Claimsnet.com Reports First Quarter 2005 Results Including a 34% Increase in Revenues, and the Smallest Loss in the History of the Company DALLAS, April 22 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC:CLAI) (BULLETIN BOARD: CLAI) , a leading provider of Internet-based business-to- business solutions for the healthcare industry, today reported its results for the first quarter of fiscal 2005, which ended March 31, 2005. For the quarter ended March 31, 2005, the Company reported revenues of $288,000, a 34% increase from the $215,000 reported for the first quarter of 2004. Expenses overall decreased 9% compared with the first quarter of the prior fiscal year. Cost of revenues for the first quarter of 2005 was $168,000 compared to $140,000 in the first quarter of fiscal 2004, a 20% increase. Selling, general and administrative expenses of $202,000 were reported for the first quarter of 2005, representing a 24% reduction from the $267,000 reported in the first quarter of 2004. The Company reported a gross profit of $120,000 for the first quarter of 2005, compared with a $75,000 gross profit in the first quarter of 2004. This is the seventh consecutive quarter in which the Company has reported a gross profit. The loss from operations for the first quarter of 2005 was $(82,000), a 57% decrease from the loss of $(192,000) reported in the first quarter of 2004. The net loss for the first quarter of 2005 was $(92,000), or $(.00) per share, compared to $(197,000), or $(.01) per share, in the first quarter of 2004. "As a result of both our refocused business model and our continued emphasis on expense control, we were pleased to report the lowest net loss in the Company's history," commented Don Crosbie, chief executive officer of Claimsnet. "We continue to benefit from previously announced contract signings, which along with continued cost controls, has led to the improved operating results." In addition, the Company announced that claims volumes from its direct customers had increased 225% compared to the first quarter of 2004, demonstrating again the effectiveness of its direct sales efforts. Although sales were down sequentially from the $315,000 reported in the 4th quarter 2004, this occurred due to several one time sales items that did not repeat in the current quarter. Overall, business is increasing, and the productivity of the Company and its software ASP (Application Service Provider) model continues to improve. Claimsnet.com inc. is a leading provider of Internet-based claim processing solutions for the healthcare payer industry, including distinctive, advanced ASP technology. Headquartered in Dallas, Texas, Claimsnet offers systems that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet can be found at the Company's web site at http://www.claimsnet.com/ . Safe Harbor Statement Under the Private Securities Litigation Act 1995 -- With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future results of the Company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of the Company's competitors, dependence on suppliers and distribution channels, and continued use of the Internet. Further information on the Company's risk factors is contained in the Company's quarterly, annual, and other periodic reports as filed with the Securities and Exchange Commission. [Table to Follow] CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data) (unaudited) Quarter Ended March 31, 2005 2004 REVENUES $ 288 $ 215 COST OF REVENUES $ 168 $ 140 GROSS PROFIT $ 120 $ 75 RESEARCH AND DEVELOPMENT $ --- $ --- SELLING, GENERAL AND ADMINISTRATIVE $ 202 $ 267 LOSS FROM OPERATIONS $ (82) $ (192) INTEREST EXPENSE $ (10) $ (5) NET LOSS $ (92) $ (197) NET LOSS PER COMMON SHARE - BASIC $(0.00) $(0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 25,537 23,667 DATASOURCE: Claimsnet.com inc. CONTACT: Don Crosbie of Claimsnet.com inc., +1-972-458-1701 Ext. 112, or Web site: http://www.claimsnet.com/

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