Sunquest Announces Marketing Agreement with Healthworks Alliance; Sunquest to market Healthworks' Compliance Checker.

TUCSON, Ariz.--(BUSINESS WIRE)--Sept. 4, 1998--Sunquest Information Systems Inc. (NASDAQ:SUNQ) announced that it has signed a reseller agreement with Healthworks Alliance Inc. (King of Prussia, Penn.).

Sunquest intends to market Healthworks' line of Compliance Checker products to its 1,100 existing Sunquest and Antrim clients as well as to potential new clients.

The Compliance Checker application includes a database of Local Medical Review Policies published by the 57 Medicare Carriers across the country allowing users to screen orders on Medicare outpatients for compliance with local medical necessity guidelines.

If an order fails this edit check, the Compliance Checker application will generate an Advance Beneficiary Notice (ABN) giving the patient the opportunity to accept financial responsibility.

The primary benefit is that by identifying orders which fail and having the patient sign the ABN accepting financial responsibility, the lab is able to bill the patient for tests performed and avoid the fines and penalties associated with submitting fraudulent claims to Medicare.

According to Sidney Goldblatt, M.D., Sunquest's chief executive officer and president: "Our clients struggle to remain compliant with recent HCFA medical necessity guidelines where errors may result in accusations of fraud with costly and embarrassing penalties. With the Compliance Checker from Healthworks Alliance, we can help our clients help themselves."

Adolf Paier, Healthworks' president said: "We are delighted to add Sunquest to our growing number of strategic partners. Sunquest is an ideal partner from our perspective. A large client base, a commitment to deliver functionality proactively and an energetic sales force who continually look for ways to add value to their own solution set. We're confident its clients will realize a rapid return on investment and the peace of mind that comes from being in compliance."

Sunquest Information Systems Inc., specializes in the management of complex clinical and administrative health care information and has been a leader in health care automation since 1979. Sunquest designs, develops, sells, and supports a suite of comprehensive clinical information systems from departmental to network-wide.

Sunquest systems serve over 1,100 sites worldwide, including hospital and commercial laboratories, radiology departments, and pharmacies. Headquartered in Tucson, the company operates offices in Johnstown, Pa.; Salt Lake City; Plano, Texas; and the United Kingdom.

Healthworks Alliance develops and markets software applications that automate clinical order entry, validate orders for compliance with local medical necessity rules, intelligently rout orders to the appropriate service provider and transmit results back to the care provider.

Other products provide connectivity to national and regional commercial laboratories. Over 13,000 physicians in more than 100 provider sites in the United States participate in networks supported by Healthworks Alliance.

Note to Editors: This press release may contain forward-looking statements. Certain risk factors, including but not limited to, dependence on laboratory information system products, competition in the marketplace, purchase and installation decisions of customers, pricing decisions of competitors and developments risks and uncertainties, could cause actual results to differ materially from such forward-looking statements. These and other risks are detailed in the company's Securities and Exchange Commission filings.

    CONTACT: Sunquest Information Systems Inc., Tucson
              Mark Spencer, 520/570-2000