Bank of Internet USA Posts Record Yearly Profit 2-year old institution a rare Internet success

San Diego (CA) - Bank of Internet USA today announced financial results for the fiscal year ending June 2002. The Bank, headquartered in San Diego ended the year with a 39% increase in assets of $217 million, added $1,416,000 profit to the bottom line compared to a first year loss of $1,010,000. This $2,426,000 improvement occurred in the Bank's second year of operation. Most banks take three or more years to show black ink and many more years before reaching the million-dollar profit milestone.

Nationwide, loan and deposit customers are quickly signing up for the Bank's products and services. The Bank's reach extends to areas far beyond San Diego.

What are customers finding at the Bank of Internet USA that they can't get elsewhere?

Gary Lewis Evans, Bank President and Chief Executive Officer, sums it up by describing the Bank as the "Costco of banking." Evans said "the Bank's customers benefit from our low cost structure that allows us to pass the savings on to them. We have the essential bank products that every Bank offers but at a lower cost to the consumer due to lower overhead," Evans said. "We save people time, we save people money and we make people money" Despite the fact, as Evans notes, other Banks are "moving towards Bank of Internet USA with their own Internet banking, they can only do so within their own cost structure." Instead of the "brick and mortar" other banks must subsidize, Bank of Internet USA is a 24-hour, 7-day Internet full-service banking institution with customers in all 50 states. They're even open on holidays.

Bank of Internet was founded on fundamental banking principles. "at Bank of Internet USA we deliver the product when the customer demands the product," Evans said. "Right now our business is significantly referral driven because we are consumer oriented. We enjoy great "word of mouse"."

The Bank of Internet USA's fundamentals further explain its success. BofI doesn't require customers to move all their accounts to the Bank to borrow, and its customers can pick and choose options suited to meet their individual needs. BofI also gives the consumer further choices if they live in a one-bank town. "If a customer is located anywhere in the United States where they only have direct access to one bank, BofI can provide them with another banking option," Evans noted. He also stated that other banks with Internet access require the customer to open an account in person. "Not so with Bank of Internet USA," Evans said. Just the click of a mouse will open any loan or deposit account offered at BofI.

The Bank offers a comprehensive line of consumer banking and mortgage lending products delivered through the Internet at www.BankofInternet.com. Customers enjoy interest-bearing checking accounts with online statements, paid check copies, bill payment, ATM or Visa^® Check Card and ATM Fee reimbursement anywhere in the world.

"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.