NEWS RELEASE For Immediate Release
	Contact: Chris Neff 435-645-8898 cneff@nicusa.com

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OLATHE, Kan. – July 22, 2004 – The most digitally advanced state governments in the nation have been singled out in the 2004 Digital States Survey, and five state partners of eGovernment firm NIC (Nasdaq: EGOV) are included in the top ten. The study examines best practices, policies, and progress made by state governments to streamline operations and better serve citizens and businesses through the effective use of technology. In this year's survey, NIC's partners in Virginia, Indiana, Tennessee, Utah, and Arkansas were ranked among the top ten state governments.

The sixth Digital States Survey assessed state government technology achievement in four broad areas – service delivery, architecture and infrastructure, collaboration, and leadership. In March 2004, all state governors and chief information officers were invited to participate in the survey, and more than 60 unique measurements were used to determine the final rankings. The study is compiled by the Center for Digital Government, a national research and advisory institute on information technology policies and best practices in state and local government.

Among NIC's portal partners, Virginia was ranked third and Indiana placed fourth. Tennessee, Utah, and Arkansas were also ranked seventh, eighth, and ninth, respectively.

"Information technology is one of the most powerful tools used by state governments to serve their citizens," said Cathilea Robinett, executive director of the Center for Digital Government. "In the hands of some incredibly talented and knowledgeable leaders, states have advanced to an entirely new level of digital government."

"NIC is proud to support the efforts of 16 state partners, and we congratulate all the Digital States Survey honorees," said Harry Herington, NIC's Chief Operating Officer. "Improving business and citizen services and streamlining government operations are at the heart of the Digital States Survey. We salute our state partners for using technology to deliver exceptional value to their customers."

Earlier this week, the top ten digital states were honored at a ceremony in Seattle in conjunction with the National Governors Association annual meeting.

About NIC
NIC manages more eGovernment services than any provider in the world. The company helps government communicate more effectively with citizens and businesses by putting essential services online. NIC provides eGovernment solutions for 1,500 state and local agencies that serve more than 51 million people in the United States. Additional information is available at www.nicusa.com.

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