DMX I-Trax,

Record First Quarter Net Revenue; 25+% Increase in Sales Opportunities; 220 Operational Sites CHADDS FORD, Pa., May 3 /PRNewswire-FirstCall/ -- I-trax, Inc. (AMEX:DMX), a leading provider of integrated health and productivity management, today reported financial results for the first quarter ended March 31, 2007. Highlights For the first quarter ended March 31, 2007, I-trax reported net revenue of $33.6 million and net loss of $(8,000) compared to $30.5 million and $(29,000), respectively, for the year-ago quarter. Net loss applicable to common stockholders was $(0.2) million, or $(0.01) per diluted share, compared to $(0.4) million, or $(0.01) per diluted share, for the year-ago quarter. As of March 31, 2007, I-trax was providing services at 220 sites, a net increase of eight sites during the quarter. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the quarter ended March 31, 2007 were $1.1 million. Commenting on these results, Frank A. Martin, chairman, said, "This quarter we saw an increase in the pace of our revenue growth, from a rate of 6 to 7% in the second half of 2006 to nearly 10%. Adjusting for non-recurring revenue in the first quarter of last year associated with the purchase of medication to treat or prevent avian flu, our year over year growth rate in revenue was 12.5%. At the end of the first quarter the number of submitted proposals and the dollar amount of these proposals was substantially higher than at the end of last year. Our sales opportunity pipeline is characterized by more service and technology clients, more multi-site deals, and larger individual sites. This summary does not include a number of strategic initiatives that could significantly increase future growth. "Our gross profit grew by 15.1% compared to the prior year. Our gross margin for the first quarter was 24.3%. We opened eight net new sites during the quarter and have added 24 new sites over the past 12 months. "During the first quarter we invested about $1.1 million of general and administrative expense in research and development and sales and marketing, while reducing overall general and administrative spending by $1.0 million from the fourth quarter of 2006. Other general and administrative spending was 16.5% of revenue compared to 17.2% a year ago and 19.6% for the fourth quarter of 2006. "The results of the first quarter have given us tangible evidence that the investment and initiatives we have pursued for the last 18 to 24 months are bearing fruit. We see strong, positive trends in our industry and especially in our own business. Our sales pipeline continues to strengthen and our investments in new business development are generating accelerated growth in revenue." Net Revenue Net revenue for the quarter was $33.6 million, an increase of $3.1 million over the year-ago quarter. This increase represents a top line growth over the year-ago quarter of 9.9%. Pass-through pharmaceutical purchases for the first quarter increased 4.4% to $39.1 million from the year-ago quarter. Net revenue growth was primarily attributable to the addition of 24 net new facilities subsequent to the first quarter of 2006. Same site revenue increased marginally quarter over quarter. Expenses For the 2007 quarter, operating expenses were $25.4 million, or 75.7% of net revenue, compared to $23.4 million, or 76.8% of net revenue, for the first quarter of 2006. Accordingly, gross margin increased to 24.3% for the first quarter of 2007 compared to 23.2% for 2006. First quarter gross margin benefited from insurance related expense reductions of $0.3 million. Expenses for research and development and sales and marketing for the first quarter of 2007 increased by $0.6 million compared to the first quarter of 2006. General and administrative ("G&A") expenses were $7.1 million, or 21.1% of net revenue, for the first quarter of 2007, compared to $6.0 million, or 19.6% of net revenue, for the prior year quarter. Non-cash stock compensation expense was approximately $0.5 million for the first quarter of 2007 compared with $0.3 million for the year-ago quarter. G&A expenses excluding non-cash stock compensation, research and development, and sales and marketing were 16.5% of net revenue compared to 17.2% of net revenue in the same period last year. Operating profit for the first quarter of 2007 was $0.3 million, including the effect of non-cash stock compensation expense. Net Loss and EBITDA Net loss for the first quarter of 2007 was $(8,000). For the first quarter of 2007 EBITDA was $1.1 million (including the effect non-cash stock compensation charges of $0.5 million). Net loss and EBITDA amounts