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

---

OLATHE, Kan. – May 17, 2005 – Kansas-based eGovernment provider NIC Inc. (Nasdaq: EGOV) was recently recognized by CMP Media’s GovernmentVAR magazine as one of the nation’s leading government technology firms. NIC was named State Solution Provider of the Year and was one of seven companies honored at the magazine’s second annual awards event on May 4 in Washington, D.C.

Founded in 1991, NIC builds official government Web sites and develops online services for 18 states and hundreds of local governments, including Virginia, Maine, Utah, Kentucky, Colorado, Tennessee, Alabama, and the Iowa State County Treasurers Association. The Company’s timesaving interactive applications currently serve more than 60 million people in the United States.

"Winning companies like NIC have demonstrated a clear understanding of the needs and processes specific to the government information technology distribution channel," said Lawrence M. Walsh, Editor of VARBusiness/GovernmentVAR.

"We are honored to be recognized by an organization that understands the value that governments and technology providers can create when they work in cooperation," said Harry Herington, President of NIC. "Our success is due to the strong eGovernment partnerships we have fostered with state and local governments across the country, and we share this award with them."

GovernmentVAR is a monthly publication focused on IT products and services in the federal, state, local, education, and health care sectors. It is a focused editorial initiative of CMP Media’s VARBusiness, a biweekly magazine that covers the business of technology integration.

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 2,200 state and local agencies that serve more than 60 million people in the United States. Additional information is available at www.nicusa.com.

-- 30 --