PCIS Precis

GRAND PRAIRIE, Texas, May 15 /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 quarter ended March 31, 2006. For the first quarter, the company reported revenue of $6.1 million, compared to $8.5 million during the comparable quarter in 2005; a decrease of 28%; and a sequential decrease of $.6 million or 9% from the fourth quarter of 2005. The company reported a net loss for the first quarter of 2006 of $39,000, or $(0.00) per diluted share, compared to a net loss of $51,000, or $(0.00) per diluted share, for the comparable quarter in 2005. Despite the loss, the company's operations provided net cash of $615,000 during the quarter. As a result of its adoption of the new accounting pronouncement on stock options -- Statement of Financial Accounting Standard 123(R) "Share Based Payment," -- the company's results include a non-cash stock compensation expense for the first quarter of $27,000. Nicholas Zaffiris, Chairman of Precis, Inc., commented, "We are pleased that the cost reduction initiatives implemented during the quarter allowed us to avoid increasing operating losses. Moreover, during the quarter, we were able to reduce the decline in members in our primary health discount product as a direct result of the resumption of sales through one of our private label resellers. We believe that our new marketing initiatives will return us to revenue growth in the not-too-distant future." "Also, the $615,000 of cash provided from operations during the quarter, along with an additional $1 million of cash received from an income tax refund received in April, leave us with an improved balance sheet," concluded Mr. Zaffiris. Precis, Inc. (NASDAQ:PCIS) will conduct a conference call to discuss financial results for the first quarter ended March 31, 2006 on Monday, May 15, 2006 at 11:00 a.m. Eastern time. 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. A replay of the call will be available at 800-642-1687 or 706-645-9291 conference ID 9252214 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 provide affordable consumer driven health care solutions as alternatives to traditional health insurance. The companies market non-insurance health care savings programs, administer tax-favored reimbursement accounts, 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 benefit programs. For more information on Precis, its subsidiaries Access Administrators and Care 125, visit http://www.precis-pcis.com/, http://www.accesshealthsource.com/ and, respectively. 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 Lytham Partners, LLC Precis, Inc. 602-889-9660 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 Quarter Ended March 31, 2006 2005 Statement of Operations Data: Revenues $6,141 $8,493 Total operating expenses 6,257 8,593 Operating loss (116) (100) Loss before income taxes (43) (87) Provision for income tax benefit (4) (32) Loss from continuing operations (39) (55) Earnings from discontinued operations -- 4 Net loss $(39) $(51) Loss from continuing operations per share: Basic $(0.00) $(0.00) Diluted $(0.00) $(0.00) March 31, December 31, 2006 2005 Balance Sheet Data: Cash and cash equivalents $6,060 $6,261 Working capital $5,260 $4,692 Total assets $29,322 $30,864 Total liabilities $8,449 $10,500 Stockholders' equity $20,873 $20,364 DATASOURCE: Precis, Inc. CONTACT: Bob Bintliff, Chief Financial Officer of Precis, Inc., +1-972-343-6501; or Joe Diaz of Lytham Partners, LLC, +1-602-889-9660, for Precis, Inc. Web site: http://www.precis-pcis.com/ http://www.precis-pcis.com/ir/IRindex.html

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