Health Dialog Brings Predictive Modeling Expertise to UK Healthcare Initiative; Health Dialog, the King's Fund, and New York University Selected by England's National Health Service to Help Address the Rising Cost of Chronic Conditions.

BOSTON -- Health Dialog Services Corporation today announced that, as part of a joint proposal with the King's Fund, a United Kingdom-based non-profit research organization, and New York University, it has been chosen to participate in England's National Health Service (NHS) Predictive Risk Project. The project will address the rising healthcare costs associated with chronic conditions. As an integral contributor to the project, Health Dialog, in collaboration with New York University, will develop predictive modeling algorithms that will be used to identify patients at high risk of emergency hospital admission. The project is planned to be completed by January of 2006.

The NHS formulated the Predictive Risk Project to help identify patients at highest risk of future emergency admission, in order to ensure that case management services are targeted most effectively, and individuals receive an appropriate healthcare intervention at the right time. The risk prediction system will be used by Primary Care Trusts (PCTs), which are physician organizations under the NHS that are responsible for managing primary care in a given geographical area.

After conducting a request for proposals, the NHS in England selected the collaborative submission of the Kings Fund, New York University, and Health Dialog. Health Dialog's distinctive experience working with disparate sources of data is a critical component of the UK-based initiative. Once the predictive modeling algorithms are complete, they will be available for distribution throughout the whole of the English National Health Service.

Health Dialog's predictive modeling is one of the company's analytic solutions, which are grounded in the research of Drs. John and David Wennberg on addressing unwarranted variation in healthcare. This pioneering research focuses on the overuse, underuse, and misuse of healthcare services, and is the basis of Health Dialog's broad range of analytic capabilities, which include services such as predictive modeling and provider performance measurement.

"Health Dialog's entry into the UK market reflects the broad acceptance of care management as an effective strategy, and as a solution that can be applied across various healthcare systems," said George Bennett, Chairman and CEO of Health Dialog. "I am confident that together with the King's Fund and New York University, we will help the NHS make an impact on the cost and quality issues associated with chronic healthcare."

About Health Dialog

Health Dialog is a leading provider of care management services, including disease management, and is one of the fastest growing privately held firms in the U.S. The firm helps physician groups, health plans, and self-insured employers improve healthcare quality while reducing overall costs. The firm's services include analytic services and telephonic and other care management support for individuals. Health Dialog helps individuals become more actively engaged in their healthcare and have more effective relationships with their physicians. For more information about Health Dialog, please visit www.healthdialog.com.