Bloodhound Software Solidifies Management Team With Two Top-Level Appointments.

Business, Healthcare, Insurance, and Technology Editors

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Oct. 23, 2000

Bloodhound Software, Inc., an application service provider focused on claims overpayment protection services for health care payors, has announced two appointments to its senior executive team. The addition of William F. Chastain, Jr., as president and chief executive officer, and Robert McKenzie as chief financial officer, provide the growing company with strong, seasoned leadership in key management positions.

To manage the company's growth and strategic direction, Bloodhound has brought on Chastain, a 24-year veteran of the health care industry, as president and CEO, also naming him to the company's seven-member board of directors. Previously, Chastain spent six years with FCCI Mutual Insurance Co. in strategic planning and marketing capacities that culminated in the position of executive vice president for market development. Before that, at PMSI Holding Co., Chastain ascended to the post of president of the company's technology services group, where he directed the operations of two of the holding company's subsidiaries. Earlier, as COO of PMSI, he led the company from $9 million to $108 million in sales, successfully executed its IPO, and oversaw four related acquisitions and two internal enterprise start-ups.

"Bill Chastain has an outstanding record in the health care insurance industry, and we're fortunate to have such a leader and innovator anchoring our executive team," said Joseph Carsanaro, Bloodhound's founder and former CEO, who becomes the company's chief operating officer. "Bill is widely respected for his work in product and market development, and his skills in management will help keep the entire Bloodhound staff focused on the pursuit of our organizational goals as we continue to grow." McKenzie brings over 16 years of senior-level experience in accounting, budgeting, treasury, finance, internal controls, and investor relations to the post of CFO at Bloodhound, where he is responsible for all aspects of Bloodhound's long-term and day-to-day financial operations. Most recently, as CFO of Teksell.com, Inc., he procured venture funding, co-authored the company's business plan, implemented new banking relationships and insurance programs, designed a cash forecasting, management and investment system, and implemented an accounting system, budgets and a range of financial and human resources controls, polices and procedures.

"Growing companies, in particular, require financial vision, fiscal responsibility, and business acumen," said Chastain. "In Robert, we have added an experienced decision-maker who has driven virtually every aspect of a company's financial and business operations. His appointment will enable us to have the kind of financial planning and controls that are critical to a high growth company aspiring to the national marketplace."

About Bloodhound Software, Inc.

Founded in 1997, Bloodhound Software is an application service provider specializing in claims overpayment protection services and advanced data modeling. Bloodhound's flagship product, ClaimsGuard(SM) Overpayment Protection Service, safeguards health insurers, MCOs, IPAs and other at-risk health care organizations from claims overpayment due to duplicate claims and other errors. The company, which anticipates the successful completion of its Series C financing next quarter, is headquartered in Research Triangle Park, N.C., with an office in Perth, Australia. Visit Bloodhound Software on the Internet at www.bhsoftware.com.

ClaimsGuard is a Service Mark of Bloodhound Software, Inc.