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SAGE HEALTH MANAGEMENT SOLUTIONS, INC. ANNOUNCES AGREEMENT WITH BACKPACK SOFTWARE, INC.

March 8, 2005

Minneapolis, MN. – Sage Health Management Solutions® (Sage HMS), an evidence-based healthcare technology company, announced an agreement with BackPack Software, Inc. (BPSI) to develop an Open Systems based version of their current Internet application of Computerized Provider Order Entry (CPOE) with Clinical Decision Support (CDS) for diagnostic tests.

The modifications to the CPOE/CDS software will enhance performance and decrease cost for the Sage HMS diagnostic products. The new version is expected to be available to the market by the end of second quarter 2005.
“BackPack has been chosen for this mission-critical project because of their expertise in the Open Source arena and their proven track record of developing robust, high-performance products in health care,” said V. Katherine Gray, CEO and president of Sage HMS. “Sage HMS has a long-term relationship with BPSI and great confidence in them, given their fifteen-year history in the marketplace,” Gray continued.

David Duccini, BPSI CEO, said, “BPSI has extensive experience developing scalable audit technology for HIPAA compliance that has been integrated into OEM Health Information Management Systems (HIMS) vendor solutions worldwide. Our approach blends the best of breed Open Source technology with our Agile Development Methodology to produce mission critical systems on time and under budget.”

Sage Health Management Solutions (HMS), Inc., headquartered in Minneapolis, Minn., is an evidence-based healthcare technology company that specializes in Computerized Provider Order Entry systems with Clinical Decision Support (CPOE/CDS) in diagnostic testing. While the company’s initial patented product offering was for the radiology market, the company has expanded its product line to include CPOE/CDS for the laboratory medicine market. Sage HMS sells its subscription service to healthcare payers and larger healthcare provider groups for improved quality, efficiency and cost. Sage HMS estimates that 30-40 percent of the costs associated with diagnostic testing can be reduced by use of its technology, while improving the quality, efficiency, and timeliness for patients. For more information, visit Sage HMS at sagehms.com.

BPSI, a St. Paul based company, provides reliable Internet connectivity and consulting services to business and residential customers. It consults with its clients to design best-fit solutions blending Open Source software with custom software engineering practices. BPSI has grown significantly through both acquisitions and increased business with current customers. For more information, visit BPSI at bpsi.com.