eAutoclaims Preliminary Results Reflect Revenue Expansion, One-Time Charges

    OLDSMAR, Fla.--Oct. 29, 2002--eAutoclaims, Inc. (OTC BB:EACC), which provides online claims management solutions for the auto insurance industry through both an applications services provider (ASP) and outsourcing services, today issued preliminary results for its fourth quarter and Fiscal 2002.
    The company expects to report revenues of $8.1 million for the fourth quarter, and $32 million for the year ending July 31, 2002, in line with management expectations, and up 60% over Fiscal 2001. The company expects to report a net loss of $1.5 million for the fourth quarter, including $0.9 million in non-cash charges, and $4.2 million for the fiscal year, including $2.1 million of non-cash charges. The results were impacted by one-time charges for a write-off of bad debt expense, and the impairment of software product purchased in fiscal year ended 2001.
    In order to allow time to comply with the spirit of the new federal legislation, Sarbanes-Oxley Act of 2002, the company expects to file for an extension of time to file their annual form 10KSB.
    Eric Seidel, president and chief executive officer, said, "We are pleased with our revenue growth. While we are disappointed over not achieving profitability during our fourth quarter, as anticipated, we felt that it was prudent to take the one-time charges in the fourth quarter. With those charges behind us, we are intent on achieving profitability in the near term, while remaining focused on growth."
    "We have already begun to make changes in our operations, and in our Fiscal 2003 budgets, to allow a greater portion of our revenues to fall directly to the bottom line," Seidel continued. "We are in this business for the long term, and believe that eAutoclaims is well-positioned to become the claims solution provider of choice for the auto insurance industry."

    About eAutoclaims

    eAutoclaims (OTC BB: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", "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.