Direct insite investor presentation october 2014

1. Direct Insite Corp. (OTC QB:DIRI)
Investor Presentation
Electronic Reverse Lockbox for Banks and Billers

2. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
Someofthestatementsmadeinthesematerialsmaybeforward-lookinginnature.Ifyouwanttounderstandtherisksassociatedwithsuchstatements,pleasereviewourfilingswiththeSEC.
AllmaterialcontainedinthispresentationisthesolepropertyandcopyrightofDirectInsiteCorp.withallrightsreserved.Certainstatements,whicharenothistoricalfact,maybeconsideredforward-lookingstatementsthatinvolverisksanduncertainties.Forward-lookingstatementsincludestatementsregardingfuturebusinessresults;futuresalesandprofitability; customerdemand;andindustryandeconomicconditions.Variousfactorscouldcauseactualresultstodiffermateriallyfromwhatissetforthinsuchforward-lookingstatements.ThesefactorsaresetforthinourSECfilings.Allarecautionednottoplaceunduerelianceontheseforward-lookingstatementsastheCompanydoesnotundertakeanyobligationtoreleasepubliclyanyrevisionstotheseforward-lookingstatementstoreflectfutureeventsorcircumstances,ortoreflecttheoccurrenceofunanticipatedevents.
Safe Harbor Statement

3. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
a powerful Unified Working Capital Management platform for corporations and financial institutions!
Currently Deployed: with > 375,000 Global Network Participants
•Global Receivables solutions for IBM, HP (Shell, Kraft, Mondelez, DWP), Adecco and Carlson
•Global Payables solution for Siemens, BE Aerospace, St. Gobain and ATOS
•White-label receivables solution for Tier 1 global financial institution (Live Q4 2014)
Competitive Advantages & Opportunity:
•First-mover status in an underserved $2.9 billion segment of the receivables market
•Channel Sales Strategy with Banks creates viral sales opportunities with corporations
•SaaS/Cloudenvironment / Web-enabled self service tools / ERP Agnostic solution
•Strategic multi-million dollar platform investment in PAYBOX™ Generation 4
•Regulation, IT security concerns and DSO demands will require automation!
About Us

4. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
DI facilitates 7 Million B2B transactions worth $160 Billion annually.
Growing supplier/customer network of 375,000+ companies.
Expanding Global Commerce Network

5. Direct Insite Corporation ∙ Copyright 2014 ∙ Confidential & Proprietary
for Banks
Banks are investing in working capital solutions and offer unique viral access to corporations!
Rationalize Payments
Infrastructure
Improve Bank Integration
for Payables & Receivables
Enhance Client Experience
Improve Sales and
Product P&L
Top Bank Lockbox Priorities
Electronic payment growth is diverting bank payments revenue. Banks must:
▫ Replace revenue lost to declining B2B check volumes
▫ Find a way to preserve their lockbox franchise
PAYBOX™ preserves bank treasury management business:
▫ Lockbox is a $1 trillion business (fees/float/deposits)
▫ Lockbox is the second-most lucrative bank treasury product behind lending
Bank market provides opportunity for viral effect with each new client!

6. Direct Insite Corporation ∙ Copyright 2014 ∙ Confidential & Proprietary
for Corporates
The Accounts Receivable Market
 $1.3 trillion global market is spent annually on receivables solutions
 15.5 billion business-to-business invoices generated in the U.S. annually
 60% of U.S. corporations are dissatisfied with their receivables and payments processes
 Only 50% of receivables in the U.S. post without human intervention
▫ 75% of U.S. corporations have too many receivables with incomplete or inaccurate data
▫ 74% of U.S. corporations have a growing number of receivables that require human
intervention
E-invoice
Presentment
Invoice Inquiry
and Approval
Workflow
Electronic
Payments (ACH,
Credit Card)
Dynamic
Discount &
Supply Chain
Financing
Payment
Reconciliation
Unified Working Capital Management

7. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
A Viral Opportunity
Annual paper business-to-business payments among corporates with $1 billion+ revenues¹
11.78 billion
Total available market for PAYBOX™ from large corporates –via a bank lockbox & in-house
$2.9 billion annually
Total availablemarket of PAYBOX™ from large corporate volume through bank lockboxes²
$1.25 billion annually ~$100 million monthly
DIRI Revenuesfrom 2%bank market penetration
$25 million annually
DIRI Revenuesfrom 3%bank market penetration
$37million annually
DIRI Revenues from 4%bank marketpenetration
$50 million annually
Total availablemarket of PAYBOX™ from large corporate volume not in bank lockboxes
$1.7 billion annually
1: Analysis of data from PayStreamAdvisors and the U.S. Department of Commerce
2: Remittance Coalition, based on 5 billion total annual B2B lockbox transactions
NOTE: Revenue figures based on a $0.25 transaction charge
Total Available Market
Sales Methodology:
Channel Opportunity: Selling PAYBOX™ directly to banks as a white label solution for their large customers
Direct: Selling to corporations and interfacing with their bank(s)

8. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
The Challenge:
IBM wanted to improve its order-to-cash processes to achieve three objectives:
Enhance customer service
Improve overall invoice processing efficiency
Reduce Days Sales Outstanding (DSO)
Direct Insite Solution
Web-based electronic invoice presentment generating 4.1 million invoices annually
Fully automated dispute management
Support for 15 languages and 100+ currencies
Working Capital Results
Reduced DSO by approximately four days
$50 million increase in available cash
$4 million annual savings in interest expense
65% fewer billing disputes
Nearly three-fold increase in trading partner satisfaction with invoice process
“Transforming IBM’s AR processes with Invoices On-Line™ resulted in a 90 percent reduction in transaction costs, 65 percent fewer billing disputes and calls, and a 10 percent reduction in DSO. These benefits have annually delivered tens of millions of dollars in savings to IBM.”
—Ellie Mahoney, Invoices On-Line Americas E-Business Advocate for IBM
for Corporates Case Study

9. Direct Insite Corporation ∙ Copyright 2014 ∙ Confidential & Proprietary
The Accounts Payable Opportunity
 Using Direct Insite's Accounts Payable platform:
▫ Improves working capital management with dynamic discounting and supply chain financing
▫ Enables corporations to capture more discounts through accelerated invoice processing
turnaround
▫ Provides visibility required for liquidity management and cash flow analysis
 Direct Insite has deployed its Accounts Payable solution across four global enterprise customers
 PAYBOX™ will integrate with any legacy electronic Accounts Payable solution
Vendor Lynx
Express
Scan and
Capture
E-invoicing &
Workflow
Processing
Payment Processing
& Network
Participation/
Payment Gateway
Dynamic Discount
Management &
Supply Chain
Financing
Unified Working Capital Management

10. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
The ChallengeSiemens wanted to improve their Accounts Payable processes by achieving the following:
Reduce supplier inquiries and related call center costs
Take invoicing beyond transaction processing into strategic “value-added” activities
Direct Insite Solution
Electronic invoicing platform processing over 2.4 million invoices annually
Supports more than 50 Siemens business units
Backbone of Accounts Payable shared services environment
Servicing 60,000 suppliers and 5,000 internal users
WorkingCapitalResults
Postspaymentsfor63%ofitsinvoiceswithoutoperatorintervention
Reducedworkflowtimebytwothirdsforelectronicinvoicesandonethirdforpaperinvoices
81%ofinvoicesarereceivedelectronically
Facilitatesdynamicdiscounts
Supplierinquiriesreducedby67%
Integratedwithsupplychainfinancecompany
“Invoices On-Line has proven to be an effective tool in the transformation of our Accounts Payable automation initiatives with a goal of reducing paper handling, invoicing costs and supplier inquiries.”
-Roderick Fields, GSS NA Director of Disbursement Services
Siemens Shared Services Case Study

11. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
•Deploying PAYBOX™ in Tier 1 global financial institution
•Refocused company to support accounts receivable growth objectives
•Multi-million dollar investment in technology, infrastructure and resources
•Help drive viral growth in customer base of existing Tier 1 bank partner
•Identify two or three new strategic bank partners
•Target direct corporate customers with bank interfaces
•Expand profit margins through integration of e-invoicing and e-payments
•Identify additional bank partners and direct corporate customers
•Extend viral growth in customer bases of existing bank partners
•Identify strategic technology partners in banking industry
•Expand profit margins through extension of PAYBOX AR capabilities
2016
2015
2014
Focus & Objectives

12. Direct Insite Corporation ∙Copyright 2014 ∙Confidential & Proprietary
Why invest now?
First-mover offering of a private-label AR solution for banks
▫Opens door to underserved $2.9 billion segment of receivables market
Globally deployed solution for corporates
Recurring revenue SaaS business model with “sticky” long-term evergreen contracts
DIRI trades at lower multiple to peers, but with stronger core customers and offerings
Recent market valuation less than 1X TTM revenue
Corporate Financial Highlights:
Debt free
$3.0 million in cash and receivables
$27 million in Net Operating Loss Carry Forwards.
Board/management/associates aligned with investment community
Conclusion

13. Matthew E. Oakes
Chairman & Chief Executive Officer
matthew.oakes@directinsite.com
631-873-2932
www.directinsite.com
Contact Information