eAutoclaims Reports Progress on Newly Formed Special Markets Group

November 15, 2004

Florida-based eAutoclaims Inc. announced the early success of its recently formed Special Markets Group.

The Special Markets Group includes the eAutoclaims personnel who are charged with executing the activities of the recently announced co-marketing agreement with ADP Claims Services Group (ADP

The Special Markets Group has signed six new insurance clients over the past few months. All of the contracts are a result of the ADP/eAutoclaims co-marketing agreement. Four of the new clients have recently been rolled out and a fifth is expected to begin submitting claims in the next couple of weeks. While all of the new clients are in the pilot stages, the early results of the Special Markets Group have reportedly been encouraging. Joint national sales efforts with EACC and ADP CSG have been underway for only the last three and half months, yet the growth in new pilot accounts is reportedly an
excellent indication of how the industry is reacting to the combined efforts.

While the start of actual joint sales efforts started slower than expected, the growing number of prospects in the pipe line are reportedly very impressive, particularly the number of larger Insurance carriers who are evaluating the co-marketed services.

Eric Seidel, president/CEO of eAutoclaims, commented, “We are very
encouraged by the early progress of this co-marketing agreement and our Special Markets Group. What we find most encouraging is the growth of larger carriers seriously evaluating the co-marketed services,
something we believe will continue.”

The company estimates it has invested nearly $300,000 into the integration process and rollout of the Special Markets Group. This does not include the significant investment in hardware and bandwidth to upgrade the company’s infrastructure in preparation for the increased volume of claims. Most of the investment has been in the area of new payroll, but is expected to show a meaningful return as the pilot accounts mature.

As efficiencies improved from economies of scale, there is reportedly a related reduction in direct expense per claim processed, resulting in margin growth.

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