PBiz Reports First Quarter Financial Results

Private Business, Inc. (NASDAQ:PBIZ), a leading provider
of financial technology to community banks and middle-market
businesses, today announced its operating results for the first
quarter of 2005.
   Revenues for the three months ended March 31, 2005, totaled $9.2
million, compared with $9.8 million in the first quarter of the
previous year. Operating income was $693,000 for the first quarter of
2005 compared with an operating loss of $982,000 for the first quarter
of 2004. Net loss available to common shareholders totaled $161,000,
or $(0.01) per diluted share, in the first quarter of 2005, versus a
net loss of $1.2 million, or $(0.08) per diluted share, in the
year-earlier quarter.
   The Company's operating results for the first quarter of 2004
reflected two unusual charges, consisting of the write-off of
unamortized deferred financing costs and a one-time expense for
directors' and officers' insurance premiums, totaling $1.7 million.
   Operating income for 2005 and 2004, excluding the unusual charges
described above, would have been $693,000 and $694,000, respectively,
and net income would have been $379,000 and $307,000, respectively.
Diluted loss per share for the quarters ended March 31, 2005 and 2004,
excluding the unusual charges, would have been $(0.01) and $(0.01),
respectively, versus the $(0.01) loss per share for the quarter ended
March 31, 2005, and the $(0.08) loss per share for the quarter ended
March 31, 2004, as reported.
   Commenting on the first quarter 2005 results, Henry M. Baroco,
Private Business' Chief Executive Officer and Board member, stated,
"Our new sales management team is in place now and business
development activity has improved moderately in the first quarter of
2005. We expect to see further improvement in the coming quarters. We
will continue to expand our sales force and focus on increasing their
productivity.
   "We continue to control expenses, as evidenced by the $643,000
decline in the first quarter of 2005 compared with the same period of
2004, which excludes the unusual charges discussed above."

   About PBiz 

   Private Business, Inc. (PBiz) is a leading supplier of financial
technology to community banks and middle-market businesses. The
Company is headquartered in Brentwood, Tennessee, and its common stock
trades on The Nasdaq Stock Market under the symbol PBIZ.
   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
                                                       March 31,
                                                 --------------------
                                                   2005        2004
Operating Highlights:                            --------    --------
Revenue:
  Participation Fees                           $  5,590      $  6,297
  Software license                                  194            53
  Retail planning services                        2,202         2,251
  Maintenance and other                           1,213         1,242
                                               --------      --------
                                                  9,199         9,843
Operating costs and expenses:
  General and administrative                      3,817         4,309
  Selling and marketing                           4,390         4,376
  Research and development                           91           113
  Amortization                                      208           326
  Other operating expense, net                     --           1,701
                                               --------      --------
                                                  8,506        10,825

Operating income (loss)                             693          (982)
Interest expense, net                               (70)         (190)
                                               --------      --------
Income (loss) before income taxes                   623        (1,172)
Income tax provision (benefit)                      244          (457)
                                               --------      --------
Net income (loss)                                   379          (715)
Preferred stock dividends                          (540)         (438)
                                               --------      --------
Net income (loss) available to common
  shareholders                                 $   (161)     $ (1,153)
                                               ========      ========
Loss per share:
  Basic                                        $  (0.01)     $  (0.08)
                                               ========      ========
  Diluted                                      $  (0.01)     $  (0.08)
                                               ========      ========
Weighted average shares outstanding:
  Basic                                          14,575        14,079
                                               ========      ========
  Diluted                                        14,575        14,079
                                               ========      ========

                                                        As of
                                                 --------------------
                                                 March 31,   Dec. 31,
                                                   2005        2004
                                                 --------    --------
Balance Sheet Highlights:
Cash and Cash equivalents                        $      7    $      7
Working capital (deficit)                             647        (158)
Total assets                                       20,658      21,336
Long-term debt, net of current portion              1,760       1,776
Stockholders' equity                               13,608      13,396



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

                                                  Three Months Ended
                                                       March 31,
                                                 --------------------
                                                   2005        2004
                                                 --------    --------
Operating income (loss) as reported              $    693    $   (982)

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                             693         694
Interest expense, net                                 (70)       (190)
                                                 --------    --------
Adjusted income before income taxes                   623         504
Adjusted income tax provision                         244         197
                                                 --------    --------
Adjusted net income                                   379         307
Preferred stock dividends                            (540)       (438)
                                                 --------    --------
Adjusted net loss available to common
  shareholders                                   $   (161)   $   (131)
                                                 ========    ========

Adjusted diluted loss per share                  $  (0.01)   $  (0.01)
                                                 ========    ========

Diluted weighted average shares outstanding        14,575      14,079
                                                 ========    ========


       Additional information can be found on the World Wide Web
                        http://www.pbizinc.com
               For further information, please contact:
                   Michael Berman at [phone]
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