Health Benefits Direct Announces Second Quarter 2009 Financial Results

RADNOR, PA--(Marketwire - August 14, 2009) - Health Benefits Direct Corporation (OTCBB: HBDT), a leading technology innovator in the marketing, sales and
administration of a range of insurance technology products, today announced
its financial results for the second quarter ended June 30, 2009.

During the second quarter, the Company continued its previously announced
restructuring activities. As part of these restructuring efforts, in the
first quarter of 2009, the Company ceased selling health and life insurance
products to individuals and families and disposed of a significant portion
of its agency business, which is now classified as discontinued operations
in the Company's financial statements.

Second Quarter Highlights

-- Revenues from continuing operations of $1.5 million, compared to $1.4
million in the second quarter of 2008, due primarily to increased InsPro
revenues from consulting, ASP and maintenance agreements.
-- Operating expenses for continuing operations of $3.5 million, compared
to $3.1 million in the second quarter of 2008, primarily attributable to an
increase in InsPro Technologies' (formerly Atiam Technologies LLC) staffing
and technology consultants to support current client requirements, future
needs and growth plans.
-- Net loss from continuing operations of $2.0 million, compared to $1.7
million in the second quarter of 2008. This increase is consistent with the
Company's strategy to enhance InsPro Technologies' capacity by increasing
expenditures for marketing, sales, infrastructure and product development.
-- Negotiated a new sublease agreement and recorded an abandoned lease
accrual of $2.0 million for our Florida office, which is reported in loss
from discontinued operations.
-- Atiam Technologies renamed to InsPro Technologies.
-- At June 30, 2009, the Company had a cash balance of $2.1 million,
total assets of $6.6 million and total shareholders' equity of $1.5
million.

"Throughout the second quarter, we made further progress with our
restructuring initiatives where our goal is to focus on our technology
businesses and reduce expenses," said Anthony Verdi, Acting Principal
Executive Officer of Health Benefits Direct and Chief Financial Officer.
"Among our major accomplishments in the second quarter was the successful
negotiation of a new sublease for the majority of our Florida office space.
This agreement expands a current tenant's sublease to approximately 30,000
out of 50,000 square feet, which we anticipate will significantly mitigate
the future cash outflow for the Florida office. This new agreement is
effective in the third quarter and continues through February 2011. As a
result of this revised sublease we recorded an approximate $2.0 million
accrual for our future obligations for the Florida office in the second
quarter.

"With the greater portion of our occupancy expenses covered through two
subleases and the unreimbursed costs of the Florida and New York offices
accounted for, we are now better positioned to focus resources on our
promising technology platforms and execute our strategy to maximize our
earnings potential and create shareholder value," Mr. Verdi concluded.

About Health Benefits Direct Corporation

Through its subsidiary, InsPro Technologies, Health Benefits Direct offers
InsPro software, an internet-based marketing and administration system used
by Insurance carriers and Third Party Administrators. Through its
subsidiary, Insurint Corporation, Health Benefits Direct provides a
proprietary, professional-grade, web-based agent quote engine portal that
aggregates real-time quotes from more than 100 health insurance carriers,
life insurance carriers and carriers of related insurance products.
www.healthbenefitsdirect.com

Forward-Looking Statements

In addition to historical facts or statements of current condition, this
press release contains forward-looking statements within the meaning of the
"Safe Harbor" provisions of The Private Securities Litigation Reform Act of
1995, including statements regarding the growth potential of our technology
platforms and providing the financial support and resources needed to
demonstrate the strength of these growing technology businesses.
Forward-looking statements provide Health Benefits Direct's current
expectations or forecasts of future events. Moreover, Health Benefits
Direct cautions readers that forward-looking statements are subject to
certain risks and uncertainties, which could cause actual results to differ
materially from the statements made, including risks described in Health
Benefit Direct's most recent Quarterly Reports on Form 10-Q or Annual
Reports on Form 10-K filed with the Securities and Exchange Commission and
available on Health Benefits Direct's website at
www.healthbenefitsdirect.com. These documents are also available on the
Securities and Exchange Commission's website at www.sec.gov. Health
Benefits Direct does not undertake any obligation to update any
forward-looking statement to conform the statement to actual results or
changes in expectations.

- financial tables to follow -

HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30, December
2009 31, 2008
----------- -----------
(Unaudited)
ASSETS

CURRENT ASSETS:
Cash $ 2,084,769 $ 1,842,419
Accounts receivable, less allowance for
doubtful accounts $1,069 and $0 683,628 461,875
Tax receivable 26,290 31,290
Prepaid expenses 123,433 126,804
Other current assets 885 8,461
----------- -----------

Total current assets 2,919,005 2,470,849

Restricted cash 1,150,000 1,150,000
Property and equipment, net of accumulated
depreciation $377,144 and $267,384 918,167 729,881
Intangibles, net of accumulated amortization
$1,410,496 and $1,021,187 1,499,763 1,911,461
Other assets 110,608 110,607
----------- -----------

Total assets $ 6,597,543 $ 6,372,798
=========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Note payable $ 29,351 $ -
Accounts payable 482,830 733,128
Accrued expenses 994,752 697,255
Current portion of capital lease obligations 128,524 89,297
Due to related parties - 4,315
Unearned commission advances - -
Deferred revenue 524,223 457,500
Liabilities of discontinued operations 2,699,450 2,238,315
----------- -----------

