Bluegate's Secure Network Accelerates Memorial Hermann Health Network Providers' Clinical Integration to Enhance Patient Care, Reduce Cost.

HOUSTON -- In the last sentence of the Bluegate Corporation boiler plate, contact number should read: 713-686-1100 (sted 713-682-7400). Contact for Memorial Hermann Health Network Providers should read: Jamie O'Roark, 713-448-6923 (sted David Foley).

The corrected release reads:

BLUEGATE'S SECURE NETWORK ACCELERATES MEMORIAL HERMANN HEALTH NETWORK PROVIDERS' CLINICAL INTEGRATION TO ENHANCE PATIENT CARE, REDUCE COST

Memorial Hermann Health Network Providers (MHHNP) is the first healthcare network in the country that has aggregated a significant number of independent physicians into a standardized medical-grade managed security network, with more than 900 of its member physicians enrolled in the healthcare-focused managed security solution provided by Bluegate Corporation (OTCBB:BGAT). Houston-based MHHNP, one of the nation's larger Independent Physician Associations, began an initiative with Bluegate in January 2004 to manage and extend IT best practices and security to the edge of its healthcare network, protect the integrity of the entire network, and ensure compliance with Health Insurance Portability and Accountability (HIPAA) security requirements.

Today, Bluegate, a Houston-based technology company specializing in secure, scalable Internet services for medical facilities, provides a unique medical-grade managed security network to more than 900 member physicians of MHHNP. The first of its kind, Bluegate's solution is ensuring secure collaboration between healthcare organizations, hospitals, and physicians through increased clinical integration, resulting in higher efficiencies and the enhanced ability to deliver superior healthcare.

Today's physicians work from a variety of sites, including home and other remote locations, using everything from handheld devices to laptop computers that often are not running the most up-to-date software or anti-virus programs. As a direct result, healthcare enterprises and hospitals, such as Memorial Hermann -- and the physicians themselves -- are vulnerable to hackers, security breaches and viruses that can take an organization down in a matter of seconds. While larger medical facilities have the staff and budgets to make strategic IT investments to protect themselves from these disastrous and costly scenarios, oftentimes, this is beyond the in-house IT capabilities of smaller physician practices and medical facilities. Because many physicians have inadequate or non-existent firewalls, their networks are vulnerable to viruses and security attacks and they often rely on local individuals who lack the necessary expertise to properly and continuously monitor threats faced by companies with systems connected to the Internet.

Astonishingly, of the 913 MHHNP physicians that have transitioned to Bluegate, only 81 -- less than 9% - had existing firewalls.

MHHNP recognized that its own success was contingent on the ability to link securely to its diverse membership of physicians through HIPAA-compliant connectivity that is integrated into each physician's unique IT environment. MHHNP worked closely with Bluegate to implement a robust managed security solution that effectively extends the healthcare network from its firewall out to small, remote physician practices, while ensuring best practices for HIPAA compliance, protecting patients' privacy and limiting its own liability.

"We're pleased to be in partnership with Bluegate, breaking new ground in clinical integration and healthcare network security to better serve our member physicians and help improve the quality of patient care delivered by MHHNP physicians," said Scott Fenn, MHHNP CEO. "Bluegate took the burden off MHHNP and our physicians by very efficiently managing the initial demand for approximately 1,000 physicians, home offices, hospitals, and other practice locations. Under complicated circumstances, Bluegate accommodated our physicians' hectic, complex schedules so that patient care was never interrupted or compromised."

"Bluegate is playing a major role in MHHNP's progress toward achieving a clinically integrated system whereby we connect independent physicians into a united network with hospitals and insurers to achieve consistently better clinical results and cost efficiencies resulting in the delivery of superior health care at a cost affordable to insurers and premium payers," Fenn stated.

Bluegate Delivers a Standardized Medical-Grade Virtual Private Network Linking Physicians and Hospitals

Bluegate's MHHNP implementation encompasses a 24/7 managed Cisco security appliance installation for more than 900 physicians, as well as state-of-the-art anti-virus and security software on every desktop that was integrated with new, upgraded or existing broadband connectivity. This integrated system makes practicing medicine easier for participating physician practices and hospitals because they don't have to change their legacy systems or behavior to accommodate new technology.

