In the world of banking, the development in information technology has an enormousrneffect on development of more flexible payment methods and more-user friendlyrnbanking services. Internet banking services are new, and the development andrndiffusion of these technologies by financial institutions is expected to result in a morernefficient banking system. In recent years two Ethiopian banks started to offer Internetrnbanking services to their customers. The purpose of this research was to identify thernrelationship between perceived service quality and satisfaction from the side ofrncustomers of United bank S. C. The author of this thesis has developed a theoreticalrnmodel (instrument) for measuring the quality of Internet banking services. Usingrnquantitative research method including the design and distribution of a questionnaire,rnempirical data was collected on which statistical analysis has been performed. As arnresult of the conducted analysis, new model (instrument) for measuring quality ofrnInternet banking services having seven quality dimensions with total of 42 items wasrndeveloped. These dimensions are Reliability & Service Performance, WebsiternCharacteristic and Customization, Fulfillment, Efficiency, Responsiveness,rnOrganizational Issues, and Privacy. Furthermore, based on the developed theoreticalrnmodel, customer satisfaction with different aspects of the Internet banking servicesrnquality dimensions and overall service quality as well as service quality dimensionsrnwith overall service quality has been evaluated. Such evaluation resulted in therndevelopment of graphical representation of relationship between Internet bankingrnservice quality dimensions with overall service quality and the relationship betweenrnboth Internet banking service quality dimensions and overall service quality withrnoverall customer satisfaction. Based on the results of the Analysis of the EmpiricalrnData, managerial recommendations are given. Suggestions for further research onrnquality of Internet banking services are also offered.