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PEOPLE ARE ON THE MOVE,ON THE GO, AND GOING MOBILE.IN 2010 NIC WAS ON THE ROAD,ON TARGET, ON TOP OF OURGAME, AND ON PURPOSE.MOST IMPORTANTLY WE AREONLINE — PROVIDING INNOVATIONAND TAKING eGOVERNMENTTO NEW HEIGHTS.

LETTER TOStockholdersDear fellow stockholders, WHEREVER THE FUTUREDoesn’t it seem like more thanLEADS,ever,NICeveryoneIS GRATEFULison the go? Life keeps moving at a fasterFOR GOVERNMENT PARTNERSpace, and technology is advancing evenmore quickly. When NIC started THAT PLACE in 1992, THEIR CONFIDENCEthe concept of bringing informationIN US TO BRINGfromeGOVERNMENTvast government repositories into theTO MILLIONS OF AMERICANS.workplace or home via a computernetwork was considered visionary.Today the days of the blinking green cursor seem like the dark ages, as we now haveinformation in our hands anywhere we go. Computers that once filled rooms are nowcondensed into a rectangle the size of a notebook or deck of cards — computer,telephone, music player, camcorder, calendar, newspaper, rolodex, and more, allcombined into a single device.HarryHeringtonCEO &CHAIRMANOF THEBOARDJust as society is on the go, NIC is on the move as well. We are delivering newservices, integrating new partners, launching applications on new technology platforms,sharing the story of self-funded eGovernment with new administrations, and fosteringinnovation by changing the way online government services are delivered and used.Our momentum in 2010 produced strong financial results and is propelling NIC toeven greater success in 2011 and beyond.Just like today’s new devices, NIC is a single source delivering more services andefficiencies to our partners. Today we are an online payment processor, mobileapplication developer, cloud computing provider, cyber security expert, research& development innovator, project manager, customer service agent, and more, allcombined into the nation’s leading eGovernment service provider. As technology evolves,so does NIC’s vision as we expand both the services we provide and the partnerswe provide those services to — all in an effort to keep online government servicessurpassing businesses’ and citizens’ expectations.3

While many of our services help make government more convenient and transparentfor citizens, our roots are in helping businesses access information from government.Think of all the interactions between a company and government — forms to filewhen a business is started, employees hired, licenses renewed, taxes paid, and more.You’ve heard of B2C (business-to-consumer) companies and B2B (business-to-business)companies. Part of NIC’s focus is being a B2G company — a business-to-governmentcompany that partners with government to provide efficiencies for businesses throughconvenient online services. This forms a well rounded strategy of making governmentaccessible — whether to a business or a citizen.More than ever, now is the time for government to turn to NIC. Our expertise is indemand as we provide the innovation and insights to help government deliver itsservices using the latest technology. Whatever technological advances come our way,NIC will be leading government to make sure new technology is utilized to its fullestcapacity to bring simplicity, speed, sustainability, and service to eGovernment. NIC willalways be on the move, and out in front.On TargetFinancial HighlightsFour years ago we set out to double the size of our company as part of our long-termstrategic plan. In 2010 we achieved that goal with total revenues of $161.5 million, up22 percent from 2009, and more than twice our total revenues of $71.4 million in 2006.Also in 2010, operating income increased 34 percent to $29.4 million over the previousyear, and up from $16.1 million in 2006.The core of our financial performance stems from strong, organic, same-state revenuegrowth. In 2010, same-state non-DMV, transaction-based revenues increased a healthy22 percent. Because of our unique business model, the budget concerns of ourstate partners did not curb the amount of convenient, transaction-based services welaunched. In many cases, those budget concerns were the impetus for governments tocreate more efficiency and deploy more services online. Under our unique self-fundedbusiness model we worked with our state partners to develop hundreds of new onlineservices without using tax dollars, ranging from secure mobile property tax paymentsin Arkansas to reducing office wait times with the new Driver’s License AppointmentScheduler service in Utah. In fact, through the end of 2010, NIC has now placed morethan 7,500 applications online for more than 3,000 federal, state, and local agencies.4

In 2010, same-state non-DMV transaction-based revenuesincreased a healthy 22 percent.

