March 2007

Since our previous newsletter of 3 months ago, there has been a lot of activity around existing projects, as well as several new developments. In other words, it is time for us to give you an update. In case you have any questions, please do not hesitate to contact us.

The VitalHealth Team
March, 2007

Acquisition of Diagnosis4Health
Last month, VitalHealth and Caraet have together taken a majority ownership in Diagnosis4Health. This has opened the way for a close and strategic relationship between these three entities. Diagnosis4Health will continue to operate as an independent organization, but now as part of a strong and closely cooperating team of companies that together focus on supporting family physicians and other healthcare organizations providing primary care.

Since 2000, Diagnosis4Health (www.d4h.nl) has been the market leader in the Netherlands for 1st line disease management of Diabetes, COPD, CAD and Lifestyle management. More than 800 family physicians have opted to use the products and services of Diagnosis4Health, leading to significant improvements in the quality of care and treatment efficiencies, by implementing delegated and protocol based care. These phycisicians can continuously monitor their results and compare them to other practitioners using a vast database of epidemic data and treatment results maintained by Diagnosis4Health, based on data provided by all participating practices as well as tens of thousands of patients.

Caraet (www.caraet.nl) is the market leader in the Netherlands for establishing and managing cooperations and partnerships in primary care. Over 30% of family physicians have organized themselves through partnerships led by Caraet. This has made Caraet a crucial entity in 1st line healthcare in the Netherlands.

Together, Diagnosis4Health, Caraet and VitalHealth Software offer a unique combination of services:

• Establishing and managing partnerships in healthcare, including legal aspects
• Implementing and monitoring of disease management and chain care
• Collecting of payments by Insurers
• Providing software to support disease management and chain care
• Benchmark and comparison reporting as a basis for continuous improvement in quality of care

Besides this, the partnership will continue to expand its offerings, e.g. by introducing web-based care portals, life-style coaching and other services.

VitalHealth for Diabetes
The continued development of our Diabetes solution has seen significant progress. Based on feedback from our initial customers we have expanded the functionality. For example, think of enriched decision support for physicians and nurses based on lab results and other somatic data, as well as a targeted view and related functionality for dieticians. Apart from that the patient can now register information like blood pressure, blood glucose levels and eating habits from home. This data is instantly available to authorized care givers, painting a more complete picture of a patient's status and further optimizing the effective use of time during a patient visit. Also, the data model has been expanded to provide additional relevant information to both care givers as well as insurers. To find out more about our Diabetes solution, we invite you to download the brochure from our website.

Selection by UMC Utrecht
The Clinical Chemistry and Hematology departments of the Universitair Medisch Centrum (University Medical Center) of Utrecht in the Netherlands, led by Dr. R. Fijnheer, has selected VitalHealth Software's disease management solution to record and manage the treatment of patients with rare diseases. Initially, the solution will be used for managing TTP and Mastocytosis. All major hospitals in the Netherlands will use the web-based disease management software of VitalHealth Software to centrally record the treatment of these rare diseases. This will lead to a unique knowledge base that can be used to share treatment results and feed research projects to find new treatment options.

Start of office in India
Earlier this month we opened a new office in Mumbai, India. With Darayus Bahrucha as General Manager, about 15 people started working from our India office, including 3 physicians that will contribute medical knowlegde to our disease management models. With this expansion, VitalHealth now employs about 35 people, including the recent addition of Doug Sallen (a business development veteran in the software industry) to the American team.

VitalHealth Board of Directors
Earlier this year Dr. Brooks Edwards, M.D. took over the role of Chairman of our Board of Directors from H. van den Breemen. Dr. Edwards is a consultant in the Division of Cardiovascular Disease, Department of Internal Medicine at the Mayo Medical Center in Rochester (MN), and a Professor at the Mayo Clinic College of Medicine. Within the Mayo Clinic he has been heavily involved in the utilization of technology to support and enhance the delivery of medical information. H. van den Breemen will continue to serve our Board in the role of Advisor.