Company’s Accounts Payable Automation Capabilities to Power New HSBC-Branded Invoice Management Service

PORTSMOUTH, NH – May 23, 2006 – Bottomline Technologies (NASDAQ: EPAY), a leading provider of payments and invoice automation software and services, today announced that HSBC Bank will integrate Bottomline’s invoice automation services into a new HSBC-branded solution to streamline the accounts payable functions of its corporate customers.

HSBC is one of the world’s largest banking and financial services organizations. Designed for its more than 1,100 Corporate Investment Banking & Markets (CIBM) customers, HSBC’s new outsourced Accounts Payable Integration invoice management service is the latest in a series of engagements between HSBC and Bottomline focused on enhancing the financial process efficiency of HSBC’s corporate customers. By leveraging Bottomline’s secure, state-of-the-art Transaction Centers, the service offers HSBC customers a cost-effective alternative to traditional in-house invoice imaging, data capture and archiving.

“The relationship that Bottomline shares with HSBC continues to present us with new opportunities to deliver our product capabilities on a recurring revenue basis,” said Peter Fortune, President of Bottomline Technologies Europe. “In choosing Bottomline to power this initiative, HSBC is able to deliver greater value to their CIBM customers through unlocking working capital in the supply chain, and ultimately strengthening their position as a market leader.”

The first offering in a new suite of accounts payable solutions by HSBC, the Accounts Payable Integration invoice management service employs a flexible, transaction-based pricing model which enables firms of all sizes and complexity to eliminate labor-intensive invoice data capture processes without incurring additional infrastructure costs. Providing the ability to quickly and accurately extract line-item data from all types of invoices, the solution converts essential information into a standardized electronic format that can be fed directly into an ERP system, invoice management solution or electronic archive. With this service, HSBC’s CIBM customers will be able to reduce the amount of time required to process invoices from five-to-10 days to less than 24 hours.

About Bottomline Technologies
Bottomline Technologies (NASDAQ: EPAY) provides payments and invoice automation software and services to organizations seeking more secure and efficient financial processes. The company remains at the forefront of delivering innovative solutions that complement and extend the value of existing financial processes, business relationships and back-office systems. These solutions have enabled industry-leading corporations, banks and financial institutions to automate, manage and control processes involving payments and collections, invoice approval, cash flow, risk mitigation, reporting and document archive. For more information, please visit www.bottomline.co.uk.

Bottomline Technologies and the BT logo are trademarks of Bottomline Technologies, Inc. which may be registered in certain jurisdictions. All other brand/product names are trademarks of their respective holders.

Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties, including statements regarding expected benefits of use of the Company's products and future growth or results. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. For additional discussion of factors that could impact Bottomline Technologies' financial results, refer to the Company's Form 10K filed September 2004, Form 10Q filed May 2004 and any recently filed Form 8K's.


Company Contact:
Billy Balfour
Bottomline Technologies
603-501-5219
bbalfour@bottomline.com