Bluegate Reports Preliminary 2006 Annual Consolidated Revenue Increase of 49% over 2005.

HOUSTON -- Reporting preliminary financial results for the fourth quarter and year end 2006, Bluegate Corp. (OTCBB:BGAT) announced that consolidated revenue for the fourth quarter and year ended December 31, 2006 was $1,013,000 and $3,708,000, respectively. These revenue amounts represent increases of 6% and 13% over the pro forma revenues of $952,000 and $3,269,000, respectively for the comparable 2005 periods.

On September 15, 2005, Bluegate acquired substantially all of the assets of Trilliant Corporation. The revenues reported above represent pro forma combined revenues of Bluegate and Trilliant assuming the acquisition occurred on January 1, 2005. The revenue amounts in the subsequent paragraph represent the results of the Trilliant acquisition from the date of acquisition, September 15, 2005.

The consolidated revenue for the year 2006 of $3,708,000 represents an increase of $1,215,000 or 49% over the actual revenue of $2,493,000 for the year 2005.

"We are pleased that our actual revenue increased approximately 50% this past year over 2005," stated Manfred Sternberg, Bluegate CEO. "This percentage growth rate reflects the continued expansion of the company in serving Memorial Hermann, other health care institutions and physicians in the Houston marketplace. As 2006 was the commencement of our national marketing efforts to hospital systems outside of Texas, we expect to announce some of those successes in the near future. As a result, we believe that our revenue growth will accelerate in 2007."

Mr. Sternberg noted, "The exceptions to the Stark Law that were made in the latter part of 2006 are creating an ideal business environment for Bluegate in 2007 and beyond, and are contributing to the continued expansion of our sales pipeline for our Medical Grade Network[TM] and health care IT services and solutions to healthcare systems and physician practices.

Mr. Sternberg added, "As projected in early 2006, we made our first expansion outside the state of Texas in 2006 and we continued our growth within Texas with the addition of several clients. Our operational focus for 2007 continues to be the build out of the Houston market and strategic expansion to additional markets in Texas and other regions of the country. There is rapidly increasing demand for our networks, technologies, remote management and professional IT services, largely as the result of increasing pressure for health care providers to adopt electronic health records and the favorable health care IT environment created by the Stark Law exceptions."

About Bluegate Corporation

Bluegate provides the nation's only Medical Grade Network[R] that allows hospitals and physicians to achieve physician and clinical integration by communicating in a secure private environment, improving patient care. As a leader in the healthcare industry of outsourced IT solutions & remote management services, Bluegate provides hospitals and physicians with a single source solution for all clinical integration & IT needs. Additionally Bluegate provides IT consulting through its professional services division and HIPAA-compliant, turnkey managed security services and interoperability solutions across its Medical Grade Network[R] for hospitals, physicians and other healthcare facilities. For further information, visit www.bluegate.com or call 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.