Mr. Joseph Willmott reports

HEALTHSPACE ANNOUNCES NEW USD$3.064 MILLION SAAS CONTRACT - THE LARGEST IN COMPANY HISTORY

The Virginia Department of Health (VDH) has signed a five-year contract for the Office of Environmental Health (OEHS) to install and maintain the HealthSpace Data Systems Ltd. CS Pro enterprise cloud application for the entire commonwealth. The contract is worth $3,064,000 (U.S.) over the five years.

HealthSpace president Joseph Willmott stated, "This is the largest single contract ever signed by HealthSpace and is a tremendous endorsement of our new cloud technology."

In 2003, VDH went live with the Virginia Environmental Health Information System (VENIS) that was an Internet-based client/server system developed and maintained by HealthSpace. HealthSpace provided the first public access website in North America for VDH where the public could view restaurant inspections. VDH decided that it wanted to change to a cloud-based application from the established client/server system provided by HealthSpace. They published a request for proposals and received 22 responses from vendors across North America. The HealthSpace proposal was the one accepted.

OEHS is responsible for policy development, training, technical support and programmatic oversight for assigned programs. Most program activities are carried out by environmental health staff in the district and local health department offices. However, the shellfish program, the bedding and upholstered furniture program, the marina program and the environmental lead program are housed within OEHS. In addition, HealthSpace systems will manage the oversight of the rabies program and the beach water monitoring program provided to district staff by the Office of Epidemiology.

Statewide, there are approximately 500 professional environmental health staff, plus additional office support staff, housed in 121 local offices of 34 health districts for a total of more than 900 concurrent users.

The company has also signed a new contract for the new HS cloud system with the LaPorte County Health Department in Indiana. The contract is worth $36,300 (U.S.).

HealthSpace president Joseph Willmott stated: "We are pleased to have our first customer in the state of Indiana. Across North America we are gaining much interest from agencies excited about our new product lines. This is especially true in states and provinces where we currently do not have a presence."

About HealthSpace Data Systems Ltd.

HealthSpace is an industry-leading technology company currently providing inspection, information, communication and data management systems for federal, state, county and municipal governments. Over the last decade, HealthSpace has successfully developed both enterprise and mobile-Internet-based applications currently serving over 300 state and local government organizations across North America.

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