ECHO Press Releases

FOR IMMEDIATE RELEASE
February 9, 2001

ELECTRONIC CLEARING HOUSE ANNOUNCES
FIRST QUARTER FISCAL 2001 RESULTS

Agoura Hills, Calif.-- Electronic Clearing House, Inc. (NASDAQ:ECHO) reported fiscal 2001 first quarter net earnings of $22,000, as compared to a net loss of $19,000 for the same period last year.  Net income before income tax provision was $104,000 for this fiscal quarter versus a net loss of $4,000 for the first fiscal quarter 2000. Both basic and diluted net income per share was nil in this fiscal quarter, versus basic and diluted net loss per share of nil for the prior fiscal quarter.

Total revenue for the quarter increased 12.5%, from $6,205,000 in fiscal 2000 to $6,979,000 in fiscal 2001. Total processing and transaction revenue increased 11.2%, from $6,097,000 in fiscal 2000 to $6,780,000 in fiscal 2001.  This reflects the increase in the check-related revenue as the Company continues to deploy additional check products, such as the announced ECHOTERM 3200 product to the retail market and the "check by phone" and "RCK" services marketed directly to collection agencies. Terminal sales decreased from $108,000 in fiscal 2000 to $98,000 in fiscal 2001, a 9.3% decrease.  Other revenues increased from $0 in fiscal 2000 to $101,000 in fiscal 2001 from contract programming income.  

"We are pleased to report that our check-related revenue continues to grow at a much higher rate than the bankcard revenue," stated Alice Cheung, CFO of ECHO.  "Bankcard processing and transaction revenue increased 1.4% year-over-year while the check-related revenue increased by 272.0%.  This was primarily the results of the Rocky Mountain Retail Systems acquisition completed in January 2000.  Additionally, we have fully integrated the check services with our bankcard services so we are now marketing them together," Cheung continues.  "As we continue to deploy our new check services, we expect our gross margins to improve."

Electronic Clearing House, Inc. provides credit card processing, check guarantee, check verification, check conversion, inventory tracking and/or various Internet services to over 58,000 retail merchants and U-Haul dealers across the nation.

 To take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, you are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties.  Actual operations and results may differ materially from those expressed in the forward-looking statements made by the Company.
 

Media Contact:
Donna Rehman, Corporate Secretary
(818) 706-8999, ext. 3033 or corp@echo-inc.com

Press Releases are also available by calling (800) 233-0406 ext. 3033, or by email to corp@echo-inc.com

2001
2000

Electronic Clearing House, Inc. (ECHO)
28001 Dorothy Drive
Agoura Hills, CA 91301

Phone: (800) 233-0406
Fax: (818) 991-5973
E-Mail: echo@echo-inc.com
URL: http://www.echo-inc.com