Medworxx Solutions Inc. Files Second Quarter 2012 Financial Statements and Management's Discussion and Analysis

TORONTO--(BUSINESS WIRE)-- Medworxx Solutions Inc. (the "Company")(TSX VENTURE:MWX) announced today that it has filed with the Canadian securities authorities its Interim Consolidated Financial Statements (Unaudited), and Management's Discussion and Analysis report for the three month period ending May 31, 2011, including updates for fiscal 2011. These documents may be viewed under the Company's profile at www.sedar.com

Highlights of the results include:

• Revenue for the quarter ended March 31, 2012 was $1,257,067, representing an increase of 5.7% over revenues of $1,189,569 for the same quarter last year.
• On May 24, 2012, the Company completed a brokered private placement of 9,136,754 units with each unit priced at $0.34 and each unit composed of one common share and one-half of one common share purchase warrant which yielded gross proceeds of $3,106,496.
• The Company incurred a net loss of ($69,881) for the three months ended March 31, 2012 as compared to net income of $92,788 for the three month ended March 31, 2011. The loss this quarter is well within the Company's budgeted results and reinforces the focus on growing revenue and investing in building sales and partner channels for the Medworxx Patient Flow platform.
• Operating expenses before loss/gain on foreign exchange and interest on long-term debt for the three months ended March 31, 2012 were $1,112,010, an increase of 16.6% over expenses of $953,011 for the three months ended March 31, 2011. These numbers are in line with Management's planned investment into the expansion of marketing and distribution channels for the Medworxx Patient Flow platform.
• EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, and Amortization, for the three months ended March 31, 2012 was $1,243 as compared to EBITDA of 194,949 for the three months ended March 31, 2011, representing a decrease of $193,706. Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the three months ended March 31, 2012 was $23,196 as compared to $208,612 for the three months ended March 31, 2011, representing a decrease of $185,416.
• Two significant contracts were signed in the quarter for the Medworxx Compliance and Education Platform including Cornwall Community Hospital, ON, and The Scarborough Hospital, ON.
• York Central Hospital in Richmond Hill, ON licensed 370 beds on the Medworxx Patient Flow platform, including Medworxx Utilization Management (UM) and Medworxx Assessments (AS). York Central is located in one of Canada's fastest growing communities, and now joins the fold of Medworxx Patient Flow clients representing 38% of acute-care beds in Ontario. With the addition of York Central Hospital, Medworxx Patient Flow covers more than 1,500 beds in the Central Local Health Integration Network (LHIN), ON.
• As of March 31, 2012, Medworxx Patient Flow solutions serve 30% of Canadian acute-care hospital beds (Medworxx sells licenses on a per bed basis), including implementations at the Provincial, LHIN, regional and local levels. Revenue on the Medworxx Patient Flow platform for the three months ended March 31, 2012 was $813,358, representing an increase of 49% over revenues of $544,852 for the three months ended March 31, 2011. The number of beds under license in the Patient Flow platform has grown by 1.7% in the quarter from 21,402 beds under license at December 31, 2011 to 21,756 beds under license at March 31, 2012.
• Peter Ellis, CHE, AHA, was appointed Managing Director of the company's UK practice to build on the firm's Canadian hospital market share and focus on strategic UK and European growth for the patient flow solution. With 40 years of international management and consulting experience including leadership roles within the UK National Health Service (NHS), 11 years as President and CEO of Canada's largest teaching hospital, Sunnybrook Health Science Centre, ON, and several years as Senior Partner at Ernst & Young, Ellis will leverage a wealth of healthcare market best practices for Medworxx.

"Boosted by such a strong first quarter and our recent private placement of $3 million, our momentum for 2012 is building," said Dan Matlow, President and CEO, Medworxx, referring to the company's May 24, 2012, brokered private placement yielding gross proceeds of $3, 106, 496 to be used for general working capital purposes, to build sales and partner distribution channels for the Medworxx Patient Flow solution.

Medworxx Patient Flow, including Medworxx Utilization Management and Medworxx Bed Board, provides hospitals with tools to bridge clinical and operational perspectives on daily patient flow ? optimal for healthcare systems addressing issues of overcapacity, wait times and care coordination. Spurred onwards by uptake of the patient flow solution in 21,000 acute care beds in Canada and United Kingdom's National Health System (NHS), and a recent launch into the United States, Medworxx is expanding to leverage growth that includes agreements with 4 of Canada's 10 Provinces and also includes 1,000 beds in the UK NHS Trust.

About Medworxx

Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Utilization Management System?flagship of Medworxx PF that also includes bed optimization and independent assessment components?currently serves over 30% of the acute care beds in Canada. Founded in 2004, Medworxx Inc. is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX

• Online: pf.medworxx.com/
• LinkedIn: linkedin.com/company/medworxx
• Twitter: twitter.com/#!/medworxx

Disclaimer

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the company's expectations and projections. The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.