PRESS RELEASE

HealthExtras, Inc. Announces Filing of Registration Statement for Public
Offering of 3,500,000 Shares by the Company and 1,500,000 Additional Shares by
Selling Stockholders

Friday October 15, 5:29 pm ET

ROCKVILLE, Md.--(BUSINESS WIRE)--Oct. 15, 2004--HealthExtras, Inc. (NASDAQ:HLEX
- - News), a pharmacy benefit management company, today announced that it has
filed a registration statement with the Securities and Exchange Commission
covering the public offering of 5,000,000 shares of its Common Stock.
HealthExtras is offering 3,500,000 shares and certain existing stockholders of
the Company are offering 1,500,000 shares. The underwriters will have an option
to purchase an additional 750,000 shares of Common Stock from the Company to
cover any over-allotments. Lehman Brothers is the sole book runner of the
offering. Piper Jaffray & Co. and First Albany Capital are the co-managers of
the offering.

HealthExtras intends to use the net proceeds from the offering to repay the
outstanding balance on its revolving credit facility and for working capital and
other general corporate purposes, including possible acquisitions. HealthExtras
will not receive any proceeds from the sale of Common Stock by the selling
stockholders.

A registration statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there be any
sale of these securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state.

When publicly circulated, a preliminary prospectus relating to these securities
may be obtained from Lehman Brothers Inc., Prospectus Department, c/o ADP
Financial Services, Integrated Distribution Services, 1155 Long Island Avenue,
Edgewood, New York, New York, 11717, telephone: (631) 254-7106, fax (631)
254-7268.

About HealthExtras (www.healthextras.com)
                    --------------------
HealthExtras, Inc., a pharmacy benefit management company, currently provides
benefits to over three million members. Its clients include self-insured
employers, including state and local governments, third-party administrators,
managed care organizations and individuals. The Company's integrated pharmacy
benefit management services marketed under the name Catalyst Rx include: claims
processing, benefit design consultation, drug utilization review, formulary
management, drug data analysis services and mail order services. Additionally,
the Company operates a national retail pharmacy network with over 53,000
participating pharmacies.


This press release may contain forward-looking information. The forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties described in
HealthExtras' filings with the Securities and Exchange Commission.

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CONTACT:
     HealthExtras, Inc.
     Michael P. Donovan, 301-548-2900
     MDonovan@healthextras.com
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