NEWS RELEASE

Performant Audit & Recovery Wins C.M.S. Contract

LIVERMORE, Calif. (August 1, 2005) – Performant Audit & Recovery/DCS announced today that it had been awarded a three-year contract with the Centers for Medicare and Medicaid Services (C.M.S.), the federal agency that administers the Medicare program and works in partnership with individual states to administer Medicaid. This contract marks the largest contract win to date for Performant Audit & Recovery.

Under the contract, Performant Audit & Recovery will be responsible for reviewing payments from C.M.S. to ensure that all claims were accurately processed and properly compensated. Performant Audit & Recovery will identify underpayments or overpayments, and assist C.M.S. in the recovery of funds that were overpaid.

“We are extremely excited about this next stage in Performant Audit & Recovery’s longstanding relationship with CMS,” said Maria Perrin, senior vice president of business development for Performant Audit & Recovery. “Our expert staff and innovative technology platform will continue to help C.M.S. ensure that care providers are receiving the appropriate consideration for their patient care.”

Performant Audit & Recovery/DCS has served as a recovery vendor to C.M.S. through a contract with the Department of Treasury for eight years, helping the agency develop strategic processes for ensuring that taxpayer resources are being accurately distributed throughout the Medicare and Medicaid systems.

About Performant Audit & Recovery

Performant Audit & Recovery is a member of the Performant Financial Corporation (www.performantcorp.com). Performant Financial Corporation has an unmatched record of successful debt recovery for state and federal government agencies, as well as commercial clients. For nearly 30 years we have been innovators in software, technology systems, and product offerings, as well as leaders in attracting the industry’s most dedicated and qualified people. Superior effectiveness is the cornerstone of our business promise. Our companies are currently handling an active receivables inventory of well over of $40 billion.