CareMedic Systems Demonstrates Strong Q1 2007 Growth.

ST. PETERSBURG, Fla. -- CareMedic Systems, Inc., a leader in proactive financial management for hospitals and providers, today announced the closing of more than 80 contracts in first quarter 2007, representing over $4.7 million in first-year contract value.

CareMedic's first quarter 2007 sales included contracts placing AccelerateAR MedicareRT at 21 new facilities, Claims Management at 29 facilities and VerifyAR Compliance Checking at 13 facilities, as well as over 45 contracts for delivery of add-on services to existing customers. In addition to the momentum in product sales, CareMedic announces three new secondary claims management contracts serving 19 hospitals, and two additional ResolveAR service contracts serving 4 facilities.

CareMedic's largest single sale for the first quarter, in addition to those listed above, was that of the electronic Financial Record[TM] (eFR[TM]) to the University of Maryland Medical Center (UMMS). When asked why UMMS chose CareMedic to streamline its revenue cycle processes across its seven facilities, Keith Fields, Director of Patient Financial Services, Maryland General Hospital said "The hospitals of UMMS have historically operated as independent revenue operations. A primary reason for this is that we utilize disparate patient accounting systems, both McKesson and Meditech. A recent system-driven initiative to create an executive reporting tool forced us to look deeper into the current systems and processes used to support the revenue pipeline. What we found was a sincere need for the capability to:

* Produce consolidated, executive-level revenue reporting for all UMMS entities along with extensive drill-down capability to answer the detailed questions a dashboard is destined to generate;

* Automate process flows and utilize intelligence and customized key milestones to better manage the lifecycle of a claim while sustaining or improving current financial performance;

* Scan and index pertinent account-level documents to support accelerated follow-up; and

* Create one system 'face' to overlay across the disparate patient accounting systems to streamline processes, training and collections."

CareMedic was able to demonstrate core strengths in each of these areas, with integrated tools poised to help UMMS achieve its vision without a costly replacement of the core patient accounting systems.

"We are extremely excited for the opportunity to grow our relationship and to implement the eFR at UMMS, and we are committed to helping them develop the most efficient and effective business office possible," stated Sheila Schweitzer, CareMedic's chairperson and CEO.

About CareMedic Systems

Founded in 1997, CareMedic Systems provides enabling technologies and outsourced services that move and manage critical data through the healthcare revenue cycle, ultimately improving cash flow and margins while reducing operational expenses. The company's fully integrated data management and workflow tools address revenue cycle activity from inception through claims resolution, and require manual intervention only when necessary. CareMedic is committed to consistently delivering results to its customers. For additional information, visit www.caremedic.com.