Our consistently strong financial performance and free cash flow, along with ourdebt-free business, allowed NIC the flexibility to pay two special cash dividends in2010. NIC paid stockholders a total of $0.55 per share, with the first dividend of$0.30 per share paid in February 2010, and the second of $0.25 per share paid inDecember 2010. We are pleased we could pay these special cash dividends and returncapital to stockholders. This is the fourth consecutive year we have paid dividends,and a total of $1.85 per share, or more than $117 million, has been returned tostockholders in the form of special cash dividends during this time.Over the past four years, more than $117 millionhas been returned to stockholders in the form ofspecial cash dividends.6

On THE MOVESharing the Story of NICIn 2010, NIC’s self-funded eGovernment business model was on the move — withmomentum spreading nationwide.Several states are taking notice of our business model, as we are currently experiencingone of the healthiest sales pipelines in the history of our company. The 2010 mid-termelections resulted in NIC being able to share the story of self-funded eGovernmentwith many new governors and administrations. From coast-to-coast we are discussinghow government can create enterprise-wide efficiencies, communicate with constituentsusing the latest technology, securely process payments, protect sensitive data, andavoid IT buildout costs — all by turning to NIC for their eGovernment needs.We invested in our sales team in 2010 as we brought Ron Thornburgh on board asNIC’s Senior Vice President of Business Development. This is a new position createdto capitalize on our momentum in the eGovernment marketplace and find additionalopportunities for growth. Prior to joining NIC, Ron served for 16 years as the KansasSecretary of State. He knows government’s goals and concerns, and how NIC isthe right solution to make online government services convenient and efficient. Hisleadership in eGovernment has been recognized nationally by many organizations,including the Massachusetts Institute of Technology, which presented Ron withthe Digital Government “Agent of Change” award after he led Kansas to nationalprominence in electronic delivery service.On SOLID GROUNDPartner CommitmentNIC’s employees commit every day to delivering the best ideas, applications, service,and leadership to our current partners. Today we are proud to have 23 states and twofederal agencies as partners, and for the nineteenth consecutive year, NIC successfullyrenewed all contracts eligible for renewal and was awarded new contracts in states whereit was time for competitive rebids. We don’t take our unblemished retention rate lightly.Our partners’ confidence in our services is paramount. In total, 12 state partnersreaffirmed their partnership with us. We serve at the pleasure of our partners, andsincerely appreciate and thank all of the following states for the opportunity to continueto partner with them: Alabama, Arkansas, Arizona, Colorado, Indiana, Montana,Nebraska, New Mexico, Oklahoma, Rhode Island, Tennessee, and West Virginia.7

On THE ROADFederal Pre-Employment Screening ProgramThe momentum of self-funded eGovernment continues to grow beyond stategovernments to the federal government. In 2010 we launched our first self-fundedfederal service with the U.S. Department of Transportation, Federal Motor CarrierSafety Administration. This service, the Pre-Employment Screening Program, givesdriver applicants, as well as motor carriers looking to hire, the ability to purchaseindividual driver safety records containing the past five years of crash data and threeyears of roadside inspection data. By the end of the year, more than 3,500 motorcarriers and third party information providers had enrolled in the service, with morethan 190,000 records pulled, generating approximately $2 million in revenues in 2010.We are pleased to see the growth of the Pre-Employment Screening Program continueto accelerate, and are encouraged by the strong financial results we saw during theearly stages of this new partnership in 2010.On THE GOMobileAccording to 2010 data from the Pew Research Center’s Internet & American LifeProject, 55 percent of American adults connect to the Internet wirelessly, either througha WiFi connection via a laptop or through a handheld device such as a smart phone.NIC’s online application development strategy continues to extend beyond atraditional desktop computer or laptop. In 2010 we worked with partners to delivermore services via smart phones and other mobile devices.Today NIC has worked with partners to launch more than 35 mobile applications acrossseveral platforms — Android, Blackberry, iPhone and iPad, Microsoft, and Palm. Thesesmart phone applications help citizens find licensed professionals, practice for a driver’sexam, encourage students to learn state history, and be alerted about information onthe nation’s most wanted criminals.In 2010, we kept government at the forefront of mobile technology as we worked withpartners to launch several firsts: Simultaneously with the debut of the iPad, we helped our partners inKentucky, Montana, Nebraska, Tennessee, Utah, and West Virginia8

NIC has worked with partners to launchmore than 35 mobile applications acrossseveral platforms — Android, Blackberry, iPhoneand iPad, Microsoft, and Palm.

