Bank of Internet USA Announces 400% Increase In Quarterly Pre-Tax Profits And Record 12-Month Results Growth in Profitability, Assets and Loan Originations.

The 16th consecutive month of profits for the 30-month old bank.

San Diego, CA (January 27, 2003) - Bank of Internet USA, (BofI.com) a leading Nationwide Consumer Bank based in San Diego announced today that profits before tax for the quarter were a record $850,940. Loans and total assets grew to $203,005,143 and $252,296,204 respectively. The two and a half year old Bank has loan and deposit customers in all 50 states.

The Bank tallied its 5th consecutive quarter of increasing pre-tax profitability in earning $850,940 in December 2002 versus $170,220 for the same quarter in 2001, an increase of 400%. For the twelve months ending December 2002, Bank of Internet USA recorded a pre-tax net income of $2,665,383 compared to a loss of ($435,085) for the same 12-month period ending December 2001.

The Bank's balance sheet remains strong with one loan delinquency and a high quality of earnings with minimal interest rate risk. "The growing number of people adopting banking over the Internet is undeniable" said Gary Lewis Evans, President and CEO, "while many banks offer Internet banking to existing customers, Bank of Internet USA is specifically designed for Internet Banking which assures maximum customer benefits."

The Chairman of the Bank, Jerry Englert added, "We are very pleased at the positive response to our banking services, as evidenced by the growth in deposits, loans, and profits.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the economic impact of the terrorist attacks on September 11, 2001, and the U.S. response to these attacks, changes in economic conditions in the Company's market areas, changes in policies by regulatory agencies, the impact of competitive loan products, loan demand risks, the quality or composition of the loan or investment portfolios, including levels of non-performing assets, fluctuations in interest rates, and changes in the relative differences between short and long term interest rates, and operating results and other risks attendant to the banking business. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause the Company's actual results for 2003 and beyond to differ materially from those expressed in any forward looking statements by, or on behalf of, the Company.