ECHO Press Releases

FOR IMMEDIATE RELEASE

Electronic Clearing House (ECHO) Announces
Settlement of Litigation with Premiere Lifestyles International Corporation  

Agoura Hills Calif., March 11, 2002 – Electronic Clearing House, Inc. (NASDAQ: ECHO) announced today that it has settled all claims arising from litigation known as Premiere Lifestyles International Corporation v. Electronic Clearing House, Inc. This litigation previously has been reported in the Company’s public filings and press releases. Its settlement now avoids continued management time and costly litigation. Joel M. Barry, ECHO’s CEO, stated that “the Company was extremely reluctant to settle the lawsuit but given the judge’s encouragement to both parties to settle the matter and the potentially large legal costs connected with any appeal to a higher court, we concluded that a settlement was in the best interest of the Company, including its shareholders and employees. With the distraction of the litigation gone, management can now focus its full attention on the Company’s ongoing business strategies, growth and customers.” 

In the settlement approved by ECHO’s Board of Directors, the Company made a one-time cash payment of $1,200,000 to Premiere and will execute a long-term promissory note secured by the Company’s office building in favor of Premiere for an additional $1,300,000, payable over 15 years, with an interest rate of 8%. The Company made no admission of liability as part of this settlement. Mr. Barry reported that “management believes that the Company continues to have a solid balance sheet despite the costs associated with the settlement.”

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