launch the first government application for the device — aninteractive practice driver’s license test that allows young peopleto prepare for the written driver’s exam. Arkansas became the first state government to introduce securemobile payments for government services. On the day the Microsoft Windows Phone 7 debuted in the fall of2010, our ”FBI’s Most Wanted” application was the first federalgovernment application made available for the new device.Mobile technology continues to expand the accessibility of government information asanother delivery channel for eGovernment services. As new channels for online accessunfold, NIC is there working with partners to bring businesses and citizens quick accessto online services.Mobile technology continues to expand theaccessibility of government information asanother delivery channel for eGovernment services. As newchannels for online access unfold, NIC is there workingwith partners to bring businesses and citizensquick access to online services.10

On TOP OF OUR GAMEHonors and AwardsWhile awards are not the primary means by which NIC measures success, we are proudof the recognition our services and commitment to innovation garnered in 2010.Each year the “Oscars” of eGovernment are the Center for Digital Government’sBest of the Web Awards. Congratulations to NIC’s portals and partners in Arkansas,Alabama, Maine, and Kentucky, who were recognized as four of the top five stateportals in the country. NIC has a proven track record of delivering the very besteGovernment services in the nation. Our portals have won 80 percent of the Best ofthe Web Awards over the past five years. Every day, we strive to provide businessesand citizens with the very best eGovernment services and we are proud of ourpartners’ recognition.Individual applications were also honored by the Center for DigitalGovernment through its Digital Government Achievement Awards.From Hawaii’s eBench Warrant service to Montana’s Roadside Citations,online applications developed by NIC swept the state governmentcategory for government-to-citizen applications.NIC’s financial performance was recognized for the second consecutiveyear by Forbes magazine as we were again named one of the “Best 100Small Companies in America.” This list includes the top 100 publiclytraded companies with revenues less than $1 billion dollars, whichhave demonstrated strong earnings growth, sales growth, and returnon equity during the past year, and over the past five years. As the only companyin Kansas to achieve this ranking, we are honored to be among this group. Thisrecognition supports what we have set out to achieve from the beginning — deliveringthe very best eGovernment services in a way that builds a financially strong company.11

On PURPOSENIC Values and Community InvolvementWe are committed to making our communities the best places to live and work. Wedo this through our eGovernment services and expertise, by providing efficienciesthat allow government transactions to take place online, not in line, with the click of amouse or the touch of an icon.NIC also helps build great communities through a company culture that embracesemployee wellness. We believe healthier employees are better employees. Almostevery week across the NIC family of portals there is a health initiative in progresssomewhere. From triathlons to charity runs, our employees engage in a wide range ofwellness activities. Throughout the year we also sponsor a series ofcompany-wide fitness competitions to help encourage employeesand their families to stay active and maintain a healthy lifestyle.Building healthy communities takes many forms at NIC. Ouremployees participate in blood drives, student mentoring programs,and holiday family adoption programs. It is also common forcompany meetings to involve a community activity. In 2010 at ourannual tech conference for our IT employees, we planted trees inIndianapolis as part of a city beautification project. We recognizedemployee volunteerism with the launch of our new “Citizen of theYear” award. And, we asked employees to pool their talents andtime as part of our first “Team of the Year” award. These are ourhighest employee honors — we truly aspire to do all we can for ourcommunities and we celebrate those employees who embrace thiscore part of our culture.ONWARDNIC’s Long-Term GrowthIn 2010, NIC was truly on the move. The momentum of self-funded eGovernmentcontinues in 2011 as we build upon our company’s growth in 2010. Our strategy remainsto drive growth by launching new services and adding new partners. As we look to thefuture, we will continue to share the self-funded eGovernment story with states that arenot currently NIC partners. And, we are in the early stages of targeting more federalself-funded opportunities.12

Our strategy remains to drivE growth by launchingnew services and adding new partners.Wherever the future leads, NIC is grateful for government partners who place theirconfidence in us to bring eGovernment to millions of Americans. From the honors ourpartners receive to the efforts we contribute to our communities, our employees arepassionate about using technology to make a difference. We thank each and everyone of them for their continued service and dedication.And thank you for your investment in our company. We look forward to another strong year.Sincerely,Harry HeringtonNIC Chief Executive Officerand Chairman of the Board13

