Accessity Corp. Reports 2002 Net Income

As Company Evolves Into Non-automotive Fields, Fleet Unit Sale and Income Tax Benefit Offset Loss from Continuing Operations

CORAL SPRINGS, Fla., April 1 -- Accessity Corp. today reported net income of $1,248,000, or $.11 per basic and diluted share, for the year ended December 31, 2002, despite an after-tax loss of $1,161,000, or $.11 per share, from continuing operations.

The Company reported a pre-tax loss of $2,955,000 from continuing operations that was offset primarily by an after-tax gain of $2,391,000 from the sale of the Company's collision repair and fleet services business, coupled with net investment and interest income of $306,000 and an income tax benefit of $1,794,000 from tax loss carryforwards. At year-end, the Company had cash and liquid investments of $6.3 million, plus a restricted certificate of deposit of $300,000.

Since the sale of its largest business segment, its fleet services unit, to PHH Arval, a subsidiary of Cendant Corporation, for $6.3 million in February, 2002, the Company has taken steps to reduce its previous reliance on automotive-related businesses, by searching for strategic alternatives through the form of an acquisition and/or merger.

Through a strategic partnership agreement signed in December, 2002, ClaimsNet Inc., a subsidiary of Pennsylvania-based CEI Group, Inc., took over the operation and expansion of the Company's innovative CRM business, which provides cost-saving, Internet-based collision repair and claims management services for auto insurance companies.

Late in 2002, the Company launched Sentaur, a new medical subrogation business aimed to helping hospitals and other health care providers recover funds inappropriately deducted by insurers and preferred provider organizations in paying for services provided to insured patients. Sentaur has begun billing insurers on behalf of three hospital clients.

Accessity continues to operate its profitable ADS (automotive discounts and services) business, which provides consumer auto club programs through financial institutions and membership organizations.

During 2002, Accessity recorded revenues of $4,018,000. Operating expenses of $7,279,000 reflected collision repair expenses of $2,500,000, plus the cost of ramping up CRM sales and marketing efforts during the year, and the costs of launching the Sentaur business. Increased general and administrative expenses also reflected increased personnel costs, including severance and other expenses related to moving the Company's operations from New York to Florida.

This announcement contains "forward looking statements." Words "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.