SOURCE: digiMedical Solutions, Inc.

March 20, 2008 09:47 ET

digiMedical Solutions, Inc. Signs Agreement With Quality Care Products, Increasing Operational Efficiency and Supporting $10 Million 2008 Revenue Target

Recent Analyst Coverage Assigns Fair Value Target Price of $0.30 or Potentially Higher Vs. Recent Close of $0.08

COLLEYVILLE, TX--(Marketwire - March 20, 2008) - digiMedical Solutions, Inc. (PINKSHEETS: DGMS) today announced the Company has signed an agreement with specialty pharmaceutical manufacturer Quality Care Products (www.qcpmeds.com) of Temperance, Michigan, to purchase pharmaceuticals for distribution through each of digiMedical's retail pharmacies. Retail pharmacies nationwide currently using Quality Care's specialty dispensing products have noted increases in both gross profit and net profit. Quality Care's specialty pharmaceuticals, which include the time saving "unit-of-use" dispensing system, unique National Drug Codes, and pricing, that are accepted by most third party payers of prescription drug plans, offer many benefits to the retail industry. The "unit-of-use" dispensing system tends to reduce the frequency of out of date occurrences, which preserves capital, and the "just in time" purchasing system provides opportunity for the retailer to maximize efficiency in the turn of inventory dollars.

Tim Hayes, Pharmacist and Independent Representative for QCP, remarked that, "Our products are being dispensed nationally throughout the retail pharmacy sector. Pharmacy consultants have recognized the positive impact of our products on the bottom line and are recommending us to pharmacists all across the country. We are pleased to be working with digiMedical Solutions and the Company's digiPRN affiliate pharmacy chains. We look forward to a long and prosperous relationship."

Recent Analyst Coverage With Fair Value Target Price of $0.30 Vs. Recent Close of $0.08

Micros Report has initiated research coverage of digiMedical Solutions and has issued a report reviewing the Company's historical operations and 2008 business plan. digiMedical went public through a reverse merger in 2006, and Micros Report is the first to provide research analysis on the company. The company has grown from a zero revenue start-up in June of 2005 to a forecasted $10 million in sales in 2008. According to the report, prescription drug sales and utilization are growing rapidly and the market is expected to grow by 148% by 2016 to nearly $500 billion in sales.

Michael Willingham, Micros Report Director of Research, authored the report, which includes a Fair Value Target price for DGMS of $0.30. This valuation is based on company characteristics that give it the potential to trade in a range as high as $0.89 vs. the recent close of $0.08.

The report is available at http://www.digimedical.com/news/news.aspx under "Featured Presentation." Interested parties may also access the report by going to the www.MicrosReport.com homepage later today or by emailing ir@digimedical.com and requesting a copy.

Company Information and Updates

To be added to digiMedical's corporate e-mail list for shareholders and interested investors, or to request more information on the company, please send an e-mail to ir@digimedical.com.

About digiMedical Solutions, Inc.™ (www.digiMedical.com)

digiMedical Solutions, Inc.™ is a pharmacy and medical technology company focused on developing next-generation, digital medical technology with an emphasis on digital prescriptions (d-Prescriptions) that closely align the doctor, pharmacist and patient. The company's continued growth will come from three channels: direct marketing of the company's wireless based d-prescription technology to physicians, acquisition of independent pharmacy chains and the sale of select territories to "market partners" licensed to exploit the digiMedical Solutions™ model. digiMedical Solutions™ currently owns and operates five pharmacies throughout Texas and Florida and is a Microsoft Independent Software Vendor (ISV). digiMedical Solutions™ unique business model connects physicians, patients and pharmacies with next generation medical technologies.

Forward-Looking Statement

Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward-Looking Statements" for purposes of safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-Looking Statements may be identified by words including "anticipate," "await," "envision," "foresee," "aim at," "believe," "intends," "estimates" including without limitation, those relating to the company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the Forward-Looking Statements. Readers are directed to the company's filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the company's business and results of operations.

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