MOBILEHighlightsONE IN A MILLIONMobileMobile application development reached new heights in 2010 as NIC continues toexpand access to eGovernment services through smart phone devices. Today severalof our portals have mobile sites, and even more are mobile-optimized to deliverstreamlined information and specific services on mobile devices.In 2010 when Arkansas became the first state to introduce secure mobile paymentsfor government services, it marked a milestone for NIC. We now can offer a seamlessmobile experience for users, from the time they first “hit” a website through thetransaction process to secure payment.For millions of younger citizens, mobile is the primary way they will experienceeGovernment. With this in mind, when the iPad debuted this year, NIC was the firstto launch a government application specifically for this device. Targeting the youngergeneration of citizens, NIC worked with six states to simultaneously launch the PracticeDriver’s Test iPad app. This interactive application helps teens practice for the writtendriver’s license exam.As we launched iPhone and iPad apps, we also made sure ourmobile apps were available across several platforms. As the newWindows Phone 7 hit the market, NIC made its popular “FBI’s Most Wanted”application available for this new device. As with the iPhone, the “Most Wanted”app quickly caught the attention of Windows Phone 7 users. Microsoft named theapp its “Federal Government App of the Week.” That success was soon followed bytwo NIC apps winning top spots in Microsoft’s Federal App Contest. “Most Wanted”placed in the contest’s Top 10, with NIC’s Recovery.gov mobile app finishing as oneof the Top 3 winners.By the end of the year we hit a million! NIC mobile applications havebeen downloaded more than one million times. We are encouraged by this rapidlydeveloping delivery channel for eGovernment services, as it is bringing a newgeneration of citizens convenient access to government services.14

ONLINE SERVICESHighlightsMAKING A DIFFERENCEYOUniversal and Gambling InterceptEach day we work closely with our partners to launch new services. These servicesmake interaction with government simpler, quicker, and more convenient. Some of theservices have lasting effects on the lives of citizens. Here are two examples of serviceswe can say are truly making a difference.There was a time when Arkansas’ scholarship process meant alot of paper, a lot of time, and a lot of unused scholarship funds.Thanks to an online service launched in 2010, that has all changed. Today Arkansas’scholarship process is viewed as a “best practice” in administering higher educationfinancial aid. This interactive service, called YOUniversal, allows students to apply formultiple scholarships, grants, and financial aid programs through a single, consolidatedwebsite. Parents and students answer a few questions, such as grade point average andfamily income level, in order to view scholarships for which the students are eligible.The system also eliminates the manual paper application process and helps createefficiencies by compiling automatic updates of student information once a scholarshipis awarded. The state expects an 80 percent reduction in paper and mailing costs.Meanwhile the total number of scholarships awarded reached 125,000 in 2010, upfrom 15,000 in 2009, with 12 percent accessing the service through a mobile device.Another application making a difference in children’s lives wasdeployed by nic’s Colorado and Indiana portals. Colorado’s Division ofChild Support Enforcement and Indiana’s Department of Child Services successfullycollect unpaid child support through a Gambling Intercept application. The onlineservice ensures that before any gambling winnings are paid, a database is checked forindividuals who are delinquent on child support payments. If child support paymentsare found to be delinquent, the winnings are intercepted and applied to the childsupport in arrears.Whether it is scholarship money for Arkansas’ students or child support payments forIndiana and Colorado children, these two services are making a difference in children’slives and we are proud to have developed them with our partners.15

RENEWALS &Rebids 2010 The state of West Virginia signed a new contract with West VirginiaInteractive to manage its eGovernment services for up to three years. The state of Colorado signed a four-year contract extension withColorado Interactive. The state of Rhode Island approved an extension of Rhode IslandInteractive’s portal management contract through 2012. The state of Arkansas renewed its contract with Arkansas InformationConsortium for one year. The state of Tennessee extended NICUSA, Tennessee Division’s portalmanagement contract through 2011. The New Mexico Motor Vehicle Division renewed New Mexico Interactive’sengagement through 2013. The state of Indiana extended its contract with Indiana Interactive through 2014. Montana Interactive was awarded a new portal management contract by thestate of Montana for services through 2020. The state of Oklahoma signed the first of five single-year renewals withOklahoma Interactive. The state of Alabama extended Alabama Interactive’s portal managementcontract through 2012. The state of Arizona renewed its contract with the NICUSA, Arizona Divisionfor one year. Nebraska Interactive was awarded a contract extension by the state ofNebraska, for services through 2016.16

