offer New E-Payment Options for Taxes & Fees; Payments Can Be Made By Credit Card, Via Internet or Phone.

Business Editors

Official Payments Corporation (NASDAQ: OPAY), the leading provider of electronic payment options to government entities, announced today the signing of agreements with the Independent School Districts of Adine, Alief, Clear Creek, Eanes, Friendswood, Goose Creek and Sante Fe; the Appraisal District of Hansford; Gregg, Ector, Fort Bend, Nueces and Williamson Counties; and the City of Hewitt, Texas.

The agreements authorize Official Payments to provide services enabling citizens of these localities to make credit card payments for real estate and personal property taxes, utility bills, and various other taxes, fees and fines by visiting www.officialpayments.com or calling 1-800-2PAY-TAX(SM). Visa, American Express, MasterCard and Discover are the cards accepted by the programs, which are expected to become available at the end of July.

"Combined, these 14 Texas clients collect more than $1.3 billion in taxes and fees. Some of these clients are located in the most populous metropolitan areas of Texas such as Houston, Austin and Corpus Christi. These clients are offering their citizens a convenient and more efficient new method of paying their balance due by the use of our innovative systems," said Thomas R. Evans, Chairman and CEO of Official Payments.

Official Payments charges citizens a convenience fee for the service. For example, a citizen who makes a $2,500 property tax payment is charged a total of $2,568; $2,500 for the tax payment, and a convenience fee of $68 to cover the cost of the payment service. Citizens using credit cards with bonus rewards programs may, depending on their card's program, earn rewards, points, and airline frequent flyer miles or cash back for paying their taxes, fees and fines.

About Official Payments Corporation:

Founded in 1996, Official Payments Corporation (Nasdaq: OPAY) has agreements to collect and process credit card payments with the IRS, 21 state governments (AL, AR, CA, CT, IL, IN, IA, KS, MD, MN, MS, NJ, NY, OH, OK, PA, RI, VA, WA, WI, and WV), the District of Columbia, and more than 1,200 counties and municipalities. 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. In 2001, Official Payments collected and processed more than one million transactions totaling $1.2 billion in federal, state and local government payments.

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

References to aggregate collection opportunities and/or historical collection experience in this release refer to the maximum potential collection opportunity (for taxes, fees, fines, etc.) for which Official Payments has been authorized by a government client to collect payments made by credit card, although Official Payments' actual collections (which are a function of the number of people who choose to use Official Payments' services to make such payments by credit card rather than by check or other means) have historically been, and are expected to be in the future, significantly lower than such maximum opportunity. Official Payments' historical results 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, 2001.