Bluestone Software is Good Medicine for TechHealth; Bluestone's Total-e-Server(TM) Powers Internet Operating Environment to Drive Emerging E-Commerce Healthcare Companies.

Business Editors/Hi-Tech Writers

PHILADELPHIA--(BUSINESS WIRE)--June 19, 2000

Bluestone(R) Software, Inc. (NASDAQ: BLSW), a leader in business-to-Web and wireless technologies, today announced that TechHealth, Inc., an Internet company serving the healthcare industry, has selected Bluestone's Total-e-Server(TM) as the Internet Operating Environment to power the company's TechHealth engine and AccessLife.com subsidiary.

After careful consideration of several vendors, TechHealth selected Bluestone to provide the expansion headroom needed to meet their future growth targets for Web-based, e-commerce products and services to businesses and consumers. Bluestone has proven its ability to handle the huge volumes of data typical of healthcare industry applications, and because Bluestone's architecture is 100% Pure Java and platform independent, Internet usage can reduce costs for TechHealth in several ways. First, TechHealth.com and AccessLife.com can save up-front expenses by using less expensive hardware, then moving to high-end hardware as their businesses expand, without incurring the high cost of revising their core software infrastructure. In addition, Bluestone technologies allow TechHealth to conduct business transactions with suppliers over the Internet, instead of using expensive Value-Added Networks for conducting e-commerce.

TechHealth.com, slated for launch in August 2000, is a business-to-business Internet company that enables healthcare providers, such as home health agencies, to streamline the care continuum and reduce operating costs by purchasing an ancillary medical network, equipment, and pharmaceuticals over the Web. AccessLife.com, a consumer Website for people with severe chronic illness, disabilities, and their caregivers, delivers a wealth of content and enables the purchase of prescriptions and other necessities online.

"We previewed the top vendors providing software, and Bluestone offered the best option from both technical and cost perspectives," said Morgan Savage, director of Systems Development for TechHealth. "Bluestone also has given us exceptional support during our implementation. As we expand our e-commerce products and services for the healthcare industry, we're confident that Bluestone will support our rapid growth, while enabling us to keep expenditures in check."

Added John H. Capobianco, senior vice president and chief marketing officer for Bluestone Software, "Bluestone offers an ideal solution for Internet startups, which must ramp up their businesses without incurring large, up-front expenditures, and quickly, cost-effectively establish transaction links with business partners and suppliers. We offer a growth path that positions innovative companies, like TechHealth, well for today, and the future."

100% Pure Java Seals the Deal

Faced with developing a state-of-the-art infrastructure for content and commerce, while keeping costs in line, TechHealth researched several vendors providing Web Application Server software. The overriding concerns for TechHealth were portability and proven scalability for handling huge user and transaction volumes. TechHealth is currently running in a Windows 2000 environment, with plans to move to a Unix environment as the company expands. The Web Application Server software needed to port to the new Unix systems, without expensive and time-consuming software rewrites. "For TechHealth, nothing other than a 100% Pure Java architecture would do," said Savage. "We are starting small and growing rapidly, running our infrastructure on more cost-effective hardware until our volumes grow to warrant the switch to Unix. Bluestone offered the only 100% Pure Java Web Application Server on the market, allowing us to expand to a Unix environment without a hiccup."

From a technical perspective, another crucial aspect was the superior scalability and high availability that Bluestone provides. As the companies ramp up, the Web Application Server needs to handle the demands of an e-commerce environment with heavy user, transaction, and application loads. Of particular importance to TechHealth, Bluestone offers superior load balancing and customer-facing fault tolerance capabilities. This is critical to TechHealth's ability to ensure trouble-free service to its e-commerce customers.

Bluestone also offers one of the most cost-effective alternatives with its interaction per year pricing model. Most suppliers of Web Application Server software charge on a per-CPU basis, an option that would have been prohibitively expensive for TechHealth given that its current environment runs on a relatively large number of Windows servers. In addition, TechHealth is using Bluestone JSP Servlet engine to conduct e-commerce transactions with suppliers using eXtensible Markup Language (XML). Instead of using expensive Value-Added Networks and traditional Electronic Data Interchange (EDI) technologies to conduct transactions with suppliers, Bluestone and XML offer a far more cost-effective approach. This enables TechHealth to expand its supplier base of medical supplies and equipment, over-the-counter pharmaceuticals, prescription drugs, and other medical supplies more quickly and cost-effectively.

About TechHealth

TechHealth, Inc. is a healthcare technology provider of Web-based solutions that simplify and improve the delivery and payment of ancillary home healthcare equipment, products, and services. The company's point-of-care solution includes real-time claims approval, and a standardized transaction process for providers and payors utilizing highly secure protocols.

TechHealth, located in Tampa, Florida, is a privately held healthcare technology and software development company. For more information on TechHealth, Inc. or its subsidiary AccessLife.com, contact Sandy Kyros at [phone] or at [e-mail].

About Bluestone Software

Bluestone(R) Software, Inc., provider of Enterprise Interaction Management software, is a leader in business-to-Web and wireless technologies. Companies deploying e-business applications, like Avnet, CDNow, Food.com, MCI WorldCom, Planalytics, Reliance National, and Time Inc., rely on Bluestone's Total-e-Business(TM) platform, to provide comprehensive e-business platforms, Internet-class infrastructures, and robust integration services that e-business success demands. Bluestone is headquartered at 300 Stevens Drive, Philadelphia, Pennsylvania, 19113-1597. For more information, please call 888-Bluestone or 610-915-5000, email [e-mail], or visit http://www.bluestone.com.

Bluestone is a registered trademark, and Total-e-Server and Total-e-Business are trademarks of Bluestone Software, Inc. All other names, brands or products may be trademarks or registered trademarks of their respective owners.

Certain statements in this press release constitute forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks, uncertainties and other factors, including those contained in Bluestone's publicly filed reports with the Securities and Exchange Commission, which may cause Bluestone's actual results, performance, or achievements or those of its customers or its industry to be materially different from the future results, performance or achievements expressed or implied by these forward looking statements. Specifically, the Company's beliefs with respect to the business opportunities presented by e-business and the Company's ability to profitably market and deploy its product solutions may prove to be inaccurate. In light of the significant uncertainties inherent in these forward looking statements, the information in this press release should not be considered a representation by the Company or any other person that Bluestone's objectives and plans will be achieved.