eAutoclaims Prepares for More Business From Co-Marketing Deal

Florida-based eAutoclaims reported the financial results for their third
fiscal quarter ended April 30, 2004.

The net loss for the nine-months ended April 30, 2004, was $1,552,261 compared to $1,230,879 for the nine-months ended April 30, 2003. The company incurred a non-cash, one-time charge of
$861,006 relating to the issuance of incentive stock options grants to
management as a result of the company executing a significant contract with ADP Claims Services Inc. (ADP). The company also incurred set-up costs to prepare for additional business that is expected from a co-marketing agreement with ADP.

Revenue for the nine-months ended April 30, 2004 was $22,763,090. This represents a 10 percent decrease from the $25,387,571 of revenue for nine-months ended April 30, 2003.

The company’s decrease in revenue is predominately related to the reduction in business, as announced last year, from the company’s largest customer. The company’s largest customer sold approximately
50 percent of their auto physical damage business to another insurance company. The customer has retained their remaining business and is continuing to use eAutoclaims repair network.

The revenue for the three-months ended April 30, 2004, was $6,563,222 compared to 9,388,172 for the three-months ended April 30, 2003. The company reported a net loss of $1,338,336 for the three-months ended April 30, 2004 compared to net income of $183,631 for the same time period in 2003.

The net loss in the three-months ended April 30, 2004 includes the non-cash, one-time charge of $861,006 relating to the issuance of incentive stock options grants described above.