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APACHE Announces Exclusive Partnering Agreement with World's Leading Heart Research Group.

Business Editors/Health and Technology Writers

McLEAN, Va.--(BW HealthWire)--May 16, 2000

APACHE Medical Systems, Inc. (Nasdaq:AMSI), signed an exclusive multiyear partnering agreement with the Northern New England Cardiovascular Disease Study Group (NNE). Under this collaborative agreement, APACHE holds exclusive worldwide commercial license to NNE's cardiovascular databases and risk models.

APACHE is a leading provider of clinical decision support systems and consulting services. The NNE is one of the world's leading voluntary cardiovascular research collaboratives.

The company also announced commercial release of its new APACHE(R) CV Risk Predictor(TM) (CVRP) developed in partnership with the NNE. Considered to be the first of its kind in the world, this cardiovascular (CV) clinical decision support system represents the first in the APACHE 2000 Internet product suite. The CVRP helps heart-care specialists objectively measure the risk of death and serious complications for patients in need of angioplasty, bypass surgery or valve replacement surgery. The software application allows heart specialists to assess potential outcomes before a decision is made to perform these invasive heart procedures.

"Our partnership with APACHE is built upon a mutual commitment to improving the practice of medicine through the use of science and technology," explained NNE Research Director Gerald T. O'Connor, PhD, DSc, an internationally known cardiovascular epidemiologist. "With the help of APACHE 2000, NNE can now better leverage its research and databases to help reduce the risk of death and complications for heart patients worldwide."

"This is an ongoing professional collaborative relationship that enables our two organizations to provide tangible benefits to physicians in the form of decision support content over the Internet . . . thereby improving the quality of cardiovascular treatment and care," added APACHE CEO Peter Gladkin.

"The CVRP represents the first in a series of APACHE's Internet-based software solutions designed to be used by physicians who desire 'expert-based' quantitative clinical information before making vital clinical decisions that impact quality of care. Under the APACHE 2000 umbrella, these products combine APACHE `Gold Standard' decision support expertise and knowledge gained from collaborative working partnerships with prestigious expert scientific groups like NNE that have a long-standing commitment to capturing accurate quality data."

About the APACHE(R) CV Risk Predictor(TM) (CVRP)

APACHE created the CVRP based on risk-assessment methodologies and the cardiovascular registry (database) developed by NNE under O'Connor's guidance. APACHE holds the exclusive commercial license to these original scientific methodologies and databases.

"To the best of my knowledge, this is the first time cardiologists, cardiac surgeons, cardiovascular nurse specialists, and others delivering heart care, can now access real-time cardiovascular clinical decision support information via the Internet," explained O'Connor, a professor of medicine, and of community and family medicine at Dartmouth Medical School in Hanover, N.H., and associate director of Dartmouth's Center for the Evaluative Clinical Sciences.

"Physicians can now use data-based software tools to objectively measure individual patient risk of adverse outcome associated with commonly performed cardiovascular procedures. And patients can now review their personal risk profile with their heart-care team before they consent to these procedures. Such evidence-based decision support has the potential to transform the way medicine is being practiced. We are pleased that information gleaned from our research collaborative can now be used by our colleagues around the world to assist them in making more informed heart-care decisions."

The CVRP automatically calculates the risks associated with several common cardiac surgery procedures. Physicians can use the system to predict the precise statistical risk of death and complications--and probability of five-year survival--for individual patients before they undergo (percutaneous transluminal coronary) angioplasty procedures (PTCA) or (coronary artery) bypass surgery (CABG). The CVRP also includes mortality (risk of death) models for aortic or mitral valve replacement surgery.

APACHE 2000 Project Director Anne K. McCoy, RN, MS, explained other aspects that make this collaborative effort unique: "The NNE databases are nationally recognized as one of the very few that capture detailed patient-level clinical data, and incorporate rigorous techniques to monitor data quality and validity. The APACHE/NNE solution is unique in offering a simple, easy-to-use web-based product that reliably provides clinicians instant access to accurate prospective information from a desktop or laptop PC . . . whether they are at the hospital, in a private office, at home or out of town."

About NNE

A voluntary, independent regional research consortium of clinicians, research scientists and administrators, the NNE was formed to foster continuous improvement in the quality of care for northern New England patients with cardiovascular disease. Members pool process and outcome data; data is fed back to participating clinicians on a timely basis.

The research collaborative has compiled a clinical database that has tracked outcomes for all cardiovascular surgical and interventional procedures performed at participating institutions [Beth Israel Deaconess Medical Center (Boston, MA), Dartmouth-Hitchcock Medical Center (Lebanon, NH), Catholic Medical Center (Manchester, NH), Fletcher-Allen Health Care (Burlington, VT), Maine Medical Center (Portland, ME) and Eastern Maine Medical Center (Bangor, ME)] since 1987. This database includes registries for CABG procedures, heart-valve replacement surgery and catheter-based interventions such as angioplasty. Researchers have used this database to track regional outcomes, and develop and implement risk-adjusted models.

NNE data has been used in dozens of peer-reviewed medical journal articles. These include the development of multivariable methods for risk calculation, understanding of the reasons for variability in outcome in cardiac surgery and the use of quality improvement techniques in cardiology and cardiac surgery.

APACHE 2000 Technology

Data General architecture (hardware platforms) ensures global reach and "on-line" reliability for all APACHE 2000 software applications.

About APACHE

APACHE Medical Systems, Inc.--a recognized leader in clinical decision support/outcomes management systems and consulting services for the care of high-risk patients--provides products and services that enable health systems, hospitals and providers to apply an evidence-based approach to achieve clinical performance excellence, reduce cost and compete effectively under managed care. APACHE is helping providers better manage the clinical, financial and patient outcomes of high-risk, high-cost patients in critical, acute, cardiovascular and HIV/AIDS care.

One of the most experienced healthcare consultancies in the U.S., APACHE/National Health Advisors is nationally known for its work in the field of integrated delivery system development. Its comprehensive suite of services includes strategic planning, clinical service line management, service reconfiguration, clinical integration and physician partnering, as well as evidence-based care process redesign and clinical performance improvement services.

APACHE's Health Outcomes Research division provides advanced clinical data collection tools, registry management and analytic services for federal government research, as well as in support of clinical trial design and product-effectiveness evaluations for the pharmaceutical and medical device industries.

APACHE (www.apache-msi.com) is headquartered in Northern Virginia.

APACHE(R) is a registered trademark, and the APACHE CV Risk Predictor,(TM) a trademark, of APACHE Medical Systems, Inc.

Statements in this press release that are not historical facts are forward-looking statements under provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that the following important factors, among others, in some cases have affected, and in the future could affect, the Company's actual results and could cause its actual results in fiscal 1999 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company.

Important factors that could cause actual results to differ materially include but are not limited to the Company's having sufficient sales and timely collections to meet cash requirements and achieve profitability; ability to attract and retain key employees; success of its strategy to concentrate its product offerings on high-risk, high-cost patients; ability to timely develop new products and enhance existing products; ability to compete in the competitive and rapidly evolving healthcare information technology industry; ability to correctly estimate and manage its Year 2000 costs and liabilities; success of its marketing and consulting efforts and ability to effectively utilize its direct sales force; ability to protect proprietary information and to obtain necessary licenses on commercially reasonable terms; and ability to comply with and adapt products and services to potential regulatory changes.
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Date:May 16, 2000
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