including non-cash stock compensation for the first quarter of 2007 and 2006 are as follows ($ in thousands): March 31, 2007 March 31, 2006 Net loss $(8) $(29) Interest 145 114 Taxes 82 90 Depreciation and amortization 868 915 EBITDA $1,087 $1,090 Cash Flow and Balance Sheet Cash and cash equivalents increased during the quarter by $0.6 million. Cash used in operations and for investment activities was $3.7 million and $0.5 million, respectively, for the quarter. Financing activities provided cash of $4.8 million, of which $4.4 million constituted draws on the Company's credit facility. Investments were mainly for software and enhancements of systems to improve operational efficiency. On March 31, 2007, I-trax had cash of $7.1 million and debt of $13.4 million, compared with $6.6 million and $9.1 million, respectively, at December 31, 2006. The Company's current ratio continued to improve in the three months ended March 31, 2007 as set forth below: March 31, December 31, Description 2007 2006 Current ratio as calculated from the face of the balance sheet 1.46 1.12 Current ratio after adjusting for the accrued preferred stock dividends, which are payable in common stock 1.58 1.27 Current ratio after adjusting for the accrued preferred stock dividends, which are payable in common stock, and cash held in insurance company subsidiary 1.25 0.96 During the quarter the Company adopted the Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 requires that the Company recognize the financial impact of its tax positions in its financial statements. As a result of adopting FIN 48, the Company recorded a long-term liability of $761,000 by increasing its Accumulated Deficit. Research During the quarter I-trax produced its inaugural contributions to the medical literature. The Company published two articles in peer-reviewed journals. One demonstrated the significant impact a trusted clinician at the workplace(TM) can have on patient engagement in a disease management program and the other showed significant potential for savings when collaborative prescribing practices are followed. Commenting on these milestones Dr. Raymond J. Fabius, president and chief medical officer, said, "We believe this can have far reaching implications. These trusted clinicians can improve the engagement of all medical programming. Additionally our research verified the improved prescribing patterns accomplished when workplace prescribing clinicians collaborate with dispensing clinicians. When doctors and pharmacists work together, pharmacy care moves from benefit management to clinical leadership." Conference Call I-trax will host a conference call at 4:30 p.m. EDT today. During the call, Frank A. Martin, chairman, R. Dixon Thayer, chief executive officer, Dr. Raymond J. Fabius, president and chief medical officer, and David R. Bock, chief financial officer, will discuss the Company's financial and operating results. The telephone number for the conference call is (888) 880-7167. Investors may also listen to the conference call on the I-trax website, http://www.i-trax.com/, by selecting the conference link on the Investor Information page. Investors may access an encore recording of the conference call for one week by calling (888) 880-7231; the pin number is 9814# / 20070419162475#. The encore recording will be available approximately two hours after the conference call concludes. Investors may also access a recording of this call on the I-trax website, where a replay of the webcast will be available for 90 days after the call. Non-GAAP Financial Measures The Company makes use of EBITDA which is not a recognized term under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net loss or net cash provided by operating activities, which are GAAP measures. The Company believes EBITDA is a useful performance indicator for measuring the growth of the Company's core operations. The Company reconciles EBITDA to net income/(loss) on page two of this release. In this press release, the Company also makes use of certain financial measures that exclude the non-cash stock compensation expense resulting from the Company's adoption of SFAS 123R, effective January 1, 2006, so that such measures may be compared with the information presented on the face of the Company's prior statements of operations. About I-trax I-trax is a leading provider of integrated workplace health and productivity management solutions. Serving over 100 clients at 220 locations nationwide, I-trax offers on-site health centers through its CHD Meridian Healthcare, LLC, subsidiary, which delivers primary care, acute care corporate health, occupational health