PBiz Announces Fourth Quarter and Year End Financial Results; Proposes Name Change to Goldleaf Financial Solutions

Private Business, Inc. (NASDAQ:PBIZ), a leading provider
of a full suite of technology based products and services to community
financial institutions today reported financial results for the three
months and year ended December 31, 2005.
   Revenues for the fourth quarter ended December 31, 2005 totaled
$10.1 million as compared with $9.7 million in the fourth quarter of
2004. Operating income totaled $1.0 million for the fourth quarter of
2005 as compared to $1.4 million for the fourth quarter of 2004. Net
income available to common shareholders totaled $74,000, or $0.00 per
diluted share, in the fourth quarter of 2005, versus $283,000, or
$0.02 per diluted share, in the fourth quarter of 2004.
   For the year ended December 31, 2005 revenues totaled $38.4
million, compared with $39.6 million for the year ended December 31,
2004. Operating income was $4.1 million, versus $2.8 million for the
comparable period of 2004. Net income available to common shareholders
totaled $175,000, or $0.01 per diluted share for the full year of
2005, compared to net income available to common shareholders of
$514,000, or $0.04 in the year-earlier period.
   As previously reported, the Company's operating results for the
year-ended December 31, 2004 reflected two one-time charges,
consisting of a write-off of unamortized deferred financing costs
related to the 1998 Credit Agreement and a one-time expense for
directors' and officers' insurance premiums, totaling $1.7 million.
These charges were partially offset by three one-time gains consisting
of the reversal of $972,000 of income tax contingency, a $400,000 gain
from the reversal of sales tax contingency reserves and a $266,000
gain from the payment of previously written-off employee notes
receivable.
   Operating income for 2005 and 2004, excluding the one-time charges
and gains described above, would have been $4.1 million and $4.1
million, respectively, and our net income, which excludes preferred
stock dividends and in 2004 the one-time gain related to recovery of
non-trade receivables and the income tax contingency reversal, would
have been $2.3 million and $2.2 million, respectively. Diluted
earnings per share for the year ended December 31, 2005 and 2004,
excluding the one-time charges and gain, would have been $0.01 and
$0.01, respectively, versus the $0.01 earnings per share for the year
ended December 31, 2005, and the $0.04 earnings per share for the year
ended December 31, 2004 as reported.
   Private Business CEO, Lynn Boggs, said, "We have accomplished many
things since the merger of Private Business and Captiva on December 9,
2005. First and foremost we have repositioned the Company from one of
a limited product offering to one with a full suite offering. Our
vision is to be the technology partner to community financial
institutions throughout the country by delivering a comprehensive
suite of products backed by world-class customer service. We believe
community financial institutions are looking for a single source
provider to deliver the service and underlying technology and believe
we are positioned to deliver on that requirement.
   During the fourth quarter and early 2006 we have accomplished the
following:

   --  Completed the acquisition of Captiva Solutions LLC, a provider
        of core and image processing solutions to community financial
        institutions.

   --  Achieved an increase in total revenues for the fourth quarter
        2005 over the fourth quarter 2004 for the first time in over
        three years.

   --  Executed an amended and restated credit facility with Bank of
        America for total borrowing capacity of $18.0 million.

   --  Completed the acquisition of PTC Systems, Inc., a leading
        provider of teller automation software.

   --  Completed the acquisition of Goldleaf Technologies, Inc., a
        leading provider of ACH origination and processing, Remote
        Capture/Deposit processing and website design and hosting to
        over 2,500 financial institutions."

