Precis Inc. Subsidiary Announces Settlement Agreement with the California Department of Managed Health Care

Company Aims to Expand Product Offerings in California 


GRAND PRAIRIE, Texas, Sept. 27  /PRNewswire-FirstCall/ -- Precis, Inc. (NASDAQ:PCIS), a leader in the development and marketing of alternatives to traditional health insurance, today announced that its subsidiary, The Capella Group, Inc., which does business as "Care Entree", has entered into an agreement with California's Department of Managed Health Care (DMHC) to settle Capella's challenge to the DMHC's claim of jurisdiction over Capella's discount healthcare programs.

Under the terms of the agreement, Care Entree will refrain from further challenges in the current proceedings to the DMHC's claim of jurisdiction over Care Entree's discount health program and will apply for a Knox-Keene Act license.  The DMHC, in turn, agreed that, should the DMHC issue a regulation to regulate all discount programs in California, as the DMHC has announced its intention to do, the requirements of that regulation will supercede the Consent Agreement.  Also, the DMHC has dropped its demands for an immediate halt to Care Entree's business operations in the state and agreed not to seek restitution payments.

According to Nicholas Zaffiris, Precis' Chairman, "Rather than continuing to engage in a protracted disagreement with the DMHC on Care Entree's behalf, we decided to devote our time and resources to assisting the DMHC in developing a long-term regulatory framework for the entire discount industry."

Adds Zaffiris, "With Precis' pending acquisition of Insuraco USA LLC, we want to focus on growing our distribution channels. We look forward to expanding our Care Entree discount plans and defined benefit and insurance programs in the state of California, giving consumers a wider range of healthcare options."

About Precis, Inc.

Precis, Inc. and its subsidiaries provide affordable consumer driven health care solutions as alternatives to traditional health insurance.  The companies market non-insurance health care savings programs, and offer third party claims administration, provider network management, and utilization management services for employer groups that utilize partially self funded strategies to finance their employee benefits.  For more information on Precis and its subsidiary Access Administrators, visit http://www.precis-pcis.com/, and http://www.accesshealthsource.com/, respectively.

For more information about The Capella Group d/b/a Care Entree and the California DMHC, visit Precis' website and review the "Legal Proceedings" section of its August 18, 2006 SEC filing of its Form 10Q for the quarter ended June 30, 2006. 

DATASOURCE: Precis, Inc.



CONTACT:  Eliseo Ruiz, General Counsel of Precis, Inc., [phone];

or Annemarie Marek of Marek & Company, [phone]



Web site:  http://www.precis-pcis.com/ 

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