Alliance HealthCard Announces Record Third Quarter Profit.

ATLANTA -- Alliance HealthCard (OTCBB: ALHC) today reported its unaudited results for the three and nine months ended June 30, 2004.

Alliance HealthCard, Inc. (ALHC), a leading national provider of value-added healthcare savings programs, announces a third consecutive quarter of record earnings.

For the quarter ended June 30, 2004 the Company reported net income of $255,691, compared to a net loss of $258,844 for the same prior year period. Compared to previous quarter earnings of $211,924, the third quarter earnings represent a 20% quarter to quarter profit growth. Net income for the nine months ended June 30, 2004 was $593,303 representing an increase of $1,282,832 over the prior year period.

Chairman and CEO Robert Garces attributed the increase in net income to a substantial reduction in both healthcare network costs and royalty expenses. "The more traction we gain in the marketplace, the more leverage we bring to the table when negotiating network rental and royalty agreements," Mr. Garces explained. "We are delighted with our current cost structure and potential sales pipeline and feel we are well positioned for sustained profitability through 2005".

Alliance HealthCard, Inc. specializes in creating, marketing and distributing value added healthcare savings programs, services, and products. Alliance gives individuals and families access to healthcare providers offering up to 16 major healthcare services at significantly discounted fees for a low annual fee. Alliance markets to predominantly underserved markets where individuals either have limited health benefits, or no insurance. These markets may vary widely from senior populations with Medicare (no prescription benefits), part-time employees, to pockets of the over 40 million uninsured looking for lower cost medical services and access to providers.

Forward-Looking Statements 

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release contains forward-looking statements regarding the intent, belief or current expectations of the Company and members of its senior management team. While the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that would cause actual results to differ materially from those contemplated within this press release include, but are not limited to, those associated with general business conditions; client concentration; dependence on network providers; the timely and efficient implementation of customer contracts; developments in health care reform and other regulatory issues and changes in laws and regulations in key states where the Company operates; future capital needs; control by directors and officers; and the loss of key management personnel. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events.