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

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OLATHE, Kan. – February 6, 2008 – eGovernment provider NIC Inc. (NASDAQ: EGOV) today announced the retirement of Jeff Fraser as Chief Executive Officer, effective February 4, 2008. He will continue to serve as Chairman of the Board.

The Board has named Harry Herington as Chief Executive Officer, effective February 4, 2008. Mr. Herington has served as President since 2006 and has held several leadership positions at NIC since joining the Company in 1995, including Chief Operating Officer and Executive Vice President of Portal Operations.

“Harry Herington has an outstanding track record of delivering results at NIC,” said Jeff Fraser. “I am confident that NIC will continue to grow under Harry’s highly capable and energetic leadership.”

These actions follow the conclusion of a review undertaken by the Audit Committee of the NIC Board of Directors, with the assistance of outside, independent counsel, which focused on the reimbursement of expenses by certain executive officers, including Mr. Fraser. The review covered the period from January 1, 2004, through June 30, 2007, and was conducted with full cooperation by the Company and Mr. Fraser in conjunction with an informal inquiry of expense reporting by the Securities and Exchange Commission.

Mr. Fraser has reimbursed the Company approximately $97,000 in expenses as a result of the review, which followed reimbursement by him of approximately $186,000 in expenses made prior to the review. The reimbursement was made to correct expense reporting during the period from January 2004 through October 2006 that was inconsistent with the Company’s expense reimbursement policies.

The internal review also revealed that these expense reimbursement deficiencies were isolated to Mr. Fraser. NIC does not believe the amounts involved are material to its financial condition or results of operations.

Mr. Fraser co-founded the Company that would become NIC in 1992 and served as Chief Executive Officer until the end of 1999. He retired to become non-executive Chairman and relinquished day-to-day management to a new leadership team. Following an acquisition-based expansion strategy that placed NIC’s future growth at risk, the Board of Directors asked Fraser to return as Chief Executive Officer in May 2002. At his request, Fraser received a salary of $1.00 per year in 2002 and 2003 and $5,500 per year to cover medical benefits in 2004 and 2005. The Board approved a salary of $325,000 in 2006 in recognition of Fraser’s turnaround plan that refocused on the core portal business and returned NIC to profitability as a highly successful leader in the eGovernment space.

“We thank Jeff for his vision and commitment to building the industry-leading eGovernment provider from the ground up,” said Art Burtscher, Chairman of the Audit Committee of the NIC Board of Directors.  “The Board of Directors is confident the current management team is capable of continuing NIC’s current track record of growth and we look forward to further success under Harry Herington’s leadership.”

About NIC
NIC manages more eGovernment services than any provider in the world. The company is helping governments communicate more effectively with citizens and businesses by putting essential services online. NIC provides eGovernment solutions for 2,600 state and local agencies that serve more than 69 million people in the United States. Additional company information is available at http://www.nicusa.com.

The statements in this release regarding continued implementation of NIC's business model and its development of new products and services are forward-looking statements. 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, 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; and general economic conditions and the other important cautionary statements and risk factors described in NIC's 2006 Annual Report on Form 10-K filed on March 15, 2007, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 filed on November 7, 2007, with the Securities and Exchange Commission.

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