Ebix, Inc. Announces Sale of Unissued Stock to Luxor Capital

Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of software and e-commerce solutions to the insurance industry, announced that it had today sold a total of 400,000 shares of its previously un-issued common stock. The company announced that it had sold 163,600 shares to Luxor Capital Partners, LP and 236,400 shares to Luxor Capital Partners Offshore, Ltd., a hedge fund based in New York. The sale of 400,000 shares was completed at a price of $33.25 per share. The deal was agreed to on the 31st of May 2007 and consummated today. The price per share represents a slight premium over the 30-day trailing closing price for Ebix stock. After the sale of the stock, Ebix's cash balance approximates $19.5 million. Robin Raina, President and CEO, Ebix said, "Ebix is always exploring means that allow us to maximize returns for our shareholders while growing our top line and bottom line proportionately. The sale of these shares is a step in that direction.” Raina added, "This sale made a lot of sense for many reasons. First, it will provide liquidity for any accretive acquisitions that we intend to make. Second, it will help us minimize our present bank debt of $10 million and thus reduce our interest costs by up to $700,000 per year. Third, it brings in an eminent institutional investor like Luxor to Ebix and will likely provide increased awareness of Ebix in the marketplace.” Raina also said, "We have a track record of selling Ebix shares very sparingly and we are quite sensitive to diluting our shareholders’ interests. We made this sale once we were assured that this deal is likely to help us increase shareholder returns, both in the near and long term.” About Ebix A CMMI 5 Company, Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations. With bases in, Australia, India, New Zealand, Singapore and the U.S., Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents. Ebix’s focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model Integrated (CMMI). Ebix has also earned ISO 9001:2000 certification for both its development and call center units in India. For more information, visit the Company’s Web site at www.ebix.com. Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995 — This press release contains various forward looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market and management's plans and objectives. The Company has tried to identify such forward looking statements by use of words such as "expects," "intends," "anticipates," "plans," "believes," "will," "should," and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Company's new products and services can be successfully developed and marketed, the integration and other risks associated with recent and future acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, the Company's ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, the Company's dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Company's ability to effectively protect its applications software and other proprietary information, the Company's ability to attract and retain quality management, and software, technical sales and other personnel, the potential negative impact on the Company's outsourcing business in India from adverse publicity and possible governmental regulation, the risks of disruption of the Company's Internet connections or internal service problems, the possibly adverse effects of a substantial increase in volume of traffic on the Company's website, mainframe and other servers, possible security breaches on the Company's website and the possible effects of insurance regulation on the Company's business. Certain of these, as well as other, risks, uncertainties and other factors, are described in more detail in Ebix’s periodic filings with the Securities and Exchange Commission, including the company’s annual report on form 10-K for the year ended December 31, 2006, included under "Item 1. Business—Risk Factors." Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors or to publicly update any of the forward looking statements contained herein to reflect future events or developments or changed circumstances or for any other reason.