Official Payments Corp. Signs Connecticut & Illinois; States Join IRS in Allowing Income Tax to be Paid by Credit Card.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 21, 1999

Official Payments Corporation (NASDAQ:OPAY) announced today that it has signed separate agreements with the Connecticut Department of Revenue Services and the State of Illinois Treasurer's office. Official Payments Corp. will provide those states' taxpayers with the ability to pay 1999 income tax balance-due payments by credit card. Official Payments Corp. has existing contracts with the United States Internal Revenue Service and the District of Columbia, as well as the states of California and New Jersey, for similar programs to collect balance-due payments.

Taxpayers in Official Payments Corp.'s partner states will be able to make their balance-due payments by dialing 1-888-2PAY-TAX.(SM) Information on the new payment options will be included in tax instructions, which will be mailed by the state governments to taxpayers in January, or taxpayers can find it by visiting www.OfficialPayments.com on the Internet.

Official Payments Corp. charges consumers on average a 2.5% convenience fee for processing these credit card transactions. For example, a taxpayer who owed the government $1,400 and charged their taxes, would find a total of $1,435 on their credit card statement -- $1,400 for the tax bill and $35 for the convenience fee. American Express, Discover(R)Card and MasterCard(R) are the credit cards accepted by the program. Taxpayers using credit cards with bonus rewards programs can, depending on their card's program, earn points, cash-back or airline frequent flyer miles for paying their taxes.

"Taxpayers have three motivations for using our service: convenience, cash management and rewards. We offer a proven, secure, reliable and convenient way to pay taxes, with added benefits from credit card reward programs," said Thomas R. Evans, Chairman and Chief Executive Officer of Official Payments Corporation.

The Connecticut Department of Revenue estimates that 475,000 taxpayers will owe $448 million in balance due tax payments for 1999. "We are constantly taking steps to provide enhanced services to our citizens to streamline voluntary compliance. This new tax payment option gives them an innovative alternative to traditional payment channels," said Gene Gavin, Connecticut Tax Commissioner. "It's a win-win deal for both Connecticut and our taxpayers."

In Illinois, the Department of Revenue estimates that 2.3 million taxpayers will pay approximately $529 million in balance due payments for tax year 1999. "We are taking real steps to make the process of paying taxes efficient and convenient for our citizens," said Judy Baar Topinka, State Treasurer of Illinois. "Our 1-888-2PAY-TAX.(SM) number provided by Official Payments Corp. delivers on our promise of making it easier to pay your taxes." The Official Payments Corp. contract with Illinois is in conjunction with National City Bank (NYSE: NCC) for processing credit card payments.

About Official Payments Corp.

Official Payments Corporation (formerly U.S. Audiotex Corporation) is the leading provider of electronic payment options to government entities. The company enables consumers to pay government fees and taxes via telephone or the Internet, using their credit cards. The company has partnered with the United States Internal Revenue Service, several state governments and 450+ municipal and county entities, in which it collects property taxes, real estate taxes, parking fines and other government fees by credit card over the telephone and the Internet. Official Payments Corp. is committed to making payments to the government go fast, smart and safe.

Safe Harbor Statement:

The forward-looking statements in this press release are subject to substantial risks and uncertainties that could cause actual results to differ materially. Potential risks and uncertainties include, among other things: General economic and business conditions; major systems failures; constraints in capacity; trends in the Internet industry; rapid technological changes; maintenance of government contracts; increased competition; and unanticipated problems encountered in year 2000 readiness. The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release.