Update to the Press Release titled – Ebix Provides a Strategic Update

JOHNS CREEK, Ga., July 14, 2023 (GLOBE NEWSWIRE) -- Updated Release with a few clarifications - Ebix, Inc. (NASDAQ: Ebix), today issued an informational release with a few clarifications and updates to the previously issued strategic update release on July 6^th, 2023.

A. The Company reminded investors that the term investment advisory in the July 6^th 2023 release should not be construed as “Investment Advice” and should be read only as a simplified disclosure pertaining to relevant matters.

B. Updates and Clarifications with respect to the EbixCash IPO:

1. The draft red herring prospectus (DRHP) for our subsidiary, EbixCash Limited (“EbixCash”), dated March 9, 2022, contained financial information for the financial years ended March 31, 2019, March 31 2020, March 31 2021 and for the six months period ended on September 30 2021 and September 30 2020.
   
   
2. Ebix Payment Services Private Limited (“Ebix Payment Services”), a subsidiary of EbixCash, received “a letter of displeasure” from the Reserve Bank of India (“RBI”) dated March 21, 2023 (“RBI Letter”), regarding certain co-branding arrangements of EbixCash with the banks for the issuance and operation of prepaid payment instruments (“PPIs” and the banks “PPI Issuers”). The details of the letter have been disclosed in the addendum to the DRHP filed by EbixCash on June 1, 2023.
   
   A circular dated April 19, 2023 was issued by RBI to all approved/authorized PPI Issuers, according to which, the role of all non-bank entities, including Ebix Payment Services, is to be limited to only marketing / distribution of the PPIs or providing access to the PPI holders to services that are offered.
   
   Accordingly, Ebix Payment Services was asked by RBI to suitably amend the co-branding arrangements/ agreements with the PPI Issuers within one month of the aforesaid communications and strictly comply with the provisions, and the same was complied with. Based on this directive from RBI to amend its co-branding arrangements with the PPI Issuers going forward, Ebix Payment Services has ceased to be a principal under the amended co-branding arrangements from financial year commencing April 1, 2023 and would act as an agent for the PPI Issuers consequent to the amendments made in the contractual arrangement(s) with the PPI Issuer(s).