DALLAS, April 20 /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 first quarter of fiscal 2006, which ended March 31, 2006. For the quarter ended March 31, 2006, the Company reported revenues of $331,000, a 15% increase from the $288,000 reported for the first quarter of 2005. Expenses overall increased 8% compared with the first quarter of 2005. Cost of revenues for the first quarter of 2006 was $218,000 compared to $168,000 in the first quarter of 2005, a 30% increase. Selling, general and administrative expenses of $180,000 were reported for the first quarter of 2006, representing an 11% reduction from the $202,000 reported in the first quarter of 2005. The Company reported a gross profit of $113,000 for the first quarter of 2006, compared with a $120,000 gross profit in the first quarter of 2005. This is the eleventh consecutive quarter in which the Company has reported a gross profit. The loss from operations for the first quarter of 2006 was $(67,000), an 18% decrease from the loss of $(82,000) reported in the first quarter of 2005. The net loss for the first quarter of 2006 was $(79,000), or $(.00) per share, compared to $(92,000), or $(.00) per share, in the first quarter of 2005. "As a result of both our continued refocus on our business model and our emphasis on expense control, we were pleased to report both a growth in sales and a reduction in the operating loss of the Company," commented Don Crosbie, chief executive officer of Claimsnet. "We are working to maximize top line results in the current fiscal year, and to that end have hired, and in the future will continue to hire, additional sales people to maximize our presence in the health care payer business community." 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, Texas, 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) (unaudited) Quarter Ended March 31, 2006 2005 REVENUES $331 $288 COST OF REVENUES $218 $168 GROSS PROFIT $113 $120 RESEARCH AND DEVELOPMENT $--- $--- SELLING, GENERAL AND ADMINISTRATIVE $180 $202 LOSS FROM OPERATIONS $(67) $(82) INTEREST EXPENSE $(12) $(10) NET LOSS $(79) $(92) NET LOSS PER COMMON SHARE -- BASIC $(0.00) $(0.00) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -- BASIC AND DILUTED 25,976 25,537 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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