Exhibit 99.1

News
For Immediate Release

Media Contact:		Investor Contact:
Beth Halloran		Catherine Graham
Sr. Dir., Corporate Communications		EVP & Chief Financial Officer
703.653.2248		703.653.3155
bhalloran@orcc.com		cgraham@orcc.com

ONLINE RESOURCES POSTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS

Board Concludes Evaluation of Strategic Alternatives

CHANTILLY, Va., March 15, 2011 — Online Resources Corporation (Nasdaq: ORCC), a leading provider of online financial services, today reported financial and operating results for the three months and full year ended December 31, 2010. For the fourth quarter:

•

Revenue was $37.8 million, compared to $38.2 million in the fourth quarter of 2009.

•

Ebitda, a non-GAAP measure, was $6.3 million, compared to $9.3 million in the same quarter of 2009.

•

Adjusted Ebitda, a non-GAAP measure that adjusts Ebitda for equity compensation expense and other expense, was $7.0 million, compared to $10.2 million in the prior year period.

•

Net loss available to common stockholders was $2.0 million, or $0.06 per share, compared to $1.1 million or $0.04 per share in the fourth quarter of 2009.

•

Core net income, a non-GAAP measure, was $1.0 million, or $0.03 per diluted share, compared to $1.8 million, or $0.06 per diluted share, in the same quarter of 2009.

For the full year 2010, Online Resources reported revenue of $149.5 million, compared to $151.9 million in 2009; Ebitda of $28.0 million, compared to $33.6 million in 2009; adjusted Ebitda of $30.9 million, compared to $37.7 million in 2009; net loss available to common stockholders of $0.14 per share, compared to $0.14 per share in 2009; and core net income of $0.19 per diluted share, compared to $0.29 per diluted share in 2009.

Long-Term Strategy

The Company’s Board of Directors announced that, after careful consideration, it has terminated its evaluation of potential business combinations and is not actively pursuing alternatives to the Company’s long-term strategic growth plan.

“The Board of Directors determined that the completion of a transaction on acceptable terms was unlikely at this time and that the best course of action to achieve the highest shareholder value is to continue to aggressively pursue our long-term strategic growth plan,” said Joseph L. Cowan, president and chief executive officer of Online Resources. “We have identified clear objectives to re-focus and maximize our technology, products and organizational structure to drive revenue and earnings growth. We are bullish about the opportunities that lie ahead for Online Resources.”

(more)

Details of the Company’s long-term strategic growth plan will be provided during a conference call and web cast to be hosted by management at 4:30 p.m. ET today.

Outlook for First Quarter 2011

Online Resources provided the following guidance for the first quarter of 2011. These statements are forward-looking, and actual results may differ materially.

•

Revenue for the first quarter is expected to be between $38.2 and $38.7 million.

•

Ebitda1,2 for the quarter is expected to be between $4.4 and $4.7 million

•

Adjusted Ebitda1,2 for the quarter is expected to be between $5.0 and $5.3 million.

•

Core net loss1,3,4,5 is expected to be between $(0.02) and $(0.01) per share.

The above guidance does not include costs associated with the potential business combination evaluation process or any restructuring costs that may be incurred during the quarter.

(1)

The Company uses non-GAAP (Generally Accepted Accounting Principles) financial measures, including Ebitda, adjusted Ebitda and core net income, to evaluate performance and establish goals. It believes that these measures are valuable to investors in assessing the Company’s operating results when viewed in conjunction with GAAP results.

(2)

Ebitda is defined as net income before interest, taxes, depreciation and amortization expense. Adjusted Ebitda is defined as net income before interest, taxes, depreciation and amortization, and equity compensation expense and other expense.

(3)

Core net loss is defined as net income available to common stockholders before, on a pre-tax basis unless otherwise noted, the amortization of acquisition-related intangible assets, equity compensation expense, income tax benefit or expense from the change in valuation allowance, income (costs) related to the fair market valuation of certain derivatives and mark-to-market investments, preferred stock accretion related to the redemption premium and all other non-recurring charges. Some or all of these items may not be applicable in any given reporting period.

