ExactCost Becomes Contracted Supplier of Group Purchasing Leader Premier, Inc.

ExactCost’s Performance Management Solutions Are Now Available In Premier's Product Portfolio for the Benefit of Premier Member Hospitals

FORT LAUDERDALE and CHARLOTTE – October 31, 2006 – ExactCost, Inc., a solutions provider that is revolutionizing healthcare cost management, today announced that it has become a contracted supplier of Charlotte-based Premier, Inc. ExactCost’s Performance Management solutions will become part of the Premier catalog and as such will be made available to member hospitals within the Premier healthcare alