Completes Sale of Oldsmar Facility, Generating Working Capital OLDSMAR, Fla., Dec. 14 /PRNewswire-FirstCall/ -- eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) , a leading provider of managed collision repair services and insurance claims processing technology applications, today announced financial results for the first quarter ending October 31, 2005 for fiscal year 2006. Total revenue for the three-months ended October 31, 2005 was approximately $3.8 million, representing an 8% decrease from the $4.1 million for the same three months ended October 31, 2004. The decrease in revenue is partially the result of a reduction by consumers in the usage of network shops and the result of the loss of revenues from our two largest clients as discussed in the Company's previous filings with the Securities and Exchange Commission. Included in the collision management revenue is revenue earned through repairs processed for clients acquired as a result of the ADP Co-Marketing agreement. This revenue is recorded at net value, which significantly reduces the amount of gross revenue reported by the Company, resulting in the overall gross margins increasing as a result of not having to pay the shops for the work performed. During the three months ended October 31, 2005, the Company generated over $110,000 in net revenue from clients acquired as a result of the agreement with ADP. The additional revenue resulted in the gross margin percent for collision management to increase from 10% to 13%, not including fees. The Company anticipates meaningful growth in new clients based on these favorable early results of its co-marketing agreement with ADP Claims Services Group. The Company's overall gross margin has grown from 18% during the 1st quarter of FY 04, to a current gross margin of 29% of 1st quarter FY06. This additional growth is a result of the Company changing its mix of product sales to its higher margin products. Claims processing charges for the three-months ended October 31, 2005 was approximately $2.7 million. This was 71% of total revenue, compared to approximately $3.2 million, or 78% of total revenue for the three-months ended October 31, 2004. Claims processing charges include the costs of collision and glass repairs paid to repair shops within our repair shop network. Claims processing charges are primarily the costs of collision repairs paid by the Company to its collision repair shop network. The decrease in claims processing charges as a percentage of total revenue is a result of the change in the product mix by the Company focusing on a greater percentage of higher margin products as compared to lower margin products. This also includes the growth in click fees charged when a client uses our technology that has little to no associate cost of sale, for each transaction. EACC recognized a net loss for the three-months ended October 31, 2005 of approximately $486,000 compared to a net loss of approximately $545,000 for the three-month period ended October 31, 2004. These amounts include non-cash expenses of approximately $305,000 and $230,000, respectively. Our balance sheet shows approximately $393 thousand in cash as of October 31, 2005, which represents an increase of approximately $87,000 from July 31, 2005. Total assets increased to $3.4 million as compared to $3.1 million at July 31, 2005. The primary source of our working capital increase during the three-month period ended October 31, 2005, was from cash flow generated by operations and the $500,000 bridge loan we obtained in advance of the sale of our Oldsmar facility. The closing of the sale of the Oldsmar facility took place on December 9, 2005, netting the Company $860,000 in cash, which allowed the Company to repay the outstanding bridge loan while adding $360,000 to the total current assets from the period ending October 31, 2005. Management believes that cash generated from operations, the sale of the Oldsmar facility and exercising of certain outstanding warrants will be sufficient to meet our working capital requirements for the next 12 months. Eric Seidel, CEO of EACC, commented, "As a result of the hard work by our team and the outstanding work by ADP Claims Services group, we are seeing positive impact on sales and margin increases of our overall revenue mix. Since August 2004, our agreement with ADP has produced over a dozen signed pilot agreements with insurance Companies or third-party administrators. As a result, we have produced four annual agreements after the pilot periods were completed. In addition, two of the pilot insurance companies signing annual agreements are top carriers, representing significant claims processing opportunities as full roll out commences with the carriers over the next twelve months. One of these carriers has recently signed a 3-year agreement through the ADP Co-Marketing Agreement. Other than the two top 20 insurance clients, there are several other companies in the sales cycle that are expected to mature into new accounts. While there are no guarantees that these pilot agreements will mature into annual or multi-year contracts, maturing these accounts past the pilot stage could produce significant claims volume with only a fraction of the pilots signing agreements." Mr. Seidel stated further, "We remain very optimistic of the long-term business prospects and our ability to return to profitability in 2006. We anticipate continued growth from our agreement with ADP, while we continue to add additional high margin revenue streams via our ASP platform. The transaction involving our primary facility has added significant working capital to our balance sheet while providing the Company with a favorable long-term lease arrangement. The initial positive customer response as a result of the ADP agreement is very encouraging, while the revenues generated by the top 20 carriers show the positive impact we should see on both the top and bottom line as we evolve and sign on additional carriers throughout the 2006 fiscal year." Conference Call Reminder The conference call will take place at 4:15 p.m. Eastern, today, December 14, 2005. Anyone interested in participating should call 800-936-9754 if calling within the United States or 973-935-2048 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback available until December 21, 2005. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 6793348 for the replay. The call is being webcast by ViaVid Broadcasting and can be accessed at eAutoclaims' website at http://www.eautoclaims.com/ . The webcast may also be accessed at ViaVid's website at http://www.viavid.net/ . The webcast can be accessed through March 31, 2006 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp . About eAutoclaims eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) is a business services company that provides the insurance industry with claims management services through both ASP and integrated outsourcing solutions. The Company's clients are insurance companies, fleet management companies and insurance services companies. eAutoclaims' solutions streamline the claims handling process, decreasing the overall time and cost required to process a collision claim, and reducing average paid losses for its clients. The Company handles repair estimates, repair audits, and claims systems administration services for automobile claims that are processed and tracked via the eAutoclaims web-based platform and network of service providers. This announcement contains forward-looking statements. Words such as anticipate, believe, estimate, satisfies, expect and other similar expressions as they relate to the Company and its management are intended to identify such forward-looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are included with those mentioned in the Company's filings with the Securities and Exchange Commission. -Financial Tables Follow- eAutoclaims, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three-month Three-month Period Ended Period Ended October 31, 2005 October 31, 2004 (unaudited) (unaudited) Revenue: Collision repairs management $2,753,654 $3,269,607 Glass repairs 94,711 161,088 Fleet repairs management 242,179 134,749 Other revenue 711,502 554,352 Total revenue 3,802,046 4,119,796 Expenses: Claims processing charges 2,687,349 3,200,486 Selling, general and administrative 1,478,493 1,330,271 Depreciation and amortization 122,284 134,584 Total expenses 4,288,126 4,665,341 Net loss $ (486,080) $ (545,545) http://www.viavid.net/DATASOURCE: eAutoclaims CONTACT: Eric Seidel, CEO, eAutoclaims, +1-813-749-1020, ext. 2022, or ; or Investors, Mark McPartland, Alliance Advisors, LLC, +1-910-297-6442, or , for eAutoclaims Web site: http://www.eautoclaims.com/

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