SOURCE: Health Benefits Direct Corporation

May 22, 2006 10:27 ET

Health Benefits Direct Corporation Provides Financial and Shareholder Update

HBDT's Seamless Technology Process for Selling Insurance Is Gaining Traction

RADNOR, PA -- (MARKET WIRE) -- May 22, 2006 -- Health Benefits Direct Corporation (OTCBB: HBDT), a leading direct marketer of health and life insurance products, primarily utilizing the Internet, today provided an update to its stockholders regarding its recent operational highlights and financial results.

Operational Highlights:

On March 17, 2006, Health Benefits Direct relocated its Florida office to an office facility located at 2200 S.W. 10th Street, Deerfield Beach, Florida to accommodate the company's continued growth. The new office facility has approximately 50,000 square feet of space, which is more than four times the size of the company's previous Florida office facility, and will enable the company to hire and house additional sales agents.

On March 21, 2006, Health Benefits Direct entered into a sublease for approximately 14,000 square feet of office space located on the 7th floor at 1120 Avenue of the Americas, New York, New York. The company will move its existing New York office to this new location and hire additional agents upon the completion of renovations being made to the office space. The company is committed to expanding its presence in New York due to the area's strong talent pool of agents and brokers.

Recently, the company also opened a new office in Atlanta, Georgia. The new office has been equipped with the company's state-of-the-art technology. The opening of the Atlanta office is part of the company's strategic plan of strong organic growth. "We believe that the additional agents operating out of the Atlanta office will enable us to more adequately assist consumers in shopping for health insurance," stated Scott Frohman, Chief Executive Officer of Health Benefits Direct Corporation.

On April 3, 2006, Health Benefits Direct acquired The Insurance Specialist Group, a company specializing in selling health and life insurance to individuals. Following completion of the acquisition, the operations of The Insurance Specialist Group were merged into the company's Florida office. The Insurance Specialist Group has numerous relationships with top-rated health insurance carriers in the United States. Health Benefits Direct expects to work with The Insurance Specialist Group's employees to leverage these relationships to increase the number of insurance carriers for which Health Benefits Direct currently sells insurance products.

"During the first several months in 2006, we continued to execute our strategic business plan of increasing our number of licensed agents and sales per agent and the variety of health insurance products that these agents can offer to consumers," stated Alvin Clemens, Executive Chairman of the board of directors of Health Benefits Direct. "We remain excited about the growth opportunities in the industry due to the increasing number of individuals that are searching for health insurance."

Financial Highlights for the Quarter Ended March 31, 2006

Revenues for the quarter ended March 31, 2006 increased by 173% to $1,268,307, compared to revenues of $465,069 for the same period in 2005. This increase was primarily due to an increase in the number of licensed insurance agents employed by the company and the addition of several new medical insurance products to the portfolio of products that the company sells.

Net loss for the quarter ended March 31, 2006 was $2,012,359, or $0.08 per share, compared to $570,864, or $0.07 per share, for the same period in 2005. This increase was attributable to the company's recruitment and hiring of additional key employees and licensed agents, upgrades in the company's infrastructure to accommodate its public company status, and the company's increased investment in developing its proprietary technologies.

"The first quarter of 2006 was very exciting for Health Benefits Direct as we continued to create a foundation for becoming the premier online health insurance seller," stated Scott Frohman. "We are pleased with the strong revenue growth we experienced during the quarter and believe we can continue our progress in the future."

About Health Benefits Direct Corporation

Health Benefits Direct Corporation operates an online insurance marketplace that enables consumers to shop online for individual health and life insurance and obtain insurance company-sponsored quotes for such coverage from licensed agents/employees.

Safe Harbor Statement

In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the ability of the company to continue its growth, growth opportunities in the individual health insurance industry, the anticipated effects of the relocation of the company's Florida office and the opening of the company's Atlanta office, and the effect of the company's acquisition of The Insurance Specialist Group. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Actual events could differ materially from those reflected in these forward-looking statements due to: general financial, economic, regulatory and political conditions affecting the insurance industry and the risks and uncertainties associated with these conditions, and Health Benefits Direct's ability to effectively integrate its Atlanta office and the operations of The Insurance Specialist Group into its existing operations. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Health Benefits Direct undertakes no obligation to update publicly any forward-looking statement.

Contact Information

  • Contact:
    Alliance Advisors, LLC
    Alan Sheinwald
    914-244-0062
    Email Contact