and pharmacy care management services, as well as integrated disease management, wellness and disability management programs. I- trax provides a comprehensive solution utilizing telephonic and e-health tools to enhance the trusted relationship established by our clinicians at the worksite. CHD Meridian is focused on making the workplace safe, helping companies achieve employer of choice status, and reducing costs while improving the quality of care received and the productivity of the workforce. Managing employer-sponsored health centers for over 40 years, some of CHD Meridian Healthcare's clients include: BMW, Blue Ridge Paper, Coors Brewing Company, Coushatta Casino Resort, Deutsche Bank, Eastman Chemical, Fieldale Farms, Horizon Blue Cross Blue Shield of New Jersey, Lowes, Toyota and UnumProvident. For more information, visit http://www.chdmeridian.com/. Safe Harbor Statement: This press release contains forward-looking statements that are based upon current expectations and assumptions, which involve a number of risks and uncertainties. Investors are cautioned that these statements may be affected by certain important factors, and consequently, actual operations and results may differ, possibly materially from those expressed in such statements. The important factors include, but are not limited to: demand for the Company's products and services and the Company's ability to execute new service contracts; uncertainty of future profitability; general economic conditions; the risk associated with a significant concentration of revenue with a limited number of customers; and the Company's ability to renew and maintain contracts with existing customers under existing terms. I-trax undertakes no obligation to update or revise any forward-looking statement. These and other risks pertaining to I-trax are described in greater detail in I-trax's filings with the Securities and Exchange Commission. Attached: Balance sheet, quarterly income statement and reconciliation of a non-GAAP financial measure. I-TRAX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (in thousands, except share data) Quarter Ended March 31 2007 2006 Net revenue $33,550 $30,525 Costs and expenses: Operating expenses 25,399 23,443 General and administrative expenses 7,064 5,992 Depreciation and amortization 809 859 Total costs and expenses 33,272 30,294 Operating profit 278 231 Interest 145 114 Amortization of financing costs 59 56 Income before provision for income taxes 74 61 Provision for income taxes 82 90 Net loss (8) (29) Less preferred stock dividend (209) (337) Net loss applicable to common stockholders $(217) $(366) Loss per common share: Basic and diluted $(0.01) $(0.01) Weighted average shares Basic and diluted 38,493,031 34,788,257 Reconciliation of net loss to EBITDA Net loss $(8) $(29) Add: Depreciation and amortization 868 915 Add: Provision for income taxes 82 90 Add: Interest 145 114 EBITDA $1,087 $1,090 I-TRAX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) March 31, December 31, 2007 2006 Assets Current assets Cash and cash equivalents $7,123 $6,558 Accounts receivable, net 24,807 21,704 Other current assets 1,117 1,526 Total current assets 33,047 29,788 Property, plant and equipment, net 3,475 3,377 Intangible assets, net 69,697 70,181 Other assets 36 41 Total assets $106,255 $103,387 Liabilities and stockholders' equity Current liabilities Accounts payable $9,431 $10,376 Other accruals and liabilities 13,248 16,189 Total current liabilities 22,679 26,565 Other long term liabilities 16,232 11,131 Total liabilities 38,911 37,696 Stockholders' equity Preferred stock $0.001 par value, 2,000,000 shares authorized, 291,751 and 559,101 issued and outstanding, respectively 0 1 Common stock, $0.001 par value, 100,000,000 shares authorized, 40,197,882 and 36,613,707 shares issued and outstanding, respectively 39 35 Paid in capital 139,043 136,623 Accumulated deficit (71,738) (70,968) Total stockholders' equity 67,344 65,691 Total liabilities and stockholders' equity $106,255 $103,387 Company Contact: Michele Hart-Henry I-trax, Inc. (610)-459-2405 x109 Public Relations Contact: Michelle Sawatka-Fernandez Edelman (212) 704-4544 Investor Relations Contact: Michael Steinberg American Capital Ventures (305) 918-7000 DATASOURCE: I-trax, Inc. CONTACT: Company, Michele Hart-Henry of I-trax, Inc., +1-610-459-2405 x109, ; or Public Relations, Michelle Sawatka-Fernandez of Edelman, +1-212-704-4544, ; or Investor Relations, Michael Steinberg of American Capital Ventures, +1-305-918-7000, Web site: http://www.i-trax.com/ http://www.chdmeridian.com/

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