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AMICAS Signs Twelve New PACS Contracts in Q1 2004
AMICAS’ Imaging Center, Community Hospital and MEDITECH Customer Successes Continue as V4 is Shipped
BOSTON, MASS, May 4, 2004 – AMICAS, Inc., the Web-based picture archiving and communications systems (PACS) company, a wholly owned subsidiary of VitalWorks Inc. (NASDAQ:VWKS), signed twelve new contracts for implementation of enterprise PACS during the first quarter, ending March 31, 2004. These results represent records in both total value of new contracts and total number of PACS contracts in a single operating quarter.
The twelve contracts include five hospitals and hospital groups, one large multi-specialty physician practice, two high volume and major radiology groups, and four imaging center groups who have contracted to utilize both AMICAS PACS and VitalWorks’ Radiology Information System (RIS) integrated with AMICAS Vision Series™ Web-based PACS.
The first quarter contracts include three hospitals that utilize MEDITECH’s Health Care Information System. These hospitals will utilize AMICAS’ integration with MEDITECH products to transform their radiology practice from a film-based operation to a digital practice. Furthermore, these hospitals will utilize the integration between AMICAS and MEDITECH to deliver and distribute images via their electronic medical record. Similarly, two other hospitals and physician group practices will utilize the integration between AMICAS, McKesson, and Epic respectively. These examples of total integration saves physicians large amounts of time that would otherwise be spent tracking down hard-copy film studies. Clinicians at these facilities will soon join other AMICAS customers and be able to instantly and easily access, with single sign-on, on- or offsite, thousands of new and prior diagnostic imaging studies 24 hours a day.
AMICAS continues to be successful in a marketplace filled with PACS buyers, particularly those of community hospitals and imaging centers. According to THE DORENFEST INTEGRATED HEALTHCARE DELIVERY SYSTEM (IHDS+) DATABASETM, PACS is showing the most dramatic growth of all IT systems with over 30% of the hospitals interviewed in 2003 now using PACS, and over half of these hospitals purchasing PACS within the past 2 years. During the next 2 years, another 40% of the nation's hospitals will be purchasing PACS, " said Sheldon Dorenfest, CEO, Dorenfest & Associates.
“We continue to execute our plan to deliver high value products and innovative technologies that naturally integrate with existing and new information technology (IT) investments deployed by the healthcare facilities in our target market”, said AMICAS President and CEO, Hamid Tabatabaie. “At the end of the first quarter of 2004, AMICAS has been contracted by over 130 unique and often multi-facility customers and our products are installed in over 260 healthcare facilities.”
During the first quarter of 2004, AMICAS field-tested “V4”, the most recent release of its Vision Series Web-based PACS, Vision 4, shipped for general release at the end of April. “V4 offers the most advanced functionality in PACS and it has already been clinically integrated with MEDITECH, IDX, Misys, McKesson, and certainly, VitalWorks products,” said Tabatabaie. “During the first quarter, with four combined RIS/PACS contracts, we are seeing early results of the natural synergy between AMICAS Vision Series PACS, the VitalWorks RIS and billing products targeted at the outpatient ambulatory imaging market with its unique information and image management requirements. Our business is growing in both the hospital segment of the market and the outpatient side, where we benefit from and enjoy a significant installed base with VitalWorks products. Consequently, during the first quarter we increased our resources by investing in and growing our sales, engineering, implementation and support teams.”
About AMICAS, Inc.
Established in 1995, AMICAS provides Web-based, software-only medical and diagnostic image management solutions. AMICAS conceived the software architecture of The Vision Series, combining PACS functionality into a centralized, standards-based and manageable platform. AMICAS continues to craft scalable, feature-rich solutions to meet the workflow, integration and care needs of all institutions, filling the performance and scalability void left by legacy approaches. AMICAS promotes solutions that leverage the cost efficiencies of a technology-forward design that responds to emerging technologies. Purposely selecting a vendor-neutral hardware approach, AMICAS’ value proposition affords clients an average two to three year ROI – half that of traditional solutions.
AMICAS’ demonstrated leadership is evident in a diverse customer base encompassing more than 260 facilities, processing more than six million exams per year. AMICAS solutions are implemented at renowned institutions, including New York-Presbyterian Healthcare System, the University of Chicago Hospitals and Massachusetts General Hospital for enterprise distribution of images; and Rush North Shore Medical Center, Blanchard Valley Health Association and Nassau University Medical Center for end-to-end PACS. AMICAS is a wholly owned subsidiary of VitalWorks Inc. (NASDAQ: VWKS), a leading provider of information management technology and services targeted to healthcare practices and organizations throughout the United States. Additional information about AMICAS can be found at www.amicas.com. Additional information about VitalWorks can be found at www.vitalworks.com.
Safe Harbor Statement
Except for the historical information herein, the matters discussed in this release include forward-looking statements. The forward-looking statements contained in this release include statements about future financial and operating results and the proposed acquisition. When used in this press release, the words: believes, intends, anticipates, expects, and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the risk that VitalWorks and AMICAS’ businesses and/or products will not be integrated successfully, the risk that AMICAS’ businesses relationship with its customers will not be successful; the failure by the companies to retain key employees, integrity of the intellectual property of AMICAS, continued compliance of all government laws, rules and regulations for all applicable products, the failure by the company to complete and deliver products and services within currently estimated time frames and budgets, the inability to achieve revenues from combined lines of products, economic and political conditions in the United States and abroad and other risks affecting VitalWorks’ businesses generally and as set forth in VitalWorks’ most recent filings with the Securities and Exchange Commission. All forward-looking statements in this press release are qualified by these cautionary statements and are made only as of the date of this press release. VitalWorks and AMICAS are under no obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements whether as a result of new information, future events or otherwise.
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Anne Gagne
1.800.490.8465 x 7741
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investorrelations@amicas.com
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