Total current liabilities 4,859,130 4,219,810
----------- -----------

LONG TERM LIABILITIES:
Deferred tax liability - -
Capital lease obligations 270,350 209,511
----------- -----------

Total long term liabilities 270,350 209,511
----------- -----------

SHAREHOLDERS' EQUITY:
Preferred stock ($.001 par value; 10,000,000
shares authorized; Series A
convertible preferred stock; 3,437,500 shares
authorized, 1,000,000 shares issued
and outstanding (liquidation value
$10,000,000)) 2,038,944 -
Common stock ($.001 par value; 200,000,000
shares authorized;
41,279,645 shares issued and outstanding) 41,279 41,279
Additional paid-in capital 45,601,829 43,281,139
Accumulated deficit (46,213,989) (41,378,941)
----------- -----------

Total shareholders' equity 1,468,063 1,943,477
----------- -----------

Total liabilities and shareholders' equity $ 6,597,543 $ 6,372,798
=========== ===========

HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2009 2008 2009 2008
------------ ------------ ------------ ------------

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues $ 1,535,271 $ 1,409,467 $ 3,257,710 $ 2,694,790

Operating Expenses:
Salaries, employee
benefits and
related taxes 1,820,438 1,782,906 4,346,395 3,568,869
Advertising and
other marketing 37,384 20,770 141,109 23,800
Depreciation and
amortization 287,045 221,030 565,407 505,515
Rent, utilities,
telephone and
communications 205,847 157,247 411,317 320,242
Professional fees 811,066 573,944 1,507,545 1,058,272
Other general and
administrative 381,614 349,465 716,233 791,257
------------ ------------ ------------ ------------

3,543,394 3,105,362 7,688,006 6,267,955
------------ ------------ ------------ ------------

Loss from
operations (2,008,123) (1,695,895) (4,430,296) (3,573,165)
------------ ------------ ------------ ------------

Gain (loss) from
discontinued
operations (1,559,871) 342,814 (383,027) (2,127,044)

Other income
(expense):
Interest income 10,200 22,229 22,311 52,735
Interest expense (23,985) (11,605) (44,036) (16,215)
------------ ------------ ------------ ------------

Total other
income
(expense) (13,785) 10,624 (21,725) 36,520
------------ ------------ ------------ ------------

Net loss $ (3,581,779) $ (1,342,457) $ (4,835,048) $ (5,663,689)
============ ============ ============ ============

Net loss per common
share - basic and
diluted:
Loss from
operations $ (0.05) $ (0.04) $ (0.11) $ (0.09)
Gain (loss) from
discontinued
operations (0.04) 0.01 (0.01) (0.06)
------------ ------------ ------------ ------------
Net loss per
common share -
basic and
diluted $ (0.09) $ (0.03) $ (0.12) $ (0.15)
============ ============ ============ ============

Weighted average
common shares
outstanding -
basic and diluted 41,279,645 41,808,004 41,279,645 38,410,827
============ ============ ============ ============

HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended
June 30,
--------------------------
2009 2008
------------ ------------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net loss $ (4,835,048) $ (5,663,689)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 565,407 505,784
Stock-based compensation and consulting 310,691 1,371,632
Loss on impairment of property and equipment
of discontinued operations 416,764 88,922
Loss on impairment of intangible assets of
discontinued operations 1,222,817 295,633
Gain on the disposal of property and
equipment of discontinued operations (10,228) -
Provision for bad debt 16,048 63,850
Changes in assets and liabilities:
Accounts receivable (237,801) (433,388)
Tax receivable 5,000 (36,212)
Deferred compensation advances - -
Prepaid expenses 3,371 (143,720)
Other current assets 7,576 9,477
Other assets - 1,729
Accounts payable (250,298) 96,925
Accrued expenses 297,497 (320,644)
Sub-tenant security deposit - -
Due to related parties (4,315) (28,500)
Unearned commission advances - -
Deferred revenue 66,723 (149,125)
Income tax payable - (157,288)
Liabilities of discontinued operations (1,168,218) (49,410)
------------ ------------

Net cash used in operating activities (3,594,014) (4,548,025)
------------ ------------

Cash Flows From Investing Activities:
Purchase of property and equipment (288,930) (234,945)
Proceeds from the sale of property and
equipment of discontinued operations 11,495 -
Purchase of intangible assets and
capitalization of software development - (267,202)
------------ ------------

Net cash used in investing activities (277,435) (502,147)
------------ ------------

Cash Flows From Financing Activities:
Gross proceeds from note 32,831 -
Payments on note (3,481) -
Gross proceeds from capital leases 154,025 126,097
Payments on capital leases (53,959) (12,207)
Gross proceeds from sales of preferred stock 4,000,000 -
Gross proceeds from sales of common stock - 5,000,000
Fees paid in connection with offering (15,617) (70,238)
------------ ------------

Net cash provided by financing activities 4,113,799 5,043,652
------------ ------------

Net increase (decrease) in cash 242,350 (6,520)

Cash - beginning of the year 1,842,419 5,787,585
------------ ------------

Cash - end of the period $ 2,084,769 $ 5,781,065
============ ============