Northland Healthcare Alliance Selects Caduceus Materials Management Information System

Austin, Texas (March 14, 2007) - Caduceus Systems, a leading provider of wireless, real-time materials management and contract compliance systems for healthcare, today announced an agreement with the Northland Healthcare Alliance, (NHA) located in Bismarck, North Dakota to license the company’s Caduceus Materials Management Information System (Caduceus MMIS) for implementation throughout its membership comprised of 25 healthcare facilities located in North Dakota and South Dakota. Northland contracted for consulting, product support and implementation services from Caduceus Systems to assist in the deployment and on-going support of the system for a five year period.

The Caduceus MMIS software will automate the processes and workflows associated with requisitioning, procurement, receipt, movement and point-of-use data capture for all medical and surgical supplies within the member facilities that comprise the Northland Healthcare Alliance. Planning for the implementation of the Caduceus MMIS is underway with a phased deployment beginning in the second quarter of this year. Use of the system will be provided through a hosted model with each participating member communicating to a centralized I.T. operations site in Bismarck.

"We determined through an extensive evaluation of the marketplace that the Caduceus MMIS provided a unique combination of functional capabilities, contemporary technologies and flexibility," said Tim Cox, President of the Northland Healthcare Alliance. "The system can be readily integrated with a diverse mixture of financial, clinical and administrative systems that exists across our member facilities and will provide a means to realize significant improvements in supply chain efficiency. We are looking forward to working with Caduceus Systems on the implementation of the system at our facilities throughout the Dakotas."

The Caduceus MMIS is a comprehensive software solution developed for managing the contracts, pricing, requisitioning, procurement, receipt, movement and utilization of all supplies and products throughout a healthcare facility or network. The system uses wireless technology, bar coding and scanning for real-time collection of all relevant information beginning with requisitioning through charge capture at the point of use. The Caduceus MMIS improves accuracy, significantly reduces costs, eliminates redundant processes and enhances patient care and safety by reducing errors and alleviating the time demands on clinicians and caregivers associated with medical and surgical supply related processes.

"We are very excited about working with the staff at the Northland Healthcare Alliance and each member facility to jointly implement a comprehensive materials management systems solution," said Ed Lane, President and CEO of Caduceus Systems. "NHA has a proven track record for providing leveraged products, services and value for its member facilities. Combined with their commitment to achieve operational improvements and willingness to embrace innovation, NHA’s focus on optimizing efficiencies and the quality of patient care speaks volumes for their organization, the capabilities of the Caduceus MMIS and the merits of this relationship."

About Caduceus Systems

Based in Austin, Texas, Caduceus Systems LLC automates materials management and contract compliance for the healthcare industry. The Caduceus MMIS delivers unprecedented and immediate cost savings through optimized inventory levels and supply chain efficiency, operating in real time to enhance patient care and safety through accuracy of treatment. Designed exclusively for hospital facilities, Caduceus incorporates open software standards, UPN bar code recognition and wireless scanning to offer the most technologically and functionally advanced materials management solution available to healthcare networks 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 the Northland Healthcare Alliance

Northland Healthcare Alliance (NHA), a Catholic-led integrated health care delivery network whose members include both Catholic and other partners, has as its purpose to enhance the healing mission of the Catholic health care ministry in the Dakotas. NHA is dedicated to insure the continuation of value-based healthcare in the Dakotas, and to have a far-reaching effect on the improvement of the health status of individuals in our communities, particularly in rural areas. More information about NHA can be found at www.northlandhealth.com.