"We are pleased to see the stabilization and resilience of the life settlement market and signs that its growth trajectory is moving back towards its previous path in 2007. Life-Exchange continues to grow with the market and we see more industry participants opting for the benefits of transacting life settlements on an electronic platform. We believe that within the next five years better than 80% of all life settlement transactions will be conducted electronically," commented David C. Dorr, President & CEO, Life-Exchange, Inc.

The Company's primary financial information is shown below, comparing the three months ending March 31, 2009 with the three months ending March 31, 2008. The discussion of the Company's financial results should be read in conjunction with the Company's consolidated financial statements and the notes thereto and the other financial information appearing in the Company's Form 10-Q filing with the Securities and Exchange Commission.

Results of Operations

Revenues increased $58,207 (18.6%) to $370,925 for the three months ended March 31, 2009 compared to $312,718 for the three month period ended March 31, 2008. The increase is attributable to the recovering life settlement industry after several quarters, which saw a worsening economy. The Company currently operates three service lines, its original exchange transaction platform service line, specialty auctions and a new service line of brokerage services, which commenced operations during the first quarter of fiscal 2009.

Costs of Revenue increased $5,398 (76.9%) to $12,420 for the three month period ended March 31, 2009 from $7,022 for the three month period ended March 31, 2008. Cost of revenues consists of product development expenses, internet hosting services and related expenses. The increase was primarily due to a combined increase in Internet Hosting costs and other cost.

Sales and Marketing Expense increased $89,712 (151.1%) to $149,071 from $59,359 for the three month period ended March 31, 2009 and 2008, respectively. Sales and marketing expenses consist of travel, communications, subscriptions and memberships. The increase was due to increased commissions and decreases in other categories as result of efforts to reduced costs.

Administration Expense increased $123,825 (73.3%) to $292,645 from $168,820 for the three month periods ending March 31, 2009 and 2008, respectively.