MEDai to Project Medicaid Expenditures for the
State of Florida Agency for Health Care Administration

April 25, 2005 – (Orlando, FL) - MEDai, Inc., headquartered in Orlando, FL, a leading provider of advanced solutions for healthcare that utilize award-winning predictive modeling technology, announced earlier this week that they have been awarded a contract with the State of Florida Agency for Health Care Administration (AHCA), Bureau of Medicaid Program Analysis, to estimate Medicaid expenditures for state fiscal year beginning July 1, 2005 ending June 30, 2006. This estimate shall forecast the growth in Medicaid expenditures for each major eligibility group and service category, as well as the underlying reasons for that growth.

AHCA will utilize MEDai's Risk Navigator Clinical™ solution which 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 outliers-the very events clients want to predict-Risk 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.

After reviewing several bids from various vendors, AHCA identified MEDai as the winner due to the accuracy of their predictive methodologies that simultaneously use multiple analytical models, experience in forecasting trends in costs at the individual member level and the aggregate level. Additionally, Risk Navigator Clinical provides on-line access to data at all times, and can provide customized reporting capabilities. "Harnessing the power of technology is vital as we move Medicaid into the 21st Century," said AHCA Secretary Alan Levine. "We are pleased that MEDai has shown a willingness to bring the full impact of advanced computing to bear on Florida's Medicaid program," he added.

"MEDai is very pleased to be working with such a prestigious agency," said Steve Epstein, President/CEO of MEDai, Inc. "We are confident that Risk Navigator Clinical will meet their needs effectively by allowing them to evaluate alternative methodologies for budgetary projections, compare to Agency projections regarding budget adjustments for changes to the Medicaid program, and update projections based on actual experience during the projection period."

About MEDai
MEDai, Inc. is a leading health information company offering award-winning solutions for the improvement of healthcare delivery. Utilizing cutting edge technology, payors and care management organizations are able to forecast patients at risk, identify cost drivers for their high-risk population, forecast future health plan costs, evaluate patient patterns over time, and improve outcomes.

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