PCIS Precis

GRAND PRAIRIE, Texas, Nov. 10 /PRNewswire-FirstCall/ -- Precis, Inc. (NASDAQ:PCIS), a provider of access to affordable healthcare services to the ever growing number of uninsured and/or underinsured in the United States, announced its financial results for the third quarter ended September 30, 2005. For the third quarter ended September 30, 2005, the Company reported revenue of $7,536,000, a decrease of $2,755,000, or 27 percent, compared to $10,291,000 during the comparable quarter in 2004 and a decrease of $501,000 or 6 percent compared to $8,037,000 during the second quarter of 2005. The Company posted net income for the third quarter of 2005 of $130,000, or $0.01 per share, as compared to $96,000 or $0.01 per share in the comparable quarter of 2004 and a loss of $10,826,000 or $0.89 per share in the second quarter of 2005. The Company's earnings for the previous quarter and year-to-date 2005 were adversely impacted by a $9,900,000 non-cash charge to earnings to reduce the carrying value of goodwill as well as a charge of approximately $800,000 during the quarter for officer severance payments. Bob Bintliff, Chief Financial Officer of Precis, Inc., commented "Throughout 2005, we focused intensely on reducing our costs as well as pursuing new product and marketing initiatives. Our cost reduction efforts have been crucial in allowing us to maintain a profitable operation this quarter in spite of our declining revenues. Our balance sheet remains strong, with cash of $6,470,000, working capital of $4,283,000 and no debt." Nicholas Zaffiris, Chairman of the Board of Precis, Inc., commented, "We are pleased to see continued progress toward the Company's turnaround. The Board of Directors is confident that our new management team, having successfully implemented cost cutting measures and operational improvements, can now increase its focus on developing improved products and services as well as effective ways to deliver those products and services to our markets." Mr. Zaffiris continued, "With respect to the lawsuit filed against us by the State of Texas, we continue to communicate with representatives of the Attorney General's office and remain hopeful that we can resolve this matter in the near future. We regret that we have had to engage in litigation with the State of California this quarter, but we are confident that we are operating properly under applicable laws and regulations in California and that the litigation will be resolved in our favor." Precis, Inc. (NASDAQ:PCIS) will conduct a conference call to discuss financial results for the third quarter ended September 30, 2005 on Thursday, November 10, 2005 at 4:15 p.m. Eastern. Interested parties can access the call by dialing 877-858-9308 or 706-643-0580 or by accessing the web cast at http://www.precis-pcis.com/ir/IRindex.html and clicking on the third quarter 2005 teleconference icon. A replay of the call will be available at 800-642-1687 or 706-645-9291, conference ID 2168054, for 3 days following the call; and the web cast can be accessed at http://www.precis-pcis.com/ir/IRindex.html for 30 days. About Precis, Inc. Precis, Inc. and its subsidiaries market non-insurance health care savings programs, provide third party administration services to self funded employer groups and market a line of nutraceuticals. For more information on Precis, and its subsidiaries visit http://www.precis-pcis.com/. Disclaimer Certain statements included in this news release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believes", "expects", "may", "will", or "should", or other variations thereon, by discussions of strategies that involve risks and uncertainties. Precis, Inc.'s actual results or industry results may be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include general economic and business conditions; Precis, Inc.'s ability to implement its business strategies; competition; availability of key personnel; increasing operating costs; unsuccessful promotional efforts; changes in brand awareness; acceptance of new product offerings; retention of members and independent marketing representatives; and changes in, or the failure to comply with, government regulations. The Company undertakes no obligation to update any forward-looking statements or to make any other forward-looking statement, whether as a result of new information, future events, or otherwise. Contact: Bob Bintliff Joe Diaz Chief Financial Officer The RCG Group Precis, Inc. 602-889-9700 972-343-6501 Precis, Inc. and Subsidiaries Condensed Consolidated Statement of Operations and Balance Sheet Data (Dollars in Thousands, except per share amounts) For the Three Months For the Nine Months Ended Ended September 30, September 30, 2005 2004 2005 2004 Statement of Operations Data: Product and service revenues $7,536 $10,291 $24,273 $29,641 Total operating expenses 7,365 10,000 35,065 27,630 Operating (loss) income 171 291 (10,792) 2,011 (Loss) earnings before income taxes 231 284 (10,693) 1,954 Provision for income taxes 101 188 54 964 Net (loss) earnings applicable to shareholders $130 $96 $(10,747) $990 (Loss) earnings applicable to shareholders per share: Basic $0.01 $0.01 $(0.88) $0.08 Diluted $0.01 $0.01 $(0.88) $0.08 June 31, December 31, 2005 2004 Balance Sheet Data: Cash and cash equivalents $6,470 $8,283 Working capital $4,283 $6,451 Total assets $32,190 $41,320 Total liabilities $9,852 $8,951 Stockholders' equity $22,338 $32,369 DATASOURCE: Precis, Inc. CONTACT: Bob Bintliff, Chief Financial Officer of Precis, Inc., +1-972-343-6501; or Joe Diaz of The RCG Group, +1-602-889-9700, for Precis, Inc. Web site: http://www.precis-pcis.com/ir/IRindex.html http://www.precis-pcis.com/

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