May 2, 2005 (Richardson, TX) GTESS Corporation, a leading provider of business process outsourcing services for the healthcare industry, today announced that the Company has secured $12.0 million in a Series B round of institutional investment, led by new investor, HLM Venture Partners, with participation from Adams Harkness Ventures and existing investors, General Catalyst Partners and Kodiak Venture Partners.

GTESS will use the capital to continue to invest in the development and marketing of automated, integrated technology-based solutions for health plans, benefit administrators and network providers. The Company’s current offer — the Claims Gateway Solution - improves connectivity between providers, payers and health plans while increasing claims processing efficiency and reducing the overall cost of healthcare.

GTESS has led the market in innovating integrated pre-adjudication applications designed to automate and streamline processing, while increasing overall adjudication rates. In recent years, the Company has consistently experienced double-digit annual growth as its customer base expanded and clients implement broader solutions.

“GTESS continues its measured growth and expansion and we are committed to maintaining our leadership position through continuous innovation and service excellence,” said Deborah M. Gage, CEO and president of GTESS. “Our products and services improve productivity and service levels of our healthcare clients. I’m pleased that our investors concur with our vision that the healthcare industry is fertile ground for GTESS and our specialized suite of technology applications that we deliver through outsourcing, in-sourcing and on an ASP basis."

GTESS provides solutions to enhance the quality and reduce the costs of healthcare administration. The Company develops and delivers a full suite of technology-based pre-adjudication applications through outsourcing, in-sourcing, and on an ASP basis. GTESS customers include health plans, benefit administrators and network providers, who benefit from their GTESS relationship through increased automation in claims processing at significantly lower costs. In March, the Company introduced The Claims Gateway Solution, the first hybrid Business Process Outsourcing (BPO)/ASP model offering a complete suite of medical claims processing applications based upon integrated, client-customized technologies. The Claims Gateway Solution provides increased visibility and control throughout the claims process. Among its key benefits; a 99 percent guaranteed accuracy rate and average cost savings per claim of $2.55.

“At HLM Venture Partners we are pleased to partner with the management team of a market leader and innovator such as GTESS,” said Peter Grua, HLM Venture Partners managing partner. “GTESS has created versatile and intelligent solutions that have enormous potential for cost savings across constituents in the health care industry.

“GTESS continues to be a strong investment for us,” said John Simon, managing director, General Catalyst Partners and member of GTESS’ board of directors. “GTESS has successfully executed on its vision to provide streamlined technology and processes that improve the efficiency of medical claims processing and it continues to show significant growth and market penetration quarter after quarter.”

“GTESS has demonstrated its leadership capabilities and potential to make a true impact” said Lou Volpe, managing general partner of Kodiak Venture Partners and member of the GTESS board of directors. “Its innovation, demonstrated by products and services that lead to higher productivity and improved customer service levels, will help GTESS remain on its path for growth.”

About HLM Venture Partners HLM Venture Partners provides venture capital to emerging companies focused on life sciences and medical devices, health care information technology and health care services. HLM Venture Partners supports entrepreneurs as they turn innovative ideas into market-leading businesses, offering guidance on financial structuring, resource allocation and deployment, strategic planning, strategic introductions, and recruitment. For more information, please visit www.hlmventurepartners.com.

About General Catalyst Partners Founded in 2000 and headquartered in Cambridge, Mass., General Catalyst Partners is the private equity partner for entrepreneurs, early-stage companies and transformational companies that seek to build innovative software and technology platforms into industry-leading companies. By leveraging its principals' deep operational expertise, General Catalyst helps portfolio companies improve their likelihood of success through business building and partnership development assistance. For more information, please visit www.generalcatalyst.com.

About Kodiak Venture Partners Kodiak Venture Partners is a Waltham, Massachusetts-based venture capital firm focused on seed and early-stage investments in emerging communications/IT, semiconductor and software companies. With a focus on the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak’s investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building and funding market leaders. For more information, please visit www.kodiakvp.com.

About GTESS Corporation GTESS Corporation provides business process outsourcing (BPO) solutions that help healthcare plans and benefit managers automate the management and administration of healthcare payment systems, greatly improving process efficiencies and productivity, while reducing errors, overpayments and costs. GTESS provides customers with a total pre-adjudication medical claims process system called the Claims Gateway Solution — a suite of integrated, client-customized software modules for claims receipt, verification, data quality improvement, duplicate claim detection, member and provider verification, PPO-Connect™ network management and repricing services, claim routing and tracking, and document management. The Claims Gateway Solution uses business process management (BPM) technologies to create new efficiencies and offer process transparency throughout the claim process. . Our ‘clean-claim’ HIPAA-compliant electronic data interchange (EDI) delivery systems go beyond what can be achieved by automating parts of the process, or outsourcing operations off-shore. We deliver higher-quality data and cleaner claims which result in dramatic improvements in turn-around times and processing costs.