FOR IMMEDIATE RELEASE

Medsphere Short-Listed as a Finalist for the "Red Herring 100 North America" Awards

The most-promising technology ventures will be honored at the Red Herring Spring 2006 CEO Summit.


ALISO VIEJO, California, Apr. 5, 2006 - Red Herring announced that Medsphere has been short-listed as one of the top 200 contenders for its annual "Red Herring 100 North America" list. Well over 1,000 privately held technology companies submitted to this year's edition of the prestigious award, giving evidence to the invigorated innovative and entrepreneurial strength of the technology ecosystem. As one of the finalists, Kenneth W. Kizer, MD, MPH and CEO of Medsphere or a designee, will join the exclusive Red Herring Spring 2006 CEO summit, May 23-25 in Monterey, California, where the technology industry's most-innovative CEOs, venture financiers, and corporate strategists will gather to meet this next wave of disruptive companies.

High-quality companies
"We can see the resurgence of the tech sector reflected in the quantity and variety of excellent companies that we had to chose from in putting our list together," said Joel Dreyfuss, Editor-in-Chief of Red Herring. "It was difficult to choose the 200 finalists and we are very happy with the stellar quality of the companies on this short-list."

Medsphere offers an electronic health record (EHR) to healthcare providers under the brand name of OpenVista®. The company's IT applications help to enhance patient safety, improve clinical efficiency, and increase healthcare quality. Leveraging open source technology and a robust professional service delivery organization, Medsphere delivers the superior performance of the OpenVista EHR to a growing list of clients that includes Midland Memorial Hospital (Texas) and Community Health Network of West Virginia.

"Medsphere is excited to be included as one of the Red Herring North America 100 finalists," said Kizer. "We are confident that the convergence of open source and healthcare IT will spark a fundamental transformation within healthcare delivery via the rapid dissemination of EHR technology. Medsphere is proud to be included among the next generation of IT innovators and will continue to dedicate itself to technological innovation while providing our clients with world-class client services."

More than just buzz
The "Red Herring 100 North America" award is an important part of Red Herring's tradition of recognizing new and innovative technology firms and their entrepreneurial founders. Medsphere and the other nominees were rigidly evaluated on both quantitative and qualitative criteria such as financial performance, technology innovation, quality of management, execution of strategy, and integration into their ecosystem. This unique assessment of potential complemented by a review of the actual track record and standing of a company allows Red Herring to see past the "buzz" and make the list an invaluable instrument for discovering and advocating the greatest business opportunities in the industry.

Bringing together the best
As part of this tradition to honor innovation and entrepreneurship in the business of technology, Red Herring will again host "Red Herring Spring," a two day invitation-only summit for the CEOs and founders of the Red Herring 100 winners and finalists in Monterey, California. The summit's C-level attendees will convene under the theme "The Pursuit of Disruption" to discuss major trends and opportunities and to explore partnerships, alliances, investments, and M&A activities. Further information regarding the event and how to register is available at http://www.herringevents.com/rhspring06.

About Red Herring
Red Herring is a sophisticated insider's guide to the business of technology, featuring unparalleled insights on the emerging technologies driving the economy, from the Internet to wireless communications and digital entertainment. Red Herring reports on how innovation and entrepreneurship are transforming business and how the business of technology is transforming the world, providing readers with a deep understanding of venture capital and capital markets. Recognized as an essential resource in today's fast- changing business world, Red Herring gets the right answers before anyone else even thinks to ask the questions. More information on Red Herring is available on the Internet at http://www.redherring.com.


About Medsphere Systems Corporation

As the Open Source source for healthcare, Medsphere is revolutionizing the industry by delivering commercially supported software based on the U.S. Department of Veterans Affairs' proven VistA electronic health record (EHR). Medsphere offers healthcare an economically sustainable and comprehensive solution in OpenVista®, a portfolio of products and professional services for hospitals, clinics, and integrated delivery networks. The company addresses the capital constraints of the healthcare industry through an innovative subscription-based pricing model. Medsphere's experienced team of healthcare technology professionals and unique suite of implementation tools deliver a fluid transition to a comprehensive healthcare information technology solution. Founded in 2002, Medsphere is backed financially by Azure Capital Partners, Thomas Weisel Venture Partners, and the Wasatch Venture Fund. For more information, visit www.medsphere.com.


Contacts


Corporate:
Rick Jung
Chief Operating Officer
Medsphere Systems Corporation
(949) 297-8182 office
rick.jung@medsphere.com
  Media:
Marisa Borgasano
Schwartz Communications
(415) 512-0770 (office)
medsphere@schwartz-pr.com

General Inquiries

info@medsphere.com