ECHO Press Releases

FOR IMMEDIATE RELEASE

Electronic Clearing House Inc. Announces
$3.0 Million Private Placement of Common Stock

Camarillo, Calif., October 24, 2003 - Electronic Clearing House, Inc. (Nasdaq: ECHO), a leading provider of electronic payment and transaction processing services, announced today that it has entered into definitive agreements to sell 437,957 shares of its common stock in a private placement at $6.85 per share to institutional investors resulting in gross proceeds to Electronic Clearing House Inc. of approximately $3.0 million. After commissions and expenses, the net proceeds to the Company will be approximately $2.8 million.

The transaction is scheduled to close the week of October 27, 2003. The closing is subject to standard closing conditions. The Common Stock has not been registered under The Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The company has agreed to file a registration statement to register future resales of the shares.

About Electronic Clearing House, Inc. (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

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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