Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

August 29, 2007 17:48 ET

Healthscreen Announces Third Quarter Results, Revenues Grow 53%

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) - Healthscreen Solutions Inc. (TSX VENTURE:MDU) ("Healthscreen" or the "Company") a premier supplier of electronic medical record (EMR) software and practice enhancing services, is pleased to announce its third quarter results for the period ending June 30, 2007.

Third Quarter Highlights

- Completed acquisition of Medical Telecom Corporation

- Third quarter revenues grew to $697,321, representing 53% growth year-over-year

- Recurring revenues increased 98%, now representing 73% of total sales

- As at June 30, cash on hand is $1.14 million

Consolidated revenues increased by 53% to $697,321 for the quarter ending June 30, 2007 when compared with $456,016 for the corresponding period ending June 30, 2006. The acquisition of Medical Telecom Corporation ("MTC"), which closed on May 8, 2007, has contributed significantly to Healthscreen's operations. Just seven weeks of MTC revenue added $225,162 to the quarter, resulting in a 98% increase in recurring sales compared to the same three months a year earlier.

Recurring revenue for the period ending June 30, 2007 was $509,000, or 73% of total sales. This represents a significant improvement when compared to the three months ending June 30, 2006, where recurring revenue accounted for only 56% of total sales. Following the May 2007 integration of MTC and Healthscreen, the Company commenced branding and cross-selling practice management products and services to its combined customer list.

Healthscreen is experiencing rapid adoption of its CallerMD and PrevCareMD services with more than 60 physicians registering each month. In addition, the Company recently announced a nationwide marketing campaign securing its first ten physician customers outside Ontario at the Bowmont Clinic in Calgary, Alberta.

"We are pleased with the performance of all divisions as we continue to transition the business to the next stage of growth. The MTC-Healthscreen integration has proved successful with sales in June reaching $328,699. We have also secured a number of partnerships that are expected to yield great returns, and most importantly, continue to receive extremely positive feedback from our customers," said Justin Belobaba, President and CEO. "Healthscreen has an incredible market opportunity given our brand reputation, large customer base, and unique blend of software and services."

Adjusted EBITDA for the third quarter 2007 resulted in a loss of ($209,000), excluding non-recurring merger expenses, and stock-based compensation. The Company had a net loss of ($748,851) or ($0.014) per share for the three months ending June 30, 2007, compared to ($24,697) or ($0.001) per share in same quarter of 2006.

As Healthscreen continues to absorb acquisition costs and prepares for additional growth, selling, human resources, administrative, legal and accounting expenses will be offset by rising revenues generated from a larger sales force, cross-selling to a rapidly expanding customer base and referral business from the Company's alliance partners such as the Section on General and Family Practice and the Section on Pediatrics, which collectively represent 12,000 Ontario physicians.

Healthscreen's mission of providing more value-added practice management services to a higher number of doctors is quickly being realized. The Company now offers five practice enhancing products, and its customer roster consists of over 4,000 physicians with approximately 25% market share in Ontario.

A copy of the complete financial results is posted on SEDAR at www.sedar.com.

About Healthscreen Solutions Inc.

Healthscreen Solutions (www.healthscreen.com) offers a comprehensive suite of practice enhancing products and services designed to increase physician revenues, reduce costs and improve patient care. The Company's robust OHIP billing and patient scheduling software is used by over 4,000 full-time physicians and handles more than $1.5 billion in healthcare transactions a year.

Healthscreen's Electronic Medical Record (EMR) software supports digitalization and network connectivity for community specialists and family physicians plus a growing list of research groups. The Company's broader goal of Continuous Practice Enhancement is being further realized with a growing list of revenue-generating services such as CallerMD, which assists doctors in managing a range of uninsured medical services and PrevCareMD which allows doctors to maximize government-funded preventive care bonuses.

Disclaimer:

Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to be materially different from any future performance that may be suggested in this release. The company assumes no obligation to update any forward-looking statements contained in this release. Trading in the securities of Healthscreen should be considered highly speculative.

The TSX Venture Exchange has in no way approved nor disapproved the contents of this new release.

Contact Information