Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

October 28, 2005 09:00 ET

Healthscreen Halts Eastern Ontario Vendor Acquisition, Exposure to Region Drives New Interest

ST. CATHARINES, ONTARIO--(CCNMatthews - Oct. 28, 2005) - Healthscreen Solutions Inc. (TSX VENTURE:MDU), today announced the cancellation of its previously planned acquisition of an unnamed eastern Ontario billing vendor due to material inaccuracies and breach of representation made by the target company.

After completing further due diligence, Healthscreen found that of the 182 client physicians anticipated as a result of the transaction only half were available to become new clients. The vendor declined to renegotiate the terms and as a result of the due diligence findings the contract was cancelled.

"The financial impact on Healthscreen as a result of this decision is actually anticipated to be positive due to the fact that a number of clinics in the target area have been exposed to Healthscreen's EHR solution and expressed keen interest in electronic records. Because of this unusual circumstance, we won't have to absorb acquisition costs and yet still gain recognition in the region," said Bruce Rosenberg, Healthscreen's President and CEO.

Healthscreen has developed its remote capabilities for installing and training, and can manage sites that are far from high density centers making its software an ideal choice for this particular geographic area.

The Company's electronic health records (EHR) software, HSpractice™ has a comprehensive database structure which maintains the value of data over time, manages complex requirements and has an easy to use interface with simple data entry and retrieval systems.

Jewson Enterprises, an Austin, Texas-based research firm estimated annual EMR/EHR revenue will grow to US$4 billion in 2009 from nearly US$1.2 billion this year.

About Healthscreen Solutions Inc.

Healthscreen Solutions (www.healthscreen.com) was among the first Electronic Health Records (EHR) providers to create leading edge software that support digitalization and network connectivity solutions for a growing list of research groups and community physicians. The Company serves thousands of physicians and handles more than $1.5 billion in healthcare transactions a year. Healthscreen also operates 6 full service medical clinics that act as turn-key operations maximizing returns for physicians while enhancing patient care.

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.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information