**Exhibit 99.1**

 

**FACTORS THAT MAY AFFECTFUTURE RESULTS OF OPERATION**

 

Revenues are concentrated in a few customers.

 

In fiscal 2005, we received significant revenuesfrom Fiserv Health, Inc. (FHI), which accounted for approximately 39%, 42%and 37%, respectively, of ENS’ operational revenue for the fiscal years ended September 30,2003, 2004 and 2005.  FHI operates undera multi-year agreement expiring on October 31, 2006.

 

Loss of a majorcustomer.

 

Inaccordance with the terms of the Company's services agreement with FiservHealth, Inc. (FHI), one of ENS’ largest customers, FHI terminated theservices agreement effective October 31, 2006.  In 2004, ENS initiated arbitrationproceedings against FHI alleging that FHI had breached the servicesagreement.  The matter was arbitrated in2005 and, as a result ENS was awarded $1,000,757 in an initial award and anadditional $262,729 of costs in the final award.   The arbitration panel found that “Fiservbreached the agreement. The breach was material.” In addition, the arbitrationpanel did find “in favor of ENS” as it relates to Fiserv's willful misconduct. Webelieve we may continue to provide business services after October 31,2006 for this customer for electronic transactions (EDI).  Paper services for FHI accounted for 31% and29% of ENS’ revenues in fiscal years 2004 and 2005. However there is noassurance that FHI will continue any ENS services past October 31,2006.  We anticipate that this customerwill generate approximately 24% and 1% of ENS’ revenues in fiscal years 2006and 2007 with revenues declining gradually throughout fiscal 2006 and droppingdramatically in the first quarter of fiscal 2007.  We expect the costs of these services todecline correspondingly as all costs except for facilities are variable withproduction volumes.  Measures have beenput in place to ensure that facilities costs will also decline at the same rateor faster than the decrease in production volumes and revenues.  We anticipate that the termination of thisagreement will have little effect on ENS’ overall profitability due to therecent signing of two new contracts for pre-adjudication and EDI services.  The systems development required for thesecontracts is currently underway.  While therevenues generated by these contracts are not expected to make up for therevenues lost from the terminated agreement, the profits generated by thetransactions to be processed by these systems are anticipated to replace and,eventually, exceed the profits lost by the terminated agreement.  We believe that ENS' results will continue toimprove, reflecting the quality of its services, in fiscal 2006 and into 2007.

 

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Change instrategy.

 

With the continually decreasing number of paper claimtransactions received by payers and the reduced pricing and margins in paperconversion services across the industry, ENS will utilize the services ofbusiness partners to process paper transactions after 2006 in order to improveefficiencies and profitability. We will remain strategically focused on our highermargin core electronic transaction services and will continue to enhance ourservice offerings. ENS will continue to support its proven complete cycle modelthrough strategic business partners wherever it is financially andstrategically prudent.

 

Managing our growth may strain our administrative and technicalresources.

 

ENS continues to streamline operations further whilecontinuing to develop its electronic operations.  The added stability from this developmentwill allow for continued rapid growth with minimal incremental fixedcosts.  We anticipate moderate revenuegrowth in fiscal 2006 as we continue to grow our EDI and PASS business.  However this growth will be tempered by theloss of a major customer effective October 31, 2006 discussed above.  Anticipated growth in addition to the loss ofrevenues discussed above places a strain on managerial, operational, technicaland other resources, which strain is expected to continue.  If we are unable to respond to and managethis anticipated growth, then the quality of ENS’ services and results ofoperations could be materially adversely affected.

 

Need to expand ENS’ suite of applications and service offerings.

 

In addition to its full-cycle suite of healthcaretransaction processing software and services, we currently offer a number ofInternet-based applications platforms. We are introducing and must continue to introduce new applications andservices, improve the functionality of existing services and successfullylaunch these services in a timely manner in order to attract and retaincustomers. We rely on a combination of internal development, strategicrelationships, licensing and acquisitions to develop these applications andservices.  Each ENS application, regardlessof how it was developed, must be integrated and customized to operate withexisting customer legacy computer systems and our platform.

 

The business of providing electronic healthcare transaction processingis difficult to evaluate.

