PM Liquidating (PILL) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Company News Release

IMPORTANT NOTE:

ProxyMed’s live teleconference call to discuss its fourth quarter and annual 2004 results is accessible by calling 1-866-270-6388 beginning at 10:00 a.m. Eastern Time on Wednesday, March 16, 2005 and will be simultaneously broadcast on the Internet atwww.proxymed.com. Replays of the teleconference call will be available atwww.proxymed.com after 1:00 p.m. ET on March 16th.

Contact:
ProxyMed, Inc.
Gregory J. Eisenhauer, CFA
EVP & Chief Financial Officer
770-806-4780
geisenhauer@proxymed.com

PROXYMED REPORTS RECORD REVENUES FOR 2004
- Revenues Increase 23% Year-Over-Year -

     Atlanta, GA (Business Wire) March 15, 2005– ProxyMed, Inc. (Nasdaq: PILL), a leading provider of healthcare transaction processing and medical cost containment services, today reported its operating results for the fourth quarter and 2004 year.

Fourth Quarter 2004 Results

     ProxyMed reported revenues of $22.6 million for the fourth quarter, an increase of 23% compared to revenues of $18.4 million for the same period of 2003. For the quarter, the Company incurred a net loss of $1.6 million, or ($0.12) per diluted share, compared to a net loss of $1.4 million or ($0.21) per diluted share in the same quarter last year. Diluted weighted average shares outstanding increased from 6,784,118 in 2003 to 12,626,182 in the current period as a result of shares issued in conjunction with the acquisition of PlanVista Corporation.

     The Company ended the year with over $12 million of cash on its balance sheet. The Company has executed a term sheet with its commercial bank to expand and extend its current line of credit. “We believe that the proceeds of this facility, combined with a portion of our cash balances, will be sufficient to resolve the maturity issue with respect to our current senior debt, which is due May 31, 2005,” commented Kevin McNamara, the Company’s Chairman of the Board and interim Chief Executive Officer. “Additionally, I am quite pleased to report that our Form 10-K, which is being filed tomorrow, includes an unqualified opinion with respect to Sarbanes-Oxley Section 404 compliance. This legislation creates a significant burden on companies of our size – particularly companies such as ProxyMed that have been acquisitive. We hope that the more expensive and burdensome parts of compliance are now behind us.”

     “The higher than expected costs of Sarbanes-Oxley compliance, litigation settlement and the SEC review negatively impacted our results in the fourth quarter by over $700,000,” commented Gregory J. Eisenhauer, ProxyMed’s Chief Financial Officer. “Outside of these one-time expenses, our operating results showed strong sequential improvement, led by our core transaction volume growing over 8% vs. the same quarter of last year. We are now processing over 300 million transactions on an annual basis. In addition, we launched significant new products in each of our businesses during the quarter, laying the foundation for success in 2005 and 2006.”

Annual 2004 Results

     For the year ended December 31, 2004, ProxyMed reported record revenues of $90.2 million, an increase of 26% compared to revenues of $71.6 million for the 2003 year. For 2004, the net loss was $3.8 million and diluted loss per share was ($0.33), compared to a net loss of $5.0 million and diluted loss per share of ($0.74) for 2003. Diluted weighted average shares outstanding increased from 6,783,742 in 2003 to 11,617,601 in the current period as a result of shares issued in conjunction with the acquisition of PlanVista Corporation.

     Nancy Ham, ProxyMed’s President and Chief Operating Officer, commented, “We had a very challenging 2004 as we struggled with the twin regulatory requirements of HIPAA and Sarbanes-Oxley compliance. We expended well in excess of $2.0 million towards these efforts in 2004, and anticipate appreciable cost savings in 2005. Despite these challenges, we were still able to make significant investments into our Phoenix™ platform and new Web self-service tools, launch our Enterprise Solutions for Payers initiative and re-energize our core transaction growth.”

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Operating Segment Performance

Transaction Services

     The Transaction Services segment reported revenues of $19.2 million for the fourth quarter of 2004, an increase of 66% compared to revenues of $11.6 million for 2003. Revenues for all of 2004 were $71.3 million, compared with $46.7 million in 2003, an increase of 53%.

     Nancy Ham commented, “Prior to the fourth quarter, our core transaction volume was fairly flat throughout the year as we worked through HIPAA, and as we replaced the volume from the loss of a large (albeit low-margin) patient statement customer. However, as we put HIPAA gradually behind us, we were able to sign and ramp significant new business which drove a strong performance in the fourth quarter. We believe we have good momentum going forward into 2005.”

Statistics

     Management considers the following metrics important to monitor its transaction business:

Description:
(all amounts in	Y/E		Y/E		Q/E		Q/E		Q/E		Q/E		Q/E
thousands)	12/31/04		12/31/03		12/31/04		9/30/04		6/30/04		3/31/04		12/31/03
Core transactions (excluding encounters)		259,333		247,786		69,073		63,677		62,790		63,793		63,614
Encounters		29,172		25,529		6,558		6,561		6,086		9,967		7,035
Total transactions		288,505		273,315		75,631		70,238		68,876		73,760		70,649

Laboratory Communications Solutions

     The Laboratory Communications Solutions segment reported revenues of $3.4 million for the fourth quarter of 2004, a decrease of 3% sequentially. On an annual basis, revenue declined 50% as a result of the June 2004 disposition of certain contract manufacturing assets.

