ECHO Press Releases

FOR IMMEDIATE RELEASE
Friday September 7, 2001

ECHO 1-for-4 Reverse Split of Common Stock Approved by Shareholders

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Sept. 7, 2001--Electronic Clearing House Inc. ("ECHO'') (Nasdaq:ECHOC - news), a leading provider of electronic payment systems, today announced that its shareholders have approved a one-for-four reverse split of the company's common stock at a special shareholders' meeting held on Sept. 7, 2001.

The reverse split will affect shareholders of record at the close of business on Monday, Sept. 10, 2001, and the company's common stock will begin trading on a post-split basis at the open of business on Tuesday, Sept. 11, 2001. The letter ``D'' will be appended to ECHO's trading symbol for 20 trading days so the trading community is aware of the reverse split. The reverse split will reduce the number of shares presently outstanding from 21.6 million to approximately 5.4 million shares.

The action is being taken in response to a Jan. 5, 2001 notification to the company from the Nasdaq Stock Market that ECHO did not meet the $1.00 minimum closing bid price requirement for continued listing on the Nasdaq SmallCap market.

In July, Nasdaq granted the company continued listing subject to ECHO meeting the following conditions: 1) on or before Aug. 3, 2001, the company was required to file a proxy statement with the Securities and Exchange Commission and Nasdaq, evidencing its intent to seek shareholder approval for a reverse stock split; and 2) on or before Sept. 17, 2001, the company is required to demonstrate a closing bid price of at least $1.00 per share and, immediately thereafter, a closing bid price of at least $1.00 per share for a minimum of ten consecutive trading days.

The company believes that the reverse split will resolve the bid price deficiency; however, there can be no guarantee that it will do so.

``We are pleased that the company's shareholders have approved this reverse stock split,'' said Joel M. Barry, chairman and chief executive officer of ECHO. ``Given the company's strong sales growth and opportunity to rapidly expand our check-related services, we believe this step positions ECHO to maintain our Nasdaq SmallCap listing and create shareholder value in the future.''

Notification to registered shareholders regarding the exchange of stock certificates will be forthcoming.

About ECHO:

Electronic Clearing House Inc. provides debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection and inventory tracking to more than 60,000 retail merchants and U-Haul dealers across the nation.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as successful completion of the Visa POS check service pilot program, acceptance of the service by Visa member banks, fluctuations in demand for the company's products and services, the introduction of new products and services, the company's ability to maintain customer and strategic business relationships, technological advancements, impact of competitive products and services and pricing, growth in targeted markets and other information detailed from time to time in the company's filings with the United States Securities and Exchange Commission.

Investor Contacts:

Donna Rehman, Corporate Secretary 
Electronic Clearing House, Inc.
818-706-8999, ext. 3033 
Agoura Hills, Calif. 
E-MAIL: corp@ECHO-inc.com
URL: http://www.ECHO-inc.com

Crocker Coulson, Partner
Coffin Communications Group
818-789-0100
E-MAIL: crocker.coulson@coffincg.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