Psyche Systems Announces the Availability of LabWeb 7
Introduces the Latest Version of Its Completely Secure Hosted LIS Software
at the Annual CLMA Conference

Salt Lake City, Utah, June 23, 2003 - Psyche Systems Corp. today announced the availability of LabWeb Version 7.0, the latest version of its laboratory information system (LIS) delivered as a completely secure and highly reliable hosted solution. With LabWeb 7, hospitals and private laboratories are able to realize a high return on investment by enhancing their services and improving reimbursement rates, while maximizing their existing IT resources through Psyche's flexible application hosting services. Psyche Systems (booth #1309, 1311) is demonstrating LabWeb 7 at the CLMA/ASCP 2003 Conference & Exhibition this week at the Salt Palace Convention Center in Salt Lake City. In a separate release today, Psyche Systems also announced a new VPN Service solution, based on SonicWALL's industry leading, integrated firewall and VPN appliances, to offer laboratories a more robust, cost-effective hosting option and the ability to extend turnkey LabWeb and WindoPath capabilities to remote sites.

"We were really in a bind and needed to find a new LIS as quickly as possible in order to continue to deliver uninterrupted lab services," said Judy Robertson, Laboratory Manager at Columbus Community Hospital. "We considered many of the leading vendors and chose the latest version of Psyche Systems' LabWeb because it fit our needs very nicely in terms of functionality, budget and the hosted delivery model. Thanks to Psyche's hosted offering and experienced, dedicated support team, we were able to bring a full featured laboratory system live in approximately six weeks."

Combined, Psyche Systems' customer-guided product development process and LabWeb's high-level of customization provide laboratory staff with advanced functionality and greater ease-of-use. LabWeb 7 offers many new and enhanced features, including:

• CALREFLEX Rules-Based Analysis - a decision support system that allows the lab to define specific rules, multiple rule scenarios for a given test, or to easily modify existing rules for result entry, order entry and billing. The flexible billing features allow the lab to establish billing criteria by key demographics required by Medicare and various other commercial healthcare plans to reduce billing errors and improve reimbursement rates.
  
• ADAVIEW Instrument Interfaces - a comprehensive instrument function that operates seamlessly with any interfaced analyzer to easily and effectively monitor, review, rerun, edit and ultimately release available patient results and QC data quickly and efficiently.
  
• LabWeaver - a modifiable GUI that enables user-defined navigation and a high-level of customization to adapt the system's workflow to the lab's existing procedures for greater ease-of-use.
  
• Chrysalis Database - a lean, powerful Microsoft SQL server database designed to enable comprehensive patient data sharing for in-depth, cross-functional analysis, custom report creation and historical archiving to boost the lab's productivity and improve its ability to serve referring physicians.
  
• CALVALID Data Entry Validation - a quality assurance program with alert features and real-time error resolution capabilities to help the lab better serve clients by reducing costly errors.
  
• Quality Control - a new module that allows interactive QC analysis while processing specimens to ensure the accuracy of test results, and that enables enhanced management reporting using the Chrysalis database.

LabWeb's extensive level of customization means that the LIS adapts to the lab environment, not vice versa as is the case with other systems. With the availability of advanced feature modules including a 510(k) FDA-approved SBB Blood Bank Transfusion Service and Medical Necessity Modules, LabWeb is a robust, full-featured LIS specifically designed for the lab environment with integration into the hospital systems and instruments for a seamless, end-to-end solution. Together, Psyche Systems' WindoPath anatomic pathology information system and LabWeb, along with its specialized modules, offer hospitals a completely integrated, best-in-class solution for all areas of the laboratory environment.

Psyche Systems' three-tiered service level agreements are designed to meet the lab's specific support needs, ranging from a completely outsourced application management environment to a basic hosting agreement, to allow the organization to maximize its existing IT resources. All Psyche's flexible, personalized hosting options deliver high reliability and 99.999 percent availability in a fully secure network environment with high quality, dedicated 24/7 system support.

About Psyche Systems Corp.
Psyche Systems Corporation has been a trusted partner to hospitals and clinics for more than 26 years, delivering products and services to help laboratory environments run more efficiently and cost-effectively. Founded in 1976, Psyche Systems is a private, profit-driven software company, based in Milford, Mass., that develops and markets LabWeb hosted LIS solutions and WindoPath anatomic pathology information systems. The Company's laboratory information system solutions are best-of-breed products designed to meet the specific needs of clinical and anatomic pathology laboratories. Psyche Systems works closely with its customers during product development to ensure it's delivering the highest quality products and services at a competitive price. For more information, visit www.psychesystems.com.

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