Healthscreen Solutions Inc.

Healthscreen Solutions Inc.

June 24, 2008 08:00 ET

Healthscreen to Acquire BC-Based Regent Healthcare Systems

Accretive acquisition strengthens Western Canadian presence

TORONTO, ONTARIO--(Marketwire - June 24, 2008) - Healthscreen Solutions Inc. (TSX VENTURE:MDU) ("Healthscreen" or the "Company") the premier supplier of physician practice enhancing services and electronic medical record (EMR) software to the Canadian market, announced today that it has signed a definitive agreement to acquire all the shares outstanding of New Westminster, BC-based Regent Healthcare Systems ("Regent").

Under terms of the definitive agreement, Healthscreen agrees to pay a total of $1.3 million for Regent. The purchase price is payable in cash of $1 million on closing and $300,000 on the date that is six months after closing, either in cash or in Healthscreen shares (at the Company's option).

"This acquisition is immediately accretive to Healthscreen's cash flow, and allows us to deploy a portion of the $4.25 million debt financing we closed last month," said Eugene Bomba, CFO of Healthscreen. "The purchase price for Regent represents 1.8 times trailing recurring revenue."

Established in 1988, Regent is a medical software provider with over 1,000 physicians using its SmartSeries Professional software package in BC.

"Regent has built a great software platform, and its dedicated staff has made Regent one of the most respected brands in BC's medical software market with a very loyal customer base," said Justin Belobaba, President and CEO of Healthscreen. "With our proven ability to up-sell customers obtained via acquisition, and our recent success in selling our services in Alberta, we are very excited to continue our rapid growth in Western Canada by adding over 20% to our physician customer base."

Mr. Belobaba continued: "This transaction further demonstrates our dedication to growing our business both organically and through acquisition, with the continuous goal of providing more services to more doctors."

The acquisition of Regent takes Healthscreen's customer base to over 5,300 physicians across the country, and provides the Company with additional local support for its expansion into Western Canada.

The transaction is expected to close on July 4, 2008. Closing is subject to certain customary conditions, including the receipt of regulatory approvals.

About Healthscreen Solutions Inc.

Healthscreen Solutions ( offers a comprehensive suite of practice enhancing products and services designed to increase physician productivity and revenue, while reducing costs and improving patient care. The Company's robust OHIP billing and patient scheduling software is used by thousands of 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 services such as CallerMD, which assists doctors in managing a range of uninsured medical services and PrevCareMD which helps doctors earn supplemental income by achieving government-set preventive care targets.

About Regent Healthcare Systems Inc.

Since 1988, Regent Healthcare Systems has been a leader in providing premium Medical Practice Management software and services to meet the growing demands of busy medical practitioners and their staff.

Forward Looking Statements

This press release contains information that is forward looking information with respect to Healthscreen within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of theses terms or other similar expressions concerning matters that are not historical facts. In particular, statements about the proposed acquisition of Regent by Healthscreen, including the expected timetable for completing the transaction, the receipt of regulatory approvals, benefits and synergies of the transaction, future opportunities for the combined company and products and any other statements regarding Healthscreen's future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including the parties' ability to consummate the transaction, the conditions to the completion of the transaction, including the receipt of regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule. Additional risks and uncertainties affecting Healthscreen can be found in Healthscreen's Annual Report for the fiscal year ended September 30, 2007 and in its most recent quarterly report filed on SEDAR at If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Healthscreen assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

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

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