September 9, 2002, Agoura Hills CA., – Electronic Clearing House, Inc. (NASDAQ:ECHO), a leading provider of electronic payment services, today announced that the Company has entered into an agreement to provide a complete check management solution to Hastings Entertainment, Inc. (NASDAQ:HAST). 

Texas-based Hastings Entertainment is a leading multimedia entertainment retailer that combines the sale of books, music, software, periodicals, new and used DVDs, videos and video games with the rental of videos, DVDs and video games in a superstore format. Hastings currently operates 144 stores, averaging approximately 20,000 square feet, primarily in small to medium-sized markets throughout the United States.

Electronic Clearing House entered into the agreement through its relationship with Cincinnati-based Provident Bank (NASDAQ:PFGI). The check solution will enable Hastings to streamline and automate the process of receiving checks from its customers. The components of this service include:

• Check authorization at the point of sale through using ECHO’s NCN database
• Consolidated returns and electronic check imaging through Provident Bank 
• Automated check re-presentment
• A second re-presentment using ECHO’s SmartDate (payday) technology to increase probability of check clearing, and 
• Collection services in the event of a returned check.

Using ECHO’s check solution, Hastings will be able to significantly reduce both the time it takes to know the status of the checks (returned or cleared) and the cost of returned item bank fees. These services also simplify the account reconciliation processes, and will improve Hasting’s ability to collect returned checks. 

According to Arnold Feinberg, VP of Sales at ECHO, “Hastings’ transition from a paper-based system lowers their cost of check acceptance and increases the speed and success of collection efforts.”

“We are pleased that Hastings Entertainment finds value in ECHO’s check services and feel honored to be working with them”, said Joel M. Barry, Chairman and CEO of Electronic Clearing House, Inc.

About ECHO:

Electronic Clearing House, Inc. (www.echo-inc.com) provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO’s services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection, and inventory tracking.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts re 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 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, the adequacy of the Company’s liquidity and financial strength to support its growth, 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