CareGuide Announces Results for Quarter Ended September 30, 2006.

CORAL SPRINGS, Fla. -- CareGuide, Inc. (OTCBB: CGDE):

Highlights:

* Third consecutive quarter of profitability;

* Net income and EBITDA increased substantially over prior year;

* Increased focus on ASO contracts;

* Acquisition of Haelan Corporation; and

* Expanded Board.

CareGuide, Inc. (OTCBB: CGDE), a national disease and healthcare management company, today announced results for its quarter ended September 30, 2006.

For the quarter ended September 30, 2006, the Company reported revenues of $13.8 million, a 13.6% increase compared with $12.1 million for the quarter ended September 30, 2005. Net income for the quarter ended September 30, 2006, was $524 thousand as compared with a net loss of $1.4 million for the same period in the prior year. Loss from continuing operations for the quarter ended September 30, 2006, was $187 thousand as compared with a loss from continuing operations of $1.5 million for the same quarter in 2005. The Company's earnings before interest and investment gains or losses, taxes, depreciation and amortization (EBITDA) from continuing operations, which the Company believes provides useful information to management and investors regarding the financial and business trends relating to its results of operations, was $761 thousand compared with a loss of $893 thousand for the same quarter in 2005. The Company recorded a gain from discontinued operations in the quarter ended September 30, 2006, of $711 thousand due to a favorable ruling in an arbitration proceeding.

During the quarter ended September 30, 2006, the Company began trading on the Over-the-Counter Bulletin Board under ticker symbol "CGDE," which followed the change of the Company's legal name to CareGuide, Inc. Previously, the Company had operated under the name Patient Infosystems, Inc., d/b/a CareGuide, and traded under the symbol "PATY." The Company also announced during the quarter the addition of William C. Stapleton to the Company's Board of Directors, expanding the number of Board members to six. Mr. Stapleton is also serving as Chairman of the Audit Committee.

On November 6, 2006, the Company issued a press release regarding the acquisition of Haelan Corporation, a privately held health improvement solutions company based in Indianapolis, Indiana. The Company also announced in that release that the Company and Aetna had come to an agreement to terminate their risk-based contracts effective as of January 31, 2007, after which time Aetna will fold the services CareGuide provided into its internal operations. However, CareGuide will continue to serve Aetna chronic care management administrative services only (ASO) business. Both the Haelan and Aetna events are consistent with CareGuide's strategy to focus on growing the proportion of its revenue that is ASO, as opposed to business where the Company is at-risk for claims.

In commenting on the quarterly results, Chris E. Paterson, president and chief executive officer of CareGuide, said, "We are pleased with our progress and performance in the quarter ended September 30, 2006. The combination of continued profitability and the Haelan acquisition gives us a substantial amount of momentum for achieving our strategic goals. Our earlier decision to focus on ASO contracts, and our acquisition of Haelan, further solidifies CareGuide as a care and disease management organization with a complete and fully integrated set of products. The Haelan transaction, which we believe will close in late November, provides us with a unique predictive modeling tool and coaching intervention that gives us a competitive advantage. We believe this new product will give us an early mover advantage in our industry."

Mr. Paterson added, "We believe that customers served by the merger of our two companies will benefit from the combination of Haelan's One Care Street[TM], which employs a proprietary survey to identify at-risk individuals before they begin requiring high levels of medical resources, and CareGuide's current care management and disease education offerings. We believe this transaction significantly advances CareGuide's growth strategy and further differentiates us from our competitors. There is an opportunity to set the standard for delivery of care and disease management services in our industry, and we fully accept the challenge."

The Company issued full calendar year guidance in a press release on March 8, 2006, where it estimated revenues for the full calendar year of 2006 would be between $60 million to $70 million and EBITDA would be between $3.5 million and $5 million. For the nine months ended September 30, 2006, the Company has reported revenues of $43.2 million and EBITDA of $3.9 million. The Company now believes that revenues will be slightly below the $60 million target due to timing issues, including delays in the ramping up of signed contracts. The Company expects EBITDA to be in the high end of the previously announced range.

The Company intends to change its fiscal year-end from March 31 to December 31 before the end of the 2006 calendar year.

The reconciliations from (loss) income from continuing operations to EBITDA for the three and six months ended September 30, 2006 and 2005, and the nine months ended September 30, 2006, are as follows (dollars in thousands):

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The Company's management will host a conference call and webcast to discuss the earnings release at 11:30 a.m. Eastern time on Tuesday, November 14, 2006. To participate in the call, participants should dial 1-212-896-6061 approximately ten minutes prior to the start time of the call. A telephonic replay of the call may be accessed by dialing 1-800-633-8284 and entering access code 21309329. The replay will be available from 1:30 p.m. Eastern time on Tuesday, November 14, 2006, until 6:00 p.m. on Wednesday, November 15, 2006. The conference call will also be available for 30 days through the Company's website at www.careguide.com and at www.earnings.com.

Headquartered in Coral Springs, Florida, CareGuide is a national disease and care management company serving the health and benefit plans of managed care organizations, employers, unions, third party administrators and government customers. Understanding that health status is dynamic and encompasses physical, mental and social qualities, CareGuide focuses on total population health management. The Company employs a unique approach to identify members of its clients' populations who are at risk for medical destabilization, loss of productivity and high claims expense. Through flexible, evidence-based and member-centric interventions that are matched to the individual's holistic health needs, hospital admissions are prevented and quality of life is enhanced. CareGuide distinguishes itself by combining high human touch with technology to assist chronically ill members in self-managing their health. Visit www.careguide.com for more information.

This release contains information about management's view of the company's future expectations, financial results, plans and prospects, including prospects for success of the acquisition of Haelan and the combination of the two companies, replacing revenues associated with its contracts with Aetna, prospects for growth of its ASO business, and improving its operating results in future periods, that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the company's financial condition, its ability to integrate Haelan into its operations and sell the combined company's products, its ability to successfully transition from risk-based services to administrative service only contracts, its ability to compete with competitors and its ability to increase its business and revenue base, difficulties encountered in closing the Haelan transaction and integrating the business of Haelan, the competitive environment in the healthcare industry and competitive responses to the proposed merger, and the growth of the healthcare market, as well as other factors that are discussed in the Company's filed Annual Report on Form 10-KSB for the fiscal year ended March 31, 2006, filed with the SEC on June 29, 2006, and the Company's Quarterly Reports on Form-10-QSB for the quarter ended June 30, 2006, filed with the SEC on August 14, 2006, and for the quarter ended September 30, 2006, filed with the SEC on November 14, 2006, as well as other documents the Company files with the SEC.

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