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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                            ------------------------


                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
       ------------------------------------------------------------------



For the Quarterly Period Ended: March 31, 2005  Commission File Number 000-21685


                       INTELIDATA TECHNOLOGIES CORPORATION

             (Exact name of registrant as specified in its charter)




   DELAWARE                                                  54-1820617
   (State of Incorporation)     (I.R.S. Employer Identification Number)

             11600 Sunrise Valley Drive, Suite 100, Reston, VA 20191
               (Address of Principal Executive Offices) (Zip Code)

                                 (703) 259-3000
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

Yes     X        No
    ---------        --------


Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes      X       No
    ----------       --------


The number of shares of the registrant's  Common Stock  outstanding on March 31,
2005 was 51,129,000.

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<PAGE>





                       INTELIDATA TECHNOLOGIES CORPORATION

                          QUARTERLY REPORT ON FORM 10-Q

                                TABLE OF CONTENTS


                                                                            Page
PART I - FINANCIAL INFORMATION

  Item 1.  Financial Statements (unaudited)

           Condensed Consolidated Balance Sheets
           March 31, 2005 and December 31, 2004 ............................   3

           Condensed Consolidated Statements of Operations
           Three Months Ended March 31, 2005 and 2004 (as restated).........   4

           Condensed Consolidated Statement of Changes in Stockholders' Equity
           Three Months Ended March 31, 2005................................   5

           Condensed Consolidated Statements of Cash Flows
           Three Months Ended March 31, 2005 and 2004 (as restated).........   6

           Notes to Condensed Consolidated Financial Statements ............   7

  Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations .......................................  15

  Item 3.  Quantitative and Qualitative Disclosures About Market Risk ......  25

  Item 4.  Controls and Procedures .........................................  25



PART II - OTHER INFORMATION

  Item 5.  Other Information................................................  26

  Item 6.  Exhibits.........................................................  26

  SIGNATURE       ..........................................................  27

<PAGE>


PART I:       FINANCIAL INFORMATION
-----------------------------------
ITEM 1.       FINANCIAL STATEMENTS
----------------------------------

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 2005 AND DECEMBER 31, 2004
                  (in thousands, except share data; unaudited)
<TABLE>

                                                                                        2005            2004
                                                                                    ------------    ------------
<S>                                                                                <C>              <C>

ASSETS
CURRENT ASSETS
     Cash and cash equivalents                                                      $      1,253    $      3,223
     Accounts receivable, net                                                              1,444           1,437
     Other receivables                                                                        24              16
     Prepaid expenses and other current assets                                               369             545
                                                                                    ------------    ------------
         Total current assets                                                              3,090           5,221

NONCURRENT ASSETS
     Property and equipment, net                                                             704             833
     Intangible asset, net                                                                 4,160           4,340
     Other assets                                                                            211             211
                                                                                    ------------    ------------

TOTAL ASSETS                                                                        $      8,165    $     10,605
                                                                                    ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
     Accounts payable                                                               $      1,396    $      1,003
     Accrued expenses                                                                      1,783           2,223
     Deferred revenues                                                                       920           1,269
     Liabilities of discontinued operations                                                   12              40
                                                                                    ------------    ------------
TOTAL CURRENT LIABILITIES                                                                  4,111           4,535
     Accrued expenses                                                                        161             225
     Deferred revenues                                                                       113             150
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                          4,385           4,910
                                                                                    ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock, $0.001 par value; authorized 5,000,000 shares;
        no shares issued and outstanding                                                     --               --
     Common stock, $0.001 par value; authorized 100,000,000 shares;
        issued 52,164,000 shares in 2005 and 52,169,000 shares in 2004;
        outstanding 51,129,000 shares in 2005 and 51,134,000 shares in 2004                   52              52
     Additional paid-in capital                                                          307,017         307,020
     Treasury stock, at cost:  1,035,000 shares in 2005 and 2004                          (2,648)         (2,648)
     Deferred compensation                                                                   (15)            (23)
     Accumulated deficit                                                                (300,626)       (298,706)
                                                                                    ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                                                                 3,780           5,695
                                                                                    ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $      8,165    $     10,605
                                                                                    ============    ============

</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>
<TABLE>


                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 2005 AND 2004
                (in thousands, except per share data; unaudited)


                                                                           2005                   2004
                                                                         -------------    --------------
<S>                                                                      <C>              <C>
                                                                                           (as restated)
                                                                                          (see Note 2(g))
Revenues
     Software license                                                    $         198    $           --
     Consulting services                                                           356               416
     Use-based                                                                   1,802             2,698
     Maintenance                                                                   588               478
                                                                         -------------    --------------
        Total revenues                                                           2,944             3,592
                                                                         -------------    --------------

Cost of revenues
     Consulting services, recurring and termination fees                         1,257             1,780
                                                                         -------------    --------------
        Total cost of revenues                                                   1,257             1,780
                                                                         -------------    --------------

Gross profit                                                                     1,687             1,812
                                                                         -------------    --------------
Operating expenses
     General and administrative                                                  2,122             1,570
     Sales and marketing                                                            59               295
     Research and development                                                    1,242             1,306
     Amortization of intangible asset                                              180               180
                                                                         -------------    --------------
        Total operating expenses                                                 3,603             3,351
                                                                         -------------    --------------

Operating loss                                                                  (1,916)           (1,539)
Other income (expenses), net                                                        (4)                6
                                                                         -------------    --------------

Loss before income taxes                                                        (1,920)           (1,533)
Provision for income taxes                                                          --                --
                                                                         --------------   --------------

Net loss                                                                 $      (1,920)   $       (1,533)
                                                                         =============    ==============


Basic and diluted earnings (loss) per common share                       $       (0.04)   $        (0.03)
                                                                         =============    ==============

Basic and diluted weighted-average common shares outstanding                    51,084            51,127
                                                                         =============    ==============

</TABLE>
     See accompanying notes to condensed consolidated financial statements.

<PAGE>


5

                       INTELIDATA TECHNOLOGIES CORPORATION
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                        THREE MONTHS ENDED MARCH 31, 2005
                            (in thousands; unaudited)


<TABLE>




                                                   Common Stock          Additional
                                             -------------------------    Paid-in      Treasury     Deferred       Accumulated
                                               Shares       Amount        Capital       Stock     Compensation       Deficit
                                             ------------ ------------ -------------- ----------- -------------- ----------------
<S>                                          <C>          <C>          <C>            <C>         <C>            <C>
Balance at January 1, 2005                      52,169    $      52    $   307,020    $  (2,648)  $       (23)   $  (298,706)
    Issuances of common stock:
        Exercise of stock options                    -            -              -            -             -              -
        Issuances of restricted stock                -            -              -            -             -              -
    Cancellations of restricted stock               (5)           -             (3)           -             3              -
    Purchase of treasury stock, at cost              -            -              -            -             -              -
    Amortization of deferred compensation            -            -              -            -             5              -
    Net loss                                         -            -              -            -             -         (1,920)

    Comprehensive loss

                                             ------------ ------------ -------------- ----------- -------------- ----------------

Balance at March 31, 2005                       52,164    $      52    $   307,017    $  (2,648)    $     (15)   $  (300,626)
                                             ============ ============ ============== =========== ============== ================




                                             Comprehensive
                                                 Loss          Total
                                             ------------- -----------
Balance at January 1, 2005                                 $    5,695
    Issuances of common stock:
        Exercise of stock options                                   -
        Issuances of restricted stock                               -
    Cancellations of restricted stock                               -
    Purchase of treasury stock, at cost                             -
    Amortization of deferred compensation                           5
    Net loss                                 $  (1,920)        (1,920)
                                             -------------
    Comprehensive loss                       $  (1,920)
                                             =============
                                                           -----------

Balance at March 31, 2005                                  $   3,780
                                                           ===========

</TABLE>
     See accompanying notes to condensed consolidated financial statements.
<PAGE>

<TABLE>

                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED MARCH 31, 2005 AND 2004
                            (in thousands; unaudited)

                                                                              2005                    2004
                                                                           -----------             ----------
<S>                                                                        <C>                    <C>
                                                                                                  (as restated)
                                                                                                 (see Note 2(g))
Cash flows from operating activities
     Net loss                                                              $    (1,920)            $   (1,533)
     Adjustments to reconcile net loss to net cash used
         in operating activities of continuing operations:
         Amortization of intangible asset                                          180                    180
         Depreciation and amortization                                             133                    177
         Deferred compensation expense                                               5                     41
         Changes in certain assets and liabilities:
              Accounts receivable                                                   (7)                   816
              Prepaid expenses and other current assets                            168                    124
              Accounts payable                                                     393                    188
              Accrued expenses and accrued rent                                   (504)                  (603)
              Deferred revenue                                                    (386)                  (184)
                                                                           -----------             ----------
                  Net cash used in operating activities of
                  continuing operations                                         (1,938)                  (794)

                  Net cash used in discontinued operations                         (28)                   (61)
                                                                           -----------             ----------

                  Net cash used in operating activities                         (1,966)                  (855)
                                                                           -----------             ----------

Cash flows from investing activities
     Purchases of property and equipment                                            (4)                   (19)
                                                                           -----------             ----------
                  Net cash used in investing activities                             (4)                   (19)
                                                                           -----------             ----------

Cash flows from financing activities
     Proceeds from issuance of common stock                                         --                     34
     Payments to acquire treasury stock                                             --                     (2)
                                                                           -----------             ----------
                  Net cash provided by financing activities                         --                     32
                                                                           -----------             ----------

Decrease in cash and cash equivalents                                           (1,970)                  (842)

Cash and cash equivalents, beginning of period                                   3,223                  7,603
                                                                           -----------             ----------
Cash and cash equivalents, end of period                                   $     1,253             $    6,761
                                                                           ===========             ==========


</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (AS RESTATED)
                                   (Unaudited)

(1)  Basis of Presentation

     The  condensed  consolidated  balance  sheet  of  InteliData   Technologies
Corporation  ("InteliData"  or the  "Company") as of March 31, 2005, the related
condensed  consolidated   statements  of  operations  and  cash  flows  for  the
three-month  periods  ended March 31, 2005 and 2004,  and the related  condensed
consolidated  statement of changes in  stockholders'  equity for the three-month
period ended March 31, 2005  presented in this Form 10-Q are  unaudited.  In the
opinion of management, all adjustments necessary for a fair presentation of such
financial statements have been included. Such adjustments consist only of normal
recurring items, except certain non-recurring  adjustments discussed herein. The
condensed  consolidated  balance  sheet as of December 31, 2004 was derived from
the Company's  audited December 31, 2004 balance sheet.  Interim results are not
necessarily indicative of results for a full year.

