Plexis Healthcare Systems, Inc. Makes Major Acquisition With Purchase of Logical Claim Solutions

Acquisition increases market share and enhances product offerings

Ashland, Oregon - September 4, 2003 - Jorge Yant, CEO and President of Plexis Healthcare Systems, Inc., announced recently that Plexis has acquired Logical Claim Solutions (LCS), a healthcare technology company with clients nationwide. It was an all cash deal; the terms were not disclosed. The acquisition will increase the size of the Plexis client base and expand its market share. The LCS software suite will also expand the Plexis range of solutions and position the company for even greater future growth.

LCS, located in Frankfort, IL, a suburb of Chicago, IL, has a client-base that includes Third Party Administrators (TPA) that administer over 200,000 lives collectively. Logical Claim Solutions has been in business since 1986, and its software was designed to meet the needs of TPAs to satisfy the ever changing requirements of the healthcare industry. LCS will be integrated into the Plexis family, and their clients will continue to receive support and maintenance, with an option to convert to the Plexis system.

Don Long, President and CEO of Logical Claim Solutions, said, "We are pleased to be associated with an up and coming, fast growing company like Plexis." "Their recent growth through system sales has been phenomenal, and the acceptance of their claims processing software by the industry proves they have done their homework. The addition of our time-tested LCS software will only strengthen Plexis' position in the marketplace," Mr. Long continued.

Jorge Yant, President and CEO of Plexis Healthcare Systems, Inc., said, "We see this as the first of many acquisitions and strategic moves designed to enhance our market position and expedite our growth rate. We have competed head-to-head with LCS in the past and they have a very good product. Don Long has done an excellent job of leading the company. LCS is a very welcome addition to our family. Their software will allow us to expand our range of solutions and make us an even stronger company."

In a recent independent survey of the 15 leading Managed Care Information Systems (MCIS) companies, Plexis Healthcare Systems' software was ranked number one. The fifteen MCIS vendors were asked to respond to 542 questions covering 30 different areas of functionality. Plexis software lowers administrative costs for its clients by 12 to 16 percent. In addition, Plexis' claims processing solutions offer payers, benefit administrators and health plans the functionality to facilitate accurate and automatic claims adjudication, referral authorizations, benefit administration, and contract management. The Plexis Claims Manager has raised clients' auto-adjudication rates to over 90 percent.