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FOR IMMEDIATE RELEASE
INVESTOR AND MEDIA CONTACT:
Steven M. Kaplan
HealthAxis Inc.
610-275-3800
[email protected]
HEALTHAXIS INC. FILES AMENDED FORM S-4 WITH SEC TO
ADVANCE UPSTREAM MERGER TRANSACTION
COMPANY MOVES CLOSER TO MERGER WITH INTERNET SOFTWARE TECHNOLOGY
SUBSIDIARY AND COMMENTS ON RECENT STOCK ACTIVITY
EAST NORRITON, PA, Oct 12, 2000--HealthAxis Inc. (NASDAQ: HAXS) announced today
that it has filed an amended Form S-4 with the Securities and Exchange
Commission, as part of its previously reported effort to execute a merger with
its subsidiary, HealthAxis.com, Inc., a proven leader in Web-enabling healthcare
payers. The Company anticipates closing the planned merger transaction in either
the latter part of Q4 2000 or during Q1 2001.
The consummation of the merger is subject to various conditions including the
approval of both HealthAxis.com and HealthAxis Inc. shareholders as well as
regulatory approval.
Michael Ashker, chief executive officer of HealthAxis Inc. and HealthAxis.com,
said, "the filing of the S-4 represents another step forward towards finalizing
the merger process. We are looking forward to reporting continued progress to
our shareholders on this merger transaction."
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HEALTHAXIS INC. FILES AMENDED S-4
OCTOBER 12, 2000
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Regarding the recent trading activity in the Company's stock, Mr. Ashker
remarked, "the market clearly lacks the understanding of our unique position in
the eHealth industry. Our recent announcements of CareFirst Administrators and
America's Choice Healthcare are early indications of the pent-up demand for
HealthAxis.com's proprietary technology solutions for healthcare payers. We are
optimistic that we will close additional contracts in the near-term in all
customer segments including carriers, intermediaries, TPA's and large employers
such as state government agencies. Our financial position remains solid and we
anticipate ending the year with over $20 million in cash and being one quarter
away from our pre-announced turn to cash flow positive in Q2 of 2001. While we
are cognizant of the profoundly negative technology market dynamics affecting
our and other eHealth stock prices, we continue to see a healthy increase in
interest and demand from our prospective customers."
ABOUT HEALTHAXIS
HealthAxis.com, Inc., a subsidiary of HealthAxis Inc., is a leading provider of
Internet solutions for healthcare insurance distribution and administration for
the payer community. The Company's proprietary workflow and business application
software, built around an application service provider model, enables healthcare
payers--carriers, third party administrators, and large, self-funded groups--to
more efficiently capture, process, and share health plan data over the Internet.
HealthAxis.com, Inc. is headquartered in suburban Philadelphia, with significant
operations in Dallas, as well as offices in eight additional locations both
domestic and international. The Company employs over 350 IT professionals.
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HEALTHAXIS INC. FILES AMENDED S-4
OCTOBER 12, 2000
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SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: CERTAIN STATEMENTS MADE WHICH ARE NOT HISTORICAL FACTS MAY BE CONSIDERED
FORWARD-LOOKING STATEMENTS, INCLUDING, WITHOUT LIMITATION, STATEMENTS AS TO
TRENDS, MANAGEMENT'S BELIEFS, EXPECTATIONS AND OPINIONS, WHICH ARE BASED UPON A
NUMBER OF ASSUMPTIONS CONCERNING FUTURE CONDITIONS THAT ULTIMATELY MAY PROVE TO
BE INACCURATE. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND
UNCERTAINTIES AND MAY BE AFFECTED BY VARIOUS FACTORS, WHICH MAY CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS. FOR
FURTHER INFORMATION, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER FROM THE
COMPANY'S EXPECTATIONS AS WELL AS OTHER FACTORS, WHICH COULD AFFECT THE
COMPANY'S FINANCIAL STATEMENTS, PLEASE REFER TO THE COMPANY'S REPORTS FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION.
