DAOU Systems Inc. Awarded New Contracts Totaling Over $1.8 Million in Revenue by Department of Defense, Atlantic Health Systems, and West Tennessee Healthcare.

SAN DIEGO--(BW HealthWire)--Dec. 4, 1998--DAOU Systems Inc. announced several sales contracts totaling over $1.8 million today.

These contracts include an agreement with the Department of Defense to purchase Enosis, our database integration tool, and agreements with Atlantic Health Systems and West Tennessee Healthcare to install Technology Management Centers.

DAOU will be installing its Enosis software, a database integration tool, for the Department of Defense Health Affairs Clinical Business Area (DoD). DAOU is working with the DoD to improve the quality of healthcare delivery by providing fast data access between existing systems and adding additional capabilities to incorporate new applications that Health Affairs is developing.

Enosis will meet the requirement to extract data from the CHCS MUMPS database for use by CHCS II. The DoD has agreed to a two-year license agreement valued at $460,000 yearly. The Enosis installation provides the tool component necessary for the support of follow-on DAOU professional services to integrate the system.

Atlantic Health Systems and West Tennessee Healthcare have both signed contracts for the installation of Technology Management Centers (TMC), combined, these deals represent $950,000. The contract with Atlantic Health Systems represents the expansion of an existing relationship where DAOU has already put into place an ATM WAN connecting four hospitals and their corporate headquarters.

At West Tennessee Healthcare, in addition to the installation of the TMC, DAOU will be adding a staff person to manage the network, connect remotely and manage hardware spares and maintenance.

"The installation of Enosis for the Department of Defense and Technology Management Centers for both Atlantic Health Systems and West Tennessee Healthcare reference DAOU's continued commitment to provide single-source, cost-effective information technology solutions," stated Georges Daou, chief executive officer of DAOU Systems.

DAOU Systems Inc. is a provider of integrated Information Technology (IT) solutions and services to the U.S. healthcare industry. DAOU's capabilities range from up-front strategic consulting to IT system design, implementation and long-term tactical support. DAOU's IT offerings include data, voice and video networking, applications consulting and implementation, as well as operational and Internet solutions.

DAOU has nearly 800 employees, and has provided services to more than 1,300 healthcare organizations, including many of the nation's top 100 integrated delivery systems. DAOU's clients include organizations such as UCSF Stanford Health Care, Mercy Health Services, Saint Barnabas Health Care, and Humana Healthcare. More information about DAOU Systems can be found at www.daou.com.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve numerous risks and uncertainties. The company's actual results could differ materially from those projected in such forward-looking statements and will depend upon a number of factors, including those discussed in the company's filings with the Securities Exchange Commission and other press releases of the company.