MedQuist & Sequoia Software Strategic Partnership to Spur Access, Delivery and Storage of Electronic Medical Transcriptions

XML BASED BACKOFFICE FOR HEALTHCARE LINKS
'BEST OF BREED' HEALTHCARE TECHNOLOGY SOLUTIONS

COLUMBIA, Md., ¾ August 6, 1998 ¾ Sequoia Software Corporation announced today an alliance with MedQuist Inc. (NASDAQ: MEDQ) to create a comprehensive, common medical document repository for healthcare organizations regardless of the data source. The strategic partnership will allow MedQuist to embed Sequoia Interchange98, a set of back-end technology components including such features as heterogeneous workflow, standard messaging, data distribution, security, and ubiquitous access to information. Sequoia Interchange98 also packages sought after Microsoft BackOffice (NASDAQ: MSFT) components for quick, easy intergration and use by the front-end application developer. Sequoia's partnership with MedQuist will speed to market MedQuist's MTS (a computer-based medical transcription package which incorporates a graphical user interface or GUI) with Sequoia Interchange98, healthcare's first XML server. The new product package creates a distributed XML data repository enabling healthcare organizations to integrate information generated by MedQuist's MTS with other hospital systems.

The capabilities of the new solution resulting from the MedQuist & Sequoia partnership will save healthcare organizations time and money by allowing them to flexibly manage information generated by disparate applications, as well as, make data more readily accessible to a wide network of physicians, clinicians and administrators using a simple browser interface. The product package will provide a powerful, universal reporting solution for emergency medicine, pathology, radiology, invasive cardiology and other specialized medical areas. Previously, users were forced to store data from disparate systems in a variety of locations and merge information manually, a costly, time consuming and often frustrating process.

David Cohen, chairman, president and CEO of MedQuist said, "Our alliance with Sequoia will expedite our goal of becoming a total-solution provider to our medical transcription clients, offering a suite of electronic medical transcription and related healthcare information products. The new combined MedQuist front-end/Sequoia back-end solution will allow us to better serve our existing clients and more effectively penetrate specialized medical areas."

In healthcare today, there exists a void between where a database system leaves off and the end user application begins. Typically this void is filled by transaction-based "plumbing" that solution providers and healthcare organizations either build or buy. The choice is largely based on time-to-market concerns and whether it is a healthcare organization or technology vendor's core competency.

MedQuist's vice president and CIO, Ron Scarpone said, "We saw time to market as critical. With the ability of Sequoia's key internal component to snap into our product, we saved a lot of time." Mr. Scarpone added that "the ambition now is to combine MedQuist's and Sequoia's core competencies to create a single comprehensive data/document repository where all medical documents are stored, accessed and integration of heterogenious information is achieved."

"The combination of MedQuist's graphical user interface front-end application and Sequoia's XML based back-end solution with our BackOffice server suite will make this a preferred back officesolution for healthcare," said John Carpenter, Microsoft's World Wide Health Industry Manager. Microsoft is very pleased with the potential offered by the alliance between MedQuist and its Industry Solution Award Winner, Sequoia Software, Carpenter added.

"Establishing this strategic relationship points to the need among 'best of breed' solution providers for a flexible, universal language for formating data in healthcare," said Mark Wesker, president of Sequoia Software Corporation. "Our back office XML based technology foundation disintegrates disparity between systems and solutions making vital medical data more accessible to front-end applications while providing the critical back-end technology components essential to resolving the build versus buy back-end development dilemma."

MedQuist, Inc.
MedQuist Inc. is a leading national provider of electronic transcription and healthcare information management solutions. Through its innovative proprietary software, open architecture environment, and network of more than 3,000 trained medical transcription specialists, the company converts free-form medical dictation into electronically formatted patient records which health care providers use in connection with patient care and for administrative purposes. The company's customized outsourcing services enable clients to improve the accuracy of transcribed medical reports, reduce report turnaround times, shorten billing cycles and reduce overhead and other administrative costs. Company officials believe that the electronic capture and delivery of free-form dictation are key components in the increasing implementation by health care providers of electronic medical record systems. MedQuist Inc. entered this business when it acquired Transcriptions, Ltd., a 25-year-old, private company, in May 1994. Additional information about MedQuist Inc. can be obtained by visiting the company website at http://www.medquist.com/.

Sequoia Software Corporation
Sequoia's fast-growing team of distribution partners includes both front-end ISVs (Independent Software Vendors) who embed Sequoia's products into their own, as well as health care VARs (Value Added Resellerss) who use the company's products to provide out-sourced technology services. Using Sequoia Interchange98, a BackOffice for Healthcare, integrates charts, templates, reports, and other patient data interchangeably from a variety of client applications including the Azron point-of-care system; Datex-Engstrom's anesthesia monitoring system; radiology reports originally dictated into Lernout & Hauspie's Kurzweil Clinical Reporter; and a practice management system from Infosys. In 1997, Sequoia was selected by the U.S. Commerce Department's National Institute of Standards and Technology (NIST) to develop a national Master Patient Index using XML technology. Additional information about Sequoia Software Corporation and Interchange98, health care's first XML server, can be obtained from white papers, fact sheets and backgrounder through Sequoia's website at http://www.sequoiasw.com.

Microsoft Corporation
Founded in 1975, Microsoft is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day. Additional information on Microsoft in the health care market can be viewed by visiting the Microsoft Web page at http://www.microsoft.com/industry/health/, or for corporate information, http//www.microsoft.com/corpinfo/.

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