BlueCross BlueShield of Tennessee Signs Contract to Use MEDai's Predictive Modeling Solution

November 1, 2004– (Orlando, FL) - MEDai, Inc., headquartered in Orlando, FL, a leading provider of innovative healthcare solutions, announced earlier today that BlueCrossBlue Shield of Tennessee (BCBSTN), the largest health benefits company in the state of Tennessee has signed a contract to utilize MEDai's Risk Navigator Clinical™ predictive modeling solution to identify members for their disease management programs and actuarial analysis.

Risk Navigator Clinical accurately identifies prospective high-risk patients to improve patients' health and quality of care while controlling cost. The advantage of MEDai's prediction engine is its use of the right combination of linear and non-linear models to correctly "fit" the characteristics of the client's population. Without eliminating outliers¾the very events clients want to predict¾Risk Navigator Clinical consistently yields the highest accuracy available as evidenced by their performance in The Association for Computing Machinery's Knowledge Discovery and Data Mining (ACM KDD) competition. This is MEDai's fourth year competing in the ACM KDD competition and second consecutive year placing first. The company has always placed in the top four.

"MEDai's award winning technology is clearly the next generation of predictive modeling," said Judy Slagle, director of health information and reimbursement at BCBSTN. "In our experience, rules based models do not achieve as high a level of forecasting accuracy as Risk Navigator Clinical and this should assist us in underwriting, especially with small groups. Given its enhanced ability to predict outliers, we believe MEDai's technology will improve our care management efforts and help us provide better service to our members," she added.
"We are very excited to be associated such an innovative organization like BCBSTN," said Steve Epstein, CEO and President of MEDai, Inc. "We are dedicated to providing our clients with the most accurate predictive modeling technology to assist them in their quality improvement endeavors," he added.

About BCBS-TN
BlueCross BlueShield of Tennessee is the state's oldest and largest not-for-profit health plan, serving more than 2.6 million Tennesseans. Founded in 1945, the Chattanooga-based company is focused on financing affordable health care coverage and providing peace of mind for all Tennesseans. BlueCross serves its members by delivering quality health care products, services and information. For more information on BlueCross BlueShield of Tennessee, visit www.bcbst.com.

For More Information Contact:
Swati Abbott, VP, Business Development
MEDai, Inc.
800-446-3324