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HealthNow New York Selects MEDai's Predictive Modeling
Solution to Enhance Disease Management Programs

July 28, 2005 – (Orlando, FL) - MEDai, Inc., headquartered in Orlando, FL, a leading provider of innovative healthcare solutions, announced earlier today that HealthNow New York Inc., one of New York state's leading healthplans has signed a contract to utilize MEDai's Risk Navigator Clinical™ predictive modeling solution to identify members for their disease management programs.

Risk Navigator Clinical™ accurately forecasts 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. Additionally, in 2005 MEDai won first place in the prestigious international German Classification Society competition, also known as the GFKL.

"HealthNow offers a wide range of preventive care and disease management programs. The purpose of the programs is to help members manage their health and avoid preventable problems," said Michele Mercer, Director of Analytics. "MEDai's technology, with its ability to provide the most accurate predictions at an individual member level provides a huge advantage to all our members. In addition to providing us with a list of those high-impact members whose costs and quality of care can be positively impacted by proactive interventions, its solution provides specific recommendations for care managers based upon evidence-based guidelines," she added.
"HealthNow is an organization of excellence," said Steve Epstein, CEO and President of MEDai, Inc. "We are excited about this opportunity to assist them in delivering quality services to their members," he added.

About HealthNow New York
HealthNow New York Inc. is one of New York state's leading health plans, serving nearly 900,000 members throughout 53 counties in Upstate New York. Revenues for 2004 exceeded $2 billion.

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.