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Press Release

Bankrate, Inc. Announces Record Quarter

Record-Breaking Traffic and Revenue Reinforces Bankrate's Path to Profitability

NORTH PALM BEACH, Fla.--May 1, 2001--Bankrate, Inc. (OTCBB: RATE) today announced that online publishing revenue for the quarter ended March 31, 2001 increased 31%, or $947,000, to $3,961,000 over the $3,014,000 reported in the same period in 2000. Total revenue of $4,746,000 for the quarter ended March 31, 2001 was $990,000, or 26%, higher than the $3,756,000 reported in the comparable period in 2000. Excluding barter revenue, total revenue for the quarter ended March 31, 2001 of $3,873,000 was the highest in Company history.

The Company reported a net loss of $625,000, or $0.04 per share, in the quarter ended March 31, 2001 compared to a net loss of $7,113,000, or $0.53 per share, in the comparable quarter in 2000, and a net loss of $920,000, or $0.07 per share in the quarter ended December 31, 2000. Excluding non-cash charges of approximately $598,000, the Company would have reported a net loss of $27,000 for the quarter ended March 31, 2001. Non-cash charges consist primarily of depreciation and amortization, non-cash stock compensation expense, interest and barter expenses net of barter revenue.

Record Traffic

``Our traffic growth has been phenomenal,'' stated Elisabeth DeMarse, President and CEO of Bankrate, Inc. ``Year over year, our traffic has grown 165%. This astronomical increase demonstrates the power of our content. Users want more and come back to the site repeatedly. Both PC Data Online and Media Metrix have recognized Bankrate.com as a leading destination site in the personal finance space. Numerous prestigious publications have lauded us for our award winning content and tools. Over 130 best of breed partners use our research and articles.

``Our continued success in very difficult times reflects the versatility of our model. Bankrate becomes even more valuable in a slow economy as stock market returns dwindle, and consumers look to refinance their homes and invest in money markets as a safe haven. As a trusted source in volatile times, our audience looks to us to provide them with financial literacy and wisdom. We believe Bankrate can profit in both fat and lean times, and the shift in our traffic and our advertisers occurs automatically.''

Record Revenues

``We exceeded our estimates for top line growth this quarter. Even in this challenging economic climate, amidst the dot.com failures and in a depressed advertising market, Bankrate has prevailed,'' noted DeMarse. ``The difficult decisions made in the past year to put us on the path to profitability have been validated. It has not been an easy process, yet the determination of our team combined with the fabulous reputation of our brand has allowed us to succeed. However, it is important to note that instead of declaring victory, we are redoubling our efforts to increase sales, grow our revenues and reinforce our value to the consumer.''

Benefits of Expense Control and Reduction

Excluding barter expenses of $986,000 in the quarter ended March 31, 2001, total operating expenses of $2,902,000 were $3,563,000, or 55%, below the $6,465,000 reported in the comparable quarter in 2000. ``We are controlling our expenses without compromising our growth strategy and will continue to do so,'' said Bob DeFranco, CFO. ``Dramatic improvement in our cost structure allows us to conserve our cash and will strengthen our balance sheet going forward. Bankrate is now in a position to see the benefits of growing our top line against a stabilized expense base.''

Growth Metrics

Bankrate experienced positive usage metrics versus a year ago. Page views for the quarter ended March 31, 2001 grew from 26.5 million in 2000 to 70.3 million, a 165% increase. Gross margin, excluding barter revenue, was 62% for the quarter ended March 31, 2001 compared to 22% in the comparable quarter in 2000, and 33%, 41% and 55% for the second, third and fourth quarters in 2000, respectively, reflecting steady improvement since the restructuring efforts began in June 2000.

Renewed Focus

``During the past 10 months we have introduced a variety of initiatives that have led to a very positive quarter,'' stated Jeff Cunningham, Chairman of the Board for Bankrate, Inc. ``We have added three new board members, a new CEO, and a Chief Revenue Officer. We launched a new look and feel to our site, streamlining navigation and adding additional content and tools for our users. Our expenses were significantly reduced through our restructuring efforts which included reducing employment levels and divesting of non-core assets and web sites. While we are pleased with our efforts to date, we do have significant work ahead of us. Nonetheless, it has been a very successful period for Bankrate.''

