On-Demand Sourcing Solutionsfor Middle Market Enterprises

On-Demand Sourcing Solutionsfor Middle Market Enterprises

BPO On Demand

May 2009

Outsourced Services Recurring Revenue On Demand Model 2

Safe Harbor Statement

Certain statements in the following presentation relate to future results that are

forward looking statements as defined in the Private Securities Litigation Reform Act

of 1995. Actual results may differ materially from those projected as a result of

certain risks and uncertainties, including but not limited to those noted in our forms

and other filings with the SEC. This presentation includes historical and forward-

looking pro forma information. The Company assumes no responsibility to update the

information contained in this presentation.

This presentation and the information contained herein is the property of BPO

Management Services, Inc.

Outsourced Services Recurring Revenue On Demand Model 3

Ticker: OTCBB:HAXS

Founded: July 2005

Public: Reverse merger in December 2006

Customers: 400+ in North America

Employees: 300

Headquarters: Anaheim, CA

Pennsylvania Corporation: Post HAXS merger December 2008

Mission Statement - Mid-Market BPO Play

To be dominant provider of back-office sourcing solutions,offered on a recurring revenue basis,

to middle market enterprises located throughout North America.

Company Profile

Outsourced Services Recurring Revenue On Demand Model 4

Company Profile

Mission Statement - Mid-Market BPO Play

To be dominant provider of back-office

sourcing solutions, offered on a recurring

revenue basis, to middle market enterprises

located throughout North America.

Financial Overview:

Recurring revenue model with strong operating leverage

Q1 2009 Revenue run rate $40M – with EBITDA margins expanding to +25% as we

integrate business functions, grow critical mass and leverage existing IP/infrastructure

Growth Strategy:

Vertical solutions that leverage our core IP/infrastructure

Middle market focus Huge marketplace opportunity

Generate Significant Organic growth projections

CFO sell plays well in uncertain economic times

Significant customer cost savings – on-demand model

Accretive acquisitions with strong operating leverage

Mission Statement - Mid-Market BPO Play

To be dominant provider of back-office sourcing solutions,offered on a recurring revenue basis,

to middle market enterprises located throughout North America.

Outsourced Services Recurring Revenue On Demand Model 5

Founders/Management Team

Patrick Dolan, Chairman and CEO Co-Founder Prior to co-founding BPOMS, Mr. Dolan served as president and chief operating officer of

Infocrossing Inc. [Nasdaq: IFOX], chairman and chief executive officer of Systems Management Specialists (SMS) and spent the early years of his career with Affiliated Computer Services (ACS) and SHL Systemhouse

25 years outsourcing industry experience

Jim Cortens, President Co-Founder Prior to co-founding BPOMS, Mr. Cortens served as executive vice president of Infocrossing Inc.

[Nasdaq: IFOX], president and director of Systems Management Specialists (SMS), and spent the early years of his career with SHL Systemhouse

25 years outsourcing industry experience

John Carradine, COO Former CEO, Healthaxis Mr. Carradine’s prior experience includes acting as CFO and a member of the Board of

Directors of Micrografx, Inc. until its sale to Corel Corporation in 2001, CFO of Intellicall, Inc. a telecommunications company and treasurer of Computer Language Research, Inc. a data services company for the accounting industry.

25 years in the software and data services industry

Patrick Dolan, Chairman and CEO Co-Founder Prior to co-founding BPOMS, Mr. Dolan served as president and chief operating officer of

Infocrossing Inc. [Nasdaq: IFOX], chairman and chief executive officer of Systems Management Specialists (SMS) and spent the early years of his career with Affiliated Computer Services (ACS) and SHL Systemhouse

25 years outsourcing industry experience

Jim Cortens, President Co-Founder Prior to co-founding BPOMS, Mr. Cortens served as executive vice president of Infocrossing Inc.

[Nasdaq: IFOX], president and director of Systems Management Specialists (SMS), and spent the early years of his career with SHL Systemhouse

25 years outsourcing industry experience

John Carradine, COO Former CEO, Healthaxis Mr. Carradine’s prior experience includes acting as CFO and a member of the Board of

Directors of Micrografx, Inc. until its sale to Corel Corporation in 2001, CFO of Intellicall, Inc. a telecommunications company and treasurer of Computer Language Research, Inc. a data services company for the accounting industry.

