CyberSource Reorganizes Sales and Professional Services Groups in Response To Current Market Conditions

Company Provides Updated First Quarter Guidance; Investor Conference Call

Scheduled for Today at 5 p.m. EDT/2 p.m. PDT



Apr 03, 2001, 01:00 ET from CAPTION: CYBRSOURCELOGO CYBERSOURCE CyberSource Company Logo. (PRNewsFoto)[KC] SAN JOSE, CA USA 05/13/1999

    MOUNTAIN VIEW, Calif., April 3 /PRNewswire/ --
 CyberSource(R) Corporation (Nasdaq: CYBS), a leading provider of
 mission-critical eCommerce transaction applications and services for
 businesses, today announced it has reorganized its sales and professional
 services groups in an effort to better target its customers and in response to
 the current market environment.  The company has also provided updated
 guidance for its first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990513/CYBR

SOURCELOGO ) As part of the reorganization, CyberSource has reduced its workforce by 38 employees, or approximately 11%. CyberSource believes the reorganization will help reduce its expenses by approximately $3 million per quarter and aid the company in achieving its goal of becoming cash flow positive by the fourth quarter of 2001. Combined with the workforce reduction the company announced in January 2001, the company will take a previously announced restructuring charge of no more than $5 million in the first quarter to cover expenses related to the workforce reduction and streamlining of operations. The company continues to believe this charge is adequate and more specific guidance on the amount of this charge will be provided on the company's regularly scheduled conference call announcing first quarter financials on April 17, 2001. Financial Outlook For the first quarter 2001, CyberSource has revised its projected total revenue to be in the range of $7.6 to $7.8 million, down between 8 to 9 percent from prior guidance of between $8.3 to $8.6 million. All of the revenue shortfall is related to CyberSource's professional services and enterprise software businesses. The company was able to control its expenses during the first quarter and believes it will meet the previous loss per share guidance of $0.29 to $0.31 on a pro forma basis, which excludes non-cash deferred compensation, intangible asset amortization and the restructuring charge. "In the last 90 days we have seen a further deterioration in corporate IT spending and this has had a negative impact on our software and professional services revenue this past quarter," commented Bill McKiernan, chairman and CEO of CyberSource. "In addition, we made the decision to further reduce our headcount to align with the current economic environment. "On a positive note, our transaction services business remains strong. During the first quarter the company processed approximately 56.8 million transactions, which was slightly above prior guidance of 54 to 56 million transactions. We find that as corporations reduce their IT spending, the outsourced alternative of our transaction services business becomes very attractive. "Importantly, we continue to be fiscally conservative and focus on controlling our expenses in relation to market conditions. We remain committed to our overriding goal of becoming cash flow positive by the fourth quarter of this year and our financial position remains solid. We ended the first quarter with a cash balance of approximately $80 million," McKiernan concluded. Conference Call Today CyberSource will be hosting a conference call today, April 3, 2001 at 5 p.m. EDT/2 p.m. PDT, to further review first quarter expectations and provide more details on the restructuring. To listen to the live call, please dial 888-542-8515 approximately ten minutes prior to the call. For international callers the dial-in number is 706-634-2163. A taped replay of this call will be available for 48 hours. The dial in numbers are 800-642-1687 (U.S.), 706-645-9291 (International). The call's ID number is: 389558. The call is also available through webcast at http://www.cybersource.com/cgi-bin/ir.pl or at http://www.streetevents.com. About CyberSource CyberSource is a leading developer and provider of enterprise eCommerce transaction software and services, and a pioneer in the area of Internet fraud detection. More than 3,000 businesses throughout the world have chosen to use the CyberSource eCommerce Transaction Suite. The CyberSource eCommerce Transaction Suite offers customer-controlled, real-time services including payment, tax calculation, stored value and risk management. CyberSource Global Professional Services develops comprehensive eCommerce solutions that are built upon CyberSource's mission-critical transaction software and services to provide security, reliability, and extensibility for rapid growth. Customers and partners of CyberSource include leading retailers, manufacturers and businesses selling online, as well as over half of the 30 companies that comprise the Dow Jones Industrial Average, including Home Depot and Walmart. CyberSource Corporation is headquartered in Mountain View, Calif., and has offices in Japan and the United Kingdom, as well as various other locations throughout the United States. The company can be found on the World Wide Web at www.cybersource.com. CyberSource information is also available via email at info@cybersource.com or ir@cybersource.com. Statements in this release that are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, estimates, projections, expectations, goals or intentions regarding the future. Forward-looking statements in this release include statements regarding (1) CyberSource becoming cash flow positive by the end of the fourth quarter of 2001, and (2) CyberSource meeting the loss per share targets. Factors that could cause actual results to differ materially include risks and uncertainties such as any unforeseen event or any unforeseen technical difficulties related to the Internet as a whole or to the CyberSource services in particular, the rate of spending by CyberSource's customers, the rate of internal spending, the pace of growth of eCommerce, the development by CyberSource and its competitors of new products and services, and general economic conditions. It is important to note that actual outcomes could differ materially from those in such forward-looking statements. Readers should also refer to the documents filed by CyberSource with the Securities and Exchange Commission, specifically the annual report filed on Form 10-K covering the one-year periods ending December 31, 2000, filed with the Securities and Exchange Commission on April 2, 2001, which identify important risk factors. NOTE: CyberSource is a registered trademark in the U.S. and other countries. CyberSource eCommerce Transaction Suite is a service mark of CyberSource Corporation. All other brands and product names are trademarks or registered trademarks of their respective companies.