Bankrate, Inc. and Subsidiary Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2001 2000 ------------ ------------ Revenue: Online publishing $ 3,960,916 $ 3,014,399 Print publishing and licensing 784,759 741,889 ------------ ------------ Total revenue 4,745,675 3,756,288 ------------ ------------ Cost of revenue: Online publishing 948,361 2,407,150 Print publishing and licensing 525,488 534,738 ------------ ------------ Total cost of revenue 1,473,849 2,941,888 ------------ ------------ Gross margin 3,271,826 814,400 ------------ ------------ Operating expenses: Sales 858,533 910,805 Marketing 1,081,391 1,824,940 Product development 366,107 594,475 General and administrative expenses 1,387,623 2,837,723 Depreciation and amortization 194,465 223,251 Goodwill amortization - 73,593 ------------ ------------ 3,888,119 6,464,787 ------------ ------------ Loss from operations (616,293) (5,650,387) ------------ ------------ Other income (expense): Interest income 114,345 247,605 Interest expense (122,720) (123,569) ------------ ------------ Other income (expense), net (8,375) 124,036 ------------ ------------ Loss before income taxes and discontinued operations (624,668) (5,526,351) Income taxes from continuing operations - - ------------ ------------ Loss before discontinued operations (624,668) (5,526,351) ------------ ------------ Discontinued operations: Loss from discontinued operations - (1,586,515) ------------ ------------ Net loss $ (624,668) $ (7,112,866) ------------ ------------ ------------ ------------ Basic and diluted net loss per share: Loss before discontinued operations $ (0.04) $ (0.41) Discontinued operations - (0.12) ------------ ------------ Net loss $ (0.04) $ (0.53) ------------ ------------ ------------ ------------ Weighted average shares outstanding used in basic and diluted per-share calculation 13,996,950 13,543,678 ------------ ------------ ------------ ------------ Bankrate, Inc. and Subsidiary Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, 2001 2000 ------------ ------------ Assets Cash and cash equivalents $ 8,099,277 $ 8,890,649 Accounts receivable, net of allowance for doubtful accounts of $300,000 at March 31, 2001 and December 31, 2000, respectively 1,459,177 1,218,867 Other current assets 316,598 572,185 ------------ ------------ Total current assets 9,875,052 10,681,701 Furniture, fixtures and equipment, net 1,546,201 1,730,455 Intangible assets, net 81,996 88,425 Other assets 153,943 133,809 ------------ ------------ Total assets $ 11,657,192 $ 12,634,390 ------------ ------------ ------------ ------------ Liabilities and Stockholders' Equity Liabilities: Accounts payable $ 536,214 $ 772,181 Other accrued expenses 1,788,737 2,016,236 Deferred revenue 332,626 463,224 Current portion of obligations under capital leases 179,582 214,651 Other current liabilities 184,192 158,672 ------------ ------------ Total current liabilities 3,021,351 3,624,964 10% Convertible subordinated note payable 4,350,000 4,350,000 Accrued stock compensation expense 2,619,247 2,452,424 Accrued interest 701,613 592,863 Other liabilities 16,325 40,815 ------------ ------------ Total liabilities 10,708,536 11,061,066 ------------ ------------ Commitments and contingencies Stockholders' equity: Preferred stock, 10,000,000 shares authorized and undesignated - - Common stock, par value $.01 per share -- 100,000,000 shares authorized; 13,996,950 shares issued and outstanding 139,969 139,969 Additional paid in capital 60,586,991 60,586,991 Accumulated deficit (59,778,304) (59,153,636) ------------ ------------ Total stockholders' equity 948,656 1,573,324 ------------ ------------ Total liabilities and stockholders' equity $ 11,657,192 $ 12,634,390 ------------ ------------ ------------ ------------

About Bankrate.com
Bankrate.com is owned and operated by Bankrate, Inc. (OTCBB: RATE). Bankrate.com is the Internet's leading consumer finance marketplace, with an average of 3 million unique visitors per month connecting with over 4,800 financial institutions in 158 markets in 50 states. Bankrate operates a portfolio of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of over 100 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CD's, checking and ATM fees, home equity loans and online banking fees.

Bankrate.com provides financial applications and information to a network of over 130 partners including MSN (Nasdaq: MSFT), Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), CNN and Smart Money. The Company's information is also distributed through more than 100 national and state publications.

Certain matters discussed in this press release are or may be considered to be ``forward-looking statements'' within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of its management. Such forward-looking statements include without limitation statements made with respect to future revenue, revenue growth, market acceptance of the Company's products, and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include -- our success depends on Internet advertising revenue, interest rate activity and mortgage refinancing, establishing and maintaining distribution agreements and increasing brand awareness of our Web site; our markets are highly competitive; our Web site may encounter technical problems and service interruptions; we rely on the protection of our intellectual property; future government regulation of the Internet is uncertain and subject to change; our success depends on retaining management and key employees; and our stock price may be volatile in the future. These and additional important factors to be considered are set forth under ``Item 1. Business - Risk Factors that Could Impact Future Operating Results,'' ``Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations'' and in the other sections of the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2000, and in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.


     Bankrate, Inc., North Palm Beach

     Investor Relations:

     Robert J. DeFranco, 561/630-1230

     [email protected]


     Public Relations:

     Paula Sirois, 561/630-1249

     [email protected]
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