Marion Area Health System Selects Caduceus Systems' Material Management Information System

AUSTIN, Texas – June 13, 2008 - Caduceus Systems, a leading provider of healthcare materials management information systems that include wireless, real-time transaction processing and contract compliance systems, today announced the Marion Area Health System (MAHS) has licensed the Caduceus Material Management Information System (Caduceus MMIS) for implementation throughout its affiliates which include the Smith Clinic, Marion Area Health Center and Marion Ancillary Services. MAHS has also contracted for consulting and implementation services associated with the deployment of the system. Implementation will begin immediately, and is scheduled for completion later this year.

"This system will automate a wide range of supply-related processes and eliminate a series of manual tasks that we have relied upon for requisitioning, purchasing, restocking and overall supply management," said Rick Brunswick, Director of Materials Management at MAHS. "The specific capabilities of the system for supporting our Distribution Center operations, the ability to manage and update our purchasing contracts electronically, the comprehensive invoice matching functions, and the ability to manage multiple company financials with a common product database are all strengths of the system that we identified and are eager to implement. The ROI for the system is quite compelling."

The Caduceus MMIS solution automates the processes and workflows associated with the requisitioning, procurement, receipt, movement and charge capture of all medical and surgical supplies. A comprehensive solution, the Caduceus MMIS uses automatic data collection and mobile (wireless) computing for system-directed workflow. In addition to producing cost savings, the Caduceus MMIS eliminates redundant processes and enhances safety by reducing errors and allowing clinicians and caregivers to focus more on patient care.

The open architecture of the Caduceus MMIS facilitates easy integration with healthcare facilities' financial and clinical systems, thereby reducing the time needed for implementation and preserving previous investments in existing systems.

"The Caduceus MMIS will equip MAHS with the capabilities to realize significant efficiency improvements, cost savings, accurate charge generation, and improve communication with their suppliers and trading partners while positioning MAHS with a strategic software platform for managing their internal supply chain operations," said Ed Lane, president and CEO of Caduceus Systems. "We're both proud and very pleased to have the opportunity to work with MAHS and look forward to the results and benefits that will be provided to their organization with this implementation."

About Caduceus Systems

Caduceus Systems LLC automates materials management and contract management for the healthcare industry. The Caduceus system delivers unprecedented and immediate cost savings through optimized inventory levels and supply chain efficiency, operating in real time providing the most accurate data that enhances patient care and safety by having the right supply in the right place at the right time. Designed exclusively for hospital facilities, Caduceus incorporates open software standards, bar code scanning and wireless data collection to offer the most technologically and functionally advanced materials management solution available to healthcare facilities today. The system further benefits healthcare facilities by adapting to and/or optimizing existing hospital workflow processes with acknowledged best practices. More information about Caduceus Systems is located at www.caduceussystems.com.

About Marion Area Health System

MAHS is a regional health care provider in north-central Ohio committed to serving the needs of patients. The Smith Clinic is a multi-specialty medical group with over 70 physicians representing most major specialties in healthcare that are dedicated to providing a level of care, ranging from minor illnesses to major surgery, that is second to none. Formed as one of north central Ohio's first free standing outpatient health centers in April of 2000, Marion Area Health Center has grown to offer a broad range of outpatient services such as laboratory, outpatient surgery, endoscopy, physical therapy, occupational health, occupational therapy, orthotics, industrial rehabilitation, respiratory therapy, sleep studies, and a full spectrum of radiology services.