News Release  

TORONTO, March 26, 2012 – Medworxx Inc. (“Medworxx”) (TSXV: MWX), a leader in clinical patient flow, compliance and education solutions, today announces a profit for the year ended December 31, 2011.  The Company has filed with the Canadian securities authorities its Consolidated Financial Statements and Management’s Discussion and Analysis report – these documents may be viewed under the Company’s profile at www.sedar.com.

Highlights of the results for the year ended December 31, 2011:

• Revenue was $4,799,961, representing an increase of 14.2% over revenues of $4,203,694 for the previous year. The increase is primarily attributable to growth in license and maintenance revenues from the Medworxx Patient Flow solution.  The number of beds under license on this platform has grown by 66% from 12,858 beds under license at December 31, 2010 to 21,402 beds under license at December 31, 2011.
• Revenue for the fourth quarter 2011 was $1,249,655, representing an increase of 22.3% over revenues of $1,021,745 for the same quarter the previous year. This is the highest quarter of revenues achieved since the Company’s inception.
• The Company has generated net income of $28,144 for the year as compared to a net loss of ($479,268) for the previous year. This improvement of $507,412 in results of operations for the year ended December 31, 2011 is due to the Company’s focus on growing revenue and tightly controlling expenses.
• Operating expenses before loss/gain on foreign exchange and interest on long-term debt for the year were $4,076,074, an increase of 4.9% over expenses of $3,887,164 in the same period the previous year.  These numbers are in line with Management’s planned investment into the expansion of marketing and distribution channels for Medworxx Patient Flow.
• EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, and Amortization, for the year was $355,532 as compared to EBITDA of ($280,760) for the same period last year, representing an improvement of $636,292.  EBITDA for the quarter was $99,594 as compared to EBITDA of ($140,913) in the same quarter last year, representing an improvement of $240,507. Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the year was $460,282 as compared to ($196,117) for the same period last year, representing an improvement of $656,399. Adjusted EBITDA for the quarter was $161,504 as compared to ($119,708) for the same period last year, representing an improvement of $281,212.
• A number of new agreements were signed in the last quarter for the Medworxx Compliance and Education platform including Froedtert Health, WI, and Middlesex Health Alliance, ON.
• The province of Nova Scotia awarded Medworxx a multi-year $1.8 million contract to license the Medworxx Patient Flow solution for the majority of acute care beds in the province. The project is administered under the Change and Innovation Fund and enables the province to address issues of hospital overcapacity. Nova Scotia is the fourth province to fully-scope a patient flow management agreement with Medworxx, with others including Alberta, New Brunswick and British Columbia.  Nova Scotia is currently operating 3,000 acute care beds; and the province has committed to a five year contract at a cost of approximately $360K per annum for the licensing and maintenance of the Medworxx Utilization Management system for 2,500 beds and the Medworxx Bed Board for 3,000 beds.
• As of December 31, 2011, Medworxx Patient Flow solutions serves 30% of Canadian acute hospital beds (Medworxx sells licenses on a per bed basis), including implementations at the Provincial, Local Health Integration Network (LHIN), regional and local levels.
• Revenue from the Patient Flow solution for the year was $2,537,410, representing an increase of 41% over revenues of $1,804,192 in the same period 2010. Revenue for the quarter ended December 31, 2011 was $681,552, representing an increase of 46% over revenue of $465,732, in the same quarter 2010.
• Newly rebranded as Medworxx Bed Board (formerly the ‘Bed Optimization System’), 33% of Medworxx Patient Flow clients (~10% of Canada’s acute beds) are now using the system to manage patient bed requirements criteria. Grand River Hospital, ON, with 600 beds, and the province of Nova Scotia are the newest additions to the Medworxx Bed Board community that also includes Fraser Health, BC and St. Michael’s Hospital in Toronto, ON.

“Our 2011 results validate our direction and we are gratified that this strong traction we’re sensing in the market is backed up by our numbers – this year we’ve broken our own records on profitability, increases in our client base, and the scope of our deals with Provinces and large entities,” said Dan Matlow, President and CEO, Medworxx.

Medworxx Patient Flow, including Medworxx Utilization Management and Medworxx Bed Board, provides hospitals with tools to bridge clinical and operational perspectives on daily patient flow – optimal for healthcare systems addressing issues of overcapacity, wait times and care coordination.  The Medworxx Compliance and Education solution enables hospital-wide content, policy and learning management.  Spurred onwards by uptake of the patient flow solution in Canada and United Kingdom’s National Health System (NHS), and a recent launch into the United States, Medworxx is expanding to leverage growth that includes agreements with 4 of Canada’s 10 Provinces, as well with Local Health Integration Networks (LHIN), regional and local hospitals–and also includes 1,000 beds in the UK NHS Trust.

About Medworxx

Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom.  Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Utilization Management system—flagship of Medworxx PF that also includes bed optimization and independent assessment components—currently serves over 30% of the acute care beds in Canada. Founded in 2004, Medworxx Inc. is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX

• Online: www.medworxx.com
• LinkedIn: linkedin.com/company/medworxx
• Twitter: @Medworxx

Disclaimer

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the company’s expectations and projections. The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

Media Contact

Julia Zarb, PhD
SVP Marketing & Strategy, Medworxx
T: 1.800.321.1591 | T:416.642.1278 x322
jzarb@medworxx.com  | www.medworxx.com

Dan Matlow
President & Chief Executive Officer, Medworxx
T: 1.800.321.1591 | T:416.642.1278 x311
dmatlow@medworxx.com | www.medworxx.com

TORONTO — Medworxx Inc. (“Medworxx”) (TSXV: MWX), a leader in clinical patient flow, compliance and education solutions, today announces their expansion of the enterprise wide Policy and Document Management System (PDMS) license at Froedtert Health in Wisconsin, US, for all of its 8,500 employees. With a strong North America client base and more than 140 healthcare organizations in Canada, Medworxx Compliance and Education Solution supports The Joint Commission regulatory guidelines, escalating solid uptake of the Medworxx Solution.

“Medworxx PDMS allows us to manage large volumes of documents in an efficient manner that protects both the patient and healthcare provider,” said Hector Joseph, Chief Technology Officer, for Froedtert Health. “Because we have various hospital and clinic sites, we needed a robust system that supports multiple levels of reports to give us access to the information we need.”

With three Wisconsin hospital sites in West Bend, Menomonee Falls, and Milwaukee, and a number of clinic locations throughout Waukesha and Washington counties, Medworxx PDMS ensures that healthcare providers at Froedtert Health have access to the information they need, when they need it. Froedtert Health joins the Medworxx PDMS community that includes Hamilton Health Sciences Center, ON, Nova Scotia Department of Health, and Premier Health Partners in Ohio, US.

“Medworxx PDMS clients are now able to take unstructured documents and organize them in an easy format with audit and tracking capabilities, critical for improving patient safety and simplifying hospital compliance initiatives,” said Dan Matlow, CEO and President of Medworxx. “Essentially, Medworxx PDMS allows organizations to easily create and deploy relevant content, and provide enterprise-wide access to policy and other regulatory requirements.”

About Froedtert
Froedtert Health is a regional health care organization made up of Froedtert Hospital, Milwaukee; Community Memorial Hospital, Menomonee Falls; St. Joseph’s Hospital, West Bend; and Froedtert Health Clinics, Waukesha and Washington counties. Joining the capabilities of an academic medical center affiliated with The Medical College of Wisconsin, two community hospitals and 32 community-based primary and specialty clinics, Froedtert Health delivers highly coordinated, cost-effective health care to residents of southeastern Wisconsin and beyond. In 2011, combined adulat patient admissions for the three hospitals exceeded 41,000.

For more information: http://www.froedterthealth.org/

About Medworxx
Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Utilization Management System—flagship of Medworxx PF that also includes bed optimization and independent assessment components—currently serves over 30% of the acute care beds in Canada. Founded in 2004, Medworxx Inc. is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX

Online: pf.medworxx.com/
LinkedIn: linkedin.com/company/medworxx
Twitter: twitter.com/medworxx

Disclaimer
The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the company’s expectations and projections. The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

Join Medworxx at HIMSS 2012.

http://www.himssconference.org/

WHEN: February 20-24, 2011
WHERE: Venetian Sands Expo Center, Las Vegas, NV
BOOTH #5923

Don’t miss out on these exciting speakers:

• Biz Stone, Co-founder, Twitter
• Farzad Mostashari, MD, ScM, National Coordinator for Health Information Technology, US Department of Health and Human Services
• Donna Brazile, Political Strategist & Commentator Vice Chair of Voter Registration & Participation, Democratic National Committee
• Dana Perino, Political Commentator & Former White House Press Secretary

Who to meet from Medworxx

• Dan Matlow, President & CEO
• Julia Zarb, SVP of Marketing & Strategy
• Larry Vanier, VP Patient Flow & Decision Support
• Joel Alfane, VP of Development & Services
• Caroline Russell, RN, Senior Clinical Consultant

Please contact us at info@medworxx.com if you would like to set up an appointment.

“We’ve worked very well together in existing accounts and I know this partnership will allow us to offer our clients more value from our combined systems,” says Dennis Dion, Vice President of Sales and Marketing, MediSolution.

MediSolution’s Virtuo Human Capital Management Suite has been tied into the Medworxx Learning Management System (LMS) in multiple locations.  The combination is proven to enable a more in-depth and fully-rounded option for personnel management for hospitals.

“The MediSolution and Medworxx partnership is a logical progression for our companies. We see a lot of ways for us to build our hospital offerings together in the market,” says Dan Matlow, President and CEO, Medworxx.

MediSolution offers the Virtuo Human Capital Management Suite to optimize recruiting, training, scheduling and payroll processes for the healthcare market. The complementary relationship between Virtuo HR’s Personnel and Training Module and Medworxx Learning Management System (LMS) which supports the development, management and delivery of classroom and online learning, with associated reporting and compliance tracking capabilities, has been forged through several installations within Canada.

About MediSolution

Founded in 1974, MediSolution, a wholly-owned subsidiary of Harris Computer Systems, is a leading information technology company, providing ERP software, solutions and services to healthcare and service sector customers across North America. Almost 300 healthcare, public and service sector organizations rely on MediSolution’s systems to maximize their operational efficiencies, lower their costs and improve the delivery of services. For further information about MediSolution contact:

About Medworxx

Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom.  Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education.  Medworxx offers solutions in content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness arenas.

Medworxx started business in May, 2004, in Ontario with three employees and has since grown to approximately 40 employees. Medworxx’ Executive Team and Board of Directors are experienced leaders in healthcare, sales, marketing, IT development, and finance.

Medworxx current client base is distributed approximately 75% in Canada and 25% in the United States, with a growing UK presence. Medworxx Patient Flow solution currently serves over 30% of the acute care beds in Canada.

Founded in 2004, Medworxx Inc. is publicly traded on the TSX Venture Exchange: MWX Visit www.medworxx.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Julia Zarb, PhD
SVP Marketing & Strategy,  Medworxx Inc.
Suite700, 121 Richmond St West, Toronto, Canada, M5H 2K1
T: 1.800.321.1591 | T:416.642.1278 x322 | M: 416.418.3641
jzarb@medworxx.com | www.medworxx.com

Disclaimer

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company’s current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Corporation and Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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