FOR IMMEDIATE RELEASE

Medsphere Adds VueCentric Graphical Framework to Growing Line of Healthcare Open Source Tools

Versatile Interface and VistA-based System Garner Recognition for Medsphere Partner Cherokee Indian Hospital

CARLSBAD, California - October 6, 2008 - Medsphere Systems Corporation, the leading provider of Open Source healthcare IT solutions, today introduced VueCentric^®, a graphical user interface (GUI) framework used in hundreds of healthcare facilities nationwide that integrates patient information from disparate applications and delivers a user-friendly presentation of clinical data to healthcare providers.

VueCentric expands Medsphere's portfolio of Open Source healthcare IT solutions, which includes the OpenVista^® electronic health record (EHR) system, the company's flagship product. A commercialized version of the U.S. Department of Veterans Affairs' comprehensive VistA solution, OpenVista is now in use at healthcare facilities and care delivery organizations across the country.

For the U.S. government's Indian Health Service (IHS) healthcare delivery network, VueCentric serves as the GUI for the Resource and Patient Management System (RPMS), a comprehensive and fully integrated solution managing clinical, business practice and administrative information. The combined effectiveness of VueCentric and RPMS recently enabled Cherokee Indian Hospital, a tribal facility that uses RPMS, to be recognized with the 2008 Healthcare Information and Management Systems Society (HIMSS) Davies Award in Public Health. The Davies Award recognizes excellence in the implementation and use of health information technology. Medsphere provides ongoing support and development for VueCentric at this and other tribal and IHS facilities.

"Cherokee Indian Hospital has always been an early adopter of technology," said Howard Hays, RPMS program manager at the IHS Office of Information Technology. "VueCentric has been an important tool for us, enabling providers, nurses, and other staff to seamlessly access, view and enter critical patient information via a familiar and comfortable interface. The result is improved clinical and operational decision making and enhanced patient care that has helped Cherokee Indian Hospital uphold its tradition of excellence in healthcare."

As is true with components of OpenVista, the roots of VueCentric are found in the VA's Computerized Patient Record System (CPRS) GUI. VueCentric is designed, however, to be easily deployed and incorporates functionality from applications created in different environments. Built as a technical infrastructure and not an end-user application, VueCentric integrates and displays components of both commercial off-the-shelf (COTS) applications and those from VistA/RPMS. The result is an easy-to-use, intuitive Windows-based desktop providing ease of access to RPMS and VistA systems.

VueCentric also delivers access to key features for healthcare providers, including patient education, clinical documentation, medication management, patient scheduling and throughput, and a complete EHR for informed decision making. The solution boasts several key capabilities:

Accessibility and Intuitiveness: Clinical functions are visually and operationally integrated to be accessible and intuitive for users comfortable with Windows programs.
Flexibility: VueCentric effectively incorporates functionality from applications created in different environments and technologies.
Easy Customization: The user interface permits each facility to offer a range of tabs and components that accommodate diverse work flows and requirements for specific patient information.
Scalability: VueCentric architecture has no inherent limitations of scale.
Efficiency: All data generated as part of a patient record is stored in the RPMS database and does not require a separate server to run.

"With the addition of VueCentric, Medsphere is providing another essential tool for the healthcare community," said Michael J. Doyle, CEO of Medsphere. "As demonstrated by Cherokee Indian Hospital, VueCentric helps staff and physicians get a clearer picture of patients' clinical records. That, in turn, enables healthcare providers to practice better care. We are excited to provide continued leadership in the evolution of healthcare IT."

Update: On 10/6 Medsphere released an announcement intended to highlight the success of the VueCentric framework at a particular Indian Health Service (IHS) facility and how that facility won a community healthcare Davies award for their use of the Resource Patient Management System (RPMS) and the VueCentric EHR.

The wording of the release implied that the VueCentric framework itself had been released under an open source license (although nothing specific was stated). This was not the intent of the release and Medsphere apologizes for the miscommunication or any misunderstanding it may have caused.

At this time, we can say that Medsphere is working towards the objective of open sourcing the VueCentric framework. Because VueCentric was developed as a proprietary software package, it includes a number of third-party components and libraries that were licensed for development use; that license does not allow us to release the source code. In order to safely release this package to the community, we must first systematically catalog and remove the non-open components. Medsphere expects this process to be completed shortly.

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