Alliance HealthCard Reports Fiscal 2008 Third Quarter Results

ATLANTA, GA, Jul 31 (MARKET WIRE) --
Alliance HealthCard, Inc. (OTCBB: ALHC), a leading provider of health
discount and lifestyle benefits, today announced its financial results
for the third quarter ended June 30, 2008.

Fiscal 2008 Third Quarter Highlights:

-- Revenue increased 13% to $5.4 million
-- Gross profit up 11% to $2.5 million
-- Operating Income up 20% to $1.3 million

Chief Executive Officer, Danny Wright, commented, "We continue to be
pleased with the Company's financial performance as we add new business
and see further improvements in our operating profit. We have seen
significant increases in sales activity from new accounts added in our
second fiscal quarter and expect this trend to continue in future
reporting periods." Wright further added, "The weakness in the financial
sector has increased the demand for our products, as many institutions
are looking for sources of additional fee income through products like
ours. In the coming quarter we will initiate direct mail campaigns in
partnership with some of the nation's largest banks."

"Implementation of new business and excellent client retention both played
a role in the company's increase in revenue for the quarter," stated Brett
Wimberley, President. "In addition, we were able to lower our G&A as a
percentage of revenue by almost two points. We were particularly pleased
by the improvement in operating margin given we had an increase in
customer claims for the quarter. These claims appear to be returning to
more historical levels. The improvement largely came from our improved
cost structure for benefits and fulfillment. All of these had an impact
in this third fiscal quarter."

"We are very well positioned to see further revenue increases provide
significant contribution to our operating profit," Rita McKeown, CFO,
stated. "Due to an increase in our estimate for income tax expense, the
company had a higher tax provision for the quarter than in prior quarters,
affecting reported net income," McKeown commented. The higher tax
provision largely offset the gains the company had in operating profit,
resulting in $.04 EPS for the quarter.

Earnings Conference Call

As previously announced, the Company will host a conference call with the
investment community on July 31, 2008, during which Alliance HealthCard's
Chairman and CEO, Danny Wright, and other members of senior management
will discuss the financial results for the third quarter of fiscal year
2008, which ended June 30, 2008.

The call information follows:

-- Date: July 31, 2008
-- Time: 11:00 a.m. Eastern Daylight Time
-- Dial-in number for US/Canada: (877) 388-5282
-- Conference ID: 57901255

-- Individuals unable to participate in the conference call may hear a
telephonic replay:
-- Dates: from 12:00 p.m. EDT on July 31, 2008 to 11:59 p.m. EDT on
August 14, 2008
-- Domestic dial-in: (800) 642-1687
-- Pass code: 57901255

About Alliance HealthCard

Alliance HealthCard, Inc. (OTCBB: ALHC) is a leading provider of consumer
membership plans offering access to networks which provide discounts to
the consumer on a variety of products and services ranging from medical,
dental and pharmacy to groceries, restaurants, travel, automotive and a
host of others. The company also designs and markets in its consumer
package specialty insurance and warranty products on the goods its
marketing clients sell to their customers. The Company's plans are sold
to consumers primarily through retail, rent to own, financial and
consumer finance clients. Alliance HealthCard performs turnkey programs
including design and fulfillment of marketing pieces and collateral
support material, network support, customer service, regulatory
compliance, and billing.

Safe Harbor Statement under the Private Securities Litigation Reform Act:

This press release contains "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, Section 27A of the Securities Act of 1933, as amended and
pursuant to the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements may relate to financial results and plans for
future business activities, and are thus prospective. Such
forward-looking statements are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements. Among
the important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements are
competitive pressures, loss of significant customers, the mix of revenue,
changes in pricing policies, delays in revenue recognition,
lower-than-expected demand for the Company's products and services,
general economic conditions, and the risk factors detailed from time to
time in the Company's periodic reports and registration statements filed
with the Securities and Exchange Commission. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such speak only as of the date made.

Alliance HealthCard, Inc.
Consolidated Condensed Statements of Operations
(Unaudited)

Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------

Net revenues $ 5,366,253 $ 4,762,984 $ 15,421,698 $ 12,555,595
Direct costs 2,871,701 2,509,031 8,296,110 7,939,710
------------ ------------ ------------ ------------

Gross Profit 2,494,552 2,253,953 7,125,588 4,615,885

Marketing and sales 306,552 277,955 934,330 675,471
General and
administrative 755,997 758,479 2,328,592 2,163,767
Depreciation and
amortization 138,222 138,449 412,502 207,858
------------ ------------ ------------ ------------

Operating income 1,293,781 1,079,070 3,450,164 1,568,789
Other income
(expense):
Other income - - 529,671 -
Interest income 19,477 19,592 44,844 51,748
Interest (expense) (54,733) (94,720) (167,458) (113,553)
------------ ------------ ------------ ------------
Total other income
(expense): (35,256) (75,128) 407,057 (61,805)
------------ ------------ ------------ ------------

Income before
income taxes 1,258,525 1,003,942 3,857,221 1,506,984
Income taxes 728,272 459,000 1,596,493 459,000
------------ ------------ ------------ ------------

Net income 530,253 544,942 2,260,728 1,047,984
Less dividends and
distributions - - 365,720 6,666,417
------------ ------------ ------------ ------------
Net income (loss)
available for
common stock $ 530,253 $ 544,942 $ 1,895,008 $ (5,618,433)
============ ============ ============ ============
Per share data:
Basic $ 0.04 $ 0.04 $ 0.13 $ (0.39)
============ ============ ============ ============

Diluted $ 0.04 $ 0.04 $ 0.12 $ (0.39)
============ ============ ============ ============

Basic weighted
average shares
outstanding 14,833,127 14,524,263 14,760,056 14,524,263
============ ============ ============ ============

Basic weighted
diluted average
shares outstanding 15,123,908 15,437,710 15,250,551 14,524,263
============ ============ ============ ============

Contacts:

Alliance HealthCard
Tom Kiser
770-734-9255 ext. 206
Email Contact

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