Direct Insite Corp. Announces Request For Hearing With NASDAQ

BOHEMIA, N.Y.--(BUSINESS WIRE)--June 12, 2003--Direct Insite Corp. (NASDAQ: DIRI - News) today announced that it received a Nasdaq staff determination dated June 5, 2003 indicating that the Company fails to comply with the requirements for continued listing regarding stockholders' equity as set forth in Marketplace Rule 4310(c)(2)(B), and the Company's securities are therefore subject to delisting from The Nasdaq SmallCap Market.

The Company today submitted its request for a hearing before a Nasdaq Listing Qualifications Panel to review the staff determination. Submission of this hearing request delays the delisting of the Company's securities pending the Panel's decision. At this hearing, the Company intends to discuss its plans for complying with the continued listing requirements in order to maintain its NASDAQ listing. There can be no assurance, however, that the Panel will grant the Company's request for continued listing.

The effect of this Nasdaq rule with respect to stockholders' equity has no effect on the Company's ability to continue its day to day business in the ordinary course since, among other things, if the Company's securities were no longer listed on Nasdaq, they will be automatically be listed for quotation on the OTC Bulletin Board unless the Company voluntarily lists its securities on another exchange.

Chairman and CEO James A. Cannavino stated "I, and the board are committed to the Company and its plan to continue to focus on the higher margin recurring revenues associated with our EIP&P offering. We believe this is the best strategy to deliver a profitable company in the shortest period of time".

About Direct Insite Corporation

Direct Insite Corp operates primarily as an Application Service Provider, generally referred to as an ASP, providing an Electronic Invoice Presentment and Payment (EIP&P) solution targeted at large enterprise customers. The Company's offering is based on a "data centric" approach that improves the delivery and management of high volumes of invoice related data while providing a customer workflow system that better manages the complexity of the presentation, analysis, dispute resolution, approval and payment process. This reduces the administrative and operating expenses for both "Biller" and "Payer" alike. Direct Insite also provides managed services using our patented d.b.Express(TM) technology, a management information tool that allows users to visually data mine large volumes of transactional data via the Internet. A complete Internet Customer Care tool set integrated with the EIP&P product set is also available. Additionally, the Company offers an integrated solution of order entry, workflow management, provisioning, and invoice verification for large enterprise clients, currently marketed under the trade name AMS (Asset Management System) sometimes referred to as TAMS.

Headquartered in Bohemia, NY, with offices in Dallas, TX, and Chicago, IL, Direct Insite Corp. employs a staff of 65. For more information about Direct Insite Corp. call (631) 244-1500 or visit our web site at www.directinsite.com.

Forward Looking Statements

All statements other than statements of historical fact included in this release, including without limitation statements regarding the company's financial position, business strategy, and the plans and objectives of the company's management for future operations, are forward-looking statements. When used in this report, words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, competitive factors and pricing pressures, capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.