SOURCE CyberSource Corporation Web site: http: //www.cybersource.com Photo: http: //www.newscom.com/cgi-bin/prnh/19990513/CYBR

SOURCELOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467 Company News On-Call: http: //www.prnewswire.com/comp/107369.html or fax, 800-758-5804, ext. 107369 CONTACT: David Gennarelli, Director of Investor Relations of CyberSource Corporation, 650-965-6185, or dgennarelli@cybersource.com CAPTION: CYBR

SOURCELOGO CYBER

SOURCE CyberSource Company Logo. (PRNewsFoto)[KC] SAN JOSE, CA USA 05/13/1999
    MOUNTAIN VIEW, Calif., April 3 /PRNewswire/ --
 CyberSource(R) Corporation (Nasdaq: CYBS), a leading provider of
 mission-critical eCommerce transaction applications and services for
 businesses, today announced it has reorganized its sales and professional
 services groups in an effort to better target its customers and in response to
 the current market environment.  The company has also provided updated
 guidance for its first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO )
     As part of the reorganization, CyberSource has reduced its workforce by
 38 employees, or approximately 11%.  CyberSource believes the reorganization
 will help reduce its expenses by approximately $3 million per quarter and aid
 the company in achieving its goal of becoming cash flow positive by the fourth
 quarter of 2001.
     Combined with the workforce reduction the company announced in
 January 2001, the company will take a previously announced restructuring
 charge of no more than $5 million in the first quarter to cover expenses
 related to the workforce reduction and streamlining of operations.  The
 company continues to believe this charge is adequate and more specific
 guidance on the amount of this charge will be provided on the company's
 regularly scheduled conference call announcing first quarter financials on
 April 17, 2001.
 
     Financial Outlook
     For the first quarter 2001, CyberSource has revised its projected total
 revenue to be in the range of $7.6 to $7.8 million, down between
 8 to 9 percent from prior guidance of between $8.3 to $8.6 million.  All of
 the revenue shortfall is related to CyberSource's professional services and
 enterprise software businesses.  The company was able to control its expenses
 during the first quarter and believes it will meet the previous loss per share
 guidance of $0.29 to $0.31 on a pro forma basis, which excludes non-cash
 deferred compensation, intangible asset amortization and the restructuring
 charge.
     "In the last 90 days we have seen a further deterioration in corporate
 IT spending and this has had a negative impact on our software and
 professional services revenue this past quarter," commented Bill McKiernan,
 chairman and CEO of CyberSource.  "In addition, we made the decision to
 further reduce our headcount to align with the current economic environment.
     "On a positive note, our transaction services business remains strong.
 During the first quarter the company processed approximately 56.8 million
 transactions, which was slightly above prior guidance of 54 to 56 million
 transactions.  We find that as corporations reduce their IT spending, the
 outsourced alternative of our transaction services business becomes very
 attractive.
     "Importantly, we continue to be fiscally conservative and focus on
 controlling our expenses in relation to market conditions.  We remain
 committed to our overriding goal of becoming cash flow positive by the
 fourth quarter of this year and our financial position remains solid.  We
 ended the first quarter with a cash balance of approximately $80 million,"
 McKiernan concluded.
 
