Press Release: October 18, 2000

WR Hambrecht + Co Issues Healthcare Industry Report

Handheld companies could generate over $2 billion in sales by 2004

San Francisco, CA, October 18, 2000—WR Hambrecht + Co today announced it issued a comprehensive report on the potential for handheld computing in the healthcare market. The Cure Is In Hand: Bringing Information Technology to Patient Care is available on WR Hambrecht + Co’s web site at www.wrhambrecht.com/research/index.html.

The report concentrates on the virtually untapped opportunity for handheld devices in the healthcare industry. According to WR Hambrecht + Co’s research analyst Josh Fisher, the adoption of wireless handheld devices would allow physicians to write electronic prescriptions, access medical histories, order lab tests, look up drug information with optimal efficiency.

“We believe wireless handheld devices, which fit seamlessly into a physician’s workflow, will sweep through the medical profession like it did in the business world. By 2004, we project that 20 percent of U.S. physicians will be using handheld devices for daily transactions, generating over $2 billion in sales for handheld companies,” said Fisher.

Fisher projects revenue streams will shift from a subscription-based to a transaction-based model by 2004. As critical mass is approached, subscription fees should be eclipsed by transaction fees, which should be paid by payers, pharmacy benefit managers, pharmacies, laboratories, and pharmaceutical companies.

The report profiles the 13 early leaders in the healthcare handheld market, discussing the different models, and pointing out the winning strategies. Companies profiled include Allscripts (MDRX), WebMD (HLTH), Medscape (MDLI), Data Critical (DCCA), ePocrates, iScribe, Parkstone, PocketScript, PocketCode, Virtmed, MDeverywhere, and scheduling.com.