FOR IMMEDIATE RELEASE

Medsphere Appoints Michael J. Doyle as New Chief Executive Officer

Seasoned Healthcare IT Executive Takes the Helm at Open Source EHR Leader

ALISO VIEJO, California, Oct. 16, 2007 - Medsphere Systems Corporation, the leading provider of professional open source-based electronic health record (EHR) systems and services, today announced that Michael J. Doyle has joined the company as President and Chief Executive Officer. The experienced healthcare IT executive succeeds Dr. Kenneth W. Kizer, Medsphere CEO since December 2005, who will remain with the company as Chairman, a position he has held since the company was founded in February 2002.

Doyle has more than 20 years of experience with healthcare and information technology, including experience in growing a young company, evaluating mergers and acquisitions, and managing an initial public offering (IPO). He previously served as President and CEO of Advantedge Healthcare Solutions, a New York-based Software as a Service (SaaS) outsourced physician-billing company backed by private equity investors. From 2000 to 2004, he served as Chairman and CEO of Salesnet, one of three pioneering global enterprise software providers that established the SaaS customer relationship market.

Earlier in his career, Doyle founded and served as CEO of The Standish Care Company, a pioneer in the assisted living movement in the U.S. There he led a successful 1992 IPO that was the first in the industry.

"This is a crucial period in the development of Medsphere, and the board has every confidence that Mike understands both the challenges we face and the goals we can attain," said Larry Augustin, a Medsphere board member and key participant in the CEO search. "That blend of realism and vision convinced us that he could lead Medsphere in the next stage of development."

"What attracted me to Medsphere was the opportunity to revolutionize healthcare IT using an open source platform," Doyle said. "Adapting the VistA platform to create OpenVista allows the nation's community and teaching hospitals to possess an affordable, world-class, proven clinical information system that eliminates paper records, improves patient outcomes, and allows clinicians to treat patients in a more holistic and informed manner.

"Equally important, OpenVista allows hospitals and clinics to escape vendor lock and choose IT vendors that deliver value to the institution. There is no doubt in my mind that Medsphere will reduce the cost of healthcare in the U.S. while improving the quality of care and reducing medical errors. Medsphere will shortly be the open source, source for healthcare IT."

Medsphere has already achieved significant milestones in establishing the OpenVista platform as the standard for commercial open source-based EHR platforms. Twenty-two months after assuming the CEO position, Kizer leaves this role with the company having successfully completed several installations of OpenVista with several more in progress. Medsphere also has established development goals and key internal processes, a robust sales pipeline, expanding visibility, and a growing reputation for enhancing the healthcare IT environment.

"I was pleased to step into the management of the company at a critical time and to have navigated it through a difficult period. Mike's enthusiastic support for open source and his particular experience growing companies are what Medsphere needs now," Kizer said. "Medsphere is in a solid and stable position right now, and the kinds of challenges we will next encounter are those that Mike has dealt with previously. I am highly confident he will be successful.

"I am as enthusiastic about OpenVista and open source as I've ever been," Kizer added, "and as Chairman I have the opportunity to continue my association with a company and philosophy that I believe will profoundly change the way medicine is practiced in the twenty-first century. Mike shares that vision and the conviction that OpenVista will be the primary standard-bearer in open source healthcare IT."

About Medsphere and OpenVista

As a disruptive force in healthcare information technology, Medsphere is revolutionizing the industry by delivering commercially supported Open Source software based on the U.S. Department of Veterans Affairs' proven VistA EHR. The product of 20-plus years of development and more than $8 billion invested, VistA enabled the transformation of the VA into the nation's most efficient and clinically effective healthcare organization. Currently VistA contains roughly 2.1 billion clinical documents, 2.76 billion orders, and 1.51 billion images. As the commercialized version of VistA, Medsphere's OpenVista is a portfolio of products and professional services for hospitals, clinics and integrated delivery networks. OpenVista is currently used by over 20,000 individuals, including 2,500 physicians and contains hundreds of thousands of medical records. Medsphere addresses healthcare's capital constraints through an innovative business model:

A unique subscription-based pricing model minimizes upfront costs.
The Healthcare Open Source Ecosystem and Medsphere.org portal coordinate a unique grassroots community of customers/subscribers, partners and developers driving OpenVista innovation and providing a parallel development and support structure.
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 EPIC Ventures (formerly the Wasatch Venture Fund). Medsphere clients include Midland Memorial Hospital, Midland, Texas; West Virginia Department of Health and Human Resources (WV DHHR); Memorial Hospital of Sweetwater County, Rock Springs, Wyoming; Lutheran Medical Center, Brooklyn, New York; and the federal government's Indian Health Service. For more information, visit http://www.medsphere.com and http://www.medsphere.org.

Contacts

Corporate Rick Jung Chief Operating Officer Medsphere Systems Corporation (760) 692-3742 (office) rick.jung@medsphere.com	Media Lily Eng or Thea Lavin Schwartz Communications for Medsphere (415) 512-0770 (office) medsphere@schwartz-pr.com
General Inquiries info@medsphere.com