     Conference Call Today
     CyberSource will be hosting a conference call today, April 3, 2001 at
 5 p.m. EDT/2 p.m. PDT, to further review first quarter expectations and
 provide more details on the restructuring.  To listen to the live call, please
 dial 888-542-8515 approximately ten minutes prior to the call.  For
 international callers the dial-in number is 706-634-2163.  A taped replay of
 this call will be available for 48 hours.  The dial in numbers are
 800-642-1687 (U.S.), 706-645-9291 (International).  The call's ID number is:
 389558.  The call is also available through webcast at
 http://www.cybersource.com/cgi-bin/ir.pl or at http://www.streetevents.com.
 
     About CyberSource
     CyberSource is a leading developer and provider of enterprise eCommerce
 transaction software and services, and a pioneer in the area of Internet fraud
 detection.  More than 3,000 businesses throughout the world have chosen to use
 the CyberSource eCommerce Transaction Suite.  The CyberSource eCommerce
 Transaction Suite offers customer-controlled, real-time services including
 payment, tax calculation, stored value and risk management.  CyberSource
 Global Professional Services develops comprehensive eCommerce solutions that
 are built upon CyberSource's mission-critical transaction software and
 services to provide security, reliability, and extensibility for rapid growth.
 Customers and partners of CyberSource include leading retailers, manufacturers
 and businesses selling online, as well as over half of the 30 companies that
 comprise the Dow Jones Industrial Average, including Home Depot and Walmart.
 CyberSource Corporation is headquartered in Mountain View, Calif., and has
 offices in Japan and the United Kingdom, as well as various other locations
 throughout the United States.  The company can be found on the World Wide Web
 at www.cybersource.com.  CyberSource information is also available via email
 at info@cybersource.com or ir@cybersource.com.
 
     Statements in this release that are not purely historical are
 forward-looking statements, including any statements regarding beliefs, plans,
 estimates, projections, expectations, goals or intentions regarding the
 future.  Forward-looking statements in this release include statements
 regarding (1) CyberSource becoming cash flow positive by the end of the
 fourth quarter of 2001, and (2) CyberSource meeting the loss per share
 targets.  Factors that could cause actual results to differ materially include
 risks and uncertainties such as any unforeseen event or any unforeseen
 technical difficulties related to the Internet as a whole or to the
 CyberSource services in particular, the rate of spending by CyberSource's
 customers, the rate of internal spending, the pace of growth of eCommerce, the
 development by CyberSource and its competitors of new products and services,
 and general economic conditions.  It is important to note that actual outcomes
 could differ materially from those in such forward-looking statements.
 Readers should also refer to the documents filed by CyberSource with the
 Securities and Exchange Commission, specifically the annual report filed on
 Form 10-K covering the one-year periods ending December 31, 2000, filed with
 the Securities and Exchange Commission on April 2, 2001, which identify
 important risk factors.
     NOTE:  CyberSource is a registered trademark in the U.S. and other
 countries.  CyberSource eCommerce Transaction Suite is a service mark of
 CyberSource Corporation.  All other brands and product names are trademarks or
 registered trademarks of their respective companies.
 
 SOURCE  CyberSource Corporation
 
 Web site:  http: //www.cybersource.com
 
 Photo:  http: //www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO AP Archive:  http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467
 
 Company News On-Call:  http: //www.prnewswire.com/comp/107369.html or fax, 800-758-5804, ext. 107369
 
 CONTACT: David Gennarelli, Director of Investor Relations of CyberSource Corporation, 650-965-6185, or dgennarelli@cybersource.com
 
 CAPTION: CYBRSOURCELOGO    CYBERSOURCE    CyberSource Company Logo. (PRNewsFoto)[KC]    SAN JOSE, CA USA    05/13/1999