QualChoice of Arkansas Selects MEDai's
Risk Navigator Clinical for Predictive Modeling

January 18, 2006 – (Orlando, FL) - MEDai, Inc., headquartered in Orlando, FL, a leading provider of innovative healthcare solutions, announced earlier this week that QualChoice of Arkansas, an Arkansas-based health services company has selected MEDai's Risk Navigator Clinical™ predictive modeling solution to enhance their disease management programs.

For more than a decade, Risk Navigator Clinical has accurately forecasted 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. In addition to forecasting those that are high-risk/high-cost, Risk Navigator Clinical allows care managers to quickly identify members with the greatest impact potential from both financial and quality of life perspectives. 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 global competitions such as The Association for Computing Machinery's Knowledge Discovery and Data Mining (ACM KDD) competition and the prestigious international German Classification Society competition, also known as the GFKL.

QualChoice will incorporate Risk Navigator Clinical's predictive modeling capabilities into their overall disease management initiatives to better allocate resources and help improve the overall timeliness, effectiveness and cost of care received by their members. "We believe our competitive advantage is, and will continue to be our ability to offer competitively priced managed care products with superior customer service," said Francis Browning, President and CEO at QualChoice. "Risk Navigator Clinical will allow us to gain better insight on what is truly driving medical costs in our member populations thereby giving us a clearer path as to how to better serve our members," he added.

"MEDai is excited about working with such a forward-thinking organization as QualChoice," said Steve Epstein, President and CEO of MEDai. "The landscape of healthcare is changing daily and MEDai is committed to developing technologies and solutions that will help healthcare constituents such as QualChoice realize the best outcomes possible," he added.

About QualChoice of Arkansas
QualChoice of Arkansas, Inc. is an Arkansas-based health services company that offers a variety of managed care products and benefit administration services to its members. With over 80,000 members we are the second largest managed care company headquartered in Arkansas. QualChoice offers a comprehensive line of HMO and POS plan as well as certain third party administrative ("TPA"), dental, vision and pharmacy products. Membership includes large and small group commercial members and state employees. Members are located across the entire state with concentrated membership in large metropolitan markets. For more information about QualChoice, visit www.qcark.com.

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