     The condensed  consolidated financial statements and notes are presented as
required by Form 10-Q, and do not contain  certain  information  included in the
Company's  annual  audited  financial  statements  and  notes.  These  financial
statements  should be read in  conjunction  with the  annual  audited  financial
statements  of the Company and the notes  thereto,  together  with  management's
discussion  and  analysis of  financial  condition  and  results of  operations,
contained in the Form 10-K for the fiscal year ended December 31, 2004.

     On March 31, 2005,  the Company  entered into a definitive  agreement to be
acquired by  Corillian  Corporation  ("Corillian"),  a publicly  traded  company
(Nasdaq:  CORI) based in Hillsboro,  Oregon, that provides solutions that enable
banks,  brokers,  financial  portals and other  financial  service  providers to
rapidly deploy Internet-based financial services. The purchase consideration for
the Company is  approximately  $19.2 million,  subject to adjustment.  Under the
terms of the agreement,  each  outstanding  share of the Company's  common stock
will be  converted  into the right to receive  0.0954 of a share of  Corillian's
common  stock  and  $0.0844  in  cash  without  interest.  The  closing  of this
transaction is subject to, among other things,  the  effectiveness  of the proxy
statement/prospectus  on Form S-4 to be filed with the  Securities  and Exchange
Commission and approval of the Company's stockholders. As a result, there can be
no  assurances  that  the  acquisition  will be  completed  or as to the  timing
thereof.  As  part  of  this  proposed  transaction,  Wachovia  Securities,  the
Company's  investment  banking  advisor,  issued a fairness opinion on March 31,
2005. In accordance with the engagement letter between Wachovia and the Company,
Wachovia  assessed the Company $250,000 for this opinion and the Company accrued
for this fee as of March 31, 2005. In addition, the Company incurred $241,000 in
additional legal expenses related to the proposed transaction and other matters.

(2)  Summary of Significant Accounting Policies

(a)  Principles of Consolidation - The consolidated financial statements include
the accounts of the Company and its wholly owned  subsidiaries after elimination
of all inter-company balances and transactions.

(b)  Accounting   Estimates  -  The  preparation  of  financial   statements  in
conformitywith  accounting principles generally accepted in the United States of
America  requires  management to make estimates and assumptions  that affect the
reported  amounts of assets and liabilities and disclosure of contingent  assets
and liabilities at the date of the financial statements and the reported amounts
of revenues  and  expenses  during the period.  Estimates  include,  but are not
limited to,  valuation of  intangible  assets which include  goodwill,  costs of
environmental  remediation  for real  property  previously  sold,  allowance for
doubtful  accounts,  depreciation  of fixed assets,  provision for  discontinued
operations,  legal matters and project plans for the  completion and delivery of
certain solutions. These accounting estimates are based on information currently
available.  Actual  results could differ from those  estimates and in some cases
the actual results could vary materially from the estimates.

(c)  Revenue Recognition - The Company  supplies online banking and bill payment
software to FI's. The Company's  revenues  associated with integrated  solutions
that bundle  software  products with  customization,
<page>

installation  and  training  services are  recognized  using the  percentage  of
completion  method of accounting based on cost incurred as compared to estimated
costs at completion.

     The Company  enters into  contracts  where the  delivered  software may not
require significant customization.  Upon delivery, the Company either recognizes
revenue  ratably over the contract  period for contracts  where vendor  specific
objective  evidence  ("VSOE") of fair value for post contract  customer  support
("PCS") does not exist or  recognizes  revenue for the  delivered  element where
VSOE of fair value for PCS does exist  (e.g.,  when the Company has  substantive
renewal rates for PCS).  The Company  generally  utilizes the shipping  terms of
F.O.B.  shipping  point.  Depending  on the type of software  and the terms of a
particular  contract,  the  client's  receipt of the software is either based on
F.O.B.  shipping  point or upon  acceptance of the  software,  as defined by the
applicable contract. The warranty provision is generally ninety days from either
FOB shipping date or acceptance of the software.

     The Company  also  enters  into  multiple  element  arrangements.  Elements
typically include software,  consulting,  implementation  and PCS. PCS contracts
generally  require the  Company to provide  technical  support and  unspecified,
readily available software updates and upgrades to customers.  Revenue for these
multiple element arrangements is recognized when there is persuasive evidence of
an arrangement  and delivery to the customer has occurred,  the fee is fixed and
determinable,  and collectibility is considered  probable.  Advance payments are
recorded as deferred  revenue  until the  products  are  shipped,  services  are
delivered and all obligations are met. Currently, the Company does not have VSOE
of fair value for some of the elements within its multiple element arrangements.
Therefore,  all revenue under such arrangements is being recognized ratably over
the  term  of the PCS  contract.  Revenue  from  transactional  services,  which
includes  hosting  and  application  services  provider  ("ASP")  services,   is
recognized as transactions are processed.

     Emerging  Issues Task Force Abstract  Issue No. 00-3,  Application of AICPA
Statement  of  Position  97-2 to  Arrangements  that  Include  the  Right to Use
Software Stored on Another Entity's Hardware ("EITF 00-3"), provides guidance in
determining  whether or not the  provisions  of  Statement of Position No. 97-2,
Software  Revenue  Recognition  ("SOP  97-2"),  should  be  applied  to  hosting
arrangements.  The  Company  has some  contracts  where  the  customers  operate
software in an ASP  environment.  The  customer may not take  possession  of the
software without incurring  significant  transition and infrastructure costs, as
well as potential  payments of fees to the Company for the  termination  of such
arrangements.  In cases  where  the  customer  has not  licensed  software  from
InteliData,  the customer must also purchase a license prior to having the right
to use the  software  in its  own  operating  environment,  in  addition  to the
aforementioned fees. In these situations, the Company applies the guidance under
EITF 00-3 and the Staff  Accounting  Bulletin No. 101,  Revenue  Recognition  in
Financial  Statements,  and recognizes the revenue  associated  with the license
and/or implementation fees ratably over the initial term of the contract.

     Additionally,  based on the EITF 00-3 guidance,  the Company concluded that
SOP 97-2  should not be applied to certain of its  software  hosting  contracts.
Accordingly,  the related  revenues for license and  professional  services were
recognized under the percentage of completion  method. In addition to developing
and  delivering  the solution,  the Company is entitled to use fees based on the
number of users and  transactions.  These use-based fees are earned based on the
monthly user counts and as transactions are processed.

(d)  Recent  Accounting  Pronouncements  - In December  2004, the FASB published
SFAS No. 123 (revised 2004), Share-Based Payment ("SFAS 123(R)"), which replaces
SFAS 123 and supersedes APB 25. SFAS 123(R) requires that the compensation  cost
relating to  share-based  payment  transactions  be  recognized in the financial
statements.  That cost will be measured based on the fair value of the equity or
liability  instruments issued. The Company will be required to apply SFAS 123(R)
as of the first annual  reporting  period that begins  after June 15, 2005.  The
Company has not calculated the financial impact of adopting this standard.

(e)  Valuation of Long-Lived Assets - The Company reviews its long-lived  assets
such as property,  plant and equipment and identifiable  intangibles with finite
useful lives for impairment whenever events or changes in circumstances indicate
that the carrying  amount may not be  recoverable.  If the total of the expected
undiscounted  future cash flows is less than the carrying amount of the asset, a
loss,  if any,  is  recognized  for the  difference  between  the fair value and
carrying value of the asset. Impairment analyses,  when performed,  are based on
the Company's  current business and technology  strategy,  views of growth rates
for the business, anticipated future economic conditions, expected technological
availability and potential sale transactions.
<page>

(f)  Goodwill and Intangible Asset - SFAS No. 141, Business  Combinations ("SFAS
141")  requires  business  combinations  initiated  after  June  30,  2001 to be
accounted for using the purchase method of accounting, and broadens the criteria
for recording  intangible assets separate from goodwill.  SFAS No. 142, Goodwill
and Other Intangible Assets ("SFAS 142") requires the use of an amortization and
non-amortization  approach to account for  intangibles  and purchased  goodwill.
Under a non-amortization approach, goodwill and indefinite-lived intangibles are
not to be amortized  into results of  operations,  but instead would be reviewed
for impairment and written down and charged to results of operations only in the
periods in which the recorded  value of goodwill and these  intangibles  is more
than its fair value.  These  reviews are to be performed  at least  annually and
tests for  impairment  between  annual  tests may be required if events occur or
circumstances  change  that would more  likely than not reduce the fair value of
the net carrying amount.  The amortization  and  non-amortization  provisions of
SFAS 142 are to be applied to all goodwill and intangible  assets acquired after
June 30,  2001.  The  provisions  of each  statement  that apply to goodwill and
intangible assets acquired prior to June 30, 2001 were adopted by the Company on
January 1, 2002. As of January 1, 2002, in accordance with SFAS 142, the Company
ceased recognizing amortization expense on goodwill. The goodwill and intangible
asset (which is subject to amortization)  consisted of the following components,
(in thousands) as of:

                                            March 31, 2005     December 31, 2004
                                            --------------     -----------------

 Goodwill                                   $            -     $              -
                                            ==============     =================

 Intangible asset, gross carrying amount    $        7,200     $          7,200
 Accumulated amortization                           (3,040)              (2,860)
                                            --------------     -----------------
 Net intangible asset                       $        4,160     $          4,340
                                            ==============     =================

    As   the  Company  disclosed  in the  first  quarter  of  2004,  the  annual
impairment  testing date is as of June 30th.  As of March 31, 2004,  the Company
was not aware of events or  circumstances  that  could  indicate  impairment  of
goodwill and its market  capitalization  indicated a fair value substantially in
excess of the Company's carrying amount,  including goodwill.  During the second
quarter of 2004, the Company experienced  unanticipated business challenges,  as
customer  decisions on  acquiring  InteliData's  products and services  were not
completed for a variety of reasons (e.g., merger and acquisition activities that
shift  priorities,  merger and acquisition  activities that reduce the number of
prospects,  and the  timing  of  requests  for  proposals  and  decision  making
processes).  Additionally,  competition  in the  marketplace  increased  pricing
pressures  (e.g.,  a competitor  lowered  pricing for some  customers to prevent
attrition).  These  marketplace  challenges  led the Company to  reevaluate  the
financial  projections  and  related  cash flows for the next three years and to
reconsider  longer-term  estimates.  In  addition,  the  Company  noted  a sharp
reduction in its market capitalization  subsequent to the first quarter of 2004,
which  reflected  its  marketplace   challenges  and  corroborated  its  revised
financial projections discussed above.

