Claimsnet.com Reports Second Quarter 2005 Results Including a 45% Increase in Revenues DALLAS, July 26 /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 second quarter of fiscal 2005, which ended June 30, 2005. For the quarter ended June 30, 2005, the Company reported revenues of $326,000, a 45% increase compared to the $225,000 reported for the second quarter of 2004. Cost of revenues for the second quarter of 2005 was $203,000 compared to $168,000 for the second quarter of fiscal 2004, a 21% increase. There were no research and development expenses incurred during the second quarter of 2005 or the second quarter of 2004. Selling, general and administrative expenses of $208,000 were reported for the second quarter of 2005, representing a 23% reduction from the $269,000 reported for the second quarter of 2004. The Company reported a gross profit increase of 115%, or $123,000 for the second quarter of 2005, compared with a $57,000 gross profit for the second quarter of 2004. The loss from operations for the second quarter of 2005 was $(85,000), a 60% decrease from the loss of $(212,000) reported for the second quarter of 2004. The net loss for the second quarter of 2005 was $(95,000), or $(.00) per share, compared to net loss of ($126,000), which included a $91,000 gain on settlement of liability, or $(.01) per share, for the second quarter of 2004. "We are pleased to report a 45% increase in revenues while at the same time expenses were reduced by 6%," commented Don Crosbie, chief executive officer of Claimsnet. "Our enhanced operations group continues to perform at high levels of customer installations and support, and we are benefiting from the operating efficiencies our software systems and tools provide." 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, 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) Quarter Ended June 30, 2005 2004 REVENUES $326 $225 COST OF REVENUES $203 $168 GROSS PROFIT $123 $57 RESEARCH AND DEVELOPMENT $--- $--- SELLING, GENERAL AND ADMINISTRATIVE $208 $269 LOSS FROM OPERATIONS $(85) $(212) GAIN ON NEGOTIATED SETTLEMENTS OF LIABILITIES $--- $91 INTEREST EXPENSE $(10) $(5) NET LOSS $(95) $(126) NET LOSS PER COMMON SHARE - BASIC AND DILUTED $(0.00) $(0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 25,751 24,182 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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