SOURCE: Transax International

February 20, 2007 10:04 ET

Transax International Executes Standstill Agreement With Preferred Shareholder & Convertible Noteholder

MIAMI, FL -- (MARKET WIRE) -- February 20, 2007 -- Transax International Limited (Transax) (OTCBB: TNSX), a network solutions company for healthcare providers and health insurance companies, today announced that it has entered into a Standstill Agreement with its Series A Preferred Shareholder, Cornell Capital Partners LP ("Cornell"). The Company also signed a similar Standstill Agreement with convertible note holder Scott and Heather Grimes.

Under the terms of the agreements, and subject to the conditions specified therein, the Preferred Stockholder and Convertible Note Holder have agreed that they will not convert or sell any of their holdings during the standstill period, which extends until April 30, 2007. As a result of the agreement, the Company has committed to a full repayment of the $1.6 million equity investment along with the redemption premium to Cornell as well as a similar arrangement for the $225,000 convertible debenture to Scott and Heather Grimes. Details of the agreements are filed on Form 8K to the US Securities & Exchange Commission.

Stephen Walters, President & CEO of Transax, commented, "'Last month we announced our intent of selling our Brazilian operations and satisfying all outstanding liabilities. To this extent, we have signed these standstill agreements with the anticipation of closing the proposed transaction in the coming weeks. These agreements are the first step to ultimately reducing our liabilities, as well as alleviating concerns within the investment community regarding our obligations."

About Transax International Limited

Transax International is an emerging network solutions provider for the healthcare sector. Utilizing its proprietary MedLink™ technology, Transax provides a service similar to credit card processing for the health insurance and providers industries. A Transax transaction consists of: approving eligibility, authorization, auto-adjudication of the health claim and generating the claim payable files -- provided instantaneously in "real time" -- regardless of method of claim generation.

Transax's solutions have been proven to significantly decrease health insurance claim expenditures and healthcare provider costs. Based in Miami, Fl, Transax maintains a major operations office in Rio de Janeiro, Brazil with approximately 35 staff. The Company has contracts in place with major health insurers in Brazil for up to 2,500,000 transactions per month and currently undertakes approximately 700,000 transactions per month, for which Transax receives approximately $0.55 cents per transaction.

SAFE HARBOR STATEMENT: "THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN."

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