     As of June 30, 2004, the Company  performed the required annual  impairment
testing for goodwill in accordance  with SFAS 142.  These  reviews  utilized the
same  approaches  and similar  considerations  as previous  tests.  The goodwill
impairment test,  performed at the reporting unit level, is a two-step analysis.
First, the fair value of the reporting unit was compared to its carrying amount,
including goodwill. Fair value was determined using generally accepted valuation
methodologies (i.e.,  discounted cash flow model,  guideline company method, and
similar  transactions  method).  That is, the Company assessed the fair value of
its only  reporting unit by  considering  its projected  cash flows,  comparable
company  valuations,  and recent  purchase  prices paid for entities  within its
industry.  As the fair value of the  reporting  unit was less than its  carrying
amount,  the Company  compared the implied fair value of reporting unit goodwill
with the carrying  amount of that  goodwill to measure the amount of  impairment
loss.   Accordingly,   the  Company  performed  a  hypothetical  purchase  price
allocation  based on the reporting unit's fair value to determine the fair value
of the  reporting  unit's  goodwill in order to measure the goodwill  impairment
charge.  This hypothetical  purchase price allocation required the evaluation of
the fair values of unrecorded  assets,  such  developed  technologies,  customer
relationships  and  deferred  tax  assets,  in  addition  to the fair  values of
recorded net assets. The Company used accepted valuation  methodologies to value
these assets,  including but not limited to, the  replacement  cost approach and
relief from royalty  approach (i.e.,  what the Company would have to pay for the
use of its  technologies  in a hypothetical  licensing or royalty  arrangement).
Consideration

<page>
was given to the  unrecorded  net assets only for the purpose of  measuring  the
amount of goodwill impairment loss. Accordingly, the Company did not record such
net assets on the balance sheet.

     Given  consideration  of these factors and the Company's  declining  market
capitalization,  the Company recorded a goodwill impairment charge in the amount
of  $25,771,000  in the second  quarter of 2004.  The analysis  discussed  above
clearly  indicated that the goodwill  balance was fully  impaired.  As discussed
above,  the analysis  required the Company to make  estimates of projected  cash
flows in order to  determine  if its  assets  are  impaired.  The  Company  made
significant assumptions and estimates in this process regarding matters that are
inherently  uncertain,   such  as  forecasting  revenue  and  cost  projections,
calculating  remaining  useful  lives,  assuming  discount  rates  and  costs of
capital,  among others.  Management  believes that the judgments,  estimates and
assumptions used are reasonable and supportable.

(g)  Restatement  of  Consolidated  Financial  Statements  -  Subsequent  to the
issuance of the  consolidated  financial  statements for the year ended December
31,  2003,  the Company  determined  that the  previous  consolidated  financial
statements   require   restatement   to  correct   errors  related  to  a  lease
restructuring,  deferred rent liabilities, lease purchase accounting, warrant to
issue  Company  stock and an income tax  contingency  (there no  current  period
impact for this matter) as discussed below. The unaudited quarterly consolidated
financial  statements for three quarterly  periods in 2004 were also restated to
reflect  these  adjustments.  Notes  2(n) and 14 to the  consolidated  financial
statements  for the year ended  December  31, 2004  contain  further  discussion
related to this matter.

     Lease Restructuring - As of March 31, 2003, the Company ceased using one of
     -------------------
its leased spaces at its offices in Reston,  Virginia.  We have  concluded  that
there  was an  error  in the  application  of the  concepts  of  SFAS  No.  146,
Accounting  for Costs  Associated  with Exit or Disposal  Activities  (including
Certain Costs Incurred in a  Restructuring)  ("SFAS 146"),  with respect to this
lease.  Under the provisions of SFAS 146, the Company should have determined the
fair value of the liability at the cease-use date by taking the remaining  lease
obligation (adjusted for the effects of any prepaid or deferred items recognized
under the lease,  see Deferred Rent  Liabilities  section  below for  additional
detail), reduced by estimated sublease rentals that could be reasonably obtained
for the  property  for all periods  covered by the lease,  and  discounting  the
resulting net liability using a  credit-adjusted  risk-free rate appropriate for
the first quarter of 2003.  The discounted  liability  should have been accreted
over the lease term.  The impact of these  changes was to increase the operating
expenses by $2,000 for the three months ended March 31, 2004.

     Deferred  Rent  Liabilities  - Prior to the  fourth  quarter  of 2003,  the
     ---------------------------
Company had not  previously  recognized  rent expense on  operating  leases on a
straight-line basis as required by FASB Technical Bulletin 85-3,  Accounting for
Operating  Leases with Scheduled Rent Increases  ("FTB 85-3").  Accordingly,  we
have concluded that there was an error in the application of the concepts of FTB
85-3 with  respect  to our  operating  leases.  This  accounting  results in the
recordation  of a deferred  rent  liability  for all  periods  presented  due to
scheduled rent increases in the leases.  Further,  as mentioned above,  SFAS 146
requires  consideration  of the deferred rent  liability when recording the fair
value  of the net  liability  otherwise  the  liability  (and  related  expense)
recognized  in 2003 is  double  counted.  The  impact  of these  changes  was to
increase the  operating  expenses by $6,000 for the three months ended March 31,
2004.

     Lease  Purchase  Accounting  - The Company  recorded a lease  liability  of
     ---------------------------
approximately $1 million in purchase accounting when it acquired Home Account in
the first quarter of 2001 and reversed part of this liability,  as adjusted,  to
income in the fourth  quarter of 2003. We have concluded that there was an error
in the application of the concepts of APB 16, Business  Combinations ("APB 16"),
EITF 95-3,  Recognition of Liabilities  in Connection  with a Purchase  Business
Combination ("EITF 95-3"), and other relevant accounting literature with respect
to this  lease.  APB 16  requires  the  lease  liability  recorded  in  purchase
accounting  to be  recorded  at a  discounted  amount and for such  amount to be
accreted over the lease term. EITF 95-3 requires that a lease liability recorded
in purchase  accounting be reversed  against goodwill rather than as a credit in
the statement of operations when the liability  requires a downward  adjustment.
Other accounting  literature  requires the Company to revise the lease liability
for sublease rentals when those rentals are considered to be reasonably assured.
The  impact  of these  changes  was to  increase  operating  expenses  (for rent
accretion  expense) by $11,000,  and to decrease other income by $38,000 for the
three months ended March 31, 2004.
<page>

     Warrant - In the second  quarter of 2000,  InteliData  granted a warrant to
     -------
purchase  common  stock to a client in  exchange  for the  client's  becoming  a
premier  reference  site for the Company.  We have  concluded  that there was an
error in the  application  of the concepts of EITF 96-18,  Accounting for Equity
Instruments  That Are  Issued  to Other  Than  Employees  for  Acquiring,  or in
Conjunction with Selling,  Goods or Services,  and other accounting  literature.
The  Company  should  have  recognized  the  full  value of the  warrant  in the
statement  of  operations  on the grant date.  Accordingly,  the Company  offset
approximately $265,000 against revenue and recorded the balance of approximately
$154,000  as costs of  revenues  during  2000.  The impact of this change was to
decrease  operating  expenses  by $20,000 for the three  months  ended March 31,
2004.

     The combined effect of these changes resulted in an increase to net loss of
$37,000 for the three months ended March 31, 2004. The following is a summary of
the effects of the restatement on our consolidated  statements of operations for
the three months ended March 31, 2004.


 Consolidated Statements of Operations
 For the three months ended March 31, 2004      As Previously            As
 (in thousands)                                   Reported            Restated
-------------------------------------------     -------------       ------------

 Operating expenses
       General and administrative                 $  1,551          $  1,570
       Selling and marketing                           315               295
            Total operating expenses                 3,352             3,351

 Operating Loss                                     (1,540)           (1,539)

 Other income (expense), net                            44                 6

 Loss before income taxes                           (1,496)           (1,533)
 Benefit for income taxes                               -                 -
                                                -------------       ------------

 Net loss                                         $ (1,496)         $ (1,533)
                                                =============       ============

     (h) Going Concern Assumption - Our consolidated  financial  statements have
been prepared assuming that the Company will continue as a going concern,  which
contemplates  the  realization of assets and the  satisfaction of liabilities in
the normal course of business.  There are factors that raise  substantial  doubt
about our  ability  to  continue  as a going  concern  including  the  Company's
financial  position  and  results  of  operations.  The  consolidated  financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.

     During 2004 and  continuing  into 2005,  the Company  assessed a variety of
strategic alternatives, which were focused on enhancing InteliData's position in
the electronic banking marketplace by exploring strategic opportunities intended
to enhance  stockholder  value.  For  example,  we  actively  pursued  strategic
alternatives  including  the  possibility  of selling  assets,  raising  capital
through private placements,  and merging the Company with another entity.  There
can be no assurance that any transaction will result from this effort.

     As stated in Note 1, the Company entered into a definitive  agreement to be
acquired by  Corillian.  The closing of this  transaction  is subject to,  among
other things, the effectiveness of the proxy statement/prospectus on Form S-4 to
be filed  with the  Securities  and  Exchange  Commission  and  approval  of the
Company's  stockholders.  As a  result,  there  can be no  assurances  that  the
acquisition  will be  completed  or as to the timing  thereof.  In the event our
merger with Corillian is not  successful,  we may be required to seek protection
from  our  creditors,  or we may need to sell  assets  and/or  raise  additional
capital  through  private  placements.  While we  continue to operate as a going
concern,  we have significant  liquidity and capital resource issues relative to
our ability to generate cash flows and to raise additional capital if needed. We
may not be  able to  generate  sufficient  revenue  to  become  profitable  on a
sustained  basis,  or at all. We have incurred  significant  losses and negative
cash flows from operations for several

<page>

years  and our  ability  to raise or  generate  enough  cash to  survive  may be
questionable.  We expect that the operating  cash flow deficit will continue and
absent further financing or significant improvement in sales, potentially result
in our inability to continue operations. As a result of these and other factors,
our independent  registered public accounting firm has included in its report on
the 2004 consolidated  financial statements an explanatory  paragraph expressing
that  there is  substantial  doubt  about our  ability  to  continue  as a going
concern.

     If the Corillian  transaction is not successful,  the Company's achievement
of its operating  plan remains  predicated  upon both  existing and  prospective
clients'  decisions  to procure  certain  products  and  services in a timeframe
consistent with the operating plan  assumptions.  Historically,  these decisions
have not evolved  timely for varying  reasons,  including  slower than  expected
market demand,  budgetary  constraints,  and internal  product  development  and
resource  initiatives.  Further,  based  on the  Company's  declining  financial
condition, existing and prospective clients could express concerns regarding the
risks of  acquiring  software and services  from  InteliData.  While some may be
satisfied  as long as the source  code  continues  to be held in escrow,  others
could employ a wait-and-see  approach to  InteliData's  continuation  as a going
concern.

