Erudite Corporation Corrects and Replaces Previous Medical Education Programs Announcement,...

Business Editors

NOTE: The following news release replaces and corrects the

previous Erudite Corporation news release, which ran

on Monday, Aug. 20, 2001 on Business Wire, BW2052

(MI-ERUDITE-CORPORATION)

DETROIT--(BUSINESS WIRE)--Aug. 21, 2000

Erudite Corporation to Distribute

Continuing Medical Education Programs

for University of Michigan Medical School

Erudite Corporation has announced a five-year collaborative agreement with the University of Michigan Medical School to distribute the school's Continuing Medical Education (CME) programs to physicians through the Internet.

Erudite is an interactive e-learning publisher that produces advanced multimedia medical education and training courses and programs for healthcare professionals. It will deliver the CME programs through a site it is developing on the World Wide Web.

"We are pleased with this new opportunity to deliver our continuing medical education programs to physicians," said Van Harrison, director of CME at U-M Medical School.

"With physicians and healthcare systems under constantly growing pressure to control costs without sacrificing the quality of patient care, there has been growing demand for a more economical educational alternative to conferences and seminars," said Frank J. Palazzolo, Erudite's president and chief executive officer.

"We use the Web to deliver our courses and programs more effectively, more efficiently, and more economically than those delivered by other means. Access to our information is low-cost, time-saving, and easy. And it's convenient -- available to subscribers 24 hours a day, seven days a week, 52 weeks a year. Our programming has been endorsed by The Independent Physicians Association of America, whose membership exceeds 230,000 physicians nationwide," Palazzolo said.

Palazzolo founded Erudite's predecessor company in July 1998, when he was an executive at Henry Ford Health System (HFHS), Detroit, the largest health system in Michigan and the third-largest managed care organization in the country. The company was e.med.ed, llc, HFHS's Internet subsidiary. Palazzolo served as its general manager until November 1999, when he led a management group that acquired it from HFHS and established it as privately held Erudite Corporation.

Erudite has a 10-year joint development agreement with HFHS, granting it use of HFHS's computerized video editing and delivery system, and exclusive rights to commercialize HFHS's existing video library of courses, including its complete Managed Care College Curriculum.

Erudite also has a two-year agreement with the University of Michigan-Dearborn to co-produce online corporate training courses focused on the healthcare and business community.