(4)

Excludes estimates for amortization of acquisition-related intangible assets of $1.3 million, equity compensation expense of $0.6 million and preferred stock accretion related to the redemption premium of $0.4 million.

(5)

Core net loss per share calculated using estimated shares outstanding of 31.5 million.

Conference Call and Web Cast: Results and Strategic Overview

Management will host a conference call to discuss fourth quarter and full year results and an overview of the Company’s long-term growth strategy at 4:30 p.m. ET today. Management will refer to a presentation during the strategic portion of the call that is labeled “Strategic Growth Plan,” which is available in the Press Room and the Investors sections of our web site at orcc.com. Alternatively, investors may click on the web cast link in the Investors section of the web site to both listen to the call and view the slides.

The conference call dial-in number is (877) 303-6496 for domestic participants and (707) 287-9318 for international participants. Alternatively, a live web cast of the call will be available through the “Investors” section of Online Resources’ web site at www.orcc.com. The call and web cast will be recorded and available for playback from 8:00 p.m. ET on March 15^th until midnight on Tuesday, March 22^nd. For the conference call playback, dial (800) 642-1687 for domestic participants and (706) 645-9291 for international participants and enter code 51158192. For web cast replay, go to the “Investors” section of www.orcc.com.

About Online Resources

Online Resources (Nasdaq: ORCC) powers financial interactions between millions of consumers and the Company’s financial institution and biller clients. Backed by its proprietary real-time payments gateway that links banks directly with billers, the Company provides web and phone-based financial services, electronic payments and marketing services to drive consumer adoption. Founded in 1989, Online Resources is the largest financial technology provider dedicated to the online channel. For more information, visit www.orcc.com.

This press release provided by Online Resources Corporation (as well as other written and oral statements made by the company from time to time) contains forward-looking statements which are based on our management’s current expectations and beliefs, and on a number of assumptions concerning future events made with information that is currently available. The words “will,” “would,” “may,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “believe,” “target,” “designed,” “plan,” and similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are not a guarantee of any results or performance and are subject to a number of known and unknown risks, uncertainties and other factors (including those which are outside of Online Resources’ control) which could cause actual performance or results to differ materially and adversely from any results or performance expressed or implied by such forward-looking statements. Certain factors that might cause such a difference include, but are not limited to: our history of losses and anticipation of future losses; potential fluctuations in our operating results; our dependence on the marketing efforts of third parties; the potential loss of one or more material clients; our potential need for

additional capital; our potential inability to prevent systems failures and security breaches; our potential inability to expand our services and related products in the event of a substantial increase in demand for such services and products; competition in our markets; our ability to attract and retain skilled personnel; our reliance on patents and other intellectual property; potential change in the rate of user adoption of the products and services we offer; our exposure to consolidation in the financial services industry; and government regulation affecting our business and client base. For a more detailed description of the factors that could cause such a difference, please refer to Online Resources’ filings with the Securities and Exchange Commission, including the information under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 15, 2011. Online Resources assumes no obligation to update or supplement any forward-looking statements.

###

Online Resources Corporation
Quarterly Operating Data¹
(Unaudited)

		1Q09				2Q09				3Q09				4Q09				1Q10				2Q10				3Q10				4Q10
BANKING SERVICES
Payment Services
Revenue		$	17.5			$	17.2			$	17.1			$	16.7			$	16.4			$	15.7			$	15.3			$	14.7
Bill Payment Transactions			39.0				37.3				38.5				37.8				35.9				36.6				37.9				37.7
Other Revenue		$	5.4			$	5.9			$	5.7			$	7.7			$	7.0			$	6.5			$	7.0			$	7.7
eCOMMERCE SERVICES
Payment Services — User Paid
Revenue		$	6.5			$	5.8			$	4.7			$	4.1			$	4.8			$	4.1			$	3.9			$	3.9
Bill Payment Transactions			1.7				1.6				1.4				1.2				1.4				1.3				1.4				1.4
Payment Services — Biller Paid
Revenue		$	7.1			$	7.0			$	7.2			$	7.3			$	8.6			$	8.4			$	8.5			$	8.8
Bill Payment Transactions			12.7				13.5				13.7				14.2				15.4				15.9				16.6				17.9
Other Revenue		$	2.7			$	1.9			$	1.9			$	2.4			$	1.9			$	1.7			$	2.0			$	2.6
OTHER KEY METRICS
Internet Banking Adoption Rate			38.3	%			40.8	%			43.2	%			46.0	%			45.2	%			47.9	%			49.4	%			49.4	%
Banking Billpay Adoption Rate			10.4	%			10.7	%			11.1	%			11.4	%			11.6	%			11.9	%			12.2	%			13.1	%
Enterprise Users			13.8				14.0				14.3				14.8				14.7				15.0				15.8				16.6