AWARDS& HonorsBest of the Web#2 – Arkansas#3 – Alabama#4 – Maine#5 – KentuckyTop Ten Finalist – Rhode IslandTop Ten Finalist – TennesseeTop Ten Finalist – TexasTop Ten Finalist – VermontTop Ten Finalist – VirginiaDigital GovernmentaCHiEVEMEnt AwaRDSGovernment-to-GovernmentHawaii Electronic Bench WarrantsMaine Recovery ActElectronic ReportingMontana RoadsideCitation ePaymentsGovernment-to-BusinessMaineTankSmart Online Oil StorageTank Search and Operator TrainingHonorable Mention – ArkansasOffice of State ProcurementProfessional Consulting ServicesOnline Contract & AmendmentSubmission ServiceHonorable Mention – UtahProfessional Licensing ContinuingEducation ManagementGovernment InternalOklahoma State Department ofHealth Step UP PerformanceManagement SystemGovernment-to-CitizenAda County, Idaho – Sheriff’s OfficeInternet Video Visitation PaymentsColorado Tax TracksUtah Driver LicenseDivision SchedulerMontana Secretary of StateCandidate FilingNew Mexico Motor VehicleDivision WebsiteTennessee General Assembly WebsiteWest Virginia VehicleRegistration SystemHonorable Mention –mobile.arkansas.govHonorable Mention – NebraskaJudicial Branch InternetPayment SystemHonorable Mention – South CarolinaAppliance Rebate ProgramDigital StaTES SURVEyOverallUtah – A gradeVirginia – A- gradeColorado – B+ gradeKentucky – B+ gradeTennessee – B+ gradePublic Safety#1 – Tennessee#2 – Utah#3 – Virginia17

Digital StaTES SURVEy(continued)Health & Human Services#1 – Utah#4 – TennesseeCommerce, Labor & Tax#1 – UtahFinance & Administration#1 – Utah#5 – KansasEnergy & Transportation#2 – UtahCitizen Engagement#2 – Virginia#4 – ColoradoAdaptive Leadership#5 – ColoradoGovMarks AwaRDSBest State & Local GovernmentMarketing Campaign – OK.gov’s“Next Time, Pay Online”Best Creative Campaign – OK.gov’s“Go Green Oklahoma” and“eRecycle at the State CapitolEvent” campaignsCenter for DigitalgOVERnment BESTFit IntegraTOR AwardAlabama.gov Website andOnline ServicesMaine KeepMEWell SiteSouth Carolina ApplianceRebate ProgramUtah Driver License DivisionOnline SchedulerConnect.Utah.gov PortalNASCIO RECOgnition AwaRDSCross-Boundary Collaboration& PartnershipsWinner – Arkansas YOUniversalFinancial Aid Management SystemEnterprise IT ManagementInitiativesWinner – Utah Cloud InfrastructureOpen Government InitiativesFinalist – Colorado OnlineTransparency InitiativesFinalist – Kentucky Open Door WebsiteIACA Merit AwardUtah.gov UCC AmendmentsInformationWEEK’s 12 BESTgOVERnment WEBSiTESAlabama.govUtah.govSunshine Review’sSunny AwaRDSIndiana – A gradeMaine – A grade18

Juggle.com TopgOVERnment WEBSite AwardAlabama.govArkansas.govColorado.govMaine.govRI.govTN.govUtah.govVirginia.govHarvard Bright iDEas ingOVERnmentHawaii Electronic Bench WarrantsRhode Island Liquor CompliancyInternational AcaDEMy ofVisual aRTS W3 AwardGold Award – Indiana StateFair WebsiteSilver Award – Utah Department ofPublic Safety Mobile Media PortalCommunicaTOR AwaRDSSilver Award of DistinctionRI.govUtah.govWeb Marketing aSSOCiationGovernment Standard ofExcellence AwardUtah.govOutstanding Website AwardRI.govGovernment CUSTOMERSUPPORT ExCELLEnce AwardFOR TECHnical ExCELLEnceUtah.govAAMVA CUSTOMER SERViceExCELLEnce AwardUtah.gov Public Information OfficerMedia PortalU.S. Public InTERESTRESEaRCH gROUP OpennESSin gOVERnment SpendingKentucky – A gradeSilver Davey AwardUtah.gov Driver License SchedulerInteractive Media AwaRDSOutstanding GovernmentAchievement – RI.govWebby AwaRDSOfficial Honoree – Utah.gov19

