Bank of Internet USA Sets the Standard for Free Internet-Based Bill Paying

San Diego, CA-Gary Evans, President and CEO of Bank of Internet USA announced today that Bank of Internet would continue to include free online bill paying as part of its service to customers.

"Giving customers the ability to pay bills online is significant. The majority of vendors offer free online payment, but we've found that most people prefer to consolidate, and pay all their bills from one site." Said Evans.

Evans went on to say that while statistics* indicated that online bill paying by consumers is rising, a lot of banks have been caught short by not including it as part of their Internet banking technology. "I think that a number of banks are now facing the dilemma of whether or not to offer online bill paying as an additional product without an additional fee, or risk losing existing and potential customers."

53% of Bank of Internet's checking customers pay their bills online. Evans anticipates that figure to be as much as 75% by 2003.

*In a study by Stamford, CT-based Gartner Group, more than 30 million people use e-billing services today. That number is expected to reach 100 million by 2005. However, only 40% go to their financial institutions' sites.

For more information contact: Gary Evans at gary@bankofinternet.com Tel: 858.350.6213 or Anne Bernstein at annebernstein@cox.net Tel: 619.298.4390.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Information in this press release about the bank's ongoing effort to increase its overall profitability; its ability to continue attracting new account applications consistent with the current volume; its operational expenses remaining low; are "forward-looking statements" involving risks and uncertainties that could cause actual results to differ materially. Risks include the bank's consumers not responding to the bank's products; a change in strategy at the bank for business or financial reasons; and an unforeseen change in the Internet. The bank has no obligation to update any forward-looking statements.