Higher One Achieves Record Growth for the Fifth Consecutive Year

New Haven, CT – January 31, 2008 - Higher One, today announced that 2007 was another strong year for the New Haven-based technology-driven financial services and payment company focused exclusively on higher education.

“Our extraordinary growth over the past couple of years in partnership with some of the leading higher education institutions in the U.S is attributable to the benefits HigherOne offers both universities and students,” said Dean Hatton, Chief Executive Officer of Higher One. “Our OneDisburse refund management system provides for paperless, efficient financial aid processing, saving both the colleges and students time and money.”

2007 Results
Higher One’s revenue increased in 2007 by 75%. During the past three years, Higher One has grown at an average annual rate of 95%.

Over the course of the past year, Higher One managed university disbursements totaling $1.5 billion – a 74% increase from the previous year. Since its inception, Higher One has managed the disbursement of billions of dollars in refunds totaling nearly 2.3 million refund transactions. In addition, Higher One has processed millions of dollars in student payment transactions.

Currently more than 5% of all college and university students in the United States have Higher One’s OneCard. In 2007, the number of OneAccounts increased by more than 151,000, a 73% increase. The OneAccount, an FDIC-insured checking account, is utilized by 376,000 students.

In 2007, 28 leading universities and colleges joined Higher One, including Texas A&M Corpus Christi, Eastern Kentucky University, Baker College, SUNY Oswego and College of the Sequoias, representing nearly 270,000 students. To date, Higher One has achieved a 100% client retention rate since the company’s inception.

During the past year Higher One also received a number of industry accolades including a # 85 ranking on Inc. Magazine’s top 500 list of the Fastest Growing Companies in the United States and being named a Rising Star in the Deloitte Technology Fast 50 Program for the Connecticut Region for a second consecutive year.

Improvements and Enhancements
Early in 2007, Higher One introduced the Voice of the Client program enabling the company to incorporate administrator feedback towards creating and modifying services that further improve the student experience and streamline business office processes. New services introduced in 2007 include OneDisburse for Payroll and OnePay, the electronic collection of tuition payments.

Higher One also actively sought out suggestions from students helping the company introduce new features for the OneAccount, a FDIC-insured checking account designed exclusively for college students with powerful tools to manage their finances. Students can now receive mobile banking alerts with updates regarding their refund status or account balance via mobile messages on their phone. Higher One is also working together with Intuit’s Quicken, the industry leader in personal finance software, to develop unique solutions to help students get the early best practices for successful financial management in order to succeed in the future.

More recently, the Department of Education made changes to the regulations surrounding the distribution of financial aid refunds, which encourage institutions to disburse student refunds electronically. These changes validate Higher One’s business model and recognize the benefit electronic distribution has on both the business office at an institution and the student experience.

The Market Opportunity
“We continue to see significant opportunities in 2008 as current market conditions and further product enhancements are opening dialogue with interested higher education institutions across the country,” Mr. Hatton continued. “As we look to further grow our business, we have hired Banc of America Securities LLC to advise us as we consider opportunities to finance and continue our disciplined growth, to insure that we maintain the superior service levels that have defined our offerings to date.”