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2003 Press Releases

United Online Chooses PaymentOne's PhoneBill ™ Platform As Alternative Payment Method for Consumers

PaymentOne Helps United Online Meet Consumer Demands for Payment Alternatives

San Jose, CA (PRNEWSWIRE) - March 26, 2003 — PaymentOne, the leader in payment solutions and strategies for the Internet, today announced that United Online, Inc. (NASDAQ: UNTD) has joined other major Internet service and content providers in offering customers a new payment alternative to the credit card through PaymentOne's industry-leading PhoneBill ™ payment platform. PaymentOne's PhoneBill ™ has become one of the most popular payment options on the Internet, enabling providers to broaden their market reach by appealing to consumers who prefer not to pay with a credit card.

With millions of users on its value-priced NetZero, Juno and Bluelight Internet services, United Online is one of the industry's leading Internet service providers. The company is now offering PaymentOne's PhoneBill ™ option for consumers who prefer a simple, convenient and secure alternative to their credit card. NetZero, Juno or BlueLight Internet users who choose the PhoneBill ™ payment method will have their Internet subscription charges consolidated into their local telephone bill.

"PaymentOne's PhoneBill ™ product is a compelling payment choice that allows us to provide our customers a truly viable alternative to the credit card," said Brian Woods, executive vice president and chief marketing officer of United Online.

A rapidly emerging provider of Internet payment services, PaymentOne is the leader in Customer Revenue Optimization (CRO) strategies that help Internet Service and Digital Content Providers monetize online services. The company provides innovative marketing strategies, services, and e-payment solutions that maximize the revenue and profitability potential of online merchants. PaymentOne's revolutionary PhoneBill ™ payment platform has achieved rapid market acceptance among consumers and has helped improve customer acquisition rates for providers that offer the service. Evidence can be found in the company's PhoneBill ™ payment option billings. For the quarter ending December 31, 2002 PhoneBill ™ billings increased more than 184 percent compared to the same quarter in 2001.

"Savvy Internet Service and Online Content providers, like United Online, recognize the value in addressing the unique psychological barrier that buying or paying online presents to the mass market," said Joe Lynam, CEO of PaymentOne. "Consumers use credit cards for less than 1/3 of all purchases offline. The closer online merchants emulate and support offline payment habits and behaviors, the more successful they will be."

Leading Internet Service and Digital Content Providers are turning to PaymentOne to help increase market share, customer retention, and position themselves for continued success in the marketplace. "PaymentOne's clients see subscriber rates rise as a result of our advanced payment solutions and customer revenue optimization strategies," said Don Teague, vice president of sales and marketing for PaymentOne.

With more and more Internet and content providers turning to PhoneBill ™, PaymentOne is rapidly becoming the leader in the online payment and billing industry today.

About United Online

United Online, Inc. is a leading provider of value-priced Internet access through its NetZero, Juno, and BlueLight Internet Service consumer brands. The company's services are offered at less than half the standard monthly prices of its major competitors and are available in more than 6,000 cities across the United States and in Canada. United Online has approximately 444 employees worldwide and is headquartered in Westlake Village, Calif., with offices in New York City, San Francisco and Hyderabad, India. For more information about United Online and its Internet access services, please visit www.untd.com.

About PaymentOne

PaymentOne Corporation is the leading Payment Service Provider (PSP) for the Internet, offering complete outsourced billing and customer revenue optimization solutions in a service bureau model designed to meet the unique needs of Internet Service Providers, Enhanced Service Providers, and Digital Content Providers. Industry leading payment platforms include PhoneBill ™, DirectPay, WebBill ®, CreditCard, ACH, and Pre-Paid. As a single-vendor solution, PaymentOne's products span the entire service chain and include front-end Registration, Validation and Fraud Control, Customer Management, and Customer Care in addition to its billing platforms. PaymentOne is a privately held company located in Silicon Valley. To learn more about PaymentOne, visit www.PaymentOne.com or call 800-747-4028.

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PaymentOne is a registered trademark of PaymentOne Corporation. WebBill ® and DirectBill ™ are trademarks of PaymentOne Corporation. All other names and trademarks are the property of their respective owners.

"In today's economy, triple-digit percentage revenue growth is an exceptional accomplishment. We commend PaymentOne for making the commitment to technology and delivering on the promise of market longevity"