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OnlineBenefits and Digital Insurance team up to provide small businesses access to Benergy

OnlineBenefits, Inc. announced today that it has entered into a long-term strategic partnership with Digital Insurance to distribute Benergy as an employee communication solution for its clients.

Digital Insurance Expands its Services
OnlineBenefits and Digital Insurance team up to provide small businesses access to Benergy

Uniondale, NY (February 10, 2004) – OnlineBenefits, Inc., provider of Internet-based HR solutions, announced today that it has entered into a long-term strategic partnership with Digital Insurance to distribute Benergy as an employee communication solution for its clients.

Digital Insurance is an employee benefits service center that partners with traditional benefits brokers to handle the day-to-day account management and renewal processing of their small business clients. With the Benergy communications platform, Digital Insurance is able to fill the need for employee education and support, which is often an economic challenge for small businesses. This joint venture represents a tangible step forward in Digital Insurances goal to redefine best-in-breed customer service in a market segment often overlooked when it comes to investment and innovation. Benergy has and continues to provide significant returns for hundreds of mid-market retail brokerage firms around the country. Through this partnership with Digital Insurance, Benergy will mark its entry into the small employer segment.

This new channel into the small employer segment is particularly exciting because of Digital Insurances unique approach to outsourcing combined with its growing momentum in the broker community," said Alan Cohen, CEO, OnlineBenefits, Inc. Our historical challenge was how to reach these smaller employers and make the process simple and cost-effective. Thanks to Digital Insurance, that challenge has been effectively addressed."

Agencies across the country are finding it increasingly difficult to efficiently manage their smallest customers, let alone expand services to this client base," said Mike Sullivan, Executive Vice President and Chief Marketing Officer of Digital Insurance. We will continue to invest in people, processes and technology to expand our service capability and, by proxy, that of our broker partners. Benergy helps expand the suite of services we provide our clients."

Benergy is a powerful Internet-based benefits communication portal. It provides companies with an exceptionally quick and easy way to bring information online. It compiles the most critical elements that people need to be informed, empowered benefit consumers. Benergy therefore becomes the first stop on any benefits journey. Brokers that partner with Digital Insurance will have access to this unique capability to drive a truly differentiated service capability to an expanded segment of their valued customer base.

About OnlineBenefits
OnlineBenefits, Inc. is the HR solutions company behind the well-known Benergy family of communication, administration and intelligence products. Its market-proven solutions enrich the benefits and HR experience for employers, employees and brokers in innovative, cost-effective ways. The company designs, implements and hosts its Internet-based applications and distributes them in partnership through its network of over 300 of the nations leading brokers and consultants. Currently, more than 3,200 employers of all sizes and 700,000 employees use Benergy solutions. Visit www.onlinebenefits.com.

About Digital Insurance
Digital Insurance is a national employee benefits service center focused on delivering best-in-breed account management and sales capabilities for brokerage firms currently operating in the small group marketplace. Headquartered in Atlanta, Ga., Digital Insurances capital partners are the Internet Healthcare Group, Capital Z Partners and American Life Insurance Company of New York. Digital Insurance is powered by Healthaxis, a developer of state-of-the-art software solutions for healthcare benefits administration and distribution.

Contacts:

Eileen McGrath
Senior Marketing Manager
OnlineBenefits, Inc.
(516) 414-7052
emcgrath@onlinebenefits.com

John Short
Director of Communications
Digital Insurance
(770) 250-3007
jshort@digitalinsurance.com


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Tracy Alleva
OnlineBenefits
516-414-7002
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