eAutoclaims Becomes Profitable During February

OLDSMAR, Fla., March 17 -- eAutoclaims, Inc. (BULLETIN BOARD: EACC) , which provides online claims management solutions for the auto insurance industry through both an application services provider (ASP) and outsourcing services, achieved profitability during February of 2003, the first month of its third fiscal quarter.

According to President and Chief Executive Officer Eric Seidel, "As a result of cost cutting measures and discontinuing unprofitable business relationships, eAutoclaims earned net profits of approximately $69,000 during February and earnings of approximately $110,000 on a cash basis or before interest, taxes, depreciation and amortization or EBITDA." Seidel added that based on the current customer base and the rate at which customers have ramped up their use of eAutoclaims' services, he anticipates the company will be able to sustain its profitable performance throughout the third quarter, but stated there were no guarantees of future performance.

Seidel commented, "We have covered more ground with less people because of better utilization of our technology and discontinuing unprofitable partnerships and customer relationships. While the latter added to a small dip in our period over period revenues, we plan to focus our marketing efforts on our newer and more profitable services to customers, so future business has a greater impact on the bottom line of earning verses the top line of sales revenues. However, there are no guarantees of future performances."

EACC recently filed its 10Q with the SEC for the second quarter ending in January 2003. The trend from fiscal first quarter ending October 2002 to fiscal second quarter ending January 2003 showed an improvement on net operating results by 39%, with a net loss of $537,658 verses $876,852, and an improvement on EBITDA of 47% and cash losses of $341,486 verses $639,288.

Total revenues for the second quarter of fiscal 2003 were $7,834,573 versus $8,481,094 in the period ended January 31, 2002, a decrease of 7.6%. The decrease in revenue Net loss for the second quarter was $537,658 compared with $508,468 in the prior comparable period. Net loss per share was $0.03 for the period versus $0.04 per share in the quarter ended January 31, 2002. The weighted-average shares outstanding basic and diluted for the quarter was 19,562,796 compared to 13,280,782 in the prior comparable period.

For the six months ended January 31, 2003 total revenues were $15,999,399 compared to total revenues of $16,172,015 for the six months ended January 31, 2002, a decrease of 1.1%. Net loss for the six-month period was $1,414,510 versus a net loss of $1,846,796 for the six months ended January 31, 2002. Net loss per share was $0.08 versus $0.18 per share for the prior comparable period. The number of weighted-average shares outstanding for the quarter was 19,172,565 compared to 12,769,285 in the prior period.

Seidel added that, "Since we announced our restructuring in the fall of 2002 we have cut $130,000 in monthly costs or $1.56M annually on a permanent basis. These past months have seen the company reshape itself, both in terms of management structure and product focus. While we have turned the corner based on these most recent results, our management team remains committed to diligently managing costs going forward and remaining focused on growing its sales of higher margin product mix."

About eAutoclaims:

eAutoclaims (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," "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.