AeA Classic Financial Conference Investor Presentation November 8, 2010

1. AeA Classic Financial Conference Investor Presentation November 8, 2010 NASDAQ: EGOV www.nicusa.com/investors

2. Forward-looking statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Any statements contained in today’s presentation that do not relate to historical or current facts constitute forward-looking statements. These statements include NIC’s financial guidance for the current fiscal year, including statements regarding the potential for growth in revenues and income, and statements regarding continued implementation of NIC's business model and its development of new products and services. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, NIC’s ability to successfully integrate into its operations recently awarded eGovernment contracts; NIC's ability to successfully increase the adoption and use of eGovernment services; the success of the company in signing contracts with new states and government agencies, including continued favorable government legislation; NIC's ability to develop new services; existing states and agencies adopting those new services; acceptance of eGovernment services by businesses and citizens; competition; the SEC investigation; pending litigation involving the Company; and general economic conditions (including the current economic slowdown) and the other important cautionary statements and risk factors described in NIC's 2009 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2010, and in NIC’s Quarterly Reports on Form 10-Q filed with the SEC in 2010. NIC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.

3. Company overview • NIC begins with 1 contract – Kansas • Creates the outsourced eGovernment • industry • Pioneers innovative funding model 2010 1992 • 23 state & 2 federal partners • Headquarters: Kansas City area • 600+ employees nationwide – in state capitals • Founders continue to run the company NIC is the nation’s leading provider of official government web sites, online services, and secure payment processing solutions for more than 3,000 federal, state, and local agencies, serving more than 98 million citizens in the United States. NIC’s unique self-funded business model delivers superior value and consistent growth.

4. Dedicated, local team in capital city • Application development and web expertise for constituent-facing, online services • Enterprise-wide services to all agencies – even those that don’t generate revenue • Proprietary, government payment processing – $11+ billion secure payments in 2009 • Fee collection and disbursement • Marketing of applications to promote use by citizens and businesses • Security* • Transparency Delivering end-to-end eGovernment value * NIC’s rigorous security practices include PCI-DSS compliance, third-party audits and SAS 70 Type II certification for payment processing.

5. A unique self-funded business model Partner benefits: - sustained funding - updated technology/ innovation - efficiencies/cost- savings - award-winning sites & services - vast application library • No tax appropriated funding required • NIC makes up-front investment and funds ongoing operating costs • Revenue generated by transaction fees from constituent-facing services: business-to-government & citizen-to-government • Population-driven model User benefits: - one-stop - security - awareness - in-demand services - quick interaction NIC benefits: - non-cyclical, recurrring revenues - highly scalable model - efficiencies - barriers to exit 5

6. YEAR OFMANDATORYCONTRACTREBID 2019 2018 2016 2016 2016 2015 2015 2014 2014 2014 2014 2014 2013 2013 2013 2013 2012 2012 2012 2012 2012 2011 2011 2011 2010 YEAR SERVICES COMMENCED 1999 1999 1992 1995 2009 2000 2003 2005 2009 1995 2001 2005 2007 2000 2009 2007 2002 1997 2001 2006 1997 1997 1997 2000 2001 Leading the industry: current partners GOVERNMENTPARTNERS Utah Maine Kansas Nebraska Texas Idaho Kentucky Colorado Federal DOT/FMCSA Indiana Oklahoma South Carolina Arizona Hawaii New Mexico MVD West Virginia Alabama Iowa Rhode Island Vermont Virginia Arkansas Federal Election Commission Tennessee Montana Long-term contracts = high revenue and operational visibility, and barriers to exit: NIC has renewed every contract extension and competitive rebid. All partners are references – the gold standard in government!

7. Business cycle: an RFP to applications 1 2 RFP & CONTRACT AWARD - National sales team of ~15 - Identify champion: Governor, Chief of Staff, CIO - 18-24 mo. process to state issuing RFP - 3-5 yr. base contract term with renewals LAUNCH - Establish dedicated team in capital city - Modest up-front investment per portaltypically $500K-$1M – payback usually within 12 mos. 4 3 DMV = foundation - Driver history records (DMV) used primarily by insurance companies to set rates - Single largest revenue generating service in every state; serves as foundational funding source - ‘Go live’ typically 3-6 mos. after state contract is secured - Historical revenue growth: 1-3% per year NON-DMV = growth - Hundreds of constituent-facing services - Business applications: ( ~75% of revenue) Banking & legal, licensed professions, limited criminal histories - Citizen applications: Vehicle registrations, hunting & fishing license, vital records (birth & death certificates) - Historical revenue growth: 20%+ per year

8. Self-funded: low-risk, high-reward model $0.50 Per capita of revenue from DMV 30%+ Gross margins 1st year of DMV revenue 10%+ Annual same-state revenue growth rate by launching non-DMV services 40%+ Company-wide portal gross margin goal Add-on non-DMV services drive revenue and margin growth Initial DMV service priced to cover fixed costs plus profit Four Categories of Portal Revenue: NON-DMV DMV FIXED FEES TIME & MATERIALS • Hundreds of services • Transaction-based/recurring • 20%+ growth • ~ 40-45% of portal revenue • Recurring portal management feearrangements in Arizona and Indiana • ~ 5% of portal revenue • Driver history records • Transaction-based/recurring • 1-3% growth • ~ 40-45% of portal revenue • Project-based fees paid by states • Non-recurring • ~ 10% of portal revenue 85%+ recurring portal revenues, secured by long-term contracts

9. A successful foundation delivering consistent growth • Long-term growth: • Organic, same-state growth driven by new services and adoption, which includes mobile innovation, and county & local services • New partners, with a goal of adding 2 states per year • New federal opportunities building on the new DOT FMCSA self-funded contract

10. Balance sheet & capital structure SEPTEMBER 30, 2010 Cash and investments$ 59.2 M Working capital $ 53.1 M Days sales outstanding (DSO) 6 Long-term/short-term debtNONE Strong cash flow and balance sheet provide financial flexibility • Cash generation = more than $100M in special dividends paid since 2007: • $47M ($0.75 /share) paid 02/2007 • $16M ($0.25/share) paid 02/2008 • $19M ($0.30/share) paid 02/2009 • $19M ($0.30/share) paid 02/2010 • ≈ 63.7M diluted shares outstanding • Insiders and management own more than 10% of TSO • 2-3 % total equity compensation stock overhang

11. Organic growth + market opportunity = long-term earnings potential Recent business wins have required investment in 2010 2010 % GROWTH GUIDANCE 2010* (MILLIONS EXCEPT FOR EPS) 2009 2007 2008 *2010 guidance does not include revenue from unannounced contracts.

12. Investment highlights: superior value and consistent growth NIC is eGovernment – we created it and we lead the industry Self-funded business model – no tax appropriated dollars Consistency – recurring revenues and organic growth secured by long-term contracts A healthy state pipeline – and we’ve recently expanded our federal government presence High returnon investment – and a history of returning capital to shareholders

13. Contacts STEVE KOVZANChief Financial Officer913.754.7007stevek@nicusa.com ANGELA SKINNERDirector of Corp. Communications & Investor Relations913.754.7054askinner@nicusa.com NASDAQ: EGOV www.nicusa.com/investors