News from the Wire

InterCept Completes Sale of Merchant Services Division

Tuesday, March 23, 2004 — 11:52:33 (EST)

ATLANTA, March 22 /PRNewswire-FirstCall/ -- InterCept, Inc.%%N(Nasdaq: ICPT), a leading provider of technology products and services for%%Nfinancial institutions, announced that it closed today the sale of its%%Nmerchant services division, InterCept Payment Solutions (IPS). The sale was%%Nconsummated via two separate transactions -- one for the sale of Internet%%NBilling Company, LLC (iBill) and another for the sale of the remainder of the%%NIPS business. The total sale price for both transactions was $53.5 million,%%Nwhich is $16.1 million more than the sale price stated in a letter of intent%%Nfor the sale of IPS announced in February.%%N%%NMedia Billing, L.L.C., a 99%-owned subsidiary of Penthouse International,%%NInc., has purchased all of the outstanding member interests of iBill for%%N$0.7 million in cash, a $0.8 million short-term note, and assumption of a%%N$22.0 million working capital deficit.%%N%%NPay By Touch(TM), a privately held provider of biometric authentication%%Nand payment solutions, purchased the remainder of the IPS business, including%%NInterCept's wholly-owned subsidiary, InterCept Payment Solutions, Inc., and%%NInterCept's merchant portfolio management business based in Tennessee. The%%Nsale price for that transaction was $30.5 million, composed of: $12.0 million%%Ncash; a $15.5 million note due in 180 days that is guaranteed by three Pay By%%NTouch stockholders (the note will be discounted by $3.0 million to%%N$9.5 million if Pay By Touch makes a $3.0 million prepayment in 60 days); a%%None year $2.5 million note that is convertible into Pay By Touch preferred%%Nstock currently valued at $2.5 million at InterCept's option; and shares of%%NPay By Touch preferred stock currently valued at $500,000.%%N%%NBoth transactions closed on March 22. Due to the timing of the closing of%%Nthe IPS sale, InterCept has rescheduled the conference call to discuss the%%Neffect of the sale of the merchant services division, as well as its fourth%%Nquarter and 2003 annual financial results, to 9:30 a.m. EST on Thursday, March%%N25. InterCept will provide an online Web simulcast and rebroadcast of the%%Ncall. Live broadcast of the call is available at www.intercept.net.%%NTo listen to the live call, please go to the website at least fifteen minutes%%Nearly to register and download any necessary audio software. An online replay%%Nof the call will be available through April 25, 2004.%%N%%NAbout InterCept%%N%%NInterCept, Inc. is a single-source provider of a broad range of%%Ntechnologies, products and services that work together to meet the technology%%Nand operating needs of financial institutions and merchants. InterCept's%%Nproducts and services include core data processing, check processing and%%Nimaging, electronic funds transfer, debit card processing, data communications%%Nmanagement, and related products and services. For more information about%%NInterCept, go to www.intercept.net or call 770.248.9600.%%N%%NSource: Company Press Release

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Source: Company press release.