     The Company  believes the key factors to its  liquidity in 2005 will be its
ability to  successfully  execute on its plans to achieve  sales  levels,  while
operating at reduced operating expense levels.  With projected sales to existing
and  prospective  clients,  management  expects that the Company's cash and cash
equivalents  and projected  funds from  operations  (which are  principally  the
result of sales and  collections of accounts  receivable)  will be sufficient to
meet its  anticipated  cash  requirements  for the  next  several  months.  This
expectation  is based  upon  assumptions  regarding  cash  flows and  results of
operations   over  the  next  several  months  and  is  subject  to  substantial
uncertainty and risks that may be beyond our control. If these assumptions prove
incorrect,  the  duration of the time  period  during  which the  Company  could
continue  operations  could be  materially  shorter.  The  occurrence of adverse
developments  related  to these  risks  and  uncertainties  could  result in the
Company's  incurring  unforeseen  expenses,  being unable to generate  projected
sales,  to  collect  new and  outstanding  accounts  receivable,  or to  control
expected  expenses  and  overhead,  and we would  likely be  unable to  continue
operations.

     In the event of continued future revenue delays,  the Company would seek to
adjust certain  expense  structures to mitigate the potential  impact that these
delays would have on its capital levels. These opportunities  include additional
reductions in general and  administrative  expenditures,  managing  research and
development efforts consistent with existing and prospective client demands, and
the potential of consolidating certain operational activities.  During 2004, the
Company  reduced the full-time  equivalent  personnel by 14 to 72 as of December
31, 2004.  Continuing into 2005,  management  reviewed the operating expenses in
light of our financial  condition and current plan.  Further steps were taken to
control costs and the full-time  equivalent personnel was reduced by 15 to 57 as
of March 31, 2005.

     Additional  capital  resources  might be  generated  from  activities  that
include the  Company's  selling of assets,  issuing  equity  securities  through
private  placements  and/or  merging the Company  with  another  entity.  If the
Company  engages  in  efforts  to  obtain  additional  capital,  it can  make no
assurances  that  these  efforts  will be  successful  or that the terms of such
funding would be beneficial to the common  stockholders.  If we issue additional
equity  securities  to raise funds,  the  ownership  percentage  of our existing
stockholders would be reduced.  New investors may demand rights,  preferences or
privileges  senior to those of existing  holders of common  stock.  If we cannot
raise  any  needed  funds,  we  might  be  forced  to make  further  substantial
reductions in our operating  expenses,  which could adversely affect our ability
to  implement  our current  business  plan and  ultimately  our  viability  as a
company.

     On  September  7, 2004,  InteliData  transferred  the listing of its common
stock from the Nasdaq  National  Market to the Nasdaq SmallCap Market due to our
inability to comply with the minimum  $1.00 bid price  requirement.  The initial
grace period to regain compliance  expired on December 13, 2004. On December 14,
2004,  InteliData  received  a  notice  from  Nasdaq  that it had  not  regained
compliance  with the minimum $1.00 bid price per share  requirement set forth in
Marketplace  Rule  4310(c)(4).  Nasdaq also notified  InteliData  that, since it
meets the other initial inclusion  criteria for the SmallCap Market, it is being
given an  additional  180  calendar  days,  or until  June 13,  2005,  to regain
compliance. If compliance with the criteria cannot be demonstrated by that time,
InteliData's common stock would be delisted from the Nasdaq SmallCap Market. The
possibility of a Nasdaq delisting could make capital-raising,  selling and other
activities more difficult.
<page>

(i)  Earnings  Per Share - Basic and diluted  earnings  (loss) per common  share
("EPS") is  computed  by  dividing  net income  (loss) by the basic and  diluted
weighted-average  common  shares  outstanding  during the period.  Approximately
3,006,000 and 3,607,000 shares of common stock issuable  pursuant to outstanding
stock options and warrants were not included in the loss per share  computations
in 2005 and 2004,  respectively,  because they would have been anti-dilutive for
the periods presented.

(3)  Discontinued Operations

     Under various  disposal plans adopted in 1997,  1998, and 2000, the Company
completed the divestiture of all of its telecommunications, interactive services
businesses and the Caller ID adjunct leasing activities, respectively.

     As of March 31, 2005, the liabilities of discontinued operations of $12,000
relate to the  telecommunications  divisions.  These  liabilities  relate to the
environmental clean up associated with prior tenants' operations at InteliData's
former New Milford,  Connecticut  property. In January 2000, InteliData sold the
New Milford,  Connecticut  property and the building located  thereon,  its only
remaining  asset  in  its  discontinued  operations  of  the  telecommunications
division.  In the context of this sale,  InteliData  agreed to undertake limited
remediation of the site in accordance with applicable state and federal law. The
subject site is not a listed federal or state  Superfund site and InteliData has
not been named a "potentially  responsible  party" at the site. The  remediation
plan agreed to with the  purchaser  allows  InteliData  to use  engineering  and
institutional  controls  (e.g.,  deed  restrictions)  to minimize the extent and
costs  of the  remediation.  Moreover,  InteliData  has  obtained  environmental
insurance to pay for remediation  costs up to $6,600,000 in excess of a retained
exposure limit of $600,000. As of March 31, 2005, with the payments made to date
and the remaining  recorded  liability amount,  the Company believes that it has
satisfied the deductible under the insurance policy.  Currently, our counsel (as
the term is defined  below)  estimates the remaining  costs to be  approximately
$668,000 and the Company,  in consultation with our counsel,  believes that such
exposure will be covered by the insurance  policy.  A claim was submitted to the
insurance company and is pending review. Management believes that it is probable
that the  insurance  recoveries  will  cover the  projected  remaining  costs of
remediation.

     The Company has engaged a legal firm and an  environmental  specialist firm
(collectively,  the "counsel") to represent it regarding this matter. The timing
of the  ultimate  resolution  of this matter is estimated to be from two to four
years under the Company's  proposed  compliance  plan,  which involves a natural
attenuation and periodic  compliance  monitoring  approach.  Management does not
believe that the  resolution of this matter will likely have a material  adverse
effect on the Company's financial condition or results of operations.

(4)  Restructuring Charges

     In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with  Exit  or  Disposal  Activities  (including  Certain  Costs  Incurred  in a
Restructuring)  ("SFAS 146"), which supersedes  Emerging Issues Task Force Issue
No. 94-3,  Liability  Recognition for Certain Employee  Termination Benefits and
Other Costs to Exit an Activity ("EITF 94-3"). SFAS 146 requires  recognition of
a liability  for costs  associated  with an exit or disposal  activity  when the
liability is incurred, rather than when the entity commits to an exit plan under
EITF  94-3.  The  provisions  of SFAS 146 are  effective  for  exit or  disposal
activities  that are initiated  after  September 30, 2002. As of March 31, 2003,
the  Company  ceased  using one of its leased  spaces at its  offices in Reston,
Virginia.  The fair value of the remaining  obligation on this lease, net of the
fair value of  sublease  rent,  was  approximately  $540,000.  Accordingly,  the
Company  recorded an expense of $540,000  and a  corresponding  liability  as of
March 31, 2003.  As of May 1, 2003,  the Company has a subtenant  for this space
for the  majority  of the  remaining  lease term and the  actual  results of net
sublease rent could differ from the above  estimates.  As of March 31, 2005, the
estimated remaining liability was approximately $241,000.

     In July 2004, the Company  determined that it would be more  cost-effective
to  relocate  its South  Carolina  operations  to its  headquarters  in  Reston,
Virginia, based on the number of remaining employees and the existing operations
at the time. Accordingly, the Company relocated two employees,  designated three
others  as  field  employees  and  ceased  using  its  leased  office  space  in
Charleston,  South Carolina.  The fair value of the remaining obligation on this
lease,  net of the fair  value of  sublease  rent,  was  approximately  $45,000.
Accordingly,  the
<page>

Company  recorded an expense of $45,000 and a  corresponding  liability  in July
2004.  As of March 31, 2005,  the Company had not been  successful in securing a
subtenant for this space and the estimated remaining liability was approximately
$27,000.

     In March 2005, the Company terminated nine full-time  equivalent  personnel
in its Payments  Solutions  research  and  development  staff.  The Company paid
approximately $59,000 in severance to these individuals.

(5)  Income Taxes

     At December 31, 2004, the Company had net operating loss  carryforwards for
federal income tax purposes of approximately $212 million,  which expire in 2008
through 2024. The net loss for the three-month  period ended March 31, 2005 will
contribute  to the  increase of total net  operating  loss  carrryforwards.  The
Company  continues  to  establish a full  valuation  allowance  for deferred tax
assets,  because  it is deemed,  based on  available  evidence,  that it is more
likely than not that all of the deferred tax assets will not be realized.


                                   * * * * * *


<PAGE>


ITEM 2:        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
----------------------------------------------------------------
               CONDITION AND RESULTS OF OPERATIONS
               -----------------------------------

     The  accompanying   Management's   Discussion  and  Analysis  of  Financial
Condition and Results of Operations gives effect to the restatement disclosed in
Note 2(g) to the consolidated financial statements.

Overview

     InteliData Technologies  Corporation and subsidiaries  ("InteliData" or the
"Company") provides electronic bill payment and presentment  ("EBPP") and online
banking solutions to the financial  services  industry.  The Company's  products
provide financial  institutions ("FI's") with the real-time financial processing
infrastructure  needed to provide their  customers with payment and  presentment
services and online banking via the Internet and other online delivery channels.
The Company markets its products and services to banks, credit unions, brokerage
firms, financial institution processors and credit card issuers.

     Products -  InteliData's  product  suite  consists  of three  complementary
product offerings:

         Payment and Presentment
         -----------------------

          o    Payment  Solutions  -  providing  payment  warehousing,   payment
               matching,  biller  directory  management,  and least cost routing
               functionality for EBPP transactions;

          o    Card Services - providing Internet-based account activation, bill
               presentment, balance consolidation, and e-Statement capabilities;
               and

         Online Banking
         --------------

          o    Online  Banking - providing  Internet-based  access to  real-time
               account information,  as well as interfaces to personal financial
               management  software  such as Intuit's  Quicken(R)  and Microsoft
               Money(R).

     The overall market for online banking and bill payment  infrastructure  has
grown  considerably  over the last few  years,  and the  Company  believes  that
significant  growth  opportunities  remain. As Internet  financial services have
become  more  mainstream,  FI's  have  focused  less on  innovation  and more on
broadening  existing  operations  - adding  functionality,  improving  operating
efficiencies,  and migrating  significant  portions of their online  banking and
bill payment  operations  in-house.  Within this market,  the Company's  product
suite  of  three  complementary  product  offerings  serves  the  needs of three
distinct,  but related market sectors:  Payment  Solutions,  Card Services,  and
Online Banking.