   Mr. Boggs continued, "We believe the integration of the three
acquisitions is largely complete allowing us to leverage the more than
60 sales and product specialists to focus on selling products and
delivering our unified message. We believe the timing is right to name
the company to match that of our vision. Therefore we propose to
change the name of the Company to Goldleaf Financial Solutions, Inc.
and will put this up for vote at our annual shareholders meeting in
May. We think the Goldleaf name is well regarded and respected in the
financial technology marketplace with more than 2,500 financial
institutions currently trusting them to provide product or service.
   "We will not be having a conference call to discuss the 2005
results and 2006 outlook as the audit of the Goldleaf financial
statements is not yet complete. Please note that we intend to schedule
a call with management to discuss the first quarter 2006 results after
filing our 10-Q with the Securities and Exchange Commission."

   About PBiz

   Private Business, Inc. (PBiz) offers a fully featured strategic
product suite that provides core data processing, along with accounts
receivable financing, leasing, internet banking, cash management,
CRM/business intelligence, financial accounting tools, Check 21
compliance, electronic image/item processing, and online debt
collections. PBiz believes its full suite of products and services
will allow financial institutions and their small-to-medium sized
business customers to better compete in today's aggressive financial
services marketplace, and grow their trusted financial relationships,
while providing increased profitability through the efficient use of
technology and an expanded community presence.
   For more information about PBiz, or its line of products for
financial institutions, please visit us on the web at www.pbizinc.com
or contact marketing via email at [e-mail] or call,
800-235-5584.
   PBiz provides information related to non-GAAP financial
measurements from time to time that adjust for certain items outside
of the ordinary course of its business. Such non-GAAP financial
measures are not determined in accordance with generally accepted
accounting principles and are susceptible to varying calculations.
Accordingly, non-GAAP financial measures, as presented, may not be
comparable to other similarly titled measures of other companies. To
enable interested parties to reconcile non-GAAP measures to the
Company's GAAP financials, the Company clearly defines and quantifies
all adjustments to GAAP measurements. The Company provides non-GAAP
financial measurements that adjust for certain items outside of the
ordinary course of business in order to assist in comparing the
Company's current operating performance to its historical performance.
These adjustments typically reflect non-recurring items but sometimes
reflect items, such as dispositions of assets that are not technically
non-recurring but are outside of the ordinary course of operations.
Investors are encouraged to use this information in connection with
the information contained in the Company's GAAP financial statements.

   Certain statements made in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on management's current expectations and include
known and unknown risks, uncertainties and other factors, many of
which the company is unable to predict or control, that may cause the
company's actual results or performance to materially differ from any
future results or performance expressed or implied by such
forward-looking statements. These statements involve risks and
uncertainties, including, without limitation, risks and uncertainties
associated with the company's ability to achieve its growth plans.
These risks and uncertainties are in addition to other factors
detailed from time to time in the company's filings with the
Securities and Exchange Commission. The company cautions investors
that any forward-looking statements made by the company are not
necessarily indicative of future performance. The company is not
responsible for updating the information contained in this press
release beyond the published date, or for changes made to this
document by wire services or Internet services.
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                        PRIVATE BUSINESS, INC.
                   Consolidated Financial Highlights
               (in thousands, except per share amounts)

                               Three Months Ended      Year-Ended
                                  December 31,         December 31, 
                               -----------------    -----------------
                                 2005      2004       2005      2004  
                               -------   -------    -------   -------
Operating Highlights:
Revenue:
  Participation Fees           $ 5,806   $ 6,055    $23,063   $25,287
  Software license                  51        65        343       228
  Retail planning
    services                     2,107     2,267      8,678     9,003
  Insurance brokerage
    fees                           645       627      2,444     2,538
  Maintenance and other          1,488       638      3,823     2,538
                               -------   -------    -------   -------
                                10,097     9,652     38,351    39,649
Operating costs and
  expenses:
  General and administrative     3,881     3,931     14,747    16,221
  Selling and marketing          4,828     4,236     18,344    17,623
  Research and development          54        77        221       369
  Amortization                     311       265        968     1,144
  Other operating expense,
    net                            (12)     (283)        (4)    1,458
                               -------   -------    -------   -------
                                 9,062     8,226     34,276    36,815
                               -------   -------    -------   -------