Notes:

1. In millions except adoption rates.

Online Resources Corporation
Consolidated Statements of Operations
(In thousands, except per share data)

		THREE MONTHS ENDED								TWELVE MONTHS ENDED
		DECEMBER 31,								DECEMBER 31,
		2010				2009				2010				2009
		(Unaudited)								(Unaudited)
Revenues:
Account presentation services		$	2,733			$	2,321			$	9,408			$	8,198
Payment services			27,431				28,165				113,007				118,291
Relationship management services			1,909				2,107				8,408				8,162
Professional services and other			5,704				5,653				18,690				17,212
Total revenues			37,777				38,246				149,513				151,863
Expenses:
Cost of revenues			20,547				18,764				78,953				77,260
Gross profit			17,230				19,482				70,560				74,603
General and administrative			8,718				7,576				32,146				31,140
Selling and marketing			4,875				4,796				19,532				20,747
Systems and development			2,498				2,763				9,901				9,394
Total expenses			16,091				15,135				61,579				61,281
Income from operations			1,139				4,347				8,981				13,322
Other income (expense)
Interest income			26				13				65				117
Interest expense			(675	)			(965	)			(226	)			(4,265	)
Other income (expense)			66				—				(32	)			91
Total other income (expense)			(583	)			(952	)			(193	)			(4,057	)
Income before tax provision			556				3,395				8,788				9,265
Income tax provision			130				2,185				3,412				4,135
Net income			426				1,210				5,376				5,130
Preferred stock accretion			2,437				2,347				9,560				9,208
Net income (loss) available to common stockholders		$	(2,011	)		$	(1,137	)		$	(4,184	)		$	(4,078	)
Net income (loss) available to common stockholders per share:
Basic		$	(0.06	)		$	(0.04	)		$	(0.14	)		$	(0.14	)
Diluted		$	(0.06	)		$	(0.04	)		$	(0.14	)		$	(0.14	)
Shares used in calculation of net income (loss) available to common stockholders per share:
Basic			31,264				30,092				30,954				29,947
Diluted			31,264				30,092				30,954				29,947

Online Resources Corporation
Condensed Consolidated Balance Sheets

(In thousands)

		DECEMBER 30,				DECEMBER 31,
		2010				2009
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	29,127			$	22,907
Accounts receivable, net			20,410				17,457
Deferred tax asset, current portion			3,893				7,477
Prepaid expenses and other current assets			5,039				4,043
Total current assets			58,469				51,884
Property and equipment, net			25,145				25,561
Deferred tax asset, less current portion			22,536				22,490
Goodwill			181,516				181,516
Intangible assets			14,157				19,972
Deferred implementation costs, less current portion, and other assets			8,762				7,067
Total assets		$	310,585			$	308,490
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,410			$	2,008
Accrued expenses			6,293				3,739
Notes payable, senior secured debt, current portion			27,188				8,250
Deferred revenues, current portion, and other current liabilities			8,232				6,820
Total current liabilities			44,123				20,817
Notes payable, senior secured debt, less current portion			9,563				40,500
Deferred revenues, less current portion, and other long-term liabilities			6,956				6,888
Total liabilities			60,642				68,205
Redeemable convertible preferred stock			110,182				100,623
Stockholders’ equity			139,761				139,662
Total liabilities and stockholders’ equity		$	310,585			$	308,490