     The market for Payment Solutions has been the primary focus of InteliData's
development and marketing efforts during the past three years. The Company views
this as the market  sector  with the  greatest  growth  potential.  The  Company
believes that future growth  opportunities in this market sector are significant
based on FI's increasing recognition of measurable financial benefits related to
the bill payment  customer base,  increasing  consumer  adoption rates,  and the
increasing  competitive  pressure to provide "free bill payment" services to all
consumers.  The  resulting  growth,  both in  number  of  users  and  number  of
transactions,  has caused larger FI's to rethink their  approach to bill payment
processing.  Until  recently,  most large FI's elected to  outsource  their bill
payment  processing to a third-party  processor  such as CheckFree or Metavante.
Increasingly however, FI's are migrating "front end" bill payment processing and
data  warehousing  to an in-house  platform,  offering the FI's greater  control
while also developing "least cost routing"  strategies aimed at reducing overall
processing costs. The Company believes that large banks will require significant
and ongoing  investment in new software and  implementation  services to achieve
the benefits of in-house warehousing and routing.  Consequently,  the Company is
concentrating its efforts on marketing and deploying in-house licensed solutions
and as discussed in the revenue section below,  the Company elected to allow its
Fidelity Hosting  agreement to expire in April 2005.  However,  the Company will
continue to refer clients directly to Fidelity for outsourced services under the
existing revenue-sharing relationship. The Company's greatest challenges in this
market  is the  speed  of  bank  decision-making  and  competition  from  larger
suppliers,  although  the  Company  believes  that its  products  have  superior
capabilities in comparison to the competition.
<page>

     The market for Card Services has become  relatively mature in recent years.
Most of the Company's  current and potential card issuer customers have deployed
an online  solution  and are now  seeking  to add  subscribers  and  incremental
functionality.  Consequently,  InteliData  expects limited growth  opportunities
across this market sector.  Because  InteliData's  Card Services  solution is an
outsourced  service,  growth will be driven primarily by anticipated  subscriber
increases from within the Company's current customer base.

     The market for Online  Banking is the most mature of the markets  served by
the  Company.  Most  larger  FI's are  deploying  second  and  third  generation
solutions.   The  goal  of  these  initiatives   typically  includes  increasing
processing  capacity and  performance,  adding  incremental  new user  features,
improving overall user experience,  improving  back-office  processes,  reducing
processing   costs,  and  migrating  certain  core  components  from  outsourced
solutions to in-house solutions.  While InteliData has developed and maintains a
customer  base of in-house  licensed  clients  within this market sector that is
significant to our  operations,  the opportunity for significant new business in
this  market is  limited.  Therefore,  the  Company  expects to limit its future
activities in the Online Banking market to providing  certain  enhancements  and
upgrades for the Company's established customer base.

     On March 31, 2005,  the Company  entered into a definitive  agreement to be
acquired by  Corillian  Corporation  ("Corillian"),  a publicly  traded  company
(Nasdaq:  CORI) based in Hillsboro,  Oregon, that provides solutions that enable
banks,  brokers,  financial  portals and other  financial  service  providers to
rapidly deploy Internet-based financial services. The purchase consideration for
the Company is  approximately  $19.2 million,  subject to adjustment.  Under the
terms of the agreement,  each  outstanding  share of the Company's  common stock
will be  converted  into the right to receive  0.0954 of a share of  Corillian's
common  stock  and  $0.0844  in  cash  without  interest.  The  closing  of this
transaction is subject to, among other things,  the  effectiveness  of the proxy
statement/prospectus  on Form S-4 to be filed with the  Securities  and Exchange
Commission and approval of the Company's stockholders. As a result, there can be
no  assurances  that  the  acquisition  will be  completed  or as to the  timing
thereof.

Results of Operations for the Three Months Ended March 31, 2004 and 2003

     The  following   represents   the  results  of  operations  for  InteliData
Technologies  Corporation  for the three  months  ended March 31, 2005 and 2004.
Such  information  should  be read in  conjunction  with the  interim  financial
statements and the notes thereto in Part I, Item 1 of this Quarterly Report.

     The Company  generates  revenues from each of its three product offerings -
Payment  Solutions,  Card  Services,  and Online  Banking.  Within these product
offerings,  the Company obtains revenues from various sources - software license
fees,  consulting  services fees,  use-based fees,  maintenance  fees, and other
fees.  Software  license fees include  revenues  generated  from license  sales.
Consulting  services fees include revenues generated from professional  services
rendered.   Use-based  fees  include  revenues  generated  from  user  accounts,
transactions, remittances and other related activities. Maintenance fees include
revenues generated from maintenance agreements for support services for licensed
software.  Other fees are  termination  charges levied for early  termination of
contracts.

     Within revenues generated from Payment Solutions,  consulting services will
fluctuate with the demand of services based on client internal  projects as well
as new  system  implementations.  Use-based  fees  will  fluctuate  based on the
addition of new clients and user adoption rates that  translate into  additional
users and additional transactions.  Additionally, use-based revenues may decline
with  departures of clients for other solutions  and/or  clients'  migrating the
InteliData  solution  in-house through a license  arrangement that may eliminate
user fees.

     Within  revenues  generated  from Card Services,  consulting  services will
fluctuate with the demand of services based on client internal  projects as well
as new  client  implementations.  Use-based  fees  will  fluctuate  based on the
addition of new clients and user adoption rates that  translate into  additional
users and additional transactions. Additionally, use-based revenues may increase
due to added functionalities or may decline with departures of clients for other
solutions.
<page>

     Within  revenues  generated from Online  Banking,  use-based  revenues will
fluctuate  based on the  addition of new clients  and user  adoption  rates that
translate into additional users and additional transactions. However, use- based
revenues  may decline  with  departures  of clients for other  solutions  and/or
clients'   migrating  the  InteliData   solution   in-house  through  a  license
arrangement that may eliminate user fees.

     The Company's  first quarter  revenues were  $2,944,000 in 2005 compared to
$3,592,000 in 2004, a decrease of $648,000.  The following  table sets forth the
Company's sources of revenue for each of the three-month periods ended March 31,
2005, and 2004:

                                             2005           2004
                                          --------       --------
 Payment Solutions
   Software license                        $  198        $      -
   Consulting services                        203             266
   Use-based                                1,174           1,311
   Maintenance                                390             296
                                         --------        --------
   Subtotal                                 1,965           1,873
                                         --------        --------

 Card Services
   Consulting services                         35              93
   Use-based                                  442           1,130
                                         --------        --------
   Subtotal                                   477           1,223
                                         --------        --------
 Online Banking
   Consulting services                        118              57
   Use-based                                  186             257
   Maintenance                                198             182
                                         --------        --------
   Subtotal                                   502             496
                                         --------        --------
 Total
   Software license                           198               -
   Consulting services                        356             416
   Use-based                                1,802           2,698
   Maintenance                                588             478
                                         --------        --------
   Total                                  $ 2,944        $  3,592
                                         ========        ========
Revenues

     The first quarter  revenues from Payment  Solutions were $1,965,000 in 2005
compared to $1,873,000 in 2004, an increase of $92,000.  These revenues  include
items related to the Company's billpay warehouse, funds transfer and certain OFX
solutions,  as well as the  billpay  portions  of the  ASP  offerings.  Software
licenses increased  $198,000 and maintenance  increased $94,000 while consulting
services  decreased  $63,000 and use-based fees decreased  $137,000 quarter over
quarter.  Software  license fees  increased due to the sale of a license for the
Company's  interbank payment warehouse.  The decrease in consulting services was
primarily  due to the timing of  services  rendered in 2005 as compared to 2004,
while the decrease in  use-based  fees was due to the  departures  of the Canopy
Banking community banking clients and their billpay  transactions along with the
departure  of an OFX  client in  December  2004.  Maintenance  increased  due to
increases  in  use-based  licenses,  additional  fees  from  sales  in 2004  and
increases on renewed maintenance  services.  The Payment Solutions revenues from
the Fidelity ASP  environment  that were  generated  during the first quarter of
2005 and 2004 were  approximately  $1,045,000  and $900,000,  respectively.  For
2005,  16%,  74% and 10% of the  $1,045,000  consisted of  consulting  services,
use-based and maintenance  fees,  respectively.  The revenue stream from the ASP
offering will cease with the  expiration of our Hosting  agreement with Fidelity
in April 2005. Going forward, the Company expects recurring fees for

<page>

providing  directory  management  services to its payment warehouse clients on a
per transaction or monthly subscription fee basis.

     The  first  quarter  revenues  from Card  Services  were  $477,000  in 2005
compared to $1,223,000 in 2004, a decrease of $746,000. Consulting services fees
decreased $58,000 and use-based fees decreased  $688,000,  quarter over quarter.
In September 2004, the Company  discontinued  providing  services to two clients
that represented  approximately  $248,000 in monthly recurring revenues.  One of
the  clients  moved to an in-house  solution,  while the other opted for another
service provider.

     The first  quarter  revenues  from  Online  Banking  were  $502,000 in 2005
compared to $496,000 in 2004,  an  increase of $6,000.  These  revenues  include
items  related  to  the  Company's   Interpose(R)   Web  Banking,   Interpose(R)
Transaction  Engine,  and certain OFX  solutions,  as well as the online banking
portions  of the  ASP  offerings.  Consulting  services  increased  $61,000  and
maintenance  increased  $16,000 while  use-based fees decreased  $71,000 quarter
over  quarter.  The increase in  consulting  services was  primarily due to some
additional  projects in 2005 from  existing  clients.  The decrease in use-based
fees was due to the departures of the Canopy Banking  community banking clients,
which was  partially  offset by growth in user fees from existing  clients.  The
Online Banking revenues from the Fidelity ASP environment that were generated in
2005 and 2004 were approximately $234,000 and $157,000,  respectively. For 2005,
36%, 56% and 8% of the $234,000 consisted of consulting services,  use-based and
maintenance  fees,  respectively.  The revenue stream from the ASP offering will
cease with the expiration of our Hosting agreement with Fidelity in April 2005.

Cost of Revenues and Gross Profit

     The  Company's  cost of revenues  decreased  $523,000 to  $1,257,000 in the
first quarter of 2005 from $1,780,000 in the first quarter of 2004. The decrease
was  primarily  due  to  decreases  in ASP  operations  costs  resulting  from a
renegotiation  with a  continuing  provider  and  decreases  in cost of revenues
associated with decreased professional services. The cost structures to generate
the revenues are bundled together and cannot be broken out in the same manner as
the revenues.  Costs of revenues  include  vendors for  outsourced  services and
employees directly working to generate revenues.

     Overall gross profit margins increased to 57% for the first quarter of 2005
from 50% for the first quarter of 2004.  The increase in gross profit margin was
primarily  attributable  to the decreased ASP operations  costs resulting from a
renegotiation with a continued provider as previously  discussed.  The Company's
cost of revenues does not necessarily  fluctuate  proportionately in relation to
revenues   as  there  are  certain   fixed   costs  to   maintain   the  current
infrastructure. Accordingly, while revenues declined by $648,000, or 18% quarter
over  quarter,  cost of revenues  declined  by  $523,000,  or 29%  quarter  over
quarter.  The Company anticipates that gross profit margins may fluctuate in the
future due to changes in product mix and  distribution,  outsourcing  activities
associated  with  an ASP  business  model,  competitive  pricing  pressure,  the
introduction of new products, and changes in volume.

