Bank of America and eFed Offer First End-to-End e-Commerce Solution for State and Local Government Customers.

Business Editors

CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 14, 2000

Bank of America Corporation, through its subsidiary Bank of America, N.A. (USA), today announced it signed a letter of intent with eFed, a wholly-owned subsidiary of National Information Consortium, Inc. (NIC) (NASDAQ:EGOV) to create a limited liability company to offer state and local governments the first Web-based business-to-business procurement, payment and reconciliation solution.

The new service offers state and local government customers the opportunity to place orders online through their preferred suppliers, request a quote from businesses for services, process transactions, initiate payments and reconcile accounts. Customers are able to automate the procurement process through a secure Internet connection using the eFed real-time, browser-based shopping system.

In order to incorporate purchasing rules and improve contract compliance state and local government customers will determine which suppliers' catalogs will be maintained on their online procurement system. The company will work with suppliers to assist in maintaining and updating their catalog information on the system. Bank of America will facilitate the payment processing for the system.

"This business arrangement is a natural extension for Bank of America and enables us to continue to provide an online, integrated purchasing channel for our procurement and purchasing customers," said Jim Hulihan, head of Commercial Card Services, Bank of America. "The combination of our client relationships with eFed's proven on-line shopping systems will provide a strong solution for the need to automate procurement for state and local governments."

"Bank of America recognizes the value of online sales and purchases in business to business transactions and this is another of our formal steps to ensure that Bank of America clients can take advantage of these services," said Pam West, e-commerce executive, Commercial and Corporate Business, Bank of America.

The two companies will share revenue generated by the new business. In addition, Bank of America will have the opportunity to become a strategic investor in NIC upon the achievement of certain revenue performance criteria by the new company. Warrants of up to 2.5% of the fully diluted shares of outstanding NIC common stock will become exercisable upon achieving revenue targets. These warrants are priced in two equally sized series at $34.44 and $44.77.

"Together our two companies can provide something nobody else can--a truly integrated financial procurement solution. We are offering the best solution to the market today," said Rob Main, president of eFed. "This new company has the potential to enable the public sector to achieve the same benefits that Internet-based procurement has already delivered to leading companies in the private sector."

Bank of America, N.A. (USA) is the largest issuer of state government purchase cards, representing more than 25% of states. Bank of America Corporation, with $621 billion in assets, is the largest banking company in the United States. The company serves more than 30 million households and 2 million businesses across the country, offering customers the largest and most convenient delivery network from offices and ATMs to telephone and Internet access. It also provides comprehensive international corporate financial services for clients doing business around the world. The company creates financial relationships featuring a full array of financial services, from traditional banking products to investments and capital raising within the securities markets. Bank of America stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange. Further investor information can be found at www.bankofamerica.com/investor.

eFed, the leader in e-commerce based solutions to the public sector, is a wholly owned subsidiary of NIC. eFed has pioneered software and a supplier network that allows for low cost electronic delivery of products and services to the public sector. The software enables government buyers to order products and services from multiple contracts and commercial sources, based on value, product information, contract terms and conditions. eFed can be reached at (877)-333-3665 or at www.eFed.com.