 

It is difficult to evaluate ENS’ businesses andprospects, and our business model is still emerging.  Our operating results have been and may inthe future be affected by numerous factors, many of which are outside of ourcontrol, including, but not limited to:

 

• market acceptance of and demand for ENS’services

 

• our ability to continue to develop ENS’services

 

• competition

 

• capacity constraints and dependencies oncomputer infrastructure

 

• operating expenses relating to strategicpartnerships

 

• usage of the Internet

 

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• economic conditions affecting the healthcareor Internet industries

 

• general economic conditions

 

ENS will be dependent on strategic relationships to generate certainrevenues.

 

Our ability to generate revenues will suffer if wecannot establish and maintain strategic relationships with providers ofoutsourced services and selling partners. We believe that these relationships will provide additional customersand will generate acceptance of our platform, applications and services.  Although we have established severalshort-term strategic relationships, we have not entered into agreements for anymajor long-term strategic partnerships, and there is no assurance we can do soon favorable terms.

 

Performance problems with ENS’ systems could damage our business.

 

We could be harmed if ENS or its customersexperience system delays, failures or loss of data. ENS currently processessubstantially all customer transactions and data at its own facilities.  Although ENS has redundant systems,contingency plans and dual facilities for disaster recovery, not allemergencies can be fully covered, such as if both facilities are notfunctioning.  The occurrence of a majorcatastrophic event or other system failure at any of such facilities couldinterrupt data processing or result in the loss of stored data.  While ENS has general liability insurancethat we believe is adequate, including coverage for errors and omissions, ENSmay not be able to maintain this insurance on reasonable terms in the future.  In addition, the insurance may not be sufficientto cover large claims, and the insurer could deny coverage on claims.  If ENS is liable for an uninsured orunderinsured claim or if premiums increase significantly, ENS’ financialcondition and results of operations could be materially harmed.

 

Our business will be harmed if we are unsuccessful in responding torapid technology changes in the healthcare market.

 

The healthcare information exchange and transactionprocessing markets are relatively new and evolving markets.  The pace of change in our markets is rapidand there are frequent new product introductions and evolving industrystandards.  We may be unsuccessful in

 

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respondingto technological developments and changing customer needs.  In addition, our application and serviceofferings may become obsolete due to the adoption of new technologies orstandards.

 

Our internet platform infrastructure and scalability may not withstandincreased use.

 

Though steadily increasing, to date we haveprocessed a limited number and variety of transactions over internetplatforms.  Similarly, a limited numberof healthcare participants use these platforms. Though designed and tested as scalable, our systems may not accommodateincreased use while maintaining acceptable overall performance. We mustcontinue to expand and adapt network infrastructure to accommodate anticipatedadditional users, increased transaction volumes and changing customerrequirements.  This expansion andadaptation will be expensive and will divert attention from other activities.

 

Though increasing in volume, we cannot guaranteethat we will be able to generate significant internet transaction revenues inthe future. We have developed relationships with service providers to offerhealthcare services through direct links from ENS’ web site to their websites.  However, there is no long term establishedbusiness model for the sale of healthcare products or services for the fullarray of transaction types over the internet. Since our experience in the sale of services online or in the developmentof relationships with providers of such services is still relatively limited,we cannot fully predict how quickly customers will adopt this form of commerceor the compensation that we will receive for enabling these transactions.

 

We will face significant competition.

 

The market for healthcare information services isintensely competitive, rapidly evolving and subject to rapid technologicalchange.  Many competitors have greaterfinancial, technical, product development, marketing and other resources thanwe have.  These organizations may bebetter known and have more customers than ENS.  Many competitors have also announced or introduced strategies that willcompete with our applications and services. See “Business—Competition.”

 

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Our business could be adversely affected as a result of political,regulatory, economic or other changes in the healthcare industry.

