SOURCE: Transax International

May 22, 2006 08:30 ET

Transax International Reports Record First Quarter Results

- Revenues Increase 53%; Transaction Volume Up 42% From 2005 -

MIAMI, FL -- (MARKET WIRE) -- May 22, 2006 -- Transax International Limited (Transax) (OTC BB: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported record financial results for the first quarter ended March 31, 2006.

For the quarter ending March 31, 2006, Transax generated net revenues of $981,058 compared to $640,408 in net revenues during first quarter of 2005, a 53% increase. The increase in revenue was reflected by continued growth in real-time transactions and rollout of previously announced contracts. Transaction volume increased to 1.8 million for the first quarter of 2006, a 42% increase from 1.3 million in the first quarter of 2005.

Loss from operations in the first quarter of 2006 was $121,744 compared with $39,128 during the same period in 2005. Net loss for the first quarter of 2006 was $661,666, or ($0.02) per share, compared with a net loss in the first quarter of 2005 of $98,819, or $0.00 a share. The increase in net loss is principally due to non cash expenses.

For the quarter ending March 31, 2006, the Company incurred $1,102,832 in operating expenses compared to $679,536 during the same period in 2005. The majority of the increase in expenses was attributed to additional software development costs, as well as expenditures associated with the increase in revenues. Furthermore, the Company added consulting services for the initial marketing of its product into the U.S. and its continued marketing efforts in South America.

During the quarter the Company installed an additional 393 solutions and integrated five additional medical laboratories. The Company also commenced a strategic partnership with Brazil's largest Medical Practice Management System which is expected to bring additional revenues in the second half of 2006. During the quarter Transax also contracted an additional insurance operator for connectivity services. Recently, the Company also announced a pilot program with National Health Services, a leading marketing and consulting company of healthcare solutions in the U.S.

Stephen Walters, President & CEO of Transax stated, "We are off to a solid start for 2006. Our revenues and transaction volume continue to increase steadily. More recently, we expect our foray into the U.S. market, through our agreement with National Health Services, to open up further opportunities with major health insurers and health plan operators. Our pilot program is scheduled to begin in New York City." Mr. Walters continued, "As we have previously announced, we anticipate processing 2 million transactions in the second quarter of 2006, another record quarter."

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 a 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 executes 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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