ECHO Merchant Processing Services

ECHO Press Releases

FOR IMMEDIATE RELEASE

ELECTRONIC CLEARING HOUSE AND FIRST PREFERRED BANK SETTLE LAWSUIT

Agoura Hills Calif., January 3, 2002 – Electronic Clearing House, Inc. (NASDAQ:ECHO) today announced the settlement of a lawsuit between First Preferred Bank (successor-in-interest to First Charter Bank) and the Company.

A Mutual Release and Settlement Agreement was filed with the Superior Court of the County of Los Angeles on December 27, 2001. The Mutual Release and Settlement releases ECHO and First Preferred Bank from any other liability in connection with the Merchant Marketing and Processing Agreement with First Charter Bank entered into on June 25, 1994.

ECHO terminated its processing agreement with First Charter Bank and filed a lawsuit on October 11, 2000 due to First Charter Bank’s failure to honor the terms of the agreement. First Charter Bank subsequently filed a counter-suit against ECHO, which was also settled as part of this Mutual Release and Settlement Agreement.

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

ECHO Electronic Clearing House, Inc. (800 233-0406)	http://www.echo-inc.com