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Healthaxis and BPO Management Services, Inc. Announce Closing of Merger
Date:12/30/2008

company has over 400 customers and more than 350 employees with operations in the United States, Canada, Jamaica, India, and Russia. It is expected that the combined company will benefit from a number of synergies that will be realized shortly following the closing of the transaction, including the elimination of redundant corporate level expenses.

John M. Carradine, the former Healthaxis CEO who will head the new Healthcare Division of BPOMS, commented, "We believe that we will broaden our reach within the healthcare payer industry. We are excited to have completed the merger and be part of BPOMS."

BPOMS understands that The NASDAQ Stock Market takes the position that BPOMS must satisfy the initial listing standards of The NASDAQ Capital Market. These initial listing standards have not yet been satisfied, so NASDAQ will likely issue a Staff Determination Letter notifying BPOMS that it will prohibit the continued listing of BPOMS' common stock on NASDAQ. Under the applicable NASDAQ MarketPlace Rules, BPOMS is permitted to request a hearing to appeal such a determination, during the pendency of which BPOMS' common stock will continue trading on NASDAQ.

About BPO Management Services, Inc.

BPO Management Services (BPOMS) is a business process outsourcing (BPO) service provider that offers a diversified range of on-demand services, including human resources, information technology, enterprise content management, healthcare payer outsourcing and claims administration, and finance and accounting, to support the back-office business functions of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit http://www.bpoms.com.


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SOURCE BPO Management Services, Inc.; Healthaxis Inc.
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