FOR IMMEDIATE RELEASE

Electronic Clearing House Inc. Announces Recalculated Diluted Earnings/Loss Per Share for FY 2003

• Diluted net loss per share recalculated to be ($0.56) vs. previously reported ($0.58)
• Diluted net income per share before cumulative effect of accounting change recalculated to be $0.22 vs. previously reported $0.23

Camarillo, Calif., December 26, 2003 - Electronic Clearing House, Inc. (Nasdaq: ECHO), a leading provider of electronic payment and transaction processing services,

today announced a recalculation of the diluted earnings/loss per share amounts reported in its press release issued on December 16, 2003.

Although in management's opinion the recalculation does not result in a significant difference between the diluted earnings/loss per share previously disclosed and those arising from the recalculation, the Company believes that it is in the best interest of its stockholders to provide complete and accurate disclosure with respect to the calculation of its diluted earnings/loss per share.

On December 16, 2003, the Company announced that for the fiscal year ended September 30, 2003, it earned $0.23 per basic and diluted share on revenue of $40,636,000 before the cumulative effect of an accounting change to record the impairment of goodwill. This compared to a loss of $0.41 per share on revenue of $33,291,000 for the fiscal year ended September 30, 2002. The Company further announced that, including the cumulative effect of the accounting change, it recorded a loss of $0.58 per basic and diluted share in fiscal 2003. The cumulative effect of the accounting change was calculated as $0.81 per basic share and per diluted share.

As a result of its review of FASB 128, which provides the guidance for the calculation of earnings per share, the Company has determined that the effect of shares underlying dilutive stock options is required to be included in the calculation of diluted weighted average shares outstanding for purposes of calculating earnings/loss per diluted share, even though this calculation would be considered anti-dilutive since the Company recorded a net loss for the year. Taking into account the effect of shares underlying dilutive stock options, the Company earned $0.23 per basic share and $0.22 per diluted share for the fiscal year ended September 30, 2003, on revenue of $40,636,000 before the cumulative effect of an accounting change to record the impairment of goodwill. Including the cumulative effect of the accounting change, it lost $0.58 per basic share, and $0.56 per diluted share, in fiscal 2003. The cumulative effect of the accounting change is calculated to be $0.81 per basic share and $0.78 per diluted share. The difference in diluted earnings/loss per share is attributable to an additional 212,035 shares underlying dilutive stock options required to be included in the calculation of diluted weighted average shares outstanding.

The Company also reported net income of $518,000, or $0.08 per share, on a fully diluted basis in the fourth quarter of fiscal 2003, as compared to a net loss of $207,000, or $0.03 per share, in the fourth quarter of fiscal 2002. This calculation did not change.

About Electronic Clearing House, Inc. (ECHO)

Electronic Clearing House, Inc. 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.

For more information about ECHO, please visit www.echo-inc.com.

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 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.

ELECTRONIC CLEARING HOUSE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

                         Three Months             Twelve Months
                      Ended September 30,      Ended September  30,
                        2003        2002         2003         2002

Revenues:
 Processing revenue $ 5,592,000  $4,315,000  $21,151,000  $16,363,000
 Transaction
  revenue             5,325,000   4,113,000   19,162,000   16,526,000
 Other revenue           73,000     141,000      323,000      402,000
                     10,990,000   8,569,000   40,636,000   33,291,000

Costs and expenses:
 Processing and
  transaction
  expense             6,764,000   6,072,000   26,360,000   22,747,000
 Other operating
  costs               1,029,000     774,000    3,358,000    3,012,000
 Research and
  development
  expense               363,000     455,000    1,405,000    1,719,000
 Selling, general
  and administrative
  expenses            1,965,000   1,485,000    7,088,000    6,493,000
 Amortization
  expense - goodwill        -0-     104,000          -0-      489,000
 Legal settlement           -0-         -0-          -0-    2,500,000
                     10,121,000   8,890,000   38,211,000   36,960,000

Income (loss) from
 operations             869,000    (321,000)   2,425,000   (3,669,000)
Interest income           7,000       9,000       28,000       55,000
Interest expense        (50,000)    (45,000)    (200,000)    (129,000)

Income (loss)
 before provision
 for income taxes       826,000    (357,000)   2,253,000   (3,743,000)

(Provision) benefit
 for income taxes      (308,000)    150,000     (925,000)   1,367,000
Income (loss)
 before cumulative
 effect of an
 accounting change      518,000    (207,000)   1,328,000   (2,376,000)
Cumulative effect
 of an accounting
 change to adopt
 SFAS 142                   -0-         -0-   (4,707,000)         -0-

Net income (loss)   $   518,000  $ (207,000) $(3,379,000) $(2,376,000)

Basic net earnings
 (loss) per share
  Before cumulative
   effect of
   accounting
   change           $      0.09  $    (0.03) $      0.23  $     (0.41)
  Cumulative effect
   of accounting
   change                   -0-         -0-        (0.81)         -0-
  Basic net
   earnings (loss)
   per share        $      0.09  $    (0.03) $     (0.58) $     (0.41)

Diluted net
 earnings (loss)
 per share
  Before cumulative
   effect of
   accounting
   change           $      0.08  $    (0.03) $      0.22  $     (0.41)
  Cumulative effect
   of accounting
   change                   -0-         -0-        (0.78)         -0-
  Diluted net
   earnings (loss)
   per share        $      0.08  $    (0.03) $     (0.56) $     (0.41)

Weighted average
 shares outstanding
   Basic              5,839,775   5,796,109    5,812,005    5,788,071
   Diluted            6,261,209   5,796,109    6,024,040    5,788,071

     Electronic Clearing House, Inc.
     Donna Rehman, 805-419-8533
     corp@ECHO-inc.com 
     http://www.echo-inc.com
      or
     Coffin Communications Group
     Crocker Coulson, 818-789-0100
     crocker.coulson@coffincg.com