Operating income                 1,035     1,426      4,075     2,834
Other income                      --        --         --         266
Interest expense, net             (162)      (86)      (381)     (468)
                               -------   -------    -------   -------
Income before income taxes         873     1,340      3,694     2,632
Income tax provision               259       524      1,359        62
                               -------   -------    -------   -------
Net income                         614       816      2,335     2,570
Preferred stock dividends         (540)     (533)    (2,160)   (2,056)
                               -------   -------    -------   -------
Net income available to
  common shareholders          $    74   $   283    $   175   $   514
                               =======   =======    =======   =======
Earnings per share:
  Basic                        $  0.01   $  0.02    $  0.01   $  0.04
                               =======   =======    =======   =======
  Diluted                      $  0.00   $  0.02    $  0.01   $  0.04
                               =======   =======    =======   =======
Weighted average shares
  outstanding:
  Basic                         14,914    14,383     14,727    14,243
                               =======   =======    =======   =======
  Diluted                       15,084    14,791     15,018    14,706
                               =======   =======    =======   =======


                                                          As of       
                                                    Dec. 31,  Dec. 31,
                                                     2005       2004  
                                                    -------   -------
Balance Sheet Highlights:
Cash and Cash equivalents                           $   187   $     7
Working capital (deficit)                             2,249      (158)
Total assets                                         36,557    21,371
Long-term debt, net of current portion and
  debt discount of $1,491 in 2005                     8,509     1,776
Stockholders' equity (deficit)                       16,853    13,396




                        PRIVATE BUSINESS, INC.
            Reconciliation of Reported Results to Effect of
        Lightyear Transaction Charges and Other Unusual Items
               (in thousands, except per share amounts)


                               Three Months Ended      Year-Ended
                                  December 31,         December 31, 
                               -----------------    -----------------
                                2005       2004      2005       2004  
                               -------   -------    -------   -------
Operating income as reported   $ 1,035   $ 1,426    $ 4,075   $ 2,834

Less:  Gain from sale of Bank
       Insurance Division         --        --         --        --   
Less:  Gain from settlement
       of tax contingency         --        (400)      --        (400)
       matters
Add:   Write-off unamortized
       deferred financing
       costs related to
       1998 Credit Agreement      --        --         --         780

Add:   Directors and officers
       insurance premiums
       related to periods
       prior to Lightyear
       transaction closing        --        --         --         896
                               -------   -------    -------   -------
Adjusted operating income        1,035     1,026      4,075     4,110

Interest expense, net             (162)      (86)      (381)     (468)
                               -------   -------    -------   -------
Adjusted income before income
  taxes (1)                        873       940      3,694     3,642
Adjusted income tax
  provision (2)                    259       367      1,359     1,420
                               -------   -------    -------   -------
Adjusted net income                614       573      2,335     2,222
Preferred stock dividends         (540)     (533)    (2,160)   (2,056)
                               -------   -------    -------   -------
Adjusted net income available
  to common shareholders
                               $    74   $    40    $   175   $   166
                               =======   =======    =======   =======
Adjusted diluted earnings
  per share                    $  0.01   $  0.00    $  0.01   $  0.01
                               =======   =======    =======   =======
Diluted weighted average
  shares outstanding            15,084    14,791     15,018    14,706
                               =======   =======    =======   =======

Notes:

(1)  In addition to the adjustments described above, adjusted income
     before income taxes for the year ended December 31, 2004 excludes
     a $266,000 gain related to recovery of non-trade receivables,
     which has been included as other income in the operating
     highlights.

(2)  The adjusted income tax provision was calculated using the
     Company's effective tax rate of 39% and excludes the $972,000
     reversal of income tax contingency during 2004.

        Additional information on this Company can be found on
                          the World Wide Web

                        http://www.pbizinc.com

               For further information, please contact:

                   Scott Meyerhoff at [phone]
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