 

The healthcare industry is highly regulated and issubject to changing political, economic and regulatory influences.  These factors affect the purchasing practicesand operation of healthcare organizations. Changes in current healthcare financing and reimbursement systems couldcause us to make unplanned modifications to applications or services, or resultin delays or cancellations of orders or in the revocation or endorsement of ourapplications and services by healthcare participants.  Federal and state legislatures haveperiodically considered programs to reform or amend the U.S. healthcare systemat both the federal and state level. These programs may contain proposals to increase governmentalinvolvement in healthcare, lower reimbursement rates or otherwise change theenvironment in which healthcare industry participants operate.  Laws and regulations may be adopted withrespect to the Internet or other online services covering issues such as:

 

• user privacy and patient confidentiality

 

• pricing

 

• content

 

• copyrights and patents

 

• distribution

 

Healthcareindustry participants may respond by reducing their investments or postponinginvestment decisions, including investments in our applications and services.We do not know what effect any proposals would have on our business.

 

Our intellectual property may be subjected to infringement claims ormay be infringed upon.

 

Our intellectual property is important to ourbusiness.  We could be subject tointellectual property infringement claims as the number of competitors growsand the functionality of applications overlaps with competitive offerings.  These claims, even if not meritorious, couldbe expensive and divert management’s attention from operations.  If we become liable to third parties forinfringing intellectual property rights, we could be required to pay a substantial damage award and to developnoninfringing technology, obtain a license or cease selling the applicationsthat contain the infringing intellectual property.  We may be unable to develop noninfringingtechnology or obtain a license on commercially reasonable terms, or atall.  In addition, we may not be able toprotect against misappropriation of our intellectual property.  We have not sought patents or copyrightprotection for any of our software or related technology.

 

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Thirdparties may infringe upon our intellectual property rights.  If we do not detect any unauthorized use, wemay be unable to enforce our rights.

 

Our business will be adversely affected if we cannot attract and retainkey personnel.

 

Future operating results will substantially dependon the ability of our officers and key employees to manage changing businessconditions and to implement and improve technical, administrative, financialcontrol and reporting systems. We need to attract, integrate, motivate andretain highly skilled technical people capable of developing, selling andinstalling complex healthcare information systems. We face intense competitionfor these people.

 

Any future acquisitions we make of companies or technologies may resultin disruption to our business or distraction of our management, due todifficulties in assimilating acquired personnel and operations.

 

We may acquire or make investments in complementarybusinesses, technologies, services or products which compliment the operationsof ENS if appropriate opportunities arise. From time to time we engage in discussions and negotiations withcompanies regarding our acquiring or investing in such companies’ businesses,products, services or technologies, in the ordinary course of ourbusiness.  We cannot be assured that wewill be able to identify future suitable acquisition or investment candidates,or if we do identify suitable candidates, that we will be able to make suchacquisitions or investments on commercially acceptable terms or at all. If weacquire or invest in another company, we could have difficulty in assimilatingthat company’s personnel, operations, technology and software. In addition, thekey personnel of the acquired company may decide not to work for us. If we makeother types of acquisitions, we could have difficulty in integrating theacquired products, services or technologies into our operations. Thesedifficulties could disrupt our ongoing business, distract our management andemployees, increase our expenses and adversely affect our results ofoperations. Furthermore, we may incur indebtedness or issue equity securitiesto pay for any future acquisitions. The issuance of equity securities would bedilutive to our existing stockholders. As of December 28, 2005, we had noagreement to enter into any material investment or acquisition transaction.

 

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Any future dispositions we make of our assets or businesses may resultin disruption to our business. 

 

We may also dispose of assets or businesses fromtime to time. We cannot be assured that we will be able to make suchdispositions on commercially acceptable terms or at all. As of December 20,2005, we had no agreement to enter into any material dispositiontransaction.  If we sell significantportions of our businesses, we will be obliged to redeploy our assets intoacquisitions or further development of existing businesses, with all theattendant risks, or distribute the proceeds, if any, to our stockholders.

 

ENS may in the future incur substantial losses.

 

ENS, which is currently 94% owned by the Company,generated income from operations of $2,861,686 in its most recent fiscal year,ended September 30, 2005, and we believe its profitable operations willcontinue in 2006.   ENS incurred netlosses in most years from inception through fiscal year ended September 30,2001.  ENS continues to invest in infrastructuredevelopment, applications development and sales and marketing in order to rampup its revenue growth.  We believeimproved operating efficiencies will continue to lead to better results ofoperations in the near future; however, ENS may incur net operating losses andnegative cash flows in the future as a result of unforeseen events as discussedabove.

 

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