nOUR eGOVERNMENTPartnershipsAlabamawww.Alabama.govArizONAwww.AZ.govARKANSASwww.Arkansas.govCOLORADOwww.Colorado.govFEDERAL ELECTIONCOMMISSIONwww.FEC.govHAWAIIwww.eHawaii.govIDAHOwww.Idaho.govINDIANAwww.IN.govINDIANAPOLIS &MARION COUNTY, INwww.IndyGov.bizIOWAwww.Iowa.govIOWA COUNTY TREASURERSwww.IowaTaxandTags.govKANSASwww.Kansas.govKENTUCKYwww.Kentucky.govMAINEwww.Maine.govMONTANAwww.mt.govOKLAHOMAwww.OK.govNEBRASKAwww.Nebraska.govNew MexICO MVDww.mvd.newmexico.govRHODE ISLANDwww.RI.govSOUTH CAROLINAwww.SC.govTENNESSEEwww.TN.govTexaswww.Texas.govU.S. DEPARTMENT ofTRANSPORTATIONwww.psp.fmcsa.dot.govUTAHwww.Utah.govVERMONTwww.Vermont.govVIRGINIAwww.Virginia.govWEST VIRGINIAwww.WV.gov20

BY THENumbersSTRENGTH IN NUMBERS?We think so.Here are some of the key metrics of our success in 2010.$12.1BILLION$161.5MILLIONtotal amount of funds securely processed by NIC in 2010total NIC revenue in 2010$0.55per share special cash dividends distributed tostockholders in 201022%year-over-year increase in NIC’s total revenues23ONEMILLION7,500number of states that outsource keyeGovernment services to NICtotal downloads of NIC smart phone appsnumber of interactive services built and managed by NICPORTAL REVENUES (in millions)$180$155.2$160$140$128.6$120$96.8$100$82.5$80$70.0$57.9$60$48.5$34.8$40.2$40$26.4$17.8$20$02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201021

CORPORATEInformationBoard of DirectorsHarry H. HeringtonChairman of the Board andChief Executive OfficerMr. Herington, 51, is the Chief ExecutiveOfficer of NIC and previously servedas the Company’s President, ChiefOperating Officer, and Executive VicePresident of Portal Operations. Hebecame an NIC Director in 2006.Art N. BurtscherLead Independent DirectorMr. Burtscher, 60, is Senior VicePresident of the Westwood Trust. Heis also a Director of NovaStar Financial,and several privately-held companies.Mr. Burtscher became an NIC Directorin 2004 and was named Lead Directorin 2008.Daniel J. EvansGovernor Evans, 85, is Chairman ofDaniel J. Evans Associates, a public policyconsulting firm, and previously servedas Governor and U.S. Senator for thestate of Washington. He is also a Directorof Costco Wholesale Corporation andArchimedes Technology Group. Hebecame an NIC Director in 1998.Alexander C. KemperMr. Kemper, 45, is Chairman of TheCollectors Fund, a private equity fund,and Chairman and Chief ExecutiveOfficer of Pollenware, a trade settlementcompany. He is a Director of UMBFinancial Corp., and several privately-heldcompanies. He became an NIC Directorin 2007.William M. LyonsMr. Lyons, 55, is the former presidentand CEO of American CenturyCompanies, Inc., a Kansas City-basedinvestment manager. Mr. Lyons is alsoa Director of Morningstar, Inc. and theNASDAQ Stock Exchange. He becamean NIC Director in 2009.Pete WilsonGovernor Wilson, 77, is a Principal atBingham Consulting Group, a businessconsulting firm. He previously served asGovernor and U.S. Senator for the stateof California and Mayor of San Diego.He is also a Director of Irvine Corporation,U.S. Telepacific Corporation, and U.S.HealthWorks. Governor Wilson becamean NIC Director in 1999.Ross C. HartleyMr. Hartley, 63, is a co-founder of NICand former President of The HartleyInsurance Group. He is also a Director ofthe Empire District Electric Company. Hebecame an NIC director in 1998.22