     The Company entered into multiple vendor agreements for outsourced services
as part of its ASP  solution  offering  for certain  Online  Banking and Payment
Solutions  clients.  Some of these  vendor  agreements  commit  the  Company  to
specified  minimum  charges  during  the  terms  of  the  contracts.  Management
continued to assess the potential for new business prospects, the possibility of
reducing the  Company's  costs  through  renegotiation  of existing  agreements,
and/or exiting the ASP business by referring  clients and prospects to a hosting
vendor and providing a license solution and support services.  In June 2004, the
Company  restructured a vendor  agreement and decreased its overall  prospective
ASP operations costs. As a result of exploring all options,  the Company elected
to allow its  Fidelity  Hosting  agreement  to expire  in April  2005;  however,
InteliData  will  continue  to  participate  in  the  Fidelity   revenue-sharing
agreement, which bears no anticipated direct costs.

General and Administrative

     General and administrative expenses increased $552,000 to $2,122,000 in the
first quarter of 2005 from $1,570,000 in the first quarter of 2004. The increase
was attributable to several factors.  The Company's corporate and administrative
expenses  were  reduced  by  approximately  $169,000  through   employee-related
actions.  This  reduction  was offset by an  increase in first  quarter  2005 of
$209,000 in employee benefits charges, which was
<page>

mainly   attributable  to  lower  loss  experience  and  a  stop-loss  insurance
reimbursement  in the first  quarter  of 2004 under the  Company's  self-insured
medical plan.  Additionally,  the Company incurred  $211,000 in additional legal
expenses related to the proposed merger and other matters.  Further,  InteliData
reversed  $70,000  of  estimated  bonuses  in 2005  that was  accrued  for as of
December 31, 2004 because the Company has now determined  that such bonuses will
not be paid. Moreover,  the Company incurred $100,000 in investment banking fees
in the first quarter of 2004,  while there was $256,000 in comparable  costs for
the first quarter of 2005.  Finally,  the Company accrued $180,000 of additional
expenses related to its 2005 projected  efforts to comply with the provisions of
Section 404 of the  Sarbanes-Oxley Act of 2002 requiring that management perform
an evaluation of its internal  controls  over  financial  reporting and have its
independent   auditors  attest  to  such  evaluation.   For  2005,  the  Company
anticipates that it would incur approximately $720,000 in Sarbanes-Oxley related
expenses for consultants and audit services.  Such cost estimates do not include
the significant  dedicated internal resources required to manage the process and
the on-going activities.  The Company seeks to continually assess its operations
to manage its  expenses and  infrastructures  in light of  anticipated  business
levels.

Sales and Marketing

     Sales and  marketing  expenses  decreased  $236,000 to $59,000 in the first
quarter of 2005 from $295,000 in the first  quarter of 2004.  This was primarily
attributable to employee-related  actions, lower travel costs and a reduction in
tradeshow-related   expenses.  The  Company  seeks  to  continually  assess  its
operations to manage its expenses and  infrastructures  in light of  anticipated
business levels.

Research and Development

     Research and development costs decreased $64,000 to $1,242,000 in the first
quarter of 2005 from  $1,306,000  in the first  quarter of 2004. In light of the
revenue  levels,   the  Company  reduced  the  Payment  Solutions  research  and
development  staffing  by 11  full-time  equivalent  personnel  during the first
quarter.  Annualized costs savings,  without overhead burden, is estimated to be
$1,025,000  beginning in the second quarter.  The Company's primary research and
development efforts are in Payment Solutions. The development efforts for Online
Banking and Card Services  products will likely be focused  primarily on product
upgrades and product maintenance.

Amortization of Intangible Asset

     Statement of Financial  Accounting  Standards  No. 142,  Goodwill and Other
Intangible  Assets ("SFAS 142"),  requires the Company to not amortize  goodwill
and  indefinite-lived  intangibles  into results of operations,  but instead the
Company would review these assets for impairment,  at least  annually,  that may
result in future periodic write-downs. Tests for impairment between annual tests
may be required if events occur or  circumstances  change that would more likely
than not reduce the fair value of the net carrying  amount.  The assets would be
written down and  impairment  losses  would be charged to results of  operations
only in the periods in which the recorded  values are determined to be more than
their fair  values.  The  amortization  of certain  intangibles  continued at an
annualized rate of $720,000. As of January 1, 2002, in accordance with SFAS 142,
the Company ceased recognizing amortization expense on goodwill.

Other Income

     Other income  (expense),  primarily  rental  receipts,  interest income and
other expenses including state and local taxes, decreased $10,000 to $(4,000) in
the first quarter of 2005 from $6,000 in the first quarter of 2004. The decrease
is primarily  attributable  to decreased  interest  income  resulting from lower
levels of average cash and cash equivalents in 2005, as compared to 2004.

Weighted-Average Common Shares Outstanding and Basic and Diluted Loss Per Common
Share

     The  basic  and  diluted   weighted-average   common  shares  decreased  to
51,084,000  for the first quarter of 2005  compared to 51,127,000  for the first
quarter of 2004. The change  resulted  primarily from stock awards to employees,
exercises of stock options,  stock  purchases  under the Employee Stock Purchase
Plan,  and exercises of warrants,  offset by common stock that was acquired into
the treasury.  On December 15, 2004, the Company

<page>

received 200,000 shares of its common stock from its Chief Executive  Officer to
satisfy $100,000 of a note receivable that was outstanding at the time.

     Losses from  continuing  operations  were $1,920,000 and $1,533,000 for the
three-month periods ended March 31, 2005 and 2004, respectively, while there was
no gain or loss from discontinued  operations in either period.  Net losses were
$1,920,000 and $1,533,000  for 2005 and 2004,  respectively.  As a result of the
foregoing,  basic and diluted net loss per common  share was $0.04 for the first
quarter of 2005  compared to a basic and  diluted  net loss per common  share of
$0.03 for the first quarter of 2004.

Liquidity and Capital Resources

     At March 31, 2005, the Company had $1,253,000 in cash and cash equivalents,
a decrease of $1,970,000 over the balance at December 31, 2004. Net cash used in
operating  activities  was  $1,938,000  during the first  quarter of 2005, or an
increase of $1,144,000 as compared to the net cash used during the first quarter
of 2004.  The primary  driver of this increase in cash usage is the  significant
decline in revenues of $648,000 from  $3,592,000 in the first quarter of 2004 to
$2,944,000  in the first  quarter of 2005,  which  resulted in decreases in cash
received from our clients.  While the costs of revenues and  operating  expenses
decreased  quarter over quarter,  they did not decrease  proportionately  to the
revenue decline.  Also, InteliData paid approximately  $489,000 during the first
quarter of 2005 for  Sarbanes-Oxley  related services,  whereas it did not incur
nor pay for such expense in the first quarter of 2004. Additionally, the Company
incurred  $236,000 in legal expenses during the first quarter of 2005 related to
the proposed merger and other matters. For 2005, the Company anticipates that it
would  incur  approximately  $720,000 in  Sarbanes-Oxley  related  expenses  for
consultants  and  audit  services.  Such  cost  estimates  do  not  include  the
significant  dedicated internal resources required to manage the process and the
on-going activities.

     Net cash used in investing  activities during the first quarter of 2005 was
$4,000,  which was a decline of $15,000  from the $19,000  used during the first
quarter of 2004.  The Company  incurred less  expenditures  for the purchases of
property and equipment in light of the revenue developments.

     Financing  activities did not provide any net cash during the first quarter
of 2005 as compared to the $32,000 of net cash provided during the first quarter
of 2004.

     Capital  Resources - Our financial  statements have been prepared  assuming
that the  Company  will  continue as a going  concern,  which  contemplates  the
realization of assets and the  satisfaction  of liabilities in the normal course
of business. There are factors that raise substantial doubt about our ability to
continue as a going  concern  including  the  Company's  financial  position and
results of operations.  The financial  statements do not include any adjustments
that might result from the outcome of this uncertainty.

     During 2004 and  continuing  into 2005,  the Company  assessed a variety of
strategic alternatives, which were focused on enhancing InteliData's position in
the electronic banking marketplace by exploring strategic opportunities intended
to enhance  stockholder  value.  For  example,  we  actively  pursued  strategic
alternatives  including  the  possibility  of selling  assets,  raising  capital
through private placements,  and merging the Company with another entity.  There
can be no assurance that any transaction will result from these efforts.

     On March 31, 2005,  the Company  entered into a definitive  agreement to be
acquired by  Corillian  Corporation  ("Corillian"),  a publicly  traded  company
(Nasdaq:  CORI) based in Hillsboro,  Oregon, that provides solutions that enable
banks,  brokers,  financial  portals and other  financial  service  providers to
rapidly deploy Internet-based financial services. The purchase consideration for
the Company is  approximately  $19.2 million,  subject to adjustment.  Under the
terms of the agreement,  each  outstanding  share of the Company's  common stock
will be  converted  into the right to receive  0.0954 of a share of  Corillian's
common  stock  and  $0.0844  in  cash  without  interest.  The  closing  of this
transaction is subject to, among other things,  the  effectiveness  of the proxy
statement/prospectus  on Form S-4 to be filed with the  Securities  and Exchange
Commission and approval of the Company's stockholders. As a result, there can be
no  assurances  that  the  acquisition  will be  completed  or as to the  timing
thereof.

<page>
     In the  event  our  merger  with  Corillian  is not  successful,  we may be
required to seek  protection  from our creditors,  or we may need to sell assets
and/or raise additional capital through private placements. While we continue to
operate as a going concern,  we have significant  liquidity and capital resource
issues  relative to our ability to generate  cash flows and to raise  additional
capital if needed. We may not be able to generate  sufficient  revenue to become
profitable on a sustained basis, or at all. We have incurred  significant losses
and negative  cash flows from  operations  for several  years and our ability to
raise or generate enough cash to survive may be questionable. We expect that the
operating  cash flow  deficit  will  continue  and absent  further  financing or
significant  improvement  in  sales,  potentially  result  in our  inability  to
continue  operations.  As a result of these and other factors,  our  independent
registered  public  accounting  firm  has  included  in its  report  on the 2004
consolidated financial statements an explanatory paragraph expressing that there
is substantial doubt about our ability to continue as a going concern.

     If the Corillian  transaction is not successful,  the Company's achievement
of its operating  plan remains  predicated  upon both  existing and  prospective
clients'  decisions  to procure  certain  products  and  services in a timeframe
consistent with the operating plan  assumptions.  Historically,  these decisions
have not evolved  timely for varying  reasons,  including  slower than  expected
market demand,  budgetary  constraints,  and internal  product  development  and
resource  initiatives.  Further,  based  on the  Company's  declining  financial
condition,  existing and prospective  clients have expressed  concerns regarding
the risks of acquiring  software and services  from  InteliData.  While some are
satisfied as long as the source code continues to be held in escrow,  others are
employing  a  wait-and-see  approach  to  InteliData's  continuation  as a going
concern.

