eAutoclaims, Inc. Reports Fiscal Year End 2006 Financial Results

Gross Margins Increase to 32% for Fiscal 2006 Compared to 25% for Fiscal 2005 


OLDSMAR, Fla., Nov. 1  /PRNewswire-FirstCall/ -- eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) , a leading provider of managed collision repair services and insurance claims processing technology applications, today announced financial results for the fiscal year ending July 31, 2006.

Total revenue for the year ended July 31, 2006 was approximately $14.9 million, excluding the gain of approximately $757 thousand on the sale of the Oldsmar Facility, consisting of approximately $10.9 million in collision repair management for insurance companies, approximately $0.3 million in auto glass repairs, approximately $0.9 million in fleet repairs and approximately $2.8 million in fees and other revenue respectively. Total revenue for the year ended July 31, 2005 was approximately $14.7 million, which consists of approximately $11.2 million in collision repair management for insurance companies, approximately $0.5 million in auto glass repairs, approximately $0.7 million in fleet repairs and approximately $2.2 million in fees and other revenue. The increase is primarily the result of increased fees generated during the year ending July 31, 2006.

Gross Margin in fiscal year 2006, adjusted for the revenues earned on the sale of the building, increased to 32% as compared to 25% in fiscal year 2005. The increase in gross margin is partially the result of the Company cross selling additional products with higher margins to existing and new customers and recognizing revenue at net for clients acquired as a result of the Co- Marketing agreement with Autadex, formally ADP Claims Services Group.

eAutoclaims reported a net loss of approximately $(1.6 million), or $(0.03) per share, July 31, 2006 compared to a net loss of $(2.4 million), or $(0.08) for the same period last year. Included in the net loss for fiscal 2006 is the previously mentioned gain of $757 thousand on the sale of the Company's Headquarters.  Also included in the net loss for fiscal 2006 are non-cash expenses of approximately $1.2 million.  The decrease in net loss was primarily a result of the higher margin business resulting from the increased rollout of the Company's Co-Marketing Agreement with Autadex, per the contract the Company recognizes revenue at net for clients acquired as a result of the agreement.

Eric Seidel, CEO of EACC, commented, "2006 proved to be a rewarding year as we successfully positioned the Company for an outstanding year in 2007. We've spent this past year implementing our strategy of customizing our services for the larger insurance carrier markets, we are now seeing the full benefits or our partnership on the CNA account as claims processing has increased substantially during the 4th quarter.  On a quarter over quarter basis, in the 4th quarter we decreased our net loss by more than 63%, or $500,000, over the 3rd quarter of this year. Management has refocused attention on our direct sales program, which has shown tremendous promise with the signing of a Letter of Intent by another Top Twenty Five Insurance company, which was recently disclosed in an 8K filing with the SEC. As we progress through the New Year, we anticipate the roll-out of this new carrier coupled with the growth from the now ramped-up CNA account, another Top-25 Insurance client, will have a significant impact on our top line growth in 2007.  This past year we completed the development of more sophisticated ASP tools for the insurance market. We are excited about the cross selling opportunities of our advanced technology as it gains momentum in the market place.  Our pipeline remains strong and we expect it will begin to materialize into revenue producing relationships that help EACC reach profitability."

About eAutoclaims:

eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC)  is a business services company that provides the insurance industry with claims management services through both ASP and integrated outsourcing solutions. The Company's clients are insurance companies, fleet management companies and insurance services companies. eAutoclaims' solutions streamline the claims handling process, decreasing the overall time and cost required to process a collision claim, and reducing average paid losses for its clients. The Company handles repair estimates, repair audits, and claims systems administration services for automobile claims that are processed and tracked via the eAutoclaims web-based platform and network of service providers.

This announcement contains forward-looking statements. Words such as anticipate, believe, estimate, satisfies, expect and other similar expressions as they relate to the Company and its management are intended to identify such forward-looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are included with those mentioned in the Company's filings with the Securities and Exchange Commission.

                        --Financial Tables Follow-



                            eAutoclaims, Inc.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)

                                                         EAUTOCLAIMS, INC.

                                                             STATEMENTS OF
                                                                OPERATIONS

  Year Ended July 31             2006            2005          2004

  Revenue:
   Collision repairs
    management                $10,934,990     $11,248,882   $22,718,284
   Glass repairs                  254,196         487,723     1,239,969
   Fleet repairs management       916,741         718,240       713,303
   Fees and other revenue       2,757,811       2,196,387     2,489,126
   Gain on sale of building       756,943
  Total revenue                15,620,681      14,651,232    27,160,682

  Expenses:
   Claims processing charges   10,178,094      11,029,261    22,130,634
   Selling, general and
    administrative              6,595,442       5,554,430     6,417,316
   Depreciation and
    amortization                  459,133         511,812       515,813
   Amortization of beneficial
    conversion feature on
    convertible debentures
  and
    fair value of warrants
    issued in connection with
    debentures                                                  307,694
  Total expenses               17,232,669      17,095,503    29,371,457
  Net loss                    $(1,611,988)    $(2,444,271)  $(2,210,775)


DATASOURCE: eAutoclaims



CONTACT:  Company, Jeffery Dickson, Chairman of eAutoclaims,

[phone], or ; or Investors, Mark

McPartland of Alliance Advisors, LLC, 1-910-297-6442



Web site:  http://www.eautoclaims.com/

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