AuthentiDate Holding Corporation -- AHC -- Announces Formation of WebCMN, Inc.; Joint venture to bring AuthentiDate technology to the Home Medical Equipment Industry.

Business Editors, High-Tech/Medical Writers

SCHENECTADY, N.Y.--(BUSINESS WIRE)--April 3, 2001

AuthentiDate Holding Corporation (Nasdaq:ADAT) today announced the formation of WebCMN, Inc.

The newly formed corporation is co-founded by Jeffrey Frankel, Bradley Pivar, Jack Pivar and AHC. AHC will provide initial seed financing and will own the majority of the stock. When the financial and operational structure of WebCMN becomes finalized, AHC may decide to provide additional capital or seek to bring in additional outside financing.

AHC intends to develop a service integrated with existing Authentidate technology to allow users to accurately and efficiently process Certificates of Medical Necessity. A Certificate of Medical Necessity is required to be submitted by suppliers in order to obtain Government reimbursement for medical devices.

"The problem in the Home Medical Equipment Industry is collections," stated John T. Botti, Chairman and CEO of AHC and acting chairman of WebCMN. "Because of the difficult paper trail required by the government, it is taking medical equipment supply companies as much as 120 days to get paid. With the WebCMN technology, this period can be dramatically reduced."

"Once a supplier provides a Medicare patient with medical equipment (a wheelchair, hospital bed, or oxygen, for example), he must arrange for the completion of a Certificate of Medical Necessity (CMN)," stated Brad Pivar. "This is a unique document in that the supplier can only fill out specific portions of the form. The supplier must then mail the form to the physician that prescribed the equipment. The physician then answers a series of questions, adds any necessary information, signs the CMN, and sends it back to the supplier. If the CMN has been completed correctly, the supplier can submit a claim for payment to Medicare. This process should take days, not months."

"The problem is that much of the time, the CMN is incomplete," added Jeffrey Frankel. "Since the supplier cannot alter the CMN, there is no choice but to begin the process all over again. In the end, some forms go back and forth 5 or 6 times. This has stretched the average accounts receivable to over 100 days. We believe the WebCMN system coupled with the Authentidate technology is the solution to this problem. And the inclusion of the Authentidate technology guarantees the integrity of the document."

"There is a large opportunity," stated John Botti, "to participate in over 40 million CMN's created every year, and we believe suppliers will accept a product that complies with regulatory requirements and reduces the time of payment. We believe the product WebCMN will develop will satisfy these criteria."

About AuthentiDate Holding Corp.

AuthentiDate Holding Corp. (Nasdaq:ADAT) was formerly known as Bitwise Designs, Inc. In addition to WebCMN, AHC is the parent company of three subsidiaries; AuthentiDate(TM) Inc., DocStar and DJS Marketing Group/Computer Professionals International. AuthentiDate, Inc. has received patent-pending status for its innovative technology that can verify the authenticity of digital data with virtual certainty. DocSTAR is a complete, turnkey solution for storing and retrieving paper files electronically. DJS Marketing Group/Computer Professionals International performs computer integration services and sells computer products.

This press release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of The Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of The Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, The Company's ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in The Company's reports filed with The Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by The Company or any other person that the objectives and plans of The Company will be achieved.