     The Company  believes the key factors to its  liquidity in 2005 will be its
ability to  successfully  execute on its plans to achieve  sales  levels,  while
operating at reduced operating expense levels.  With projected sales to existing
and  prospective  clients,  management  expects that the Company's cash and cash
equivalents  and projected  funds from  operations  (which are  principally  the
result of sales and  collections of accounts  receivable)  will be sufficient to
meet its  anticipated  cash  requirements  for the  next  several  months.  This
expectation  is based  upon  assumptions  regarding  cash  flows and  results of
operations   over  the  next  several  months  and  is  subject  to  substantial
uncertainty and risks that may be beyond our control. If these assumptions prove
incorrect,  the  duration of the time  period  during  which the  Company  could
continue  operations  could be  materially  shorter.  The  occurrence of adverse
developments  related  to these  risks  and  uncertainties  could  result in the
Company's  incurring  unforeseen  expenses,  being unable to generate  projected
sales,  to  collect  new and  outstanding  accounts  receivable,  or to  control
expected  expenses  and  overhead,  and we would  likely be  unable to  continue
operations.

     In the event of continued future revenue delays,  the Company would seek to
adjust certain  expense  structures to mitigate the potential  impact that these
delays would have on its capital levels. These opportunities  include additional
reductions in general and  administrative  expenditures,  managing  research and
development efforts consistent with existing and prospective client demands, and
the potential of consolidating certain operational activities.  During 2004, the
Company  reduced the full-time  equivalent  personnel by 14 to 72 as of December
31, 2004.  Continuing into 2005,  management  reviewed the operating expenses in
light of our financial  condition and current plan.  Further steps were taken to
control costs and the full-time  equivalent personnel was reduced by 15 to 57 as
of March 31, 2005.

     Additional  capital  resources  might be  generated  from  activities  that
include the  Company's  selling of assets,  issuing  equity  securities  through
private  placements  and/or  merging the Company  with  another  entity.  If the
Company  engages  in  efforts  to  obtain  additional  capital,  it can  make no
assurances  that  these  efforts  will be  successful  or that the terms of such
funding would be beneficial to the common  stockholders.  If we issue additional
equity  securities  to raise funds,  the  ownership  percentage  of our existing
stockholders would be reduced.  New investors may demand rights,  preferences or
privileges  senior to those of existing  holders of common  stock.  If we cannot
raise  any  needed  funds,  we  might  be  forced  to make  further  substantial
reductions in our operating  expenses,  which could adversely affect our ability
to  implement  our current  business  plan and  ultimately  our  viability  as a
company.

     On  September  7, 2004,  InteliData  transferred  the listing of its common
stock from the Nasdaq  National  Market to the Nasdaq SmallCap Market due to our
inability to comply with the minimum  $1.00 bid price  requirement.  The initial
grace period to regain compliance  expired on December 13, 2004. On December 14,
2004,  InteliData  received  a  notice  from  Nasdaq  that it had  not  regained
compliance  with the minimum $1.00 bid
<page>

price per share  requirement set forth in Marketplace  Rule  4310(c)(4).  Nasdaq
also  notified  InteliData  that,  since it meets  the other  initial  inclusion
criteria for the SmallCap  Market,  it is being given an additional 180 calendar
days,  or until June 13, 2005,  to regain  compliance.  If  compliance  with the
criteria cannot be demonstrated by that time, InteliData's common stock would be
delisted from the Nasdaq SmallCap Market.  The possibility of a Nasdaq delisting
could make capital-raising, selling and other activities more difficult.

Critical Accounting Policies

     The  following  accounting  policies  are  either  ones  that  the  Company
considers  to be the most  important  to its  financial  position and results of
operations  or ones that require the  exercise of  significant  judgment  and/or
estimates.

     Revenue  Recognition - The Company considers its revenue recognition policy
critical  to the  understanding  of  our  business  operations  and  results  of
operations.  The Company  supplies  online banking and bill payment  software to
FI's. The Company's  revenues  associated with integrated  solutions that bundle
software  products with  customization,  installation and training  services are
recognized using the percentage of completion method of accounting based on cost
incurred as compared to estimated costs at completion.

     The Company  enters into  contracts  where the  delivered  software may not
require significant customization.  Upon delivery, the Company either recognizes
revenue  ratably over the contract  period for contracts  where vendor  specific
objective  evidence  ("VSOE") of fair value for post contract  customer  support
("PCS") does not exist or  recognizes  revenue for the  delivered  element where
VSOE of fair value for PCS does exist  (e.g.,  when the Company has  substantive
renewal rates for PCS).  The Company  generally  utilizes the shipping  terms of
F.O.B.  shipping  point.  Depending  on the type of software  and the terms of a
particular  contract,  the  client's  receipt of the software is either based on
F.O.B.  shipping  point or upon  acceptance of the  software,  as defined by the
applicable contract. The warranty provision is generally ninety days from either
FOB shipping date or acceptance of the software.

     The Company enters into multiple element  arrangements.  Elements typically
include software,  consulting,  implementation and PCS. PCS contracts  generally
require  the  Company to  provide  technical  support  and  unspecified  readily
available  software  updates  and  upgrades  to  customers.  Revenue  from these
multiple element arrangements is recognized when there is persuasive evidence of
an arrangement  and delivery to the customer has occurred,  the fee is fixed and
determinable,  and collectibility is considered  probable.  Advance payments are
recorded as deferred  revenue  until the  products  are  shipped,  services  are
delivered and all obligations are met. Currently, the Company does not have VSOE
of fair value for some of the elements within its multiple element arrangements.
Therefore,  all revenue under such  arrangements is recognized  ratably over the
term of the PCS contract.  Revenue from transactional  services,  which includes
hosting and application  services  provider ("ASP")  services,  is recognized as
transactions are processed.

     Emerging  Issues Task Force Abstract  Issue No. 00-3,  Application of AICPA
Statement  of  Position  97-2 to  Arrangements  that  Include  the  Right to Use
Software Stored on Another Entity's Hardware ("EITF 00-3"), provides guidance in
determining  whether or not the  provisions  of  Statement of Position No. 97-2,
Software  Revenue  Recognition  ("SOP  97-2"),  should  be  applied  to  hosting
arrangements.  The  Company  has some  contracts  where  the  customers  operate
software in an ASP  environment.  The  customer may not take  possession  of the
software without incurring  significant  transition and infrastructure costs, as
well as potential  payments of fees to the Company for the  termination  of such
arrangements.  In cases  where  the  customer  has not  licensed  software  from
InteliData,  the customer must also purchase a license prior to having the right
to use the  software  in its  own  operating  environment,  in  addition  to the
aforementioned fees. In these situations, the Company applies the guidance under
EITF 00-3 and the Staff  Accounting  Bulletin No. 101,  Revenue  Recognition  in
Financial  Statements,  and recognizes the revenue  associated  with the license
and/or implementation fees ratably over the initial term of the contract.

     Additionally,  based on the EITF 00-3 guidance,  the Company concluded that
SOP 97-2  should not be applied to certain of its  software  hosting  contracts.
Accordingly,  the related  revenues for license and  professional  services were
recognized under the percentage of completion  method. In addition to developing
and  delivering  the solution,  the Company is entitled to use fees based on the
number of users and  transactions.  These use-based fees are earned based on the
monthly user counts and as transactions are processed.

<page>

     Estimates  at  Completion  -  Revenues  related  to some  of the  Company's
contracts  are  recognized   using  the  percentage  of  completion   method  of
accounting,   which  requires  that  we  make  estimates  and  judgments  as  to
anticipated  project  scope,  timing and costs to  complete  the  projects.  The
completion of certain development efforts is critical for the Company to perform
on  certain  contracts.   Delays  in  product   implementation  or  new  product
development  at customer  locations  and product  defects or errors could affect
estimates  and  judgments.   Additionally,   we  may   experience   delays  when
implementing our products at customer locations,  and customers may be unable to
implement our products in the time frames and with the functionalities that they
expect or require.  The accuracy of these  estimates and judgments  could affect
the Company's business, operations, cash flows and financial condition.

     Allowance  for  Doubtful  Accounts -  Determination  of our  allowance  for
doubtful accounts requires  significant  estimates.  Financial  instruments that
potentially  subject  the Company to credit risk  consist  principally  of trade
receivables.  The Company  sells its  products  primarily  to FI's in the United
States.  The Company believes that the concentration of credit risk in its trade
receivables  is  substantially   mitigated  by  the  Company's  on-going  credit
evaluation  process  and the  financial  position  of the FI's  that are  highly
regulated. The Company does not generally require collateral from customers. The
Company  establishes  an  allowance  for  doubtful  accounts  based upon factors
surrounding the credit risk of specific  customers,  historical trends and other
information.

     A number of factors are considered in establishing the allowance, including
historical collection experience, the macro-economic  environment,  estimates of
forecasted  write-offs,  the aging of the  accounts  receivable  portfolio,  and
others.  If  the  financial  condition  of  our  accounts  receivable  portfolio
deteriorates, additional allowances would be required.

     Valuation  of Goodwill  and  Intangible  Assets - On an annual basis (as of
June  30th),  the  Company  conducts a review of goodwill  for  impairment.  The
Company  assesses the fair value of its only  reporting unit for the purposes of
testing  goodwill by considering  its projected cash flows,  comparable  company
valuations,  and recent  purchase  prices paid for entities within our industry.
Given consideration of these factors, we determine whether the fair value of the
reporting  unit exceeds the carrying  amount of our net assets.  If the carrying
amount of our reporting unit exceeds its fair value, we compare the implied fair
value of reporting  unit  goodwill  with the carrying  amount of that  goodwill.
Since the carrying  amount of reporting unit goodwill  exceeded the implied fair
value as of June 30, 2004,  we  recognized  a  $25,771,000  goodwill  impairment
charge in the  second  quarter  of 2004.  See below  for a  detailed  discussion
regarding the significant assumptions and estimates employed in this process and
Note 2(f) to the Condensed  Consolidated  Financial  Statements  for  additional
details.

     We also review our  amortizing  intangible  asset for  impairment  whenever
events or changes in circumstances  indicate that the carrying amount may not be
recoverable.  Accordingly,  when appropriate, the Company reviews its long-lived
assets (including amortizing intangible assets) for impairment at the enterprise
level  initially  following an  undiscounted  cash flow  approach  following the
guidance in SFAS No. 144. In reviewing  long-lived  assets for  impairment,  the
Company evaluates the probability of certain  reasonably  possible  scenarios as
appropriate,  such as operating as a going concern  and/or selling the business,
so long as the scenarios  were actively  considered by the Company as of the end
of the relevant  period.  If the sum of the  expected  future cash flows is less
than the carrying amount of the asset, the Company would recognize an impairment
loss equal to the  difference  between the fair value and the carrying  value of
the asset.  The fair value would be calculated  following a discounted cash flow
approach.