25 years in the software and data services industry

Outsourced Services Recurring Revenue On Demand Model 6

Founders/Management Team

Nick Curry, SVP – Head Canadian Operations Leads Canadian business activities Former CFO,CIO at major Canadian telecommunications and financial services corporations Significant business development expertise - +25 years industry experience

Ron Herbert, CFO Former, CFO Healthaxis

Brent Webb, General Counsel and Assistant Corporate Secretary Former, General Counsel HAXS

Nick Curry, SVP – Head Canadian Operations Leads Canadian business activities Former CFO,CIO at major Canadian telecommunications and financial services corporations Significant business development expertise - +25 years industry experience

Ron Herbert, CFO Former, CFO Healthaxis

Brent Webb, General Counsel and Assistant Corporate Secretary Former, General Counsel HAXS

Outsourced Services Recurring Revenue On Demand Model 7

Milestones to Date

$4.2 million founders investment

Q4 2006 – Reverse merger to become public company

Q2/Q3 2007 – Closed $21 Million in financing with 4 Institutional investors

Q2 and Q3 2007 – Completed 3 Acquisitions to accelerate growth, strengthen product and service offerings, expand client base and enhance cross selling opportunities

Q2 2008 – Raised $6 Million through a warrant exercise with 2 existing institutional investors to pursue the HAXS transaction

Q4 2008 – Closed HAXS merger

Strong/growing pipeline – Current economic situation accelerates middle market BPO track

Completed initial growth platform to support delivery of back-office business functions on an outsourced/recurring revenue basis – vertical solutions that leverage core IP/infrastructure capability

HR On-Demand HRIS system for the middle market ECM Enterprise Content Management solutions ITO IT Outsourcing – Tier 1 Data Center/Network Services FAO A/P outsourcing solution Healthcare Claims processing engine with HAXS merger

Track record of rapid organic growth

Any-shoreOn-Demand

delivery model

Any-shoreOn-Demand

delivery model

Outsourced Services Recurring Revenue On Demand Model 8

Vision for Growth/Value Creation

Dec’06Dec’06

RevenueRevenue

$30m$30m

$10m$10m

****

$50m$50m

PrivateRev $5mPrivateRev $5m

Pre-HAXSRev $30mPre-HAXSRev $30m

$150m$150m

$100m$100m

Dec’08Dec’08 Dec’10Dec’10

Reverse MergerRev $9mReverse MergerRev $9m

** •Accelerated Organic Growth•Accretive Acquisitions•Accelerated Organic Growth•Accretive Acquisitions

•Target +$250M recurring revs•1.5* Revs $375M valuation•Target +$250M recurring revs•1.5* Revs $375M valuation

**Post – HAXS mergerRev $43mPost – HAXS mergerRev $43m

$200m$200m

Dec’12Dec’12

Operating Platform CompletedReached inflexion point Growth/profitability accelerationOperating platform leverage

Operating Platform CompletedReached inflexion point Growth/profitability accelerationOperating platform leverage

Outsourced Services Recurring Revenue On Demand Model 9

•We are IBM/Accenture for the Middle Market•We are IBM/Accenture for the Middle Market

Comprehensive Set of Outsourced Back-Office Solutions - Middle Market FocusComprehensive Set of Outsourced Back-Office Solutions - Middle Market Focus

Comprehensive Offering – One Stop Shop

Services Provided on Standardized Platforms

Global Delivery Capability – Best Shore Delivery Model

Software as a Service Delivery ‘SaaS’

Leverage Data Center Infrastructure & Intellectual Property

Satisfied Customers – High BPO Contract

renewal rates

Comprehensive Offering – One Stop Shop

Services Provided on Standardized Platforms

Global Delivery Capability – Best Shore Delivery Model

Software as a Service Delivery ‘SaaS’

Leverage Data Center Infrastructure & Intellectual Property

Satisfied Customers – High BPO Contract

renewal rates

What We Do

HealthaxisProducts and Services Verticals

BPOMSProducts and Services Verticals

ITO Infrastructure

and Outsourcing

Services

Enterprise Content

Management

Human Resources

Outsourcing

Healthcare Plan IT &

Administration

Corporate Accounts Payable

Outsourcing

Direct Sales Force and Channel Partners

Target MarketsMiddle Market Companies

$500 million to $3 billion in sales

Target MarketsLarge TPA’s, Insurance Companies,

Managed Care Organizations,Middle Market Companies

Cross SellingOpportunities

Our platform provides economies of scale/delivery capability similar to Tier 1 providers

Outsourced Services Recurring Revenue On Demand Model 10

Highly leverageable IP/infrastructure Software/infrastructure unit costs decrease with scale Fewer resources needed for each incremental client Cross-utilization of resources across data centers/facilities

Business Model

Over 80% of revenue is contracted and recurring grow Opportunity to cross-sell solutions into existing clients High renewal rates on contracts

Infrastructure in Place

Infrastructure in Place

Tier 1 data center – significant available capacity Imaging/capture/scan – off/near/on-shore capability North American geographic coverage Facilities at about 25% capacity

Recurring Revenue

Recurring Revenue

Operating Leverage

Operating Leverage

BPOMS business model based on recurring revenue, critical mass and strong operating leverage.

