Medworxx Solutions Inc. Announces First Profitable Quarter; Files Third
Quarter 2010 Financial Statements and Management Discussion and Analysis

TORONTO, Nov. 18 /CNW/ - Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today that it recorded a profit for the first time for the quarter ended September 30, 2010.  The Company has filed with the Canadian securities authorities its interim consolidated financial statements and management discussion & analysis report for the three and nine month periods ended September 30, 2010. These documents may be viewed under the Company's profile at www.sedar.com.

Highlights of the results include:

• Revenue for the quarter ended September 30, 2010 was $1,116,527, representing a 16% increase over revenue of $966,176 in the prior quarter and an 18% increase over revenue of $943,973 in the same quarter last year.    
• EBITDA, a non-GAAP measure, defined as Earnings before Interest, Depreciation, and Amortization, for the quarter, including foreign exchange gain or loss, was positive at $92,027 as compared to EBITDA in the prior quarter of ($238,506) a change of $330,533, and as compared to EBITDA of ($124,906) in the same quarter last year, a change of $216,933.  Adjusted EBITDA, a non-GAAP measure, defined as Earnings before Interest, Depreciation, Amortization, Loss on Foreign Exchange and Stock Option Expense, for the quarter was $110,968 as compared to ($213,546) in the prior quarter, after taking into account loss on foreign exchange, a change of $324,514, and as compared to adjusted EBITDA of ($48,383) in the same quarter last year, a change, of $159,351. 
• The Company earned a profit of $6,262 in the quarter ended September 30, 2010 vs. losses of $281,855 in the prior quarter and losses of $164,180 for the same quarter in the prior year.   The change is attributable to increased revenue combined with ongoing focus on expense control.
• Contract value of recurring revenue at September 30, 2010 with existing customers was $3,312,647 as compared to $3,235,559 at June 30, 2010, a 2% increase over the prior quarter.  Contract value of recurring revenue increased 13% over contract value of recurring revenue of $2,923,800 at September 30, 2009.  The Company defines contract value of recurring revenue as the contract value or agreement amount for the annual renewable agreements which at the end of a reporting period management believes there to be a high probability of renewal.  As the full value of such contracts is recognized as revenue over 12 months, the growth in this value is an important metric for the Company. This is a non-GAAP measure. 
• The Company entered into a material agreement with the Erie St. Clair LHIN (Local Health Integration Network) for the Medworxx Utilization Management System.  This, along with the Mississauga Halton LHIN implementation, demonstrates the success that the Company is having with its strategy of selling to LHINs and regions.  The agreement with the Erie St. Clair LHIN is for approximately $200,000 in the first year and approximately $600,000 cumulative over the next four years.
• The Company announced that it is entering the UK marketplace through a partnership with ModelAdvice DC Consulting Ltd UK (ModelAdvice).  ModelAdvice will use the Medworxx Utilization Management System to perform Bed Census Audits, introducing Medworxx to the UK hospital marketplace. 
• The Company announced an update to its strategy roadmap, highlighting new opportunities in the patient flow area internationally. 
• Subsequent to the quarter end, St. Michael's Hospital went live on the Medworxx Bed Optimization System (BOS).  Medworxx BOS is now live across the hospital, used to create the Daily Bed Management Plan for their 450 beds.

"We are so pleased to have recorded a profitable quarter.  This is a significant milestone for the Company," said Dan Matlow, President & CEO, Medworxx.  "One of the major highlights of the quarter was the Erie St. Clair LHIN agreement.  With the Mississauga Halton LHIN and the Erie St. Clair LHIN, two of the fourteen LHINs in Ontario are now using the Medworxx Utilization Management System (UMS).  We continue to expand our LHIN strategy with the goal of having the Medworxx UMS used across the entire province."

ABOUT MEDWORXX

Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Medworxx provides healthcare solutions for patient flow, compliance and education.  Its software comprises an integrated suite of solutions, including content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness solutions.

Medworxx started business in May 2004 in Ontario with 3 employees and has since grown to over 30 employees. Medworxx' executive team consists of experienced sales, marketing, software development, healthcare, and finance personnel. Medworxx currently has a customer base of over 100 healthcare organizations representing more than 300 hospitals and 500,000 end users who are distributed approximately 70% in Canada and 30% in the United States. Medworxx' customers use its software platform to increase competency, reduce redundancy, reduce costs, and simplify distribution of knowledge to staff and patients, creating a net effect of increased efficiency and improved patient safety and care.

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

Cautionary Note Regarding Forward-Looking Statements

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.

%SEDAR: 00024567E

For further information:

Medworxx Solutions Inc.
Dan Matlow
President & Chief Executive Officer
[phone]
Email: [email protected]

or

Medworxx Solutions Inc.
Domenic Crudo
Chief Financial Officer
[phone]
Email: [email protected]