Bottomline Technologies Announces Significant Customer Uptake in Its New BACSTEL-IP Subscription Service.

PORTSMOUTH, N.H. -- Over 1,300 companies have now ordered Bottomline's BACSTEL-IP subscription service

Bottomline Technologies (NASDAQ: EPAY), a leading global technology provider of financial Business Process Management (fBPM) software and managed services, announced that it has now received over 1,300 orders for its new BACSTEL-IP subscription service and has further extended its position as the United Kingdom's market leader for payment solutions. Bottomline's subscription service is new to the United Kingdom and allows small to medium-size companies pay for BACSTEL-IP on a monthly basis. It will encourage many new organizations to use BACSTEL-IP and help expand the market for direct-submitting BACS solutions.

Mike Hutchinson, BACSTEL-IP marketing manager at BACS comments, "We are delighted with this result and believe that by offering BACS users greater choice on how to pay for the BACSTEL-IP software has to be good for our customers, and will help accelerate the migration."

"We launched the BACSTEL-IP subscription service in the spring of this year to provide organizations with the easiest possible transition to BACSTEL-IP and to give them access to additional functionality in the future, such as remittance and check processing at a really low cost," said Peter Fortune, president of Bottomline Europe. "To have reached over 1,300 orders and over 400 live users in just six months proves that our proposition is exactly what organizations need at this time."

Bottomline's range of software approved by BACS and recommended by all the major UK Banks provides extensive payment capabilities for any size company using BACS. The company's unique range of software gives its customers the greatest choice of solutions from full feature enterprise payment platforms to low cost subscription services. With Bottomline's current market share and wide product offering for BACS users, the company is well-positioned to take advantage of the opportunity provided by the mandatory BACSTEL-IP migration.

BACSTEL-IP is the UK's new technology platform which allows companies to send electronic payments directly to BACS and receive reports from the Internet. Over 50,000 businesses who use BACS to make electronic payments must upgrade their BACS software by 31 December 2005.

About BACS

Established in 1968, BACS Limited (formerly Bankers Automated Clearing Services) is one of the world's largest automated payment clearing houses. Owned by the major UK banks and building societies, BACS' business encompasses the Electronic Funds Transfer (EFT) processing of Direct Debit, monthly salaries by Direct Credit, Standing Orders and the management of inter-bank network services. There are over 50,000 BACS users that connect directly to the BACS service, including all of the FTSE 100, while a further 60,000 businesses are indirect submitters to BACS through a bureau. BACS processes over 3.7 billion financial transactions annually with more than 60 million on a peak day. The use of BACS products and services has revolutionized the payments industry and enables more companies than ever to realize the benefits of making automated payments, including cost effectiveness, reliability, convenience and ease of use. Over 90% of UK salaries are paid by Direct Credit. It is used for over 5 million wages every week and over 12 million salaries a month.

About BACSTEL-IP

In September 2002 BACS announced its technology renewal program in order to meet the rapidly growing demand for its electronic payment services. BACSTEL-IP is the first stage of the technology renewal program. BACSTEL-IP utilizes Internet Protocol and Public Key Infrastructure (PKI) to create a new delivery channel with a multi-layered security platform providing businesses with the highest level of security in payment submissions. This upgrade represents a major improvement for business customers with even faster payment confirmation and the ability to track the status of payments online.

About Bottomline Technologies

Bottomline Technologies (NASDAQ: EPAY) is a leading global technology provider of financial Business Process Management (fBPM) solutions. Bottomline's comprehensive set of fBPM offerings enables businesses and financial institutions to more effectively manage their critical financial transactions, cash decisions and trading partner relationships, leveraging the Web. Applications include Electronic Payments and Cash Management, Electronic Invoice Receipt and Management, Electronic Invoice Presentment and Payment (EIPP), Electronic Banking, Information Reporting, and Document Output Management. Founded in 1989, Bottomline maintains its corporate headquarters in Portsmouth, NH and international headquarters in Reading, England. For more information, visit Bottomline on the Web at www.bottomline.com, or dial [phone] or [phone].

Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties, including statements regarding expected benefits of use of the Company's products and future growth or results. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. For additional discussion of factors that could impact Bottomline Technologies' financial results, refer to the Company's Form 10K filed September 2004, Form 10Q filed May 2004 and any recently filed Form 8K's.