Timberland Savings Bank Purchases Mitek Check Imaging Solution.

Business Editors, High-Tech/Banking Writers

SAN DIEGO--(BUSINESS WIRE)--Nov. 6, 2000

Washington State community bank to install Mitek's CheckQuest(TM)

Mitek Systems, Inc., (NASDAQ: MITK), a developer of automated document recognition technology, announced that Timberland Savings Bank of Hoquiam, Washington, has purchased CheckQuest, Mitek's check imaging system.

According to Timberland Savings Bank officials, the bank will use its new check imaging system to improve its processing, research, and customer service capabilities. With total assets of $344 million (as of June 30, 2000), Timberland Bank currently processes 12,000 checks a day. The bank plans to implement CheckQuest in December, 2000.

CheckQuest provides financial institutions with low- to medium-check processing volumes, an affordable, high performance, image-enabled solution for proofing, capturing, encoding, reconciling, researching, and storing/archiving checks that was previously available only to high-volume financial institutions.

After looking at several imaging systems for more than a year, Timberland selected CheckQuest because it has all the features they need to improve their check processing operations. From a customer service point of view, before CheckQuest, researching checks was very cumbersome because the checks were stored on microfiche. If a check needed to be pulled for any reason, it could possibly take hours to find it. CheckQuest locates an item, reproduces a statement, or generates a report very quickly because the image will be stored electronically and can be sorted in a variety of methods, according to a Timberland Savings Bank manager.

CheckQuest, a Windows(R)-based application, is built on a client/server, embedded, relational database which requires no in-house programming resources. The system needs minimal hardware and can run on a single PC workstation with a laser printer and an image item processor.

According to a Timberland Bank official, CheckQuest's unique forms processing and document identification capabilities that are built into the system should dramatically improve the bank's balancing efficiency and overall workflow. The CheckQuest system is designed to process any number of bank documents without the aid of a Magnetic Ink Character Recognition (MICR) line or forms redesign that is often required with other traditional proof of deposit systems.

About Timberland Savings Bank

Timberland Bancorp, Inc. is the holding company for Timberland Savings Bank, an 85 year-old western Washington-based financial institution. Timberland Bancorp, Inc. stock trades on the NASDAQ national market under the symbol "TSBK."

About Mitek Systems

Mitek Systems, Inc. is a worldwide provider of intelligent character recognition technology, products and services for the document and check imaging markets. The company's document imaging software engine and intelligent character recognition products and services are used in mission-critical and high volume data entry, data capture, and forms processing applications installed in many of the world's leading financial institutions, manufacturing and service companies, and government organizations. For more information about Mitek Systems, contact the company at 10070 Carroll Canyon Road, San Diego, CA 92131; 858-635-5900 or visit the company's Web site at www.miteksys.com.

Forward-Looking Statement Disclosure

With the exception of historical matters, the matters discussed in this news release are forward-looking statements that involve risks and uncertainty. Forward-looking statements include, but are not limited to, statements relating to the development and pace of sales of the Company's products, expected trends and growth in the Company's results of operations, projections concerning the Company's available cash flow and liquidity, anticipated penetration in new and existing markets for the Company's products and the size of such markets, anticipated acceptance of the Company's products by existing and new customers, the ability of the Company to sustain any growth in sales and revenue and the increase in sales representatives and other personnel. The Company's actual results could differ in such forward-looking statements. There can be no assurance that the Company will achieve the results set forth herein. Mitek and CheckQuest are trademarks or registered trademarks of Mitek Systems, Inc. All other product or company names may be trademarks or registered trademarks of their respective holders.