Commonwealth of Virginia Expands Services With Official Payments Corporation.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 12, 2001

Business Bills and Estimated Taxes Can Be Paid

Over Internet or Via Telephone

Official Payments Corporation - www.officialpayments.com - (Nasdaq: OPAY) announced today that the Commonwealth of Virginia has expanded its service agreement with the company. Commencing at the end of October, the Commonwealth of Virginia will begin accepting credit-card payments for business bills and estimated taxes. Payments can be made over the Internet by visiting www.officialpayments.com or via the telephone by calling 1- 800-2PAY-TAX. Official Payments has similar agreements with over 900 government entities within 49 states across the country. The company has contacts with the Internal Revenue Service, 18 state governments including the Commonwealth of Virginia, and the District of Columbia to collect taxes, fees, and fines by credit card over the Internet and telephone.

Last year, the Commonwealth of Virginia collected over $2.5 billion in business taxes and $700 million in estimated taxes. Business bills are disseminated on a monthly or quarterly basis. Fourth quarter 2001 estimated taxes will be due January 15, 2002. A 2002 estimated tax coupon booklet will be mailed to taxpayers in late December of this year. American Express, Discover Card, MasterCard and Visa are the cards accepted by the programs.

"We are pleased to expand our services to the citizens of the Commonwealth of Virginia. Adding these two new payment categories, to our existing categories, balance-due taxes and notices of assessments/consolidated bill statements, increases our market potential to over $3.2 billion in Virginia," stated Thomas R. Evans, Chairman & Chief Executive Officer of Official Payments Corp. "The Commonwealth benefits from costs savings and error reduction, while bringing the benefits of convenience, cash management, and rewards to its taxpayers," Evans added.

Official Payments charges taxpayers a 2.5% convenience fee for processing these credit card transactions. For example, a taxpayer who owed $500 in estimated taxes and charged their taxes would find a total of $512.50 on their credit card statement: $500 for the tax bill and a 2.5% convenience fee of $12.50. As a bonus, taxpayers using the service can earn rewards, points, and cash-back on airline frequent flyer miles for paying their taxes.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. 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. The company is unequaled in market penetration and national footprint. Official Payments has agreements to collect and process credit card payments with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 900 county and municipal governments in 49 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company's success in new client acquisition, increasing business with its existing clients and in building consumer awareness can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.

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