MUHC First to Launch iCongo’s MediChain E-Procurement Platform

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Solution projected to save Quebec healthcare industry millions of dollars a year

Montreal, January 13th, 2005 - iCongo Inc., an award winning developer of innovative e-business systems and software, today announced that it has signed an agreement with the McGill University Health Center (MUHC) to launch its e-procurement platform, MediChain, which could save Quebec's hospitals millions of dollars a year. The successful implementation of MediChain at the MUHC would lead to the deployment, in 2005, of MediChain across 75 of Quebec's hospitals and healthcare facilities. MediChain is operated and managed by iCongo.

"MediChain is a simple to use but highly sophisticated EDI document exchange and e-procurement platform that will dramatically improve the way hospitals buy goods and services," said Irwin Kramer, President and CEO of iCongo Inc. "Moving from traditional paper ordering to a paperless electronic process is expected to substantially reduce order-processing cycle times and administrative costs for both healthcare institutions and suppliers."

MediChain (http://www.medichain.com) is a middleware solution that overcomes the obstacles posed by integrating diverse healthcare enterprise resource planning (ERP) systems and supplier customer relationship management (CRM) systems. MediChain achieves this by providing a platform that allows these partners to connect their systems over the Internet and easily exchange business documents related to the procurement cycle.

iCongo's MediChain platform will initially be used by the MUHC in conjunction with several of Canada's largest providers of healthcare products. After the successful installation at the MUHC, MediChain, in collaboration with the Association Quebecoise de la Logistique et de l'Approvisionnement du Sector de la Sante (AQLASS), which recommended the system to its members, would then be made available to the 75 hospitals and healthcare facilities and their suppliers that are members of AQLASS. Major suppliers, such as Source Medical - one of Canada's largest medical suppliers - are participating in this project. The objectives of the suppliers using MediChain are to shorten the supply chain, reduce costs of processing orders and improve overall customer service through greatly improved productivity.

"The MUHC is committed to finding and using technologies that reduce costs and improve efficiency in the management of healthcare procurement," said Carole Duhamel, Director of Material Management Services for the MUHC. "We believe MediChain is that kind of technology, plus it is web-based and therefore easy to use. This project certainly will be watched closely by many in the healthcare sector."

Currently healthcare organizations buy less than 1% of their equipment and supplies over the Internet. Quebec's hospitals spend more than $2 billion a year, purchasing everything from floor polish to surgical supplies from hundreds of suppliers across North America. Quebec's hospitals and their suppliers perform millions of transactions a year using the telephone, fax and mail as well as other manual procedures to place and track orders. With MediChain, they could reduce their procurement operating expenses by approximately 50% by using a web-based e-procurement solution. In fact, supply chain management implementations have been shown to save 2 to 6 percent of annual supply costs for hospital organizations.

"MediChain will dramatically improve the efficiency and accuracy of the total procurement cycle by taking advantage of new web technologies," said David Pyper, chair of AQLASS' EDI Selection Committee. "The benefits of bringing these processes online in a single platform will be significant to our members across Quebec, and their suppliers."

About iCongo

ICongo, Inc. is a leading provider of hosted e-business systems, solutions and services for a wide range of both business and consumer applications. iCongo's core technology is the ICE³ (iCongo Collaborative Exchange) collaborative supply chain enablement platform that allows companies and organizations to collaborate with one another and transact business online with their trading partners.

About MUHC

Located in Montreal, the McGill University Hospital Center is a merger of five teaching hospitals affiliated with McGill University-The Montreal Children's Hospital, The Montreal General Hospital, The Royal Victoria Hospital, and The Montreal Neurological Hospital, as well as The Montreal Chest Institute.

About AQLASS

AQLASS is Quebec's logistical procurement association for 75 of the province's hospitals and their suppliers. Its mission is to create a central resource for information, best practices and training for managers in the procurement field. Founded 30 years ago, AQLASS is a non-profit association.

For more information about iCongo and MediChain:

Steven Kramer, iCongo

Tel: 514-866-2664 ext 203

skramer@icongo.com

Stuart Logie, Maison Brison

Tel: 514-731-0000 ext. 225

stuart@maisonbrison.com

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