Online Resources Corporation
Condensed Consolidated Statements of Cash Flows

(In thousands)

		TWELVE MONTHS ENDED
		DECEMBER 31,
		2010				2009
		(Unaudited)
Operating activities
Net income		$	5,376			$	5,130
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred tax expense			3,538				3,568
Depreciation and amortization			19,052				20,236
Equity compensation expense			2,853				4,201
Write off and amortization of debt issuance costs			310				285
Loss on disposal of assets			—				(14	)
Provision for losses on accounts receivable			200				77
Loss on investments			—				(91	)
Change in fair value of theoretical swap derivative			(1,336	)			(106	)
Changes in certain other assets and liabilities			(105	)			(79	)
Net cash provided by operating activities			29,888				33,207
Investing activities
Capital expenditures			(12,741	)			(9,260	)
Sale of short-term investments			—				2,146
Net cash used in investing activities			(12,741	)			(7,114	)
Financing activities
Net proceeds from issuance of common stock			1,093				568
Repayment of 2007 notes			(12,000	)			(26,687	)
Repayment of capital lease obligations			(20	)			(36	)
Net cash used in financing activities			(10,927	)			(26,155	)
Net increase (decrease) in cash and cash equivalents			6,220				(62	)
Cash and cash equivalents at beginning of year			22,907				22,969
Cash and cash equivalents at end of period		$	29,127			$	22,907

Online Resources Corporation
Reconciliation of Non-GAAP Measures
(In thousands, except per share data)

		THREE MONTHS ENDED								TWELVE MONTHS ENDED
		DECEMBER 30,								DECEMBER 30,
		2010				2009				2010				2009
		(Unaudited)								(Unaudited)
Reconciliation of ebitda (See Note 1):
Net income		$	426			$	1,210			$	5,376			$	5,130
Depreciation and amortization (incl. loss on disposal of assets)			5,069				4,976				19,052				20,222
Interest expense, net			649				952				161				4,148
Income tax provision			130				2,185				3,412				4,135
Ebitda (See Note 1)		$	6,274			$	9,323			$	28,001			$	33,635
Reconciliation of adjusted ebitda (See Note 2):
Net income		$	426			$	1,210			$	5,376			$	5,130
Depreciation and amortization (incl. loss on disposal of assets)			5,069				4,976				19,052				20,222
Equity compensation expense			756				894				2,851				4,201
Other (income) expense			583				952				193				4,057
Income tax provision			130				2,185				3,412				4,135
Adjusted Ebitda (See Note 2)		$	6,964			$	10,217			$	30,884			$	37,745
Reconciliation of core net income (See Note 3 and Note 4):
Net income (loss) available to common stockholders		$	(2,011	)		$	(1,137	)		$	(4,184	)		$	(4,078	)
Preferred stock accretion related to redemption premium			408				400				1,622				1,590
Change in fair value of theoretical swap derivative			340				(114	)			(1,336	)			(106	)
Change in fair value of mark to market investments			—				—				—				(91	)
Change in tax valuation allowance			(59	)			2				123				36
Restructuring costs, net of tax			201				—				952				—
Equity compensation expense			756				894				2,851				4,201
Amortization of intangible assets			1,316				1,779				5,949				7,697
Core net income (see Note 3)		$	951			$	1,824			$	5,977			$	9,249
Reconciliation of core net income per share (See Note 4):
Diluted net income (loss) available to common stockholders		$	(0.06	)		$	(0.04	)		$	(0.14	)		$	(0.14	)
Preferred stock accretion related to redemption premium			0.01				0.01				0.05				0.05
Change in fair value of theoretical swap derivative			0.01				—				(0.04	)			—
Change in fair value of mark to market investments			—				—				—				—
Change in tax valuation allowance			—				—				—				—
Restructuring costs, net of tax			0.01				—				0.03				—
Equity compensation expense			0.02				0.03				0.09				0.14
Amortization of intangible assets			0.04				0.06				0.19				0.26
Other, including impact of treasury method and rounding			—				—				0.01				(0.02	)
Core net income per share		$	0.03			$	0.06			$	0.19			$	0.29

Notes: