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FOR IMMEDIATE RELEASE
Investor and Media Contacts:
HealthAxis.com Digital Insurance, Inc.
Steven M. Kaplan Theresa Hennessee
610-275-3800 404-531-9933
[email protected] [email protected]
HealthAxis.com Closes Previously Announced Agreement to Sell Its
Consumer Group to Digital Insurance
HealthAxis.com Now A Pure Business-to-Business Internet Applications
Provider
EAST NORRITON, PA and ATLANTA, GA, Oct 13, 2000 - HealthAxis.com, Inc., a
subsidiary of HealthAxis Inc. (NASDAQ: HAXS) and a proven leader in Web-enabling
healthcare payers, and Digital Insurance, Inc. an Internet Healthcare Group and
Capital Z backed "digital health insurance agency" focused primarily on the
small group market, announced today the successful completion of the sale of the
assets comprising HealthAxis.com's Consumer Services Group to Digital Insurance.
Under the terms of the transaction, Digital Insurance acquired HealthAxis.com's
V3 presentation layer technology, certain hard assets and HealthAxis.com's
existing block of in-force business.
HealthAxis.com has received $500,000, a promissory note in the amount of
$500,000, subject to certain conditions, due in 2001, a long-term technology
agreement providing for a guaranteed minimum of $3 million in professional
services fees over 12 months, $3 million in software licensing fees over 30
months, an 11% equity stake in Digital Insurance and commissions to be earned.
The transaction effectively closes HealthAxis.com's direct role in the sale of
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HealthAxis.com Closes D.I. Deal
October 13, 2000
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insurance to consumers, and substantially reduces the Company's operating
expenses. The Company is now 100% focused as a provider of Web-enabling
technology to both payers and intermediaries. HealthAxis.com is a leader in the
development of XML-based solutions for the healthcare payer Enterprise
Application Integration market.
Michael Ashker, chief executive officer of HealthAxis.com said, "The close of
the Digital Insurance deal fulfills our objective of repositioning
HealthAxis.com squarely as a provider of XML-based connectivity solutions to
carriers, intermediaries, TPA's and large employers such as state governmental
agencies. With the sale of the Consumer Services Group complete we will endeavor
to re-tell and clarify the HealthAxis.com story for customers and investors
alike."
The HealthAxis health insurance distribution and administration platform
delivered to Digital Insurance is an advanced technology platform for the sale
and service of health insurance to small groups and individuals. The Company's
proprietary technology provides robust functionality and cost efficiency for
health insurance carriers and their trading partners.
Tom Usilton, chief executive officer of Digital Insurance said,
"HealthAxis.com's technology will be the engine behind our operational platform.
Their technology will allow Digital Insurance to provide its small business and
individual health insurance clients a robust product choice and enable them to
make quick purchasing decisions. DI's ability to provide straight through
processing to the small business and individual market gives our clients a
convenient and cost effective choice."
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HealthAxis.com Closes D.I. Deal
October 13, 2000
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About HealthAxis.com
--------------------
HealthAxis.com, a subsidiary of HealthAxis Inc., is a proven leader in
web-enabling healthcare payers and those entities involved in the digital
distribution of health insurance. 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 is headquartered in suburban
Philadelphia, with significant operations in Dallas. The company employs over
350 IT professionals.
About Digital Insurance, Inc.
-----------------------------
Digital Insurance is an on-line distribution channel for web-enabled insurance
carriers. The Company provides insurance distribution and administrative
functions, including enrollment, to small and medium group employers. Digital
Insurance is headquartered in Atlanta, Georgia, with operations in McLean,
Virginia. Its capital partners are Internet HealthCare Group and Capital Z
Partners.
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 and
HealthAxis Inc.'s financial statements, please refer to HealthAxis Inc.'s
reports filed with the Securities and Exchange Commission and the Digital
Insurance, Inc. contact listed above.
