Creative Computer Applications Inc. Reports Sales and Earnings for the First Fiscal Quarter Ended February 28, 2001.

Business Editors

CALABASAS, Calif.--(BUSINESS WIRE)--April 16, 2001

Creative Computer Applications Inc. or CCA (AMEX:CAP), a provider of Clinical Information Systems (CIS) for hospital and clinic based laboratories, pharmacies, and radiology departments, announced today its sales and earnings for its second fiscal quarter and six-month period ended February 28, 2001.

Sales for the second fiscal quarter ended February 28, 2001 were $1,284,890 compared to sales of $2,067,035 for the comparable quarter ended February 29, 2000. The Company incurred a net loss of $330,503, or $.10 per basic and diluted share, for the current fiscal quarter, compared to net income of $9,777, or $.00 per basic and diluted share, for the comparable quarter one year ago. Included in the net loss was approximately $82,000 attributable to startup expenses for Xymed.com, CCA's ASP subsidiary.

Sales for the six-month period ended February 28, 2001 were $2,508,334, compared to sales of $4,567,222 for the comparable six-month period one year ago. The Company incurred a net loss of $751,952, or $.24 per basic and diluted share, for the current six-month period, compared to net income of $167,109 or $.05 per basic and diluted share, for the comparable six-month period one year ago. Included in the net loss for the six-month period was approximately $178,000 attributable to startup expenses for Xymed.com.

CCA's results of operations for its second fiscal quarter and six-month period were impacted in part by new revenue recognition policies associated with the adoption of the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No.101, "Revenue Recognition in Financial Statements" (SAB 101). SAB 101 provides interpretive guidance on the recognition, presentation, and disclosure of revenue in the financial statements. CCA elected early adoption of SAB 101 for the current fiscal year beginning September 1, 2000. The impact of SAB 101 will be timing issues related to the recognition of revenue from the sale of hardware and the license of application software that will delay the time of revenue recognition out approximately ninety to one hundred eighty days.

Steven M. Besbeck, President and CEO, stated, "We believe that the decrease in sales was primarily attributable to an industry wide slump related to post Y2K issues, the Balanced Budget Act, and concerns about pending regulations associated with the Health Insurance Portability and Accountability Act (HIPAA). We remain cautious about the current industry conditions, however, sales and marketing activities have yielded new system sales and our pipeline of potential transactions is improving. On a near term basis the implications of SAB 101 will also impact the Company's sales and results of operations. Despite the issues discussed above, the Company continues its product development programs in order to expand the depth of functionality of its products, as well as to address pending HIPAA compliance issues."

CCA is a healthcare information technology and service provider that provides software and web enabled solutions, specializing in Clinical Information Systems (CIS) for hospital and clinic based laboratories, pharmacies, and radiology departments. Its primary products, CyberLAB II(R), CyberMED(R) and CyberRAD(R), are highly functional, scalable, and can be deployed in a variety of healthcare settings as either an enterprise turnkey solution or through an ASP model. CCA's systems are deployed in over 550 sites. For more information about CCA, its products and services, visit http://www.ccainc.com/

This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry and competition. The Company refers interested persons to its most recent Annual Report on Form 10-KSB and its other SEC filings for a description of additional uncertainties and factors, which may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.