     “The laboratory segment of ProxyMed is a relatively mature business,” said Nancy Ham. “Nonetheless, we consider the industry’s initial response to our new products, Pilot and Navigator, to be an indicator of improved prospects in this area over time.”

Looking Forward:

     “Integral to our expectations for 2005 is the successful launch of ProxyMed’s innovative new product offerings,” stated Ham. “With our Phoenix platform and PCAT, ProxyMed’s new Web-based self-

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service tool, we have a cutting edge, web-based claims management solution that empowers our provider clients to track and analyze their transactions in a self-service mode. For our payer customers, we are offering ESP, our Enterprise Solutions for Payers. ESP is a unique integrated solution that combines transaction management, business process outsourcing and cost containment to deliver significant savings and workflow improvements, in an open and flexible business model.”

     Kevin McNamara said, “ProxyMed continues to compete in the rapidly growing healthcare market and I am encouraged that we are focused on the right strategic initiatives within this marketplace, especially ESP and the roll-out of PCAT. Further, I am impressed with the quality and commitment of ProxyMed’s associates and believe the Company is in a strong position to execute against this market opportunity. I believe these initiatives will drive growth in both revenue and operating income; however, the Company is not prepared to offer detailed guidance with respect to 2005 at the present time. Our CEO search is very active and we have met with a number of promising candidates. Hopefully, we will be in a position to announce a new CEO in the next sixty to ninety days and can revisit the issue of financial guidance thereafter.”

About ProxyMed, Inc.

ProxyMed provides connectivity, medical cost containment services, business process outsourcing solutions and related value-added products to physicians, payers, pharmacies, medical laboratories, and other healthcare providers and suppliers. ProxyMed’s services support a broad range of both financial and clinical transactions, and we are HIPAA certified through Edifecs. To facilitate these services, ProxyMed is completing the conversion of its non-clinical EDI transactions to Phoenix, our secure national electronic information platform, which provides physicians and other primary care providers with direct connectivity to payers.

For more information, please visit the Company’s website atwww.proxymed.com.

Forward Looking Statement

ProxyMed cautions that forward-looking statements contained in this document are based on current plans and expectations, and that a number of factors could cause the actual results to differ materially from the guidance given at this time. Some of these factors are described in the Safe Harbor statement below.

Except for the historical information contained herein, the matters discussed in this document may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements include those concerning the potential benefits and effects, including but not limited to any expectations as to profitability, revenue growth, and other aspects of the financial performance of the combined company. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. While these statements reflect our current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, the soundness of our business strategies relative to the perceived market opportunities; ProxyMed’s ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to

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compete effectively on price and support services; ProxyMed’s assessment of the healthcare industry’s need, desire and ability to become technology efficient; and ProxyMed’s ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy. For further cautions about the risks of investing in ProxyMed, we refer you to the documents each company files from time to time with the Securities and Exchange Commission, particularly the Company’s Form 10-K for the year ended December 31, 2004.

ProxyMed does not assume any obligation to update information contained in this document. Although this release may remain available on the Company’s website or elsewhere, its continued availability does not indicate that the Company is reaffirming or confirming any of the information contained herein. ·

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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(amounts in thousands except for share and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2004			2003 (1)			2004			2003 (1)
	(unaudited)
Net revenues	$	22,582		$	18,362		$	90,246		$	71,556
Costs and expenses:
Cost of sales		8,320			7,984			34,212			32,421
Selling, general and administrative expenses		12,626			8,303			48,023			35,809
Depreciation and amortization		2,678			2,164			9,763			6,316
(Gain) loss on disposal of assets		—			(9	)		47			111
Litigation settlement		175			175
Write-off of impaired assets		—			541			—			541
Total operating costs and expenses		23,799			18,983			92,220			75,198
Operating loss		(1,217	)		(621	)		(1,974	)		(3,642	)
Interest expense, net		(540	)		(289	)		(1,920	)		(862	)
Other income (expense)		—			(496	)		134			(496	)
Benefit from (provision for) income taxes		185			—			(40	)		—
Net loss	$	(1,573	)	$	(1,407	)	$	(3,800	)	$	(5,000	)
Basic earnings per share	$	(0.12	)	$	(0.21	)	$	(0.33	)	$	(0.74	)
Basic weighted average shares outstanding		12,626,182			6,784,118			11,617,601			6,783,742
Diluted earnings per share	$	(0.12	)	$	(0.21	)	$	(0.33	)	$	(0.74	)
Diluted weighted average shares outstanding		12,626,182			6,784,118			11,617,601			6,783,742

