Healthaxis Board of Directors Declines Revised Ebix Offer

IRVING, Texas--(Business Wire)--
Healthaxis Inc. (NASDAQ: HAXS) announced today its response to the
most recent revised offer by Ebix, Inc. to purchase Healthaxis. The
Healthaxis Board of Directors carefully evaluated the last Ebix
proposal contained in a letter from Ebix dated October 8, 2008.
Following receipt of that proposal, the Board of Directors consulted
with its financial and legal advisors and concluded that it was
appropriate to enter into good faith discussions with Ebix because it
appeared that the October 8 proposal was reasonably likely to lead to
a "superior offer," as defined under the terms of Healthaxis' merger
agreement with BPO Management Services Inc.

Representatives of Healthaxis and Ebix discussed and reviewed the
offer for several days and performed limited preliminary due
diligence. During the course of these conversations, Ebix's offer as
expressed in the October 8 letter was modified by Ebix such that it no
longer represented an opportunity for all Healthaxis common
stockholders and other stakeholders to receive cash at the closing of
the transaction or shortly thereafter. As a result of this
modification and other factors, the Healthaxis Board of Directors, in
consultation with its major shareholders, determined that the modified
Ebix offer was no longer reasonably likely to lead to a superior
offer. Accordingly, Healthaxis and Ebix have agreed to abandon further
discussions. On October 23, 2008, Healthaxis delivered a letter to
Ebix formally confirming this outcome and declining the modified Ebix
offer.

In commenting on the situation, Healthaxis CEO John Carradine
said, "The Healthaxis Board acted quickly and prudently to investigate
this opportunity. As the discussions progressed, it became clear to
both parties that the transaction as proposed was not workable.
However, we remain excited by the prospect of the pending merger
transaction with BPO Management Services, Inc., especially in light of
some recent enhancements to the transaction that will be described in
our joint proxy statement with BPO Management Services that we plan to
file soon with the SEC. Our major shareholders, customers and
employees remain fully supportive of that transaction and we are
working diligently to close so Healthaxis and all its constituencies
can begin to benefit from the combination. However, in line with its
obligations, and partially in response to input from a number of our
shareholders, the Healthaxis Board, along with Management and the
Company's financial and legal advisors, diligently explored the Ebix
opportunity. We had several open and positive discussions with Ebix.
But in the end, the Board could not conclude that the modified Ebix
offer was reasonably likely to lead to a superior offer. We concluded
our discussions with Ebix on a professional and amicable basis, and we
remain focused on completing the BPO Management Services transaction."

Mr. Carradine continued, "We believe that current economic
conditions facing U.S. companies will lead their management teams to
consider alternatives to their current operational strategies,
specifically focused on reducing operating expenses. As a result,
there should be an even greater emphasis from middle market companies
looking for ways to outsource non-core functions. The combined entity
of BPO Management Services and Healthaxis, due to the proven return on
investment and our collective ability to reduce costs for our
customers, is well positioned to take advantage of these operational
shifts and we believe the outlook for our combined business is very
positive."

About Healthaxis Inc.

Healthaxis (NASDAQ: HAXS) is an innovative provider of healthcare
payer solutions. By combining technology and services Healthaxis can
deliver value to payers and their customers. The company offers fully
integrated business process outsourcing and claims administration
systems that incorporate advanced technology solutions. Healthaxis'
technology is time tested, scalable and offered on an ASP basis. With
its Best Shore capability Healthaxis can offer competitive, high
quality BPO services in four locations - Dallas, Texas; Castle Dale,
Utah; Montego Bay, Jamaica and Jaipur, India. Their Smart Front End(R)
enables payers the ultimate flexibility in network re-pricing
delivering to their legacy system a fully edited, clean, pre-priced
claim to ensure the highest levels of auto adjudication. Healthaxis'
claims administrations systems technology solutions provide an end to
end cost competitive solution for all sizes of payers: enrollment,
data capture, administration, claims, customer service, print
distribution and web services. For information on Healthaxis products
and services, call (800) 519-0679 or visit the website at
www.healthaxis.com.

Forward-looking statements:

Statements that are not purely historical facts constitute
forward-looking statements within the meaning of Section 27A of the
Securities and Exchange Act of 1934, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors, which may cause actual results to be materially
different from those contemplated by the forward-looking statements.
Such factors include without limitation the risks and uncertainties
identified in our documents filed with, or furnished to, the
Securities and Exchange Commission, including those identified under
the caption "Risk Factors" in our most recently filed Form 10-K. We
undertake no obligation to publicly update or review any
forward-looking statements to reflect events or circumstances that may
arise after the date of this release, except as required by law.

Additional Information and Where to Find It:

Healthaxis is considering entering into a merger transaction with
BPO Management Services, Inc. ("BPOMS"). In connection with the
proposed merger transaction, Healthaxis and BPOMS will be filing a
joint proxy statement and relevant documents concerning the
transaction with the Securities and Exchange Commission. Investors and
security holders of Healthaxis and BPOMS are urged to read the joint
proxy statement and other relevant documents filed with the SEC when
they become available, because they will contain important
information. Healthaxis investors and security holders may obtain free
copies of the joint proxy statement and other documents when they
become available by contacting Healthaxis Investor Relations through
the Healthaxis website at www.healthaxis.com, or by mail at Healthaxis
Investor Relations, 7301 State Highway 161, Suite 300, Irving, TX
75039, Attn: Ron Herbert, or by telephone at (972) 443-5000. BPOMS
investors and security holders may obtain free copies of the joint
proxy statement and other documents when they become available by
contacting BPOMS Investor Relations through the BPOMS website at
www.bpoms.com, or by mail at BPOMS Investor Relations, 1290 N. Hancock
Street, Suite 200, Anaheim, CA 92807, or by telephone at (714)
974-2670. In addition, documents filed with the SEC by either BPOMS or
Healthaxis are available free of charge at the Securities and Exchange
Commission's website at http://www.sec.gov.

Healthaxis, BPOMS and their respective directors, executive
officers and other members of management and employees may be deemed
to be participants in the solicitation of proxies from stockholders in
connection with the proposed merger transaction. Information
concerning the special interests of these directors, executive
officers and other members of management and employees in the proposed
merger transaction will be included in the joint proxy statement of
BPOMS and Healthaxis described above. Information regarding
Healthaxis' directors and executive officers is available in its
Annual Report on Form 10-K for the fiscal year ended December 31,
2007, and information regarding BPOMS' directors and executive
officers is also available in its Annual Report on Form 10-KSB for the
fiscal year ended December 31, 2007. These documents are available
free of charge at the SEC's website at www.sec.gov and from Investor
Relations at each of BPOMS and Healthaxis as described above.

Healthaxis Inc.
Ron Herbert, CFO, 972-443-5000
rherbert@healthaxis.com

Copyright Business Wire 2008