Healthaxis Expands Relationship with HealthSCOPE Benefits, Inc

Business Wire, Sept 30, 2008

Signs Multi-Year IT Outsourcing Contract to Deliver Additional Outsourcing Solutions Through BPO Management Services, Inc.

IRVING, Texas -- Healthaxis, Inc., "Healthaxis" (Nasdaq: HAXS) an innovative provider of technology-enhanced, integrated business process solutions and services, including claims and benefit administration applications, web-enabled software solutions and outsourced claims related services for health benefit administrators and health insurance claims, today announced that it has recently signed a significant, multi-year outsourcing agreement to provide fully outsourced data center and information technology services to HealthSCOPE Benefits, Inc. (HealthSCOPE), headquartered in Little Rock, Arkansas.

The new agreement extends HealthSCOPE's relationship with Healthaxis by over two years through November, 2012, and adds new, incremental services. Healthaxis will deliver the additional services through its relationship with BPO Management Services, Inc. (BPOMS) (OTC BB: BPOM) in its world class Data Center, in Pearl River, New York. BPOMS is a leading full-service, on-demand business process outsourcing company focused on serving middle-market enterprises. BPOMS will provide a full complement of services encompassing the hosting and management of HealthSCOPE's server environment, including monitoring, support and maintenance of all related network components and desktop devices for all seven of its U.S. office locations from the BPOMS full-service, 24/7/365 support center.

HealthSCOPE is a total health management company providing full service benefits administration and health management services to self-funded employers. HealthSCOPE's partnerships with clients are founded upon three basic tenets, Healthy People, Healthy Business, and Healthy Futures. These tenets form the basis of their pledge to work with our clients to develop attractive, affordable and customer-friendly comprehensive plans for their employees. HealthSCOPE, through its leading edge technology, empowers clients to proactively monitor and manage the health of their employee populations, assertively controls health care costs, and enables cost trend management dramatically below industry averages. An industry leader, HealthSCOPE is a long-time customer of Healthaxis and one of Healthaxis' largest customers.

HealthSCOPE CEO, Joe Edwards commented, "We are delighted by the combined HAXS/BPOMS service offering as demonstrated by our significant contract commitment, and are looking forward to this new expanded relationship. We are a growing, innovative benefits administrator. Our focus is on delivering high quality service while helping large employers manage both the cost and administration of their healthplans. Having partners like Healthaxis and BPOMS support a significant part of our operational infrastructure helps us deliver the absolute best service of any benefits administrator in the country."

John Carradine, Healthaxis CEO commented, "The combined BPOMS/HAXS service offering will continue to generate enhanced value to our installed base of customers. Our customers are delighted by the additional services which BPOMS provides and this expanded relationship with HealthSCOPE validates our value proposition and demonstrates the cross-selling opportunities we expect to benefit from through this combination."

BPOMS CEO, Patrick Dolan added, "HealthSCOPE's decision to utilize our IT outsourcing capability is testament to the confidence they have in both us and Healthaxis. HealthSCOPE will benefit from the approximate 40% reduction in expenses we provide our customers and we are excited to build upon the strong relationship Healthaxis has created. HealthSCOPE will follow Healthaxis' recently completed move of its own software and technology environment to our data center operation. From this location we are delivering 24*7 support to Healthaxis' entire constituency of customers providing them with enhanced service levels and improved productivity in their operations. This contract win is also a primary example of the considerable synergies anticipated from the pending BPOMS/Healthaxis merger transaction, which will enable Healthaxis customers to leverage the BPOMS on-demand technology platform, world-class data center resources, Enterprise Content Management services and Human Resources offering."

About HealthSCOPE Benefits, Inc.

HealthSCOPE Benefits is a total health management company providing full service benefits administration and health management services to self-funded employers. Headquartered in Little Rock, Arkansas with offices in Columbus, OH; Indianapolis, IN; Los Angeles, CA; Nashville, TN; St. Louis, MO and San Marcos, CA, HealthSCOPE's more than 300 employees support clients in the management of over $800 million in annual health care expenditures. For more information, visit www.healthscopebenefits.com.

About BPO Management Services, Inc.

BPO Management Services (BPOMS) (OTC BB: BPOM) is a business process outsourcing (BPO) services provider that offers a diversified range of on-demand services, including human resources, information technology, enterprise content management, and finance and accounting, to support the back-office business functions of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit www.BPOMS.COM