Bluegate's unique solution integrates risk management compliance with the 2005 HIPAA security requirement, creating a safe, sound VPN over the Internet that is easily monitored and managed 24/7 through Bluegate's single point of contact for medical practice technical support needs. With this VPN in place, Bluegate is helping MHHNP accelerate clinical integration among all parties while keeping IT practices consistent with their existing network infrastructure, protocols, and practices. The system also makes it easy for MHHNP to utilize PhysicianLINK, its secure clinical portal, to roll out innovative, new value-added applications, such as UpToDate, a clinical information resource that would be cost-prohibitive for many physicians to acquire independently, free of charge to member physicians.

"Over the past year, PhysicianLINK usage has grown tremendously with the introduction of PhysicianLINK2005, UpToDate and the Bluegate solution," said Brian Beardmore, MHHNP Manager of Enterprise Physician Initiatives. "The number of unique physicians using the PhysicianLINK portal and the synced applications in it has increased 143% since May 2004."

Beardmore added, "EMR use by MHHNP physicians and their staffs increased by 8% over the past year and is expected to increase rapidly in the next few years. The Bluegate solution enables compatibility between the physicians and hospitals laying the groundwork for physicians to seamlessly pull hospital reports into their EMRs and have all information easily accessible when making patient care diagnoses and decisions."

Results

--More than 900 member physicians have signed up for the MHHNP Bluegate program in the last year.

--Physicians and hospitals have secure, expedited access to patient records from home, clinics, and other remote locations so patients receive more efficient, higher quality care.

--Bluegate has enabled MHHNP to focus content, such as UpToDate to MHHNP's Bluegate-enabled customers.

--Number of unique physicians using the PhysicianLINK portal has grown 143% in the past 12 months since the introduction of Bluegate, UpToDate and PhysicianLINK 2005.

--MHHNP's secure, standardized connection with member physicians means fast, easy deployment of innovative new enterprise applications to physician network.

--Bluegate has accelerated MHHNP's clinical integration process, enabling compatibility of information transfer and communication between hospitals and physicians.

--Single point of contact (Bluegate) for medical practices' technical support needs reduces burden on enterprise IT staff for end-user network issues.

--MHHNP gains a competitive advantage by providing a valuable, HIPAA security-compliant service to their member physicians.

For the complete case study on MHHNP's Bluegate initiative, visit http://www.bluegate.com/inv_pressreleases.htm.

Memorial Hermann Health Network Providers

Founded in 1982, Memorial Hermann Health Network Providers is the largest independent physician organization of its kind in Texas, with leadership strength unsurpassed in today's healthcare industry. We invest in our physicians and take pride in our network. MHHNP provides our member physicians the resources necessary to run an efficient practice, so they can focus on what really matters...patient care.

Employers throughout Texas turn to MHHNP to help manage their benefit costs. Whether it's an entire suite of medical and occupational benefit services, including full administration through our Third Party Administration (TPA) service line, or benefit plan design and consultation, our team of experts is here for you. With our aggressive approach to medical management, our network of highly qualified providers, and our experience, we continue to achieve significant cost savings for our clients, far exceeding national benchmarks. Further information is available at www.MHHNP.org or by calling 713-448-6464.

Bluegate Corporation

The first of its kind, Houston-based Bluegate Corporation provides IT outsourcing and managed security solutions for the healthcare industry to enable secure, HIPAA-compliant data communication between hospitals, medical facilities and physician practices from all locations -- ultimately enhancing patient care. Bluegate also provides affordable access to compatible medical-focused content and applications over the infrastructure to improve practice efficiency and service. Bluegate extends IT best practices to the edge of the healthcare network ensuring every physician and facility they touch is as secure as the hospital itself. Bluegate is publicly traded on the over the counter bulletin board (OTCBB) under the ticker BGAT. Further information is available at www.bluegate.com or by calling 713-686-1100.

Safe Harbor 

This press release may contain "forward-looking statements." All statements, other than statements of fact, included in this release and without limitation statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.