Austin Clinic Becomes First Medical Practice to Sign Up for MedicaLogic/Medscape's Full Range of Products.

Business & Health/Medical Writers

HILLSBORO, Ore. & AUSTIN, Texas--(BW HealthWire)--July 25, 2000

Comprising EMRs, Online Information and Web-Based Transcription

Services

Five-Year Contract is Significant Step in MedicaLogic/Medscape's

Strategic Drive to Deliver Combined Services to Physicians and

Patients at Point of Care

MedicaLogic/Medscape, Inc. (NASDAQ:MDLI) today announced that The Austin Diagnostic Clinic (ADC) has become the first organization to sign up for its full range of products - electronic medical records systems (EMRs), authoritative online medical information and Web-based medical transcription services - since MedicaLogic/Medscape was created in May from the combination of MedicaLogic, Inc., Medscape, Inc. and Total eMed, Inc.

The five-year contract is consistent with MedicaLogic/Medscape's strategic drive to combine its electronic medical records systems, quality information, transcription and other services - using the Internet and wireless devices - for physicians and patients at the point of care where the most important health decisions are made. ADC has approximately 130 physicians directing 25 medical specialties from 20 locations in Austin and Central Texas.

As a result of this newly designed agreement encompassing all of MedicaLogic/Medscape's services, ADC will:

-- Subscribe to use MedicaLogic/Medscape's electronic medical

records systems and implement them during the third quarter of

this year;

-- Switch all of its medical transcription services from other

vendors to MedicaLogic/ Medscape's Web-based services

providing transcriptions of physicians' dictated notes (for

later insertion into the electronic medical records) much more

rapidly than traditional paper-based services;

-- Provide physicians and patients with targeted, specialized

content from the company's renowned information sites,

medscape.com, www.medscape.com, for professionals and

cbs.healthwatch.com, http://cbs.healthwatch.com, for

consumers; and

-- Give ADC patients secured access to their online medical

records through the MedicaLogic/ Medscape consumer site,

AboutMyHealth, https://aboutmyhealth.net/aboutmyhealth.

"Our relationship with MedicaLogic/Medscape gives us the infrastructure to continue our leadership in providing improved healthcare to the patients we treat," said ADC Chairman of the Board Kenneth Mitchell, MD. "We strive to provide excellence in healthcare through a wide range of services in multiple locations as a leading, quality healthcare delivery system that is both cost-effective and accessible. MedicaLogic/Medscape's broad, growing range of technology and information products is a great strategic fit to help us with those goals."

"After a very careful study of the marketplace over several years, we concluded that MedicaLogic/Medscape is not only a great partner, but the leader in providing solutions for our practice," said ADC's Chief Information Officer, Ron Brannan. "MedicaLogic/Medscape's experience in implementing ambulatory medical records is unsurpassed in the industry."

"Our five-year agreement with The Austin Diagnostic Clinic validates the strategy behind our recent merger and our vision to bring to physicians and patients a host of combined services at the point of care," said MedicaLogic/Medscape Co-Chief Executive David Moffenbeier. "We believe this contract with ADC, a leader in Central Texas, will be the first of a series of agreements combining all of the solutions within our product offerings, as well as a new financial arrangement that is more attractive to our customers."

ABOUT MEDICALOGIC/MEDSCAPE, INC.

MedicaLogic/Medscape, Inc. (NASDAQ: MDLI), focuses on the timely delivery of clinical data and up-to-date knowledge to healthcare professionals and consumers, saving time, money, and lives. The company integrates the broad reach of its authoritative Web sites - medscape.com and cbs.healthwatch.com -- with the depth of its clinical applications for online medical records. These online medical records are the digital hub for Internet and wireless connection of healthcare professionals, consumers, and other healthcare stakeholders. As of June 30, 2000, more than 13 million patients' records had been created using these applications. As of that date, medscape.com and cbs.healthwatch.com had more than 2.4 million registered members worldwide, including over 440,000 registered as physicians, 1.2 million as allied health professionals and more than 850,000 as consumers. For company information, please visit information.medicalogic.com.

MedicaLogic, Medscape, and Logician are registered trademarks of MedicaLogic/Medscape, Inc. in the United States. AboutMyHealth and other MedicaLogic/Medscape logos, product names, and service names are also trademarks of MedicaLogic/Medscape, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners. CBS and the CBS eye device are registered trademarks of CBS Broadcasting, Inc.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on MedicaLogic/Medscape's current expectations or beliefs as well as on a number of assumptions about future events, and are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many outside MedicaLogic/Medscape, Inc.'s control. Further information on potential factors that could affect the company's financial results is included in the company's filings with the U.S. Securities and Exchange Commission.

ABOUT THE AUSTIN DIAGNOSTIC CLINIC

The Austin Diagnostic Clinic (ADC), with more than 130 physicians representing 25 medical specialties in 20 offices, was formed by physicians in 1952 to enhance medical care through interaction and cooperation in Austin and surrounding regions of Central Texas. For generations, the doctors and staff of ADC have been committed to providing coordinated, state-of-the-art medical care. ADC was the first clinic in Austin to have available in-house diagnostic radiology and a clinical laboratory. It was the first to offer nuclear scanning, outpatient stress testing, echocardiography, and 24-hour cardiac monitoring. The area's first intensive care unit, defibrillator and heart catheter laboratory were established by ADC doctors. The clinic also brought to Austin the first specialty-trained invasive cardiologist, nephrologist, endocrinologist, rheumatologist and pulmonary disease specialists. For more information about ADC, please visit their Web site at www.adclinic.com.