iBill Communications

iBill Clients:

iBill would like to address the recent postings on the boards and share with you our position. We believe these posts are misleading and are designed to alarm our clients. Furthermore, we feel these comments and ?revised business rules? are the result of our competitor?s attempt to introduce a rather aggressive marketing program directed at our largest clients. At this time, iBill is working with our legal counsel to review the recent policies another billing provider has introduced into the competitive landscape to determine what, if any, actions iBill will pursue.

We believe that you should think through carefully and diligently any decision you make regarding your choice in billing providers. Your decision should be based on the billing provider?s past financial performance related to payouts, how they handle your reserves, and their future viability given the competitive marketplace. We would also urge you to consider the relationships the billing provider has with card associations, since they have been responsible for many of the recent changes in this industry. At iBill, we continue to maintain an excellent relationship with the card associations and have proactively worked with the associations in our clients? best interests.

As you know, we are part of a public company, which gives our clients access to audited financial information that allows you to understand our financial stability. We have a market cap of more than $200MM, and this provides a certain level of financial strength that many other billing providers cannot match. The recent action by one of our competitors might suggest they need more drastic methods of attracting customers.

iBill has earned a strong reputation for paying our clients and releasing our clients? reserves on time. We believe these are important considerations in your selection of a billing provider. If a competitor cannot make the same claim, you should carefully consider how much of your business you consider safe with them.

We are making considerable progress in managing our chargebacks. In fact, to date in July we are comfortably in compliance with the chargeback rules of Visa and MasterCard. We would therefore urge you to carefully evaluate a customer acquisition strategy that is based on the contention that iBill?s chargeback ?problem? has the potential to drag down an entire portfolio.

We plan to announce our solution to the MasterCard compliance program next week. Our solution will allow our customers to continue to enjoy the value of the MasterCard brand and its payment instruments and is the result of a very intensive effort of cooperative negotiating with MasterCard.

Thank you.

iBill