COBRA Solutions, Inc. Releases Version 4.x of
Cafeteria Plan Administration Software

 Version 4.x features New 2½ Month Grace Period
As Announced by the IRS on May 18, 2005

            Tempe, AZ, December 14, 2005 – COBRA Solutions, Inc., a leader in Employee Benefits software, announced today the release of version 4.x of Cafeteria Plan Manager software. Cafeteria Plan Manager is designed for employers and Certified Public Accountants who perform Cafeteria Plan Administration.

            Version 4.x includes the option for plan administrators to design their Cafeteria Plans so that participants can be reimbursed for claims incurred up to 2½ months after the close of the plan year. The 2½ month grace period, announced by the IRS on May 18, 2005, is designed to give workers with Flexible Spending Accounts more time to pay for medical and dependent care expenses and will ease the year-end spending rush prompted by the prior rule.

“In addition to the new optional 2½ month grace period, we have included several exciting upgrades to the software.” said Mark Seckinger, Vice President of Business Development for COBRA Solutions, Inc. “Other upgrades include an optional employer contribution feature and the capability to save statements and reports as PDF files. Effective immediately version 4.x is available to current customers as a downloadable update from our corporate Web site www.cobrasolutions.com.”

“Having the option to include the new 2½ month grace period as well as optional employer contributions for my clients is a big plus.” said user Robert D. Wilmot, CEBS, President of Jacksonville, FL-based Data Research Consultants, Inc. “In addition to the flexibility of the software, the technical support is wonderful, and I receive the updates immediately when they become available.” added Wilmot.

“By using Cafeteria Plan Manager, employers and Certified Public Accountants have access to a low-cost, easy-to-use software program for Cafeteria Plan Administration.” Seckinger added: “A free 60-day downloadable demonstration version of the software is available from our Web site for any employer considering the implementation of our Cafeteria Plan Administration software.”

About COBRA Solutions, Inc.

COBRA Solutions, Inc. is a leading provider of easy-to-use and low-cost Employee Benefits software. The company serves thousands of valued clients throughout the United States and Puerto Rico. Founded in 1987, COBRA Solutions, Inc. is headquartered in Tempe, Arizona. For more information, visit

www.cobrasolutions.com or call 1-800-325-1957.

     Company Contact
     COBRA Solutions, Inc
     4500 S. Lakeshore Drive, Suite 420
     Tempe, AZ 85283-7056
     Mark Seckinger, VP Business Development
     Phone: (480) 820-9101
     Fax: (480) 820-2676