SOURCE: Healthnostics, Inc.

June 13, 2006 09:36 ET

Healthnostics Announces Acquisition of Physician Practice Management System

Includes Integrated Electronic Medical Record (EMR) System

BETHESDA, MD -- (MARKET WIRE) -- June 13, 2006 -- Healthnostics, Inc. (PINKSHEETS: HNST), a medical and bioscience analytics company, announced that it has signed an agreement to acquire the Physician Practice Management EMR-based (electronic medical record) system from H-Quotient, Inc. (PINKSHEETS: HQNT). The software, PhysicianQuotient, targets the AMA-reported 177,000 to 185,000 physicians in group practice in the U.S. The transaction calls for delivery of 12,000,000 shares of Healthnostics common stock and warrants to purchase an additional 12,000,000 shares of Healthnostics common stock for a period of 18 months at prices ranging from $.08 to $.20 per share. The shares, subject to Rule 144 of the Securities Exchange Act of 1933, are restricted from resale in a broker transaction for one year.

Through this acquisition, Healthnostics significantly broadens its product offerings in the clinical information marketplace. The PhysicianQuotient medical practice system is an in-depth software system that can be implemented as a Web-based or in-house turnkey operation. It utilizes wireless devices and existing office PCs for front-office patient encounters along with on-line eligibility and authorization with electronic billing. It provides a longitudinal EMR of one or more clinical patient episodes of care; storage capability for digital information, including images, electronic faxes, reports, and transcription sound files; and will include quality of care, evidence-based decision support and outcomes reporting directly or through interface to Healthnostics MedGuardian hospital patient quality and risk management system.

"We are excited about what this acquisition brings to Healthnostics. The Electronic Medical Record (EMR) is the foundation for improving efficiency and increasing the quality of care delivered to patients at all levels of the healthcare continuum," said Alan Grofé, president. "PhysicianQuotient, which automates and systematizes a physician's entire practice workflow, including EMRs, will help us build on our commitment to deliver integrated EMR Web-based products incorporating this most important industry initiative."

About Healthnostics

Healthnostics, Inc. is a medical and bioscience analytics company. Healthnostics provides comprehensive patient clinical monitoring and risk management systems to acute care hospitals and utilizes its Internet portals to deliver medical and bioscience resource information to industry professionals as well as the general public. Healthnostics' major products include: MedGuardian, a patient care monitoring and risk management system for hospitals that is fully Web-based; MedBioWorld™, the largest professional medical and bioscience directory resource and reference portal site on the Internet; and FamilyMedicalNet, a companion consumer healthcare information portal.

For further information please visit Healthnostics, MedGuardian, MedBioWorld, and FamilyMedicalNet

Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Healthnostics, Inc., (the "company"), as well as those contained herein, that are not historical facts are "forward-looking" statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, and because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, are statements regarding the intent, belief, or current expectations, estimates, or projections of the company, its directors, or its officers about the company and the industry in which it operates and are based on assumptions made by management. Forward-looking statements include without limitation statements regarding: (a) the company's strategies regarding growth and business expansion, including future acquisitions; (b) the company's financing plans; (c) trends affecting the company's financial condition or results of operations; (d) the company's ability to continue to control costs and to meet its liquidity and other financing needs; (e) the declaration and payment of dividends; and (f) the company's ability to respond to changes in customer demand and regulations. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.

Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) changes in the regulatory and general economic environment; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the company's revenue and/or cost and expenses, such as increased competition, lack of qualified marketing, management or other personnel, and increased labor and inventory costs; (iv) changes in technology or customer requirements, which could render the company's technologies noncompetitive or obsolete; (v) new product introductions, product sales mix, and the geographic mix of sales.

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