Committee MembershipsAudit CommitteeArt N. Burtscher — ChairDaniel J. EvansAlexander C. KemperWilliam M. LyonsPete WilsonCompensation CommitteeAlexander C. Kemper — ChairArt N. BurtscherDaniel J. EvansWilliam M. LyonsPete WilsonCorporate Governance &Nominating CommitteeWilliam M. Lyons — ChairArt N. BurtscherDaniel J. EvansAlexander C. KemperPete WilsonContacting THEBoard of DirectorsCommunications to NIC’s Board ofDirectors should be sent via e-mail toboard@egov.com or in writing to:Board of DirectorsNIC Inc.25501 West Valley ParkwaySuite 300Olathe, Kansas 66061The Board’s committee charters, theCompany’s Code of Business Conductand Ethics, and governance guidelinesmay be found on the Company’swebsite at www.egov.com/Investors/CorporateGov and may be obtained inprint by contacting the Investor RelationsDepartment at invest@egov.com or(913) 498-EGOV.EXECUTIVE OfficersHarry H. HeringtonChairman of the Board andChief Executive OfficerAge 51William F. Bradley, Jr.Chief Operating Officer andGeneral CounselAge 56Stephen M. KovzanChief Financial OfficerAge 42Robert W. KnappExecutive Vice PresidentAge 42OTHER OfficersAimi M. DaughteryChief Accounting OfficerAge 40Independent RegisteredPublic AccountantsPricewaterhouseCoopers LLP1100 Walnut StreetSuite 1300Kansas City, Missouri 64106(816) 472-7921www.PwC.comOutside CounselStinson Morrison Hecker LLP1201 Walnut StreetSuite 2900Kansas City, Missouri 64106(816) 842-8600www.stinson.com23

Stockholder InformationAnnual MeetingThe Annual Meeting of NIC Inc.stockholders will be held on May 3, 2011at the Sheraton Overland Park Hotel atthe Convention Center, 6100 CollegeBoulevard, Overland Park, Kansas, 66211.A formal notice, together with theproxy statement and proxy form (alongwith the 2010 Form 10-K), will bemailed in advance of the meeting toall stockholders of record entitled tovote. Stockholders are encouraged toattend the meeting, but those unableto do so are asked to sign and returnthe proxy form.Stock ListingNIC Inc.’s common stock is traded onNASDAQ Global Select market underthe symbol “EGOV.” As of March 7, 2011there were 64,873,675 shares outstandingand eligible to vote at the meeting.Register and Transfer AgentComputershare250 Royall StreetCanton, MA 02021(781) 575-2000www.computershare.comInvestor RelationsCopies of nic’s Annual Report on Form10-K, Quarterly Reports on Form 10-Q,and other publications are availablefree of charge upon request. Inquiriesshould be directed to:Angela SkinnerDirector of Corporate Communications& Investor Relations25501 West Valley ParkwaySuite 300Olathe, Kansas 66061(913) 754-7054(877) 234-EGOVaskinner@egov.comImportant information is included inthe most recent Form 10-K, which isattached to this annual report. Thesedocuments can also be viewed onlineat www.egov.com/Investors.CreditsDesignGrapevine DesignsLenexa, Kansaswww.grapevinedesigns.comPrintingDG3-Diversified Global Graphics Groupwww.dg3.comTrademarks & Registered Service MarksNIC Inc. is a registered service mark of NIC Inc. The NIC logo and “The PeopleBehind eGovernment” are registered trademarks of NIC Inc. Certain othernames and logos protected by trademark appear in this report. Rather thanlist the names and entities that own these trademarks or insert a trademarksymbol with each mention of the trademark, NIC Inc. states that it is using thenames only for informational purposes and to the benefit of the trademarkowner with no intention of infringing upon that trademark.© 2011 NIC Inc. NIC is an equal opportunity employer. Printed in the U.S.A.24

WHEREVER THE FUTURELEADS, NIC IS GRATEFULFOR GOVERNMENT PARTNERSTHAT PLACE THEIR CONFIDENCEIN US TO BRING eGOVERNMENTTO MILLIONS OF AMERICANS.

TwitterFacebookLinkedInDeliciousSlideShareRSS Feeds25501 W. Valley Parkway, Suite 300 • Olathe, Kansas 66061p: 877.234.EGOV • f: 913.498.3472 • www.egov.comNIC Inc.