Axolotl Corporation and MedCap Properties Announce Strategic Agreement.

Business Editors & Health/Medical Writers

TAMPA, Fla. & NASHVILLE, Tenn.--(BW HealthWire)--July 11, 2001

Axolotl to Make Available High-Speed Internet Connectivity and

Physician Practice Applications for MedCap's 1,600 Physician Offices

Axolotl Corporation, a leading provider of Web-based applications and high-speed internet solutions, and MedCap Properties, a leading medical building owner and management company, announced today that Axolotl will offer high-speed internet solutions to tenants in MedCap's portfolio of medical buildings.

Under the terms of the agreement Axolotl has been named a preferred vendor of high-speed, broadband Internet connectivity to the 1,600 physician practices located in over 100 medical office buildings owned and managed by MedCap Properties. Axolotl will be providing broadband connectivity using a "wireless/terrestrial" hybrid network, combining advanced 2-way satellite technology and terrestrial networks from the nation's largest DSL provider. This secure, broadband network may then be used to deliver Axolotl's Elysium suite of integrated Web-based clinical and administrative applications.

"We are very pleased to offer MedCap's physician tenants with secure, broadband Internet connectivity. This high-speed Internet connection will give physicians and their staffs access to our Elysium suite of clinical and administrative applications. From web-based transcriptions and online delivery of lab results to patient eligibility and referrals, these applications enable physician's to manage their entire practice through a browser, in an easy to use, secure environment," stated Dennis Gracey, Axolotl's Senior Vice President.

"Axolotl's corporate strategy of meeting the technological needs of the physician office complements MedCap's focus on healthcare real estate ownership and management," said Chuck Elcan, CEO of MedCap Properties. "After reviewing available Internet connectivity solutions, we concluded that Axolotl's unique hybrid satellite/terrestrial solution can help meet the needs of our physician tenants throughout our portfolio. Our relationship with Axolotl provides tenants at each of our buildings with an economical choice that may not currently be available due to DSL geographic limitations or the potentially prohibitive monthly cost associated with other solutions. The availability of `always on' high speed internet connections should help physicians operate the many internet-based software applications available for use in their research and work as well as to manage their practices efficiently."

About MedCap Properties

MedCap Properties is a private real estate company focused on the ownership, management and development of medical office buildings, surgery centers, and other medical real estate. The Company owns and operates 114 medical office buildings comprising nearly 6 million square feet located throughout the country.

About Axolotl Corporation

Axolotl uses advanced communications technology to connect physicians to the entire healthcare continuum. The company provides physicians and their staffs with integrated clinical and administrative applications and patient education programs to streamline workflow, increase efficiency, and improve the quality of care. Thousands of healthcare professionals nationwide use the Elysium suite of integrated Web-based applications to manage clinical and administrative tasks through standard Web browsers, reducing costs and increasing the time available for treating patients. Through a strategic agreement with Gilat, Axolotl has the exclusive right to distribute its two-way broadband satellite in the healthcare market, providing high-speed, always-on Internet access to physician practices everywhere in the USA. Axolotl's AccentHealth Waiting Room Television Network, produced in conjunction with CNN, delivers award-winning patient education material to more than 18 million visitors each month. For more information, visit http://www.axolotl.com.

Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and service offering growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Any forward-looking statements are estimates, reflecting the best judgment of the party making such statements based upon currently available information and involve a number of risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements.