Ebix 2008 net income rises 116% to a record $27.3 Million, or $2.28 per diluted share on a 74% Revenue increase

Reports a Record Fourth Quarter with Net Income of $7.91 Million

Conference call: Tuesday, March 17, 2009 at 11:00 A.M. EDT
Webcast / Replay URL: http://www.ebix.com, Click on Investor Home Page
Dial-in numbers: 1-866-293-2557 Conference ID # 90431313

ATLANTA, GA – March 13, 2009— Ebix, Inc. (NASDAQ: EBIX), a leading international provider of software services and IT solutions for the insurance industry, today reported its financial results for the fourth quarter (Q4 '08) and year ended December 31, 2008.

Ebix's 2008 fourth quarter revenue rose 65% to $20.14 million, compared to $12.20 million during the fourth quarter of 2007. Q4 ‘08 net income rose 76% to $7.91 million, or $0.66 per diluted share, versus Q4 ’07 net income of $4.50 million, or $0.40 per diluted share. Results for Q4 2008 and Q4 2007 were based on 12.29 and 11.33 million weighted average diluted shares outstanding respectively.

Ebix’s total revenue rose 74% to $74.75 million in 2008, compared to $42.84 million in 2007. Ebix's operating income rose 129% to $29.26 million in fiscal 2008, compared to operating income of $12.80 million in 2007. In 2008, the Company's net income rose 116% to $27.31 million, or $2.28 per diluted share, compared to net income of $12.67 million, or $1.20 per diluted share, in 2007.

For the twelve months ended December 31, 2008, the Company generated $26.79 million of net cash flow from operating activities compared to $15.0 million for the year ended December 31, 2007, a 78% increase in operating cash flows year over year.

In 2008, the Company's basic earnings per common share rose to $2.78 as compared to basic earning per common share of $1.36 in 2007. Results for 2008 and 2007 were based on 9.84 and 9.31 million weighted average basic shares outstanding respectively.

Ebix President and Chief Executive Officer Robin Raina, commented, “We are pleased with these results as they reflect the continued success of the company in 2008. We look at these results as a step forward towards establishing Ebix as the dominant infrastructure exchange services player in the global insurance markets.”

Raina said, “The Q4 2008 results are record results in terms of both revenue and net income . The diluted EPS of $0.66 for Q4 2008 translates to a pre-split diluted EPS of $ 1.98, which is again a record for the company. We are quite pleased that we have been able to grow our net margins to 39% in Q4 of 2008.”

“The year 2008 has seen Ebix become more of an infrastructure player rather than a services player with our exchange business growing to 59% of our world-wide revenues. We became the largest insurance certificate origination and tracking player in the United States. We successfully have entered new markets like employee benefits and health claims,” Raina added. “As I said last year, while these results have established a new benchmark in terms of revenue, income and earnings, we believe that our best is yet to come.”

Raina concluded, “We believe that the present economic time serves as an opportunity to make some symbiotic accretive acquisitions at the right costs. We continue to generate strong cash flows and believe that we can put that cash to good use by reducing our debt and also making some sensible acquisitions.”

Ebix Chief Financial Officer Robert Kerris commented, “The 4th quarter net income of $7.91 million is a 7% improvement over the 3rd quarter, and is the third consecutive year of consistent quarter over quarter growth in net earnings. Our full year operating margins remain strong at 39.1%, an improvement of 9.2% compared to the prior year, and the Company continues to produce significant cash flows from ongoing operating activities, generating $26.8 million during 2008. Both of these favorable key performance indicators demonstrate the fundamental strengths of Ebix and the Company’s ability to thrive in the present challenging economic environment. The Company has been able to effectively deploy cash provided by operations in combination with cash funded from financing activities to complete significantly accretive acquisitions.”

About Ebix
A CMMI 5 Company, Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.

Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations.

With bases in the United States, Australia, New Zealand, Singapore, UK and India, Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents. Ebix’s focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model Integrated (CMMI). Ebix has also earned ISO 9001:2000 certification for both its development and call center units in India. For more information, visit the Company’s Web site at www.ebix.com.

Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995 - This press release contains various forward-looking statements and information that are based on Ebix management's beliefs, as well as assumptions made by and information currently available to management. Ebix has tried to identify such forward-looking statements by use of such words as "will," "expects," "intends," "anticipates," "plans," "believes" and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward-looking statements. Such risks, uncertainties and other factors include the extent to which the Ebix.com website and other new products and services can be successfully developed and marketed, the risks associated with any future acquisitions, and integrating recently completed acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, possible governmental regulation and/or other adverse consequences resulting from negative perception of the outsourcing of business processes to foreign countries, Ebix's ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, Ebix's ability to raise additional capital to finance future acquisitions and meet other funding needs , Ebix's dependence on the insurance industry, the highly competitive and rapidly changing automation systems market, Ebix's ability to effectively protect its applications software and other proprietary information, Ebix's ability to attract and retain quality management, software developers, technical sales and other critical personnel, the risks of disruption of Ebix's internet connections or internal service problems, the possible adverse effects of a substantial increase in volume of traffic on Ebix's website, mainframe and other servers, possible security breaches on the Ebix website, the possible effects of insurance regulation on Ebix, the possible effects of the Securities and Exchange Commission's investigation of Ebix's financial reporting, and possible future terrorist attacks or acts of war. Certain of these, as well as other risks, uncertainties and other factors, are described in more detail in Ebix's periodic filings with the Securities and Exchange Commission, including Ebix's annual report on Form 10-K for the year ended December 31, 2007. Except as expressly required by the federal securities laws, Ebix undertakes no obligation to update any such factors or any of the forward-looking statements contained herein to reflect changed circumstances or future events or developments or for any other reason.

(Financial Statements follow)