Press Release - 2002-10-24

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Bank of Internet USA

Press Release

For Immediate Release
Contact:

Gary Lewis Evans (858) 350-6213
Bank of Internet USA
Email: gary@bankofinternet.com

Bank of Internet USA Announces Record Quarter Profitability, Asset Growth and Loan Originations Up Setting Standard In Growth and Profitability

San Diego, CA (October 24, 2002) - Bank of Internet USA, (BofI.com) a leading Nationwide Internet Bank based in San Diego announced today that profits for the quarter were $666,824 and assets grew to $232,394,305. The 27-month-old Bank has depositors in all 50 states. Mortgage loan originations for the quarter totaled $34,000,000 and were originated in 15 states.

The Bank had its 4th consecutive quarter of profitability in September 2002, earning $666,824 versus a loss of ($82,792) for the same quarter in 2001. For the nine months ending September 2002 Bank of Internet USA recorded a net income of $1,995,000 compared to a loss of ($604,000) for the same 9-month period ending September 2001.

The Bank's balance sheet remains strong with one loan delinquency and a high quality of earnings with minimal interest rate risk.

"These achievements are a testament to the growing demand of Internet banking and financial services that we are experiencing nationwide, from all ages," said Gary Lewis Evans, President $ CEO.

Chairman Jerry Englert echoed those sentiments and added, "The Internet is a powerful delivery system when used correctly."

According to an October 21, 2002 WSJ article:

By the end of this year, the number of households that bank online is expected to reach 24.3 million -- nearly double the number of households at the end of 2000, according to Jupiter Research, of Darien, Conn. The reason for this surge, say bank and industry analysts, is simple familiarity. As consumers become more comfortable with the Internet in general, they're also embracing the idea of handling their finances over the web.

Online banking is "living up to the hype," says Rob Sterling, an analyst with Jupiter who covers the sector. "It's a useful service that people seem to like."

About Bank of Internet USA

The bank offers a comprehensive line of consumer banking and mortgage lending products delivered through the Internet at www.bankofinternet.com. Customers enjoy free interest-bearing checking accounts with online paid check copies, bill payment, account statements, 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.