SOURCE: Transax International

August 21, 2007 08:01 ET

Transax International Reports Record Second Quarter Results

Revenues Increase Nearly 30% Year Over Year

MIAMI, FL--(Marketwire - August 21, 2007) - Transax International Limited (Transax) (OTCBB: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported record financial results for the first half of 2007 and second quarter ended June 30, 2007.

For the quarter ending June 30, 2007, Transax generated net revenues of $1,337,676 compared to $1,034,844 in net revenues during first quarter of 2006, a 29.3% increase. The increase in revenue was reflected by continued growth in real-time transactions and rollout of previously announced contracts and receipt of sales tax credits during the quarter. Transaction volume increased to 2.2 million for the second quarter of 2007.

Loss from operations in the second quarter of 2007 was $46,639 compared with a $223,991 loss during the same period in 2006. Net loss for the second quarter of 2007 was $217,703, compared with a net loss in the second quarter of 2006 of $2,126,473. The decrease in net loss is principally due to a decrease in non cash expenses related to derivative liabilities.

For the quarter ending June 30, 2007, the Company incurred $1,384,315 in operating expenses compared to $1,258,835 during the same period in 2006. The increase in expenses was attributed to additional one time costs for installation of new software in the Company's POS terminals in Brazil in compliance with a newly introduced government standard for electronic healthcare transactions, similar to HIPAA in the USA.

For the six months ended June 30, 2007 revenues increased by 25% to $2,523,902 from $2,015,902 during the same period in 2006. The Company recorded operational income of $67,261 for the six months ending June 30, 2007 compared to a $345,892 loss from operations during the same period in 2006. Net income for the first six months of 2007 was $212,302 compared to a net loss of $1,994,090 for the same period in 2006. Brazil operations continued to generate strong cash flow recording an EBITDA of 25% during the first six months of 2007.

At the end of the second quarter 2007 the Company had over 7,000 solutions operational in Brazil including 3,260 Point of Sales (POS) Solutions. The company installed an additional 1,000 solutions to medical provider locations in Brazil during the six months ended June 30, 2007.

Stephen Walters, President & CEO of Transax, stated, "Over the past three years we have steadily built a strong, consistent and successful business model in Brazil, now generating significant positive cash flows. We continue to execute on every level of our operations including increasing revenues and decreasing operating costs." Mr. Walters continued, "The management team continues to believe that shares of Transax are significantly undervalued and continue to evaluate various options which we believe will better reflect the true value of the company. We will update investors as any final decisions are made."

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 and currently undertakes approximately 750,000 transactions per month, for which Transax receives on average approximately $0.60 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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