Exhibit 99

NIC Earns Eight Cents Per Share in Fourth Quarter 2010; Total Revenues Increase 12 Percent

Same-state portal revenues grow 10 percent and Federal DOT service continues to accelerate

OLATHE, Kan.--(BUSINESS WIRE)--February 3, 2011--NIC Inc. (NASDAQ: EGOV), the leading provider of enterprise-wide, official state eGovernment services, today announced net income of $5.1 million and earnings per share of eight cents on total revenues of $40.8 million for the three months ended December 31, 2010. Operating income increased to $8.0 million for the quarter as compared to $3.9 million for the prior year quarter. In fourth quarter 2009, the company reported net income of $2.3 million and earnings per share of four cents on total revenues of $36.4 million.

Fourth Quarter 2010 Performance

Fourth quarter 2010 portal revenues were $38.7 million, a 10 percent increase over fourth quarter 2009. On a same-state basis, portal revenues grew 10 percent in the fourth quarter. Same-state, transaction-based revenues from non-driver record exchange (non-DMV) services rose 22 percent over fourth quarter 2009 through strong performance from several key services, including tax filings, court-related transactions, motor vehicle registrations and payment processing. Same-state DMV revenues decreased 1 percent in the fourth quarter, while same-state time & materials and portal management revenues increased 6 percent and 8 percent, respectively. Portal gross profits increased to $14.1 million, a 12 percent increase over the prior year quarter. NIC’s portal gross profit percentage was 36 percent in both the current and prior year quarters. Cost of portal revenues in both the current and prior year quarters includes approximately $0.2 million in portal-related start-up expenses.

Software & services revenues were $2.1 million in the current quarter, up 65 percent from the prior year quarter, driven by revenues from the Company’s self-funded contract with the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration. Launched in May 2010, the National Motor Carrier Pre-Employment Screening Program (PSP) generated approximately $0.9 million in revenues in the fourth quarter of 2010, with associated costs of approximately $0.4 million. This drove a four-fold increase in software & services gross profits over the prior year quarter to $1.1 million.

“We were pleased to see double-digit same-state portal revenue growth this quarter, reflecting our ability to consistently deploy in-demand online services for our government partners. It is also exciting to see the continued progress of our federal self-funded contract,” said Harry Herington, NIC Chief Executive Officer and Chairman of the Board. “We look forward to what the future holds for this service, as we set out in the initial stages of exploring additional federal opportunities.”

Selling & administrative expenses were $6.0 million in the current quarter, a 1 percent decrease from the fourth quarter of 2009. As a percentage of total revenues, selling & administrative expenses were 15 percent in the current quarter, down from 17 percent in the fourth quarter of 2009. The Company incurred approximately $1.0 million in legal costs and other third-party expenses in the fourth quarter of 2010 in connection with the previously disclosed SEC matter. However, the Company also received approximately $1.2 million of reimbursement of legal costs and third-party expenses from its directors’ and officers’ liability insurance carrier in the fourth quarter, which was treated as a reduction of selling & administrative expenses.

The Company expects to continue to incur legal fees and other expenses in connection with the previously disclosed pending derivative lawsuit and action by the SEC against NIC’s Chief Financial Officer. As previously disclosed, the Company’s directors’ and officers’ liability insurance carrier has agreed to reimburse NIC for certain reasonable costs of defense in the SEC action and pending derivative lawsuit. To the extent the Company’s directors’ and officers’ liability insurance carrier reimburses the Company for expenses previously recorded in selling & administrative expenses, including expenses incurred in the fourth quarter of 2010, the Company will treat any such reimbursements as a reduction of selling & administrative expenses in the period such reimbursement is determined to be estimable and probable.

Results in the prior year quarter included approximately $1.7 million of intangible asset amortization expense related to the previously announced acquisition of eGovernment contracts in the state of Texas, as compared to $0.1 million in the current quarter.

The Company’s effective tax rate in the current quarter decreased to 37 percent from 41 percent in the prior year quarter, primarily due to a favorable benefit related to the Federal research and development tax credit for the 2010 tax year totaling approximately $0.3 million, as legislation extending the tax credit for two more years was recently approved by Congress.

At December 31, 2010, NIC’s cash and cash equivalents totaled $51.7 million. As previously announced, on February 26, 2010 and December 30, 2010, NIC paid special dividends to stockholders of $0.30 per share and $0.25 per share, respectively. NIC used a total of $35.5 million of its cash reserves to pay the special dividends. Of the dividends paid in 2010, 49.42756 percent was a return of capital and 50.57244 percent was an ordinary qualified dividend. Stockholders are encouraged to consult with their tax specialists regarding the circumstances of their particular tax situations.

Fourth Quarter Operational Highlights

In the fourth quarter, the state of Montana signed a new contract with NIC, which has an initial five-year term with renewal options through December 2020. In addition, Oklahoma, Alabama, Iowa, and the U.S. Department of Transportation renewed contracts for one year.