     (1) As restated

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PROXYMED, INC. AND SUBSIDIARIES
Segment Information
(amounts in thousands)

	Three Months Ended
	December 31,						Year Ended December 31,
	2004			2003			2004			2003
	(unaudited)
Revenues:
Transaction services	$	19,186		$	11,571		$	71,304		$	46,673
Laboratory communication solutions		3,395			6,791			18,942			24,883
	$	22,582		$	18,362		$	90,246		$	71,556
Cost of sales:
Transaction services	$	6,392		$	3,566		$	22,402		$	15,893
Laboratory communication solutions		1,928			4,418			11,810			16,528
	$	8,320		$	7,984		$	34,212		$	32,421
Selling, general and administrative expenses:
Transaction services	$	11,969		$	5,882		$	42,776		$	26,645
Laboratory communication solutions		833			1,437			4,372			5,526
Corporate		—			984			1,097			3,638
	$	12,801		$	8,303		$	48,245		$	35,809
Depreciation and amortization:
Transaction services	$	2,519		$	1,467		$	8,718		$	4,754
Laboratory communication solutions		159			648			823			1,369
Corporate		—			49			222			193
	$	2,678		$	2,164		$	9,763		$	6,316
Operating income (loss):
Transaction services	$	(1,693	)	$	463		$	(3,115	)	$	(920	)
Laboratory communication solutions		476			(50	)		1,938			1,119
Corporate		—			(1,034	)		(797	)		(3,841	)
	$	(1,217	)	$	(621	)	$	(1,974	)	$	(3,642	)

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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Balance Sheet
(amounts in thousands)

	December 31,
	2004			2003
Assets
Current assets:
Cash and cash equivalents	$	12,374		$	5,333
Accounts receivable — trade, net		17,591			10,434
Notes and other receivables		312			187
Inventory		1,775			3,347
Other current assets		1,399			1,908
Total current assets		33,451			21,209
Property and equipment, net		4,801			4,772
Goodwill, net		93,604			30,775
Purchased technology, capitalized software and other intangibles, net		52,305			15,884
Restricted cash		75			291
Other long term assets		167			199
Total assets	$	184,403		$	73,130
Liabilities and Stockholders’ Equity
Current liabilities:
Notes payable and current portion of long-term debt	$	20,572		$	1,712
Accounts payable, accrued expenses and other current liabilities		13,637			8,264
Deferred revenue		691			721
Income taxes payable		215			—
Total current liabilities		35,115			10,697
Convertible notes		13,137			13,137
Other long-term debt		206			2,057
Long-term deferred revenue and other long-term liabilities		863			1,461
Total liabilities		49,321			27,352
Stockholders’ equity:
Series C 7% Convertible preferred stock		—			—
Common stock		13			7
Additional paid-in capital		239,255			146,230
Unearned compensation		(113	)
Accumulated deficit		(104,073	)		(100,273	)
Note receivable from stockholder		—			(186	)
Total stockholders’ equity		135,082			45,778
Total liabilities and stockholders’ equity	$	184,403		$	73,130

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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statement of Cash Flows
(amounts in thousands)

	Year Ended December 31,
	2004			2003
Cash flows from operating activities:
Net loss	$	(3,800	)	$	(5,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		9,763			6,316
Provision for doubtful accounts		858			152
Provision for obsolete inventory		92			28
Non-cash interest (income) expense		(59	)		54
Gain on settlement of liability		(134	)		—
Write-off of obsolete and impaired assets		—			541
Compensatory stock options and warrants and stock compensation awards issued		275			—
Write-off of investment		—			496
Loss on disposal of fixed assets		47			111
Changes in assets and liabilities, net of effect of acquisitions:
Accounts and other receivables		548			(498	)
Inventory		(1,329	)		(601	)
Other current assets		465			430
Accounts payable and accrued expenses		124			(1,173	)
Accrued expenses of PlanVista paid by ProxyMed		(4,011	)		—
Deferred revenue		137			222
Income taxes		(418	)		—
Other, net		(727	)		440
Net cash provided by operating activities		1,831			1,518
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		782			—
Capital expenditures		(3,440	)		(2,601	)
Capitalized software		(909	)		(1,426	)
Collections on notes receivable		374			120
Proceeds from sale of fixed assets		4,526			395
Decrease in restricted cash		215			534
Payments for acquisition-related costs		(884	)		(6,623	)
Net cash provided by (used in) investing activities		664			(9,601	)
Cash flows from financing activities:
Proceeds from stock offering, net		24,100			—
Proceeds from exercise of stock options and warrants		8,766			7
Draws on line of credit		4,900			—
Repayments of line of credit		(4,900	)		—
Payment of notes payable, capital leases and long-term debt		(28,320	)		(2,969	)
Net cash provided by (used in) financing activities		4,546			(2,962	)
Net increase (decrease) in cash and cash equivalents		7,041			(11,045	)
Cash and cash equivalents at beginning of year		5,333			16,378
Cash and cash equivalents at end of year	$	12,374		$	5,333

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