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Exhibit 99.1
[claimsnet.com logo]
For more information, please contact:
Paul Miller Doris Banchik, Investor Relations
Claimsnet.com Banchik & Associates
(972) 458-1701 (805) 688-2340
[email protected] [email protected]
FOR IMMEDIATE RELEASE:
CLAIMSNET.COM REFINES BUSINESS STRATEGY AND ORGANIZATION
IMPLEMENTS PLAN THAT FOCUSES ON NEAR-TERM FINANCIAL PERFORMANCE
DALLAS - January 4, 2001 - Claimsnet.com inc. (NASDAQ: CLAI; BSE: CLA), a
leading provider of Internet-based business to business solutions for the
healthcare industry, today unveiled a refined business strategy that focuses on
near-term financial performance. The new plan dedicates the Company's resources
to the implementation of services for existing partnerships, which predominantly
include McKessonHBOC, Inc., ProxyMed, Inc., Passport Health and Synertech, and
selective growth opportunities with near-term profit potential and long-term
benefit. The Company's four major partnerships represent significant potential
market share for electronic claims processing and a compelling opportunity for
Claimsnet.com.
The trimming of Claimsnet.com's development efforts allows the Company to
reduce its personnel and other expenses, thereby extending the life of its
capital resources, which predominantly include existing cash and the flow of
contracted partnership payments (see 8K filed on 12/18/00), by over 300%. "This
strategy allows us to focus on our most promising opportunities and preserve
precious capital in a tight capital market", said Bo W. Lycke, chief executive
officer and chairman of Claimsnet.com. "We have superb technology that meets all
of the known HIPAA standards for electronic transaction processing and believe,
more than ever, in its market potential. Our four major partnerships provide an
exceptional vehicle by which to capture market share, and it is with this
confidence that we have sharpened our focus and application of resources."
The refined business strategy and plan was drawn up following a deliberate
evaluation of the Company's core assets, capital and market opportunity. "The
winners in this business will have to have HIPAA compliant, Internet-based
transaction processing technology and services, credibility with and access to
payers and providers, and the capital to operate until the market emerges in
earnest", commented Paul W. Miller, chief operating officer of Claimsnet.com.
"This new plan positions us well in all of these important ways."
The Company's new business plan does not appropriate resources for the
additional development of the
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HealthExchange product. The development of the first release of this product
will be completed and client opportunities will be evaluated. The Company will
reduce its development activities overall, responding exclusively to system
enhancements and new opportunities that can be implemented quickly and produce
the revenue required to support the new business. "In effect it will be every
tub on its own bottom going forward", commented Bo W. Lycke. "We have spent a
great deal of time and money in development talks over the last year and feel
quite certain that there are serious potential partnerships in the wings. We do
not feel that our new development approach will limit the best opportunities,
rather it will weed out the weaker ones."
The Company believes that its success will require the continued dedication
of employees responsible for the existing partnerships and will be offering
those associates appropriate enhanced financial incentives. These incentives
will include a significant increase in available stock options. In unveiling the
plan internally, Paul Miller said, "We think that these actions will protect our
most important assets, greatly enhance our prospects for long-term success, and
improve the day-to-day working environment for all employees."
Claimsnet.com inc. is a leading provider of Internet-based, business to business
solutions for the healthcare industry, including distinctive, advanced
technology for online healthcare transaction processing. Headquartered in
Dallas, Claimsnet.com offers proprietary systems that are distinguished by ease
of use, customer care, security and measurable cost advantages. Claimsnet.com
trades on the NASDAQ Smallcap under the symbol "CLAI" and on the Boston Stock
Exchange under the symbol "CLA". More information on Claimsnet.com can be found
at 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. Such statements are based on the current
expectations of management and are subject to a number of risk factors and
uncertainties that could cause or contribute to such differences which include,
but are not limited to: assumptions regarding business expansion, operating
strategies, contract implementations, strategic alliances, continued access to
capital and new product development. 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.
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