Claimsnet.com Reports First Quarter 2004 Results; Including a 30% Sequential Increase in Revenue DALLAS, May 6 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (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 2004, which ended March 31, 2004. For the quarter ended March 31, 2004, the Company reported revenues of $215,000, a 33% increase from the $162,000 reported for the first quarter of 2003 and a 30% sequential increase compared with the fourth quarter of 2003. All expenses decreased compared with the first quarter of the prior fiscal year. Cost of revenues for the first quarter of 2004 were $140,000 compared to $200,000 in the first quarter of fiscal 2003, a 30% decrease. There were no research and development expenses incurred during the first quarter of 2004 while $10,000 of research and development expenses were reported in the first quarter of 2003. Selling, general and administrative expenses of $267,000 were reported for the first quarter of 2004, representing a 14% reduction from the $311,000 reported in the first quarter of 2003. The Company reported a gross profit of $75,000 for the first quarter of 2004, compared with a $(38,000) gross loss in the first quarter of 2003. This is the third consecutive quarter in which the Company has reported a gross profit and the largest quarterly gross profit reported to-date. The loss from operations for the first quarter of 2004 was $(192,000), a 47% decrease from the loss of $(359,000) reported in the first quarter of 2003. The net loss for the first quarter of 2004 was $(197,000), or $(.01) per share, compared to $(359,000), or $(.02) per share, in the first quarter of 2003. "As a result of both our refocused business model and our continued emphasis on expense control, we were pleased to report the highest gross profit 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." The Company received net proceeds of $100,000 during the first quarter of 2004 from the exercise of investor warrants to acquire 500,000 shares of common stock at an exercise price of $.20 per common share. 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. CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data) Quarter Ended March 31, 2004 2003 REVENUES $ 215 $ 162 COST OF REVENUES $ 140 $ 200 GROSS PROFIT (LOSS) $ 75 $ (38) RESEARCH AND DEVELOPMENT $ --- $ 10 SELLING, GENERAL AND ADMINISTRATIVE $ 267 $ 311 LOSS FROM OPERATIONS $ (192) $ (359) GAIN ON NEGOTIATED SETTLEMENTS OF LIABILITIES $ --- $ 4 INTEREST EXPENSE $ (5) $ (4) NET LOSS $ (197) $ (359) NET LOSS PER COMMON SHARE - BASIC AND DILUTED $(0.01) $(0.02) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 23,667 15,323 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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