EACC EAC Invest AS

OLDSMAR, Fla., March 21 /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 second quarter and six months ending January 31, 2006 for fiscal year 2006. Total revenue for the three-months ended January 31, 2006, excluding the gain on the sale of the Company's real-estate property of approximately $757 thousand, was nearly $3.6 million, representing a 3% increase from the $3.5 million reported for the same period of 2005. Total revenue, excluding gain on the sale of the building of $756 thousand, for the six-months ended January 31, 2006 was $7.4 million, compared to $7.6 million for the six-months ended January 31, 2005. The decrease in revenue for the six-month period was partially the result of a reduction by consumers in the usage of network shops. As previously stated, the revenue for the ADP Co-Marketing Agreement is recorded at net, which significantly reduces the amount of gross revenue reported, although the overall gross margin is increased as a result of not having to pay the shops for the work performed, a responsibility of ADP per the Co-Marketing Agreement. Collision repair management revenue for the three-months ended January 31, 2006, was $2.6 million compared to $2.7 million for the three-months ended January 31, 2005. Collision management revenues decreased to $5.4 million for the six-months ended January 31, 2006 from $6.0 million for the same period of 2005. Also included in the collision management revenue is the revenue earned through repairs processed for clients acquired as a result of the ADP Co- Marketing Agreement. During the six and three-months ended January 31, 2006 we earned over $248,000 and $148,000, respectively, in net revenue from clients acquired as a result of the agreement with ADP. This additional revenue, which increased 59% in the quarter ended January 31, 2006 over the quarter ended October 31, 2005, resulted in the gross margin percent for collision management to increase from 10% to 14% for the-six months ended January 31, 2006, not including fees. The Company's overall gross margin has grown from 23% during the 1st half of FY 05, to a current gross margin of 31% of the first six months of FY 06. This strong margin growth is a result of the company changing its mix of product sales to concentrate on higher margin products. The Company anticipates meaningful growth in new clients based on the favorable early results of its co-marketing agreement with ADP Claims Services Group. eAutoclaims recognized a net income for the three-months ended January 31, 2006 of approximately $4,000, which includes the gain on the sale of the Oldsmar facility of approximately $756,000, compared to a net loss of approximately $608,000 for the three-month period ended January 31, 2005. Net loss for the six-months ended January 31, 2006 totaled approximately $482,000 compared to a net loss of approximately $1.15 million for the same period of 2005. These amounts include non-cash expenses of approximately $808,000 and $520,000, respectively including depreciation charges, for the six and three months ended January 31, 2006 compared to $400,000 and $186,000 for the six and three months ended January 31, 2005. The Company's balance sheet shows approximately $546,000 in cash as of January 31, 2006, which is an increase of approximately $240,000 from July 31, 2005. We have a working capital deficiency of approximately $3.4 million compared to a deficiency of approximately $3.6 million as of January 31, 2005. The primary source of our working capital during the six-months ended January 31, 2006 was from cash generated by operations and the sale of our Oldsmar facility, from which we netted over $800,000. Eric Seidel, CEO of EACC, commented, "We continue to see positive traction as a result of our ADP agreement coupled with positive impact from our direct sales channels. We have realized a significant increase in our overall margins due to the enhancements of our product mix by rolling out higher margin products. Management continues to leverage our internally developed ASP/technologies that will allow other companies in related industries to significantly reduce labor costs and improve operating efficiencies. We have experienced success with the Company's recently announced new product "Audit Pro" which has generated significant interest from the industry. Many of our new technologies have already been implemented in the Company's operating processes and have shown themselves to be of considerable value for our existing customer base," continued, Mr. Seidel. "By modifying the interface to our technologies, we believe the Company will produce increasing click fee revenue without adding significant operating costs. The target market for these technologies will include a wide range of organizations, including the largest tier 1 insurance companies. This additional product line should result in greater growth in high volume, high margin revenues that will have a meaningful impact to the Company's bottom-line." Mr. Seidel stated further, "We have been successful in our new business endeavors, specifically with one new client who entered into an annual contract and is testing our program in targeted district offices, utilizing our network of shops and traditional eJusterSuite product. While this test is in its early stages and there are no guarantees the client will expand the program, the early test results have been very positive. Should this test continue to yield such results, the client would likely roll the program out to all of its district offices over the course of the calendar year 2006. The potential sales volume and the full revenues of our direct sales channel model would make this account's contribution to profit the most material of all current clients under contract, inclusive of our clients from the ADP Co- Marketing Agreement." "We remain confident of our 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, thus generating a positive impact on both the top and bottom line as we finish the 2006 fiscal year," concluded Mr. Seidel. Conference Call Schedule The conference call will take place at 4:15 p.m. Eastern, on Thursday, March 23, 2006. Anyone interested in participating should call 888-802-2275 if calling within the United States or 913-312-1267 if calling internationally approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback available until March 30, 2006. To listen to the playback, please call 888-203-1112 if calling within the United States or 1-719-457-0820 if calling internationally. Please use the pass code 4895411 for replay. This 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 June 30, 2006 on either site. 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 Six-month Six-month Period Period Period Period Ended Ended Ended Ended January 31, January 31, January 31, January 31, 2006 2005 2006 2005 (unaudited) (unaudited) (unaudited) (unaudited) Revenue: Collision repairs management $ 2,622,441 $ 2,699,251 $ 5,376,095 $ 5,968,858 Glass repairs 61,337 107,340 156,048 268,428 Fleet repairs management 226,436 191,861 468,615 326,611 Fees and other revenue 723,842 527,117 1,435,344 1,081,471 Gain on sale of building 756,943 756,943 Total revenue 4,390,999 3,525,569 8,193,045 7,645,368 Expenses: Claims processing charges 2,458,586 2,674,492 5,145,935 5,874,979 Selling, general and administrative 1,814,826 1,326,602 3,293,319 2,656,874 Depreciation and amortization 113,867 133,104 236,151 267,687 Total expenses 4,387,279 4,134,198 8,675,405 8,799,540 Net income (loss) $3,720 $(608,629) $(482,360) $(1,154,172) DATASOURCE: eAutoclaims, Inc. CONTACT: Eric Seidel, CEO of eAutoclaims, +1-813-749-1020, ext. 2204, , or Investors, Mark McPartland of Alliance Advisors, LLC, +1-910-297-6442, Web site: http://www.eautoclaims.com/ http://www.viavid.net/

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