Open EC Technologies, Inc.
TSX VENTURE : OCE

Open EC Technologies, Inc.

October 13, 2010 08:01 ET

Open EC Signs Letter of Intent to Acquire i-Plexus Solutions

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) - Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) is pleased to announce it has executed a Letter Of Intent ("LOI") to acquire i-Plexus Solutions, Inc. located in San Antonio, Texas.

i-Plexus provides internet based medical claims clearinghouse and billing service solutions to HealthCare Providers, providing ongoing recurring medical claims transaction services to approximately 5,500 doctors in 1,000 healthcare delivery organizations throughout the US. With over 1,500 Insurance payers' connections, one of the highest insurance claim document acceptance rates in the industry, value based pricing and high customer retention; i-Plexus has created a very competitive and compelling business model for medical claim transaction processing. The company's recurring subscription and transaction revenue growth over the last 5 years has averaged approximately 42% annually, and from its 2008 fiscal year forward has been generating growing positive cash flow.

Martyn Armstrong, CEO of Open EC states: "Open EC's acquisition of i-Plexus will position and strengthen our recurring transaction services business and enhance our solutions to substantially grow our market share in the US HealthCare Industry. Our business plan is to aggressively develop our organic business of software, Software as a Service ("SaaS") and transaction services and use targeted acquisitions to step up our revenue, presence and market share in the US HealthCare Information Technology ("HealthCare IT") sector."

William Dagher, President of i-Plexus States: "The excellent strategic fit with Open EC will strengthen both companies' solutions and increase our combined recurring revenue opportunities in the HealthCare IT and Revenue Cycle Management Market. Our customers will directly benefit from additional HealthCare IT Solutions from Open EC's SoftCare subsidiary and lower the overall cost to deliver additional recurring transaction based services to the market. As part of the Open EC group we expect to accelerate the Company's revenue growth and market share and continue to be a leader in the healthcare industry for high value recurring transaction based services."

The US HealthCare Industry spends $150 Billion per year on Claims Submission, Processing and Adjudication Transaction/Processing Fees, where both SoftCare EC Solutions (Open EC's operating subsidiary) and i-Plexus will provide a combined solution for b2bGateway Software, Software as a Service ("SaaS"), Transaction Clearing, Integration Services and Consulting to become a Full Service Health IT Supplier to the industry.

Open EC will acquire 100% of the i-Plexus operating assets, liabilities, and ongoing business operations for a purchase price in US$ of $1,412,500. The purchase price includes $800,000 in cash; $400,000 in vendor take back debt; 750,000 Open EC trading escrow shares with a deemed price of $0.15 per share; 1,500,000 Open EC warrants with an exercise price of cdn$0.18 per share and a five year term; and $100,000 to be earned out if certain conditions are met over time.

The Letter Of Intent is subject to the completion of due diligence by Open EC, execution of a formal asset purchase agreement, Board of Director approvals from both companies, receipt of audited financial statements and acceptance of the purchase transaction by the TSX Venture Exchange (the "Exchange"). A Finder Fee will be paid under TSX Venture Exchange guidelines to McKenzie LK Management & Consulting Ltd.

About i-Plexus Solutions, Inc.

i-Plexus (www.iplexus.net) is a modern technology enabled healthcare transaction management company that was formed in 2003 to fill the void that is being created by out-dated clearinghouses, claim editing products and billing services. i-Plexus' mission is to pioneer feature and service rich transaction and receivables management solutions to the healthcare industry. i-Plexus connects to over 1,200 Health Insurance Payers throughout the United States to provide their customers one of the highest payer "insurance claim acceptance rates" in the industry. i-Plexus Solutions assist Healthcare Providers to improve their profitability through incremental and measured improvements in reimbursement and staff productivity. i-Plexus Solutions offers transaction services for electronic medical claims, remittances, eligibility, claim status, patient statements and medical billing services at some of the best rates in the business.

About Open EC Technologies, Inc.

Open EC is a TSX Venture Exchange listed company. Its subsidiary, SoftCare EC Solutions Inc. is an e-business software, services and solution provider. SoftCare's OpenEC® TradeLink e-business software includes solutions for Electronic Data Interchange (EDI), Healthcare Interoperability and Business Process Management. The Company sells the OpenEC® products and solutions to the healthcare, financial services and retail supply chain in North America. The company has a growing focus on turnkey solutions for US Healthcare Information Technology Reforms funded by the US Federal Government ARRA programs for Healthcare IT Interoperable mandates. Additional product and solution information is available on the web at www.SoftCareHealthcare.com and www.softcare.com and additional public company information is available on the web at www.openec.com. The Company's common shares trade on the TSX Venture Exchange under the symbol: OCE.

ON BEHALF OF THE BOARD

Martyn A. Armstrong, President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Mr. Martyn A. Armstrong, President & CEO of the Company.

This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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