     These reviews require the Company to make estimates of projected cash flows
in  order  to  determine  if  its  assets  are  impaired.  We  make  significant
assumptions and estimates in this process  regarding matters that are inherently
uncertain,  such as making revenue and cost projections,  calculating  remaining
useful  lives,  assuming  discount  rates and costs of  capital,  among  others.
Reviews for impairment between annual reviews may be required if events occur or
circumstances  change  that would more  likely than not reduce the fair value of
the net carrying  amount.  While we believe that our estimates  are  reasonable,
different  assumptions  regarding such cash flows (for example,  either based on
varying costs of capital,  changes in underlying  economic  assumptions,  or any
resulting  transaction from strategic  initiatives)  could materially affect our
valuation.

<page>
     Depreciation  of  Fixed  Assets  -  The  Company's  business  requires  our
investment in office and computer  equipment to facilitate  certain research and
development  activities  and to support the operations in serving our customers.
We record these assets at cost and  depreciate  the assets over their  estimated
useful lives. We  periodically  reassess the economic life of these elements and
make  adjustments  to  these  useful  lives  using,  among  others,   historical
experience,  capacity  requirements,  and  assessments of new product and market
demands.  When these factors  indicate certain elements may not be useful for as
long as  anticipated,  we depreciate the remaining book value over the remaining
useful life.  Further,  the timing and deployment of any new technologies  could
affect the estimated lives of our assets,  which could have significant  impacts
on results of operations in the future.

     Recent  Accounting  Pronouncements  - In December  2004, the FASB published
SFAS No. 123 (revised 2004), Share-Based Payment ("SFAS 123(R)"), which replaces
SFAS 123 and supersedes APB 25. SFAS 123(R) requires that the compensation  cost
relating to  share-based  payment  transactions  be  recognized in the financial
statements.  That cost will be measured based on the fair value of the equity or
liability  instruments issued. The Company will be required to apply SFAS 123(R)
as of the first annual  reporting  period that begins  after June 15, 2005.  The
Company has not calculated the financial impact of adopting this standard.


Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995

     This report contains  forward-looking  statements within the meaning of the
Securities Act of 1933, the  realization of which may be impacted by the factors
discussed below. These forward-looking  statements are made pursuant to the safe
harbor provisions of the Private  Securities  Litigation Reform Act of 1995 (the
"Act"). The Company cautions readers that the following important factors, among
others,  in some cases have affected the  Company's  actual  results,  and could
cause the Company's actual results to differ  materially from those expressed in
any  forward-looking  statements  made by, or on behalf  of,  the  Company.  The
following  list of  factors  should not be  construed  as  exhaustive  or as any
admission regarding the adequacy of disclosures made by the Company prior to the
date hereof or the  effectiveness of the Act.  Additionally,  the Company is not
under any obligation (and expressly  disclaims an obligation) to update or alter
its  forward-looking  statements,  whether  as a result  of new  information  or
otherwise. We wish to caution you that such risks and uncertainties include, but
are not limited to:

     o    the  stockholders  of  InteliData  may fail to approve the merger with
          Corillian  or other  conditions  to  closing  of the merger may not be
          satisfied;
     o    the operating costs,  customer loss and business disruption  following
          the merger, including adverse effects on relationships with employees,
          may be greater than expected;
     o    the  businesses  of  Corillian  and  InteliData  may  not be  combined
          successfully,  or such  combination may take longer to accomplish than
          expected;
     o    our ability to continue funding operating losses;
     o    the impact of  declines in our stock price and our ability to maintain
          minimum listing standards of the NASDAQ stock markets;
     o    different assumptions regarding cash flows (for example,  either based
          on  varying  costs  of  capital,   changes  in   underlying   economic
          assumptions,  or any  resulting  financial or strategic  transactions)
          affecting valuation analyses;
     o    our  ability to  develop,  sell,  deliver  and  implement  our payment
          solution products and services,  some of which are largely unproven in
          a production environment, to financial institution customers;
     o    our ability to manage our expenses in line with  anticipated  business
          levels;
     o    our  ability to complete  product  implementations  in  required  time
          frames;
     o    our ability to maintain  customers and increase our recurring revenues
          and/or  reduce  operating  costs  associated  with our ASP business in
          order  to  make  this  operation  profitable  or  the  impact  of  our
          termination of our ASP operations;
     o    our  ability to retain key  customers  and to increase  revenues  from
          existing customers;
     o    the impact of  customers  deconverting  from use of our  products  and
          services to the use of competitive products or in-house solutions;
     o    the effect of planned customer migrations from outsourced solutions to
          in-house solutions with a resulting loss of recurring revenue;

<page>

     o    the impact of competitive products,  pricing pressure,  product demand
          and market acceptance risks;
     o    the pace of consumer  acceptance of online banking and reliance on our
          bank clients to increase usage of Internet banking by their customers;
     o    the effect of general  economic  conditions on the financial  services
          industry;
     o    mergers and acquisitions;
     o    the risks of integration of our technology;
     o    the  ability  of   financial   institution   customers   to  implement
          applications  in the  anticipated  time frames or with the anticipated
          features, functionality or benefits;
     o    our  reliance  on  key   strategic   alliances   and  newly   emerging
          technologies;
     o    our  ability  to  leverage  our  third-party  relationships  into  new
          business opportunities;
     o    the on-going  viability of the  mainframe  marketplace  and demand for
          traditional mainframe products;
     o    our ability to attract and retain key employees;
     o    the availability of cash for long-term growth;
     o    product obsolescence;
     o    our ability to reduce product costs;
     o    fluctuations in our operating results;
     o    delays in development of highly complex products;
     o    the  ability  to comply  with,  and incur the costs  related  to,  the
          provisions of Section 404 of the  Sarbanes-Oxley Act of 2002 requiring
          that  management  perform an evaluation of its internal  controls over
          financial  reporting and have its independent  auditors attest to such
          evaluation; and
     o    other  risks  detailed  from  time  to time in our  filings  with  the
          Securities  and  Exchange  Commission,   including  the  risk  factors
          disclosed in our Annual  Report on Form 10-K for the fiscal year ended
          December 31, 2004.

     These risks could cause the Company's actual results for 2005 and beyond to
differ  materially from those expressed in any  forward-looking  statements made
by, or on behalf of,  InteliData.  The foregoing  list of factors  should not be
construed  as  exhaustive  or  as  any  admission   regarding  the  adequacy  of
disclosures made by the Company prior to the date hereof or the effectiveness of
said Act.  InteliData is not under any obligation  (and  expressly  disclaims an
obligation)  to update or alter its  forward-looking  statements,  whether  as a
result of new information or otherwise.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
------------------------------------------------------------------

     The Company currently has no long-term debt and is not currently engaged in
any transactions that involve foreign  currency.  The Company does not engage in
hedging activities.


ITEM 4. CONTROLS AND PROCEDURES
-------------------------------

(a)  EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Pursuant to Rule 13a-15(b)  under the Securities  Exchange Act of 1934, the
Company  carried out an  evaluation,  with the  participation  of the  Company's
management,  including the Company's Chief Executive Officer and Chief Financial
Officer,  of  the  effectiveness  of  the  Company's   disclosure  controls  and
procedures (as defined under Rule 13a-15(e) under the Securities Exchange Act of
1934) as of the end of the period covered by this report.

     Based upon its  evaluation  as of December 31, 2004,  the  Company's  Chief
Executive  Officer and Chief  Financial  Officer  concluded  that the  Company's
disclosure  controls and procedures  were not effective  because of six material
weaknesses  in the  Company's  internal  control over  financial  reporting,  as
reported  in Item 9A of the  Annual  Report on Form  10-K/A  for the year  ended
December 31, 2004.

     Further,  based upon  management's  review for the quarter ending March 31,
2005, the Chief Executive Officer and the Chief Financial Officer have concluded
that, as of March 31, 2005,  disclosure  controls and


<page>

procedures  were still not effective  because of six material  weaknesses in the
Company's internal control over financial  reporting,  as reported in Item 9A of
the Annual  Report on Form  10-K/A  for the year ended  December  31,  2004.  To
address these control weaknesses,  the Company performed additional analysis and
other  post-closing  procedures  to ensure that the financial  statements  filed
herewith  fairly  present in all material  respects the financial  condition and
results of operations of the Company for the fiscal quarter presented.

(b)  CHANGE IN INTERNAL CONTROLS

     There has been no change in the Company's  internal  control over financial
reporting during the quarter ended March 31, 2005 that has materially  affected,
or is reasonably  likely to materially  affect,  the Company's  internal control
over financial reporting.  The Company had previously concluded that the Company
did not  maintain  effective  internal  control over  financial  reporting as of
December 31, 2004 as a result of the six material  weaknesses  in the  Company's
internal control over financial reporting,  as reported in Item 9A of the Annual
Report on Form 10-K/A for the year ended December 31, 2004.


PART II: OTHER INFORMATION
--------------------------

ITEM 5.  OTHER INFORMATION
--------------------------

     Not applicable.


ITEM 6.  EXHIBITS
-----------------


     2.1  Agreement  and  Plan of  Merger,  dated as of March  31,  2005,  among
          InteliData Technologies Corporation,  Corillian Corporation and Wizard
          Acquisition  Corporation  (Incorporated herein by reference to Exhibit
          2.1 to the Company's Report on Form 8-K dated April 1, 2005).


     4.03 Amendment No. 2, dated as of March 31, 2005, to the Rights  Agreement,
          dated as of January 21, 1998,  as amended by Amendment No. 1, dated as
          of May 24,  2000,  between the Company and American  Stock  Transfer &
          Trust Company,  as Rights Agent  (Incorporated  herein by reference to
          Exhibit  4.03 to the  Company's  Report on Form 8-A/A  dated April 22,
          2005).


     10.1 Form  of  Agreement  to  facilitate  Merger  (Incorporated  herein  by
          reference  to Exhibit  2.1 to the  Company's  Report on Form 8-K dated
          April 1, 2005).


     31   Certification of Principal  Executive Officer and Principal  Financial
          Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


     32   Certification of Principal  Executive Officer and Principal  Financial
          Officer  pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.


                                   * * * * * *


<PAGE>

                                  SIGNATURE

     Pursuant to the  requirements of the Securities Act of 1934, the registrant
has duly  caused  this  report to be signed  on its  behalf by the  undersigned,
thereunto duly authorized on May 10, 2005.


                                    INTELIDATA TECHNOLOGIES CORPORATION


                                    By:     /s/ Alfred S. Dominick, Jr.
                                           -------------------------------------
                                           Alfred S. Dominick, Jr.
                                           Chairman, Chief Executive Officer,
                                           and Acting Chief Financial Officer