DR Systems, Novation Sign Agreement.

SAN DIEGO -- DR Systems, rated Best in KLAS[R] for 2006, said today it has been awarded a new contract with Novation for its radiology information systems (RIS) and picture archiving and communications systems (PACS). The three-year agreement is effective May 1, 2007. A leading developer of RIS and PACS, DR Systems was named the best overall healthcare IT vendor by KLAS Enterprises, the respected national research firm.

Novation is the industry leading healthcare contracting services company, serving nearly 2,500 members of VHA Inc. and the University Health System Consortium.

With the new agreement, Novation members will have the ability to utilize an exclusive offering of lease-to-purchase or flexible capital-purchase plans, deep discounts, and unique Imaging Center packages. Because DR Systems provides a single-vendor solution, healthcare customers can simplify their enterprise information technology management and reduce their costs, by consolidating associated applications on one unified system with a single user interface.

"In addition to purchasing a new RIS/PACS solution, Novation customers will be able to take advantage of DR Systems' unique approach to imaging IT," said David Starr, product manager, at Novation. "DR Systems is known for its ability to improve patient care and physician satisfaction, while also driving down operating costs."

The DR Systems RIS/PACS includes numerous advanced features, including Web-based scheduling, document scanning printing and faxing, voice recognition, dictation, transcription, management reports, advanced image processing, Web-based image report and audio clip distribution. The company's solutions also offer archiving, digital mammography, pathology, cardiology tools, output to billing systems and services, and EMR integration. DR Systems holds many of the innovative patents that have shaped this industry and is considered a landmark pioneer and innovator.

"With many choices in the marketplace, DR Systems is honored to have an agreement with Novation," said Richard Porritt, president and CEO of DR Systems. "DR Systems' unified RIS/PACS solution provides one of the lowest overall costs of ownership in the industry."

In addition to being named the top healthcare IT company and "Best in KLAS" PACS vendor for 2006, DR Systems has been rated the #1 PACS vendor in the "Top 20: 2006 Best in KLAS Report," and in the "KLAS PACS-Acute Care 2006 Report." MD Buyline rated the company as the #1 PACS vendor for six consecutive quarters.

About DR Systems, Inc.

DR Systems, Inc. is the leading independent provider of scalable medical imaging and information systems for diagnostic imaging centers and hospitals. For more than 14 years, the company has helped over 250 hospitals and imaging centers improve the management of patient information, eliminate film costs, and increase workflow speed, all while providing better clinical quality and patient care. The company's RIS and PACS systems integrate numerous tools to improve financial performance and productivity, including: Web-based scheduling, image, report and audio clip distribution; patented, automated hanging protocols for radiologists; and the report format preferences of individual referring physicians. For more information, call 800-794-5955 or visit www.dominator.com.

About Novation

Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500 members of VHA Inc. and the University Health System Consortium (UHC), two national health care alliances. Through its competitive bid process, Novation develops and manages contracts with more than 500 suppliers, both large and small. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity. VHA and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005.