deNovis Accelerates Momentum through National Pilot Project, Strategic Alliances, Customer...

Business Editors

LEXINGTON, Mass.--(BUSINESS WIRE)--Jan. 28, 2003

Breakthrough Technology to Significantly Reduce the $250 billion

Spent Annually on Healthcare Claims Processing

Addressing the claims processing challenges facing the $1.4 trillion health care

Recent corporate milestones include the appointments of Bradford C. Burkett as president and CEO and Robert DeMillo as vice president of product development; a pilot project win from the Centers for Medicare & Medicaid Services (CMS), the largest purchaser of health care in the U.S., to show how deNovis' technology could be used to modernize the national health care system; and key deployment milestones achieved with Tufts Health Plan, deNovis' first major health care customer. These achievements - together with deNovis' strategic alliances with Deloitte Consulting and IBM - set the stage for a major announcement to be made by the company in the coming weeks.

The company was also recently selected as one of the few private companies to present at UBS Warburg's upcoming Global Healthcare Services Conference, to be held in New York City, February 3 - 5, 2003. More than 2,000 portfolio managers, analysts and investors are scheduled to attend this prestigious annual conference.

"Roughly 10 to 20 percent of every healthcare dollar is spent on insurance-related processing - a figure many times higher than other financial service sectors," said Brad Burkett, deNovis president and CEO. "We are committed to significantly reduce that amount, and make every health care claim transaction as easy and accurate as using a credit card or ATM machine. Recent corporate milestones, including our alliances with IBM and Deloitte and several significant customer wins, further strengthen our ability to achieve that goal."

The current system of processing health care insurance claims is governed by a complex and constantly changing web of contractual and regulatory relationships among insurers, employers, physicians, hospitals and government agencies. This complexity, and the limitations of current software systems, has contributed to many of the problems currently facing the nation's healthcare industry.

In November, in a national competition that attracted 41 bidders, the Centers for Medicare & Medicaid Services selected deNovis to pilot its eHD(TM) health care benefits administration platform. Under the Advanced Technology Platform (ATP) project, CMS sought to identify new technologies that could overhaul the configuration and maintenance of the agency's health care benefit transaction processing systems. As the largest purchaser of health care in the U.S., CMS provides healthcare coverage to nearly 80 million Americans, and accounts for over $2 billion in transactions every business day.

deNovis also joined forces with IBM in mid 2002 in the most significant undertaking to date aimed at revolutionizing the labor-intensive system of processing health care claims. Together, the two companies are building a new generation of solutions that will enable insurers to offer millions of subscribers more flexible, customized policies, and allow insurers to process claims and reimburse physicians, hospitals, pharmacies, and consumers in real time. Empire Blue Cross and Blue Shield of New York, with 4.7 million subscribers, signed on as the first customer to use the new IBM/deNovis claims processing system, and represents deNovis' second major health care customer win.

Tufts Health Plans, the company's first health care customer, is using deNovis' technology to introduce new, customized products; and provide members and physicians with electronic access to detailed information about their specific benefits and contracts. Tufts has recently successfully completed extensive testing of the alpha version of eHD, and the product has moved on to its next development cycle. General release is planned for later this year.

deNovis' technology provides the foundation for all key health care benefits business functions - including all claims, payments, and enrollment transactions - and enables health insurers to dramatically reduce administrative time and costs; expand their range of services and more quickly introduce new, customized products to market; and provide higher levels of customer service to the customers, physicians and partners in plain, easy-to-comprehend language. The software helps insurers achieve higher levels of accuracy and automation, and has the ability to customize benefit plans for individual consumers. The solution also features a 24x7 data warehouse supporting the most sophisticated analysis and reporting available in the industry today.

About deNovis Inc.

deNovis develops and sells advanced enterprise transaction technologies and e-business solutions for the health care benefits and financial services industries. In the health care sector, the company's highly innovative claims processing and data warehouse solutions enable health plans to reduce administrative costs, expand their range of products and services, increase speed-to-market, and provide the levels of customer service demanded by providers, employers and consumers. The company is privately held, has raised $77 million in venture capital financing to date, and is headquartered in Lexington, Mass. Visit www.denovis.com.