PLEXIS Healthcare Systems Announces Agreement with the Department of Veterans Affairs Financial Services Center

VA is the nations largest provider of healthcare services

Ashland, Oregon -- March 18, 2003 -- PLEXIS Healthcare Systems, Inc. announced recently that the Department of Veterans Affairs Financial Services Center has selected the PLEXIS Claims Manager for its claims processing software. The VA is the nations largest provider of healthcare services. The Financial Services Center provides accurate, timely customer-oriented financial services to the Department of Veterans Affairs and other government agencies. PLEXIS was chosen by the Center after an extensive evaluation process that included all of the major claims processing vendors.

The VA Financial Services Center provides a full range of financial services, which includes financial reports and accounting, invoice payments, credit card payments, discount subsistence purchases, Electronic Commerce/Electronic Data Interchange (EC/EDI), payroll processing, travel payment processing, automated document management, audit recovery, consulting, and training. PLEXIS is helping them expand their services to include processing healthcare insurance claims.

According to officials at the Austin-based VA Financial Services Center, they were looking for a vendor/partner who could help them meet tight deadlines and also assist them in sustaining their goal of operating in a paperless environment. They indicated they needed a company that could easily integrate with other vendors and PLEXIS demonstrated this capability.

"We are very pleased that a government agency with the size and prestige of the VA Financial Services Center has selected our company," said Jorge Yant, President and CEO of PLEXIS Healthcare Systems. "We believe the PLEXIS Claims Manager is the most flexible claims processing system in the marketplace and were pleased that the Center agrees with us. I have every confidence that our rules-based engine will produce a claims processing solution that will completely meet all of the Centers requirements," Mr. Yant continued.

PLEXIS Healthcare Systems' Claims Manager software was recently ranked number one in functionality for health plans with 50,000 to 350,000 lives in an independent survey of Managed Care Information Systems (MCIS) conducted by the AC Group, Inc. of Houston, TX. Fifteen leading MCIS software vendors were asked to respond to 542 questions covering 30 areas of functionality.

The PLEXIS suite of products will provide the VA Financial Services Center with the functionality it needs to facilitate accurate and automatic claims adjudication, referral authorizations, benefit administration, and contract management, while meeting all present HIPAA compliance requirements. PLEXIS rules-based engine will allow the Center to readily customize the claims processing system to meet its paperless processing goal.

About the Department of Veterans Affairs Financial Services Center
The Financial Services Center is located in Austin, TX and is in its seventh year of operations as an Enterprise Center under VAs Franchise Fund Pilot Program. This program, authorized by the Government Management Reform Act of 1994 (Public Law 103-356), empowers specific agencies to provide common administrative support services on a reimbursable basis both internally and to other Federal Government agencies. The Financial Services Center was recently recognized by Government Executive magazine in its Special Issue: Grading Government, 15 May 2002, as providing one of the three "Best Practice" cited by the GAO (GAO-02-69G). They are a fee for service operation, and can be reached by contacting the Business Office at extension (512) 460-5010 or by e-mail at bso@mail.va.gov. The Financial Services Center web site address is http://www.fsc.va.gov">www.fsc.va.gov.

About PLEXIS Healthcare Systems
PLEXIS Healthcare Systems is a leading payer solutions and claims processing technology company based in Ashland, Oregon. They are one of the fastest growing claims processing companies in the healthcare marketplace and have been developing high-end payer solutions since 1996. PLEXIS Healthcare Systems' claims processing tools employ the very latest Microsoft technology and are highly rated by independent healthcare consultants. Their payer solutions enable healthcare organizations to reduce costs, streamline and automate their claims payment and medical case management requirements, increase profitability, enhance customer satisfaction and expand market share, while helping them meet all current governmental regulations, including HIPAA. For more information, please call toll free (877) 475-3947 or visit http://www.plexisweb.com">www.plexisweb.com.