Revenue above $50 million accelerates profitability

Outsourced Services Recurring Revenue On Demand Model 11

Comprehensive Services

BPOMSIBM/Accenture for the Middle Market

BPOMSIBM/Accenture for the Middle Market

Information Technology OutsourcingInformation Technology OutsourcingHealthcare IT and AdministrationHealthcare IT and Administration

Human Resource Outsourcing Human Resource Outsourcing Enterprise Content ManagementEnterprise Content Management

Finance/Accounting OutsourcingFinance/Accounting Outsourcing

Tier 1 capable data center Managed Services Applications Services Multi-platform Managed Hosting Professional Services and Staffing IT Consulting 7X24X365 operations Network Management Business Recovery

Tier 1 capable data center Managed Services Applications Services Multi-platform Managed Hosting Professional Services and Staffing IT Consulting 7X24X365 operations Network Management Business Recovery

HRIS Systems and Self-Service Portal HR Consulting Payroll and System Integration Compliance Administration Reporting and HR Metrics Performance Management Vendor Management HR Process Redesign

HRIS Systems and Self-Service Portal HR Consulting Payroll and System Integration Compliance Administration Reporting and HR Metrics Performance Management Vendor Management HR Process Redesign

Accounts Payable SaaS Systems Accounts Payable Outsourcing Scanning and Indexing

Accounts Payable SaaS Systems Accounts Payable Outsourcing Scanning and Indexing

Front-end Claims BPO Services SaaS based Claims and Admin Software Web Portals Provider Database Management Vendor Integration and Data Management

Front-end Claims BPO Services SaaS based Claims and Admin Software Web Portals Provider Database Management Vendor Integration and Data Management

Custom ECM Solutions Document Management Software Data Capture/Scan/Index Document Media Conversion Hosted Image Retrieval Systems eReview Collaboration Software Systems Integration/Implementation

Custom ECM Solutions Document Management Software Data Capture/Scan/Index Document Media Conversion Hosted Image Retrieval Systems eReview Collaboration Software Systems Integration/Implementation

Outsourced Services Recurring Revenue On Demand Model 12

Across Industry Verticals

Outsourced Services Recurring Revenue On Demand Model 13

IT Outsourcing Solutions

Cost effective managed services as an alternative to traditional in-house or other outsourced solutions.

Management and applications services tailored to customers' demands allowing them to focus on their core business.

We offer complete multi-platform managed hosting solutions on a 24*7 basis.

Data Warehousing and ETL Tools

Network and Remote Desktop Management

Business Recovery

Professional Services

SAS 70 Type II CertifiedClass A Rated Data Center

Facilities7X 24 X 365 Operations

We are product and supplier independent and support all well established multi-platform

computing technologiesMainframe

Mid-Range (AS/400 iSeries, all flavors of Unix)Open Systems (Intel) Servers

Remote Server and Desktop Support

SAS 70 Type II CertifiedClass A Rated Data Center

Facilities7X 24 X 365 Operations

We are product and supplier independent and support all well established multi-platform

computing technologiesMainframe

Mid-Range (AS/400 iSeries, all flavors of Unix)Open Systems (Intel) Servers

Remote Server and Desktop Support

We are a Leading Provider of Managed IT Infrastructure Services

Outsourced Services Recurring Revenue On Demand Model 14

Enterprise Content Management

We help our customers Improve their back-office performance Make better decisions faster by finding the right

information when it is needed Process documents more effectively Reduce the need for handling and filing paper

documents Streamline the ability to find, manage and access

documents in or out of the office

Our end-to-end solutions touch every aspect of enterprise content management

CaptureCapture

ClassifyClassify

ExtractExtract

ValidateValidate

DeliverDeliver

Our Enterprise Content Management products, services and solutions are aimed at helping business and government capture, index, access, deliver and preserve their documents.

Outsourced Services Recurring Revenue On Demand Model 15

Healthcare Solutions

Smart Front End – A unique package of data conversion and pre-adjudication technology products

Web-Based Solutions – A suite of four Web tools that facilitate member self-service, broker information and employee enrollment.

Benefit Administration Systems – Mature, time-tested ASP solutions for enrollment, plan administration, billing, claims, consumer-driven health plans (HRA/FSA) and fulfillment.

Provider Management – A combination of proprietary technologies and services delivering clean provider data and flexible eligibility matching and data transmission.

Post Adjudication Services – Services that simplify fulfillment, payment, reporting and analysis

For more than 40 years, we've helped TPAs, insurance companies, MCOs and self-administered employers relentlessly attack inefficiencies and reduce costs.

Healthaxis wide array of products and services help payers drive down costs and improve operational efficiencies.

Our ability to integrate and automate critical administrative processes enables customers to focus on their core competencies while providing their customers with a higher level of service.