Also during the quarter, NIC’s FBI “Most Wanted” mobile application was made available for the new Microsoft Windows Phone 7. Soon after it was available on the new device, Microsoft named “Most Wanted” its “Public Sector App of the Week” in early December. Microsoft also honored “Most Wanted” and NIC’s Recovery.gov mobile apps as winners in the “Federal App Contest.” “Most Wanted” placed in the Top10 while Recovery.gov made the Top 3.

“It’s been exciting to help government expand their communication with citizens through mobile,” said Herington. “We are honored to have our mobile expertise recognized by Microsoft, and have that follow the success we have already seen with these apps on the iPhone.”

Full-Year 2010 Performance

Fiscal year 2010 total revenues rose 22 percent to $161.5 million and portal revenues grew 21 percent to $155.2 million, driven by a full year of revenues from NIC’s Texas and New Mexico portals and steady same-state revenue growth. On a same-state basis, portal revenues were 8 percent higher than in 2009, with non-DMV transaction revenues growing 22 percent and DMV revenues up 1 percent for the year. Same-state time & materials revenues decreased by 9 percent for the year, while portal management revenues increased 3 percent.

Software & services revenues reached $6.4 million, up 47 percent from 2009 due mainly to revenues from the new federal PSP service, which totaled $2.0 million for 2010. Software & services gross profit increased 68 percent to $2.4 million for the year.

Selling & administrative expenses as a percentage of total revenues were 17 percent, down from 19 percent in 2009.

Operating income increased 34 percent to $29.4 million for the year, and NIC’s operating income margin percentage reached 18 percent in 2010, up from 17 percent in 2009.

2009 results include a non-recurring gain (net of tax) of approximately $2.2 million related to the previously announced acquisition of eGovernment contracts in the state of Texas. 2009 results also include approximately $0.8 million of acquisition-related costs (included in selling & administrative expense) and $4.1 million of intangible asset amortization expense related to the acquisition. 2010 results include approximately $0.3 million in intangible asset amortization expense related to the acquisition. 2009 portal revenues and cost of portal revenues relating to Texas were approximately $19.8 million and $13.7 million, respectively. 2010 portal revenues and cost of portal revenues relating to Texas were approximately $35.8 million and $26.2 million, respectively.

NIC earned 28 cents per share in 2010, up from 22 cents in 2009, exceeding the high end of the Company’s 2010 earnings guidance.

Full-Year 2011 Outlook

For full-year 2011, NIC currently expects total revenues of $175.5 – $180.0 million, with portal revenues ranging from $168.5 – $172.5 million and software & services revenues ranging from $7.0 – $7.5 million. The company also currently expects operating income to range from $31.4 - $33.5 million and net income of $19.0 – $20.5 million.

Portal gross profit margins for the year are currently expected to be in the upper 30-percent range, while software & services gross profit margins are currently expected to be in the mid- to upper-40 percent range for the year.

Selling & administrative expenses are currently expected to range between 16 and 17 percent of total revenues, while depreciation & amortization expense as a percentage of total revenues is expected to be approximately 3 percent in 2011.

“Our financial guidance anticipates another year of solid performance from our portal business with organic revenue growth in line with historical averages, and a meaningful top and bottom line contribution from a full year of our self-funded contract with the Federal Motor Carrier Safety Administration to operate the PSP service,” said Steve Kovzan, NIC’s Chief Financial Officer. “We also enter 2011 with a strong new state pipeline and an eye to expanding our Federal presence, both of which we hope will contribute favorably to our future growth.”

2011 projections do not include revenues from any unannounced contracts.

Webcast Information

To sign in and listen: The Webcast system is available at http://www.nicusa.com/investor.

A replay of NIC’s fourth quarter earnings call will be available until 11 p.m. (EDT) on August 4, 2011, by visiting http://www.nicusa.com/investor.

About NIC

NIC Inc. (NASDAQ: EGOV) is the nation's leading provider of official government portals and online services, and secure government payment processing solutions. The company's innovative eGovernment services help reduce costs and increase efficiencies for government agencies, citizens, and businesses across the country. The NIC family of companies provides eGovernment solutions for more than 3,000 federal, state, and local agencies that serve 98 million people in the United States. Additional information is available at http://www.nicusa.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Any statements contained in this release that do not relate to historical or current facts constitute forward-looking statements. These statements include NIC’s financial guidance for the current fiscal year, including the potential for growth in revenues and income, and statements regarding continued implementation of NIC's business model and its development of new products and services. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, NIC’s ability to successfully integrate into its operations recently awarded eGovernment contracts; NIC's ability to successfully increase the adoption and use of eGovernment services; the success of the company in signing contracts with new states and government agencies, including continued favorable government legislation; NIC's ability to develop new services; existing states and agencies adopting those new services; acceptance of eGovernment services by businesses and citizens; competition; pending litigation involving the Company; and general economic conditions (including the current economic slowdown) and the other important cautionary statements and risk factors described in NIC's 2009 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2010, and in NIC’s Quarterly Reports on Form 10-Q filed with the SEC in 2010. NIC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.

CONTACT:
NIC
Angela Skinner, 913-754-7054
Director of Communications
& Investor Relations
askinner@nicusa.com