ADAC HealthCare Information Systems Signs Contract With Ascension Health for Envoi; ADAC To Provide Image and Information Management Solutions.

Business & Health/Medical Editors

MILPITAS, Calif.--(BW HealthWire)--Jan. 7, 2000

ADAC HealthCare Information Systems (HCIS), a division of ADAC Laboratories (Nasdaq: ADAC), has announced an agreement with Ascension Health systems to provide ADAC's Envoi(TM) Image and Information Management Solution as an approved Radiology Information System alternative for Ascension's hospital system members. Ascension Health, the largest non-for-profit health system in the United States excluding the government sector, owns or is affiliated with 73 hospitals in 15 states and the District of Colombia.

St. Mary's Hospital in Saginaw, MI will be one of the first sites to implement the Envoi Information and Image Management Solution. Ray Hock, Administrative Director of Radiology for St. Mary's Hospital in Saginaw, MI stated, "We are extremely pleased to be one of the first Ascension hospitals to begin implementation of ADAC's Envoi. After evaluating all the major systems on the market, we feel ADAC is clearly the market leader because of Envoi's open clinical architecture and client server software. These features will enable us to use web browser technology in providing access to images and reports for patient care units and physicians, both inside and outside the hospital. In addition, Envoi's integrated voice recognition and digital dictation will significantly reduce report turnaround time."

St. Joseph Hospital and Health Center in Kokomo, IN will be another premier site that will implement Envoi's QuadRIS(TM). Ann Cole, Director of Radiology at St. Joseph Hospital and Health Center stated, "We are excited about the implementation of our new Radiology Information System. We feel that the success and foundation of our future PACS environment lies with the proper choice of a RIS. Our plan is to develop an enterprise-wide solution for clinical information. ADAC's industry standard technology, coupled with its open architecture, will help us to accomplish this goal. Furthermore, QuadRIS' robust management reporting will allow us to closely monitor departmental performance and make timely adjustments when necessary. Various other benefits include a decrease in report turnaround time through the use of voice recognition and digital dictation, better film tracking by use of bar code technology, and maximization of revenue through accurate order entry and charge tracking."

Envoi is ADAC's integrated Image and Information Management Solution, which includes QuadRIS, Physician Desktop(TM), Intranet Image Server, DICOM Acquisition, Diagnostic & Clinical review workstations, and recently introduced, the integrated Workflow Manager. Envoi's open clinical architecture combines Oracle's(TM) relational database technology with Microsoft Windows(TM) client/server software to deliver radiology information not just within the radiology department, but throughout the healthcare delivery network.

Physician Desktop, with integrated voice recognition and digital dictation, enables radiologists to create reports without an external dictation system, review patient examination history, and verify reports from a single application.

Building on the power of the Web, the Envoi Intranet Image Server delivers an integrated image and information management solution that provides real-time access to images and reports for radiologists, emergency room, intensive care, and cardiac care unit physicians. Industry standards such as DICOM and Internet protocols are used to cost- effectively manage the need to view images and reports on an Intranet or Internet connection throughout the enterprise.

Larry Ranahan, Strategic Accounts Manager for ADAC Healthcare Information Systems, stated, "We are extremely pleased that these two Ascension Health hospitals selected Envoi not only as their dedicated radiology information system, but as the foundation of their overall PACS and image management strategy. We see the benefits of Envoi extending beyond the walls of Radiology into the entire healthcare delivery system of each hospital. Ascension Health's patients and physicians will be among the most important beneficiaries from Envoi's ability to allow the radiology departments to deliver timely, comprehensive, and easily accessible diagnostic imaging services. We look forward to building a successful and growing relationship with Ascension Health's entire family of hospitals and clinicians."

About Ascension Health

Ascension Health, with corporate offices in St. Louis, is a health ministry sponsored by four provinces of the Daughters of Charity and the Sisters of St. Joseph of Nazareth, MI. This ministry brings together two strong Catholic healthcare organizations formerly known as Daughters of Charity National Health System and Sisters of St. Joseph Health System. This co-sponsored organization is committed to healing and dedicated to service especially to the poor, that reflects the spiritual core of its heritages and traditions.

Ascension Health's ministry focuses on spiritually centered, holistic care that sustains and improves the health of individuals and communities. Over 87,000 talented men and women assist in the pursuit of this mission. Central to Ascension Health are over 50 local health organizations that deliver compassionate, value-based care in 15 states and the District of Columbia. Together, they are strong advocates for improved access to quality healthcare and service especially to those who are most in need.

About ADAC

ADAC Laboratories is the world market-share leader in nuclear medicine and radiation therapy planning systems and a technology leader in providing clinical workflow solutions, management information and knowledge systems to healthcare organizations in North America. ADAC is headquartered in Milpitas, CA with its HealthCare Information Systems Division in Houston, TX. Additional information about ADAC can be found on its web site at www.adaclabs.com.

This news release contains forward-looking statements, including statements concerning the Company's product leadership and the potential market for the Company's products. Further information on these and other factors is described in the "Business Considerations" section of the Company's most recent Form 10-K for fiscal year 1999. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.