TPA’s reduce administrative expenses, and improve operational efficiencies.

Insurance companies and MCOs maximize margins, reduce medical claims processing costs, improve operational efficiencies and mitigate risk.

We Combine Technology and Service to Deliver Value

Outsourced Services Recurring Revenue On Demand Model 16

A/P Outsourcing

We help improve A/P work processes by eliminating paper forms and automating workflow.

Our A/P invoice processing solutions enable our customers to capture, route, and track information electronically and delivering invoice data automatically to your back-end system.

We scan incoming invoices and capture all relevant information from the image (for example: invoice date, invoice number, purchase order number, and invoice total). Our A/P solutions also give our customers the ability to automatically match purchase orders with invoices, eliminating labor intensive manual matching.

Accounts Payable departments are constantly challenged by the rising costs of processing and handling paper invoices.

The Solution - Automate Accounts Payable Processes

Outsourced Services Recurring Revenue On Demand Model 17

HR Outsourcing

We are both a human resource BPO direct service provider and an expert BPO human resource project manager

We support businesses

HRAdvocate, our HRIS solution, is provided on a hosted, SaaS, or licensed basis

Senior customer executives take great comfort from the fact that the ongoing management of their critical human capital resources will be handled by our human resource business experts who are well versed in the who, what, where, and why of human resource BPO

HRIS

Self-Service Portal

Recruiting

Payroll and System Integration

Benefits Administration

Compliance Administration

Reporting and HR Metrics

Succession Planning

Training Administration

System Security

Employee Relations

Staffing

Legal Compliance

Performance Management

Compensation Planning

Vendor Management

HR Process Redesign

HRIS

Self-Service Portal

Recruiting

Payroll and System Integration

Benefits Administration

Compliance Administration

Reporting and HR Metrics

Succession Planning

Training Administration

System Security

Employee Relations

Staffing

Legal Compliance

Performance Management

Compensation Planning

Vendor Management

HR Process Redesign

New to the human resource BPO market Established businesses already

outsourcing human resources Businesses that want to maximize the

ROI of their in-house workforce

Comprehensive Products & Services

Outsourced Services Recurring Revenue On Demand Model 18

Rapidly Expanding Marketplace

Market size in 2015 projected at $750B

Market size in 2015 projected at $750B

Today’sGlobal BPO Market

is $400Bgrowing at 10% CAGR

Today’sGlobal BPO Market

is $400Bgrowing at 10% CAGR

Significant portion of newgrowth coming from middlemarket – since there is low

penetration to date

Significant portion of newgrowth coming from middlemarket – since there is low

penetration to date

Market rapidly expanding toinclude processes that cutacross all business sectors

and industries

Market rapidly expanding toinclude processes that cutacross all business sectors

and industries

Globalization and economicuncertainty will accelerate BPO growth – especially in

the middle market

Globalization and economicuncertainty will accelerate BPO growth – especially in

the middle market

Middle market demands pricecompetitive, comprehensiveflexible service offering with

on-shore touch points

Middle market demands pricecompetitive, comprehensiveflexible service offering with

on-shore touch points

Outsourced Services Recurring Revenue On Demand Model 19

EnterpriseSize

Capability/Global Presence

Small, Niche

Providers

Small, Niche

Providers

IBMAccenture

HP

IBMAccenture

HP

Middle Market Focus

CAGR=+15%CAGR=+15%

Enormous Market OpportunityEnormous Market Opportunity

Our Target Market

Middle Market Companiestypically between $500 million

& $3 billion in sales

Our Target Market

Middle Market Companiestypically between $500 million

& $3 billion in sales

Outsourced Services Recurring Revenue On Demand Model 20

Peer Group Analysis

Outsourced Services Recurring Revenue On Demand Model 21

Investment Highlights

Significant market opportunity

“Green Field” - Largely untapped middle market target

Significant cost savings opportunity for outsourcing customers

Cross selling initiatives

BPOMS + HAXS

BPOMS comprehensive service platform

“One Stop Shop” offers a scalable comprehensive outsourced back-office solution for middle market enterprises

Low BPO penetration

Plays well in uncertain economic times

CFO focus

Building SaaS enabled BPO – comprehensive service offering

Outsourced Services Recurring Revenue On Demand Model 22

Investment Highlights

Strong management team

“Cash In” investors

Significant combined business process outsourcing experience

Acquisitions and business integration experience

Tremendous shareholder value creation opportunity

Initial growth platform already built

BPOMS + HAXS – building critical mass

Currently under-valued

Business model yields significant operating leverage

Cost savings sell to customers – no additional spend

Low Risk Investment

Marketplace Credibility

Transform into impressive On Demand Multiples

High Incremental Margins

Plays well in uncertain economic times