SOURCE: Transax International

November 20, 2007 07:45 ET

Transax International Reports Record Third Quarter Results

Revenues Increase 23% Year Over Year; Company Expects to Reach $5 Million in Revenue for 2007

MIAMI, FL--(Marketwire - November 20, 2007) - Transax International Limited (Transax) (OTCBB: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported financial results for the first nine months of 2007 and third quarter ended September 30, 2007.

For the quarter ended September 30, 2007, Transax generated net revenues of $1,328,636 compared to $1,115,930 in net revenues during third quarter of 2006, a 19% increase. The increase in revenue was reflected by continued growth in real-time transactions and rollout of previously announced contracts. Transaction volume increased to 2.15 million for the third quarter of 2007.

Loss from operations in the third quarter of 2007 was $113,612 compared with a $206,809 loss during the same period in 2006. Net income, prior to income taxes, for the third quarter of 2007 was $86,002, compared with a net loss in the third quarter of 2006 of $623,578. The decrease in net loss is principally due to a decrease in non cash expenses related to derivative liabilities.

For the nine months ended September 30, 2007 revenues increased by 23% to $3,852,5382 from $3,131,832 during the same period in 2006. The Company recorded loss from operations of $46,351 for the nine months ending September 30, 2007 compared to a $552,701 loss from operations during the same period in 2006. Income for the first nine months of 2007 was $298,304 compared to a loss of $2,617,668 for the same period in 2006. Net income for the first nine months of 2007 was $152,842 excluding a provision of $145,462 in respect to income tax expenses related to the profitability of the Company's Brazil operations.

At the end of the third quarter 2007 the Company had over 7,250 solutions operational in Brazil including 3,290 Point of Sales (POS) Solutions. The company installed an additional 240 solutions to medical provider locations in Brazil during the nine months ended September 30, 2007. The company undertook a record 6.4 million "real-time" transactions during the nine months ending September 30, 2007.

Stephen Walters, President & CEO of Transax, stated, "During the third quarter we continued our top line growth in revenue, product installations and transaction volume. Our costs remain under strict control and as revenues increase we expect more to drop to the bottom line. We are pleased to announce we now expect to end 2007 with revenues of $5 million -- the first time in our company's history." Mr. Walters continued, "As we have mentioned in the past, we continue to receive interest in our Brazilian operations and are evaluating recent offers made to the company. We hope to update the investment community upon any potential transaction if it occurs."

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 $0.65 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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