SOURCE: Transax International

November 20, 2008 08:30 ET

Transax International Reports Record Third Quarter Results

Revenues Increase 29% Year Over Year

MIAMI, FL--(Marketwire - November 20, 2008) - 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 2008 and third quarter ended September 30, 2008.

For the quarter ended September 30, 2008, Transax generated net revenues of $1,774,551 compared to $1,328,636 in net revenues during third quarter of 2007, a 33% increase. The increase partly reflected a currency appreciation of 20% and in part was reflected by continued growth in real-time transactions and rollout of previously announced and new contracts. Transaction volume increased to 2.45 million for the third quarter of 2008 compared with 2.15 million for the third quarter of 2007.

Loss from operations in the third quarter of 2008 was $91,043 compared with a $113,612 loss during the same period in 2007. The Company recorded Income prior to income taxes, for the third quarter of 2008 of $38,594 compared with Income prior to income taxes of $86,002 in the third quarter of 2007. The decrease in Income was principally due changes in the recording of derivative liabilities.

For the nine months ended September 30, 2008 revenues increased by 29% to $4,986,507 from $3,852,538 during the same period in 2007. Approximately 20% of the revenue increase is attributed to currency gain and approximately 9% to real growth in transaction revenues. The Company recorded a loss from operations of $67,225 for the nine months ending September 30, 2008 compared to a $46,351 loss from operations during the same period in 2007. Loss prior to provision of taxes for the first nine months of 2008 was $24,856 compared to Income of $298,304 for the same period in 2007. The increase in loss is primarily attributed to changes in charges to derivative liabilities. Net Loss for the first nine months of 2008 was $126,842 compared to Net Income of $152,842 during the same period in 2007.

At the end of the third quarter 2008 the Company had 7,664 solutions operational in Brazil including over 3,200 Point of Sales (POS) Solutions. During the nine months ended September 30, 2008 the company installed approximately 2000 Web solutions and disconnected over 1000 Interactive Voice Response (IVR) Solutions allowing for greater operational flexibility and increased functionality for the client. The Company undertook a record 6.8 million real-time transactions during the nine months ending September 30, 2008.

In March 2008 the Company announced the sale of 45% of its Brazil operations with an option for the buyer to acquire the additional 55% interest for total consideration of US $5.6million plus a bonus depending on transaction volumes throughout 2008 to be paid in 2009. During July 2008 the buyer became in default of payments under the Sales & Purchase Agreement. The Company is currently in negotiations with the buyer to potentially restructure the Agreement. The Company plans to conclude these discussions by November 30, 2008 and has the intent to update the investment community during early December 2008 on results of these ongoing negotiations.

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 40 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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