Press Release

September 8, 2005
FOR IMMEDIATE RELEASE

HealthDataInsights Raises $13.2 Million In Series A Round

GRP Partners Leads Series A Round Funding

(Las Vegas, Nevada) – HealthDataInsights, a leading provider of medical claims overpayment identification and recoupment services, announced today it has raised $13.2 million in a Series A round of private venture funding. New investor GRP Partners (www.grpvc.com) led the round, with participation from Ticonderoga Capital (www.ticcap.com) and existing investor Redhills Ventures LLC (www.redhillsventures.com). The new round brings HealthDataInsights funding to date to over $25 million.

Applying its sophisticated technology platform developed over the course of more than a decade, HealthDataInsights works with healthcare payors to ensure that providers have been reimbursed accurately for care provided. HDI is engaged by public and private healthcare payors, as well as third party administrators and self-insured corporations, to analyze 100% of paid medical claims and to identify and recover overpayments resulting from error as well as fraud or abuse (“Claims Integrity Services”). This year, HealthDataInsights will audit and review over $75 billion in medical claims.

”This is a substantial and growing problem, and HDI is a leading provider of technology-enabled services to help healthcare payors address and reduce the incidence of erroneous payments or overpayments. We were impressed with HDI’s proven track record of producing real savings for payors,” said Michael McCartney, a Partner at GRP Partners. The US Department of Health and Human Services has estimated that gross overpayments under the Medicare fee-for-service program were $20.8 billion in 2004, representing 10.7% of the total amount paid out under this federal program. “The healthcare industry has lagged behind many other sectors of the US economy in providing for efficient and accurate payment for products and services,” said Mr. McCartney, “and we are excited about the opportunity for HealthDataInsights to contribute to improving the integrity of health care claims processing and payment.”

On March 28, 2005, the Centers for Medicare and Medicaid awarded HealthDataInsights the first Recovery Audit Initiative contract under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, pursuant to which the company will identify and facilitate the recovery of any overpayment of fee-for-service Medicare claims filed in the State of Florida from late 2001 through the Fall of 2007.

Ahead of the Pack

“We're delighted to have such insightful investors join the HDI team. GRP Partners and Ticonderoga Capital both have well-established track records of helping to build category-defining business services companies,” said Victor M.G. Chaltiel, HealthDataInsights' Chairman and CEO. “We are focused on executing against our vision for a new era of healthcare Claims Integrity, an era of information-driven decisions where transactions between payors and providers are conducted with the highest level of accuracy. Ultimately, our goal is to build a major company in the healthcare arena by helping our clients reduce healthcare expenditures, an issue of vital importance.”

Funding to Meet Increased Demand

“As healthcare inflation continues unabated, payors have aggressively sought technology-driven solutions to reduce costs and manage expenditures,” said company President Andrea Benko, fueling demand for HealthDataInsights services. The proceeds from the company’s Series A funding will be used to extend and further enhance HealthDataInsights technology platform and ability to meet the growing needs of its public and private sector clients.

About HealthDataInsights

HealthDataInsights leverages proprietary software to analyze 100% of its clients' healthcare claims and identify fraud, abuse and overpayments. The company is led by an experienced management team that has previously worked together to build major public companies in the healthcare arena. Victor Chaltiel, Chairman and CEO of HealthDataInsights, was previously Chairman and CEO of Davita (NYSE:DVA), a provider of dialysis services which grew under his leadership to over $1 billion in revenues. He also spent 18 years with Baxter International (NYSE:BAX), where as corporate group Vice President he was responsible for international operations and five domestic divisions with well over $1 billion in revenues. Andrea Benko, President of HDI, was most recently VP of Mergers and Acquisitions at Davita, and prior to that was Executive Vice President of Total Pharmaceutical Care, a then publicly held company which was also led by Victor Chaltiel until its sale to Apria (NYSE: AHG). HealthDataInsights is headquartered in Las Vegas, Nevada with operations in Newport Beach, CA and Orlando, FL. To learn more about HDI, visit the company's website at www.healthdatainsights.com.

About GRP Partners

GRP Partners is a venture capital and growth equity firm focused on financing and helping to build retail and consumer services companies, providers of retail technology solutions, financial services providers and related technology companies, and business services providers. GRP Partners finances outstanding early-stage and late-stage companies that have developed solutions meeting pressing consumer and business needs. Over the course of nearly 20 years, the GRP Partners team has been involved with many companies that have become household names today, such as Costco, Starbucks, PETsMART, Office Depot, Ticketmaster, P.F. Chang's and many others. With offices and Los Angeles and London, GRP Partners manages approximately $650 million on behalf of more than 150 limited partners in North America and Europe. To learn more about GRP Partners, visit www.grpvc.com.

About Redhills Ventures

Redhills Ventures LLC is a venture capital fund that invests primarily in healthcare services and information technology, with a particular emphasis on consumer-driven healthcare. Founded by Victor Chaltiel in 2000, Redhills has funded HDI since inception, and to date is the largest shareholder in the company. Based in Las Vegas, the fund's investments range from pure start-up investments to buyout transactions. To learn more about Redhills Ventures, visit www.redhillsventures.com.

About Ticonderoga Capital

Ticonderoga Capital manages over $200 million in three venture partnerships with a specialization in technology-enabled business services including healthcare business services, IT services, and other traditionally outsourced business services. The Ticonderoga Capital management team has over 40 years of collective venture capital experience financing dozens of successful business services companies. To learn more about Ticonderoga Capital, visit www.ticcap.com.