Transax International Completes HIPAA Compliant MedLink Solution for the United States Market

MIAMI, Florida - December 7, 2005 Transax International Limited (OTC BB: TNSX), a network solutions company for healthcare providers and health insurance companies, announced today that its in-house development team has completed critical components of a HIPAA (Health Insurance Portability and Accountability Act 1996)-compliant version of its Medlink WEB and Medlink SERVER software solutions.

Transax’s MedLinkWEB solution is an Internet browser-based application developed under the Microsoft.NET platform, while the MedLink SERVER solution has been developed in Java and operates as a front-end to a number of Practice Management Systems already installed in large clinics, hospitals and laboratories.

Transax President and CEO Stephen Walters said, "We are pleased to complete these important developments enabling the company to offer its solution to the US market in 2006."  Walters continued, "The ability of payers to auto-adjudicate claims in ‘real time’ using our solutions, which have been fully operational and proven for a number of years internationally, will enable both payers and providers in the USA to benefit from the consolidation of healthcare claim processing, especially benefiting HSA accounts."

Both MedLink solutions process "on-line" and "real-time" eligibility verification, claims submission and claims adjudication in a single pass environment, representing a breakthrough in health claims processing. The Company’s proven solutions reduce medical, operational and administrative costs for both payers and providers and our now HIPAA compliant. Both solutions have been in production for several years in Brazil, supporting payers with around four million lives. The solutions undertake transactions daily for some the largest health insurers and medical laboratory groups in Brazil.

The implementation and internal tests for HIPAA compliance took over 6-months of development by Transax’s technical engineers. Under the auspices of a USA consultant, HIPAA compliance was implemented using the Extreme Translator Tool, granting the generation of HIPAA X-12 format for exchange with payers and providers systems with such capabilities. The newly developed solutions will undergo compliance testing by an independent third-party in the USA in early 2006. Upon certification, Transax will launch its Medlink Solution to the US market under its current arrangements with Union Dental Corp. and to the general market.

About Transax International Limited

Transax provides network solutions to healthcare providers and health insurance companies. Utilizing its proprietary technology, Transax provides a service similar to a credit card processing for the health insurance industry. A Transax transaction consists of: approving eligibility, authorization, auto-adjudication of the health claim and generating the claim payable files--all instantaneously in "real time"- regardless of method of claim generation.

Transax’s solutions have been proven to significantly decrease health insurance claim expenditures. Based in Miami, Transax maintains a major operations office in Rio de Janeiro, Brazil with approximately 35 staff. The Company has contracts in place with major health insurers for up to 2,500,000 transactions per month and currently undertakes approximately 600,000 transactions per month. Transax receives approximately US55cents per transaction.

Web Site : www.transax.com or www.otcfn.com/tnsx
Email : [email protected]

Investor Relations Inquiries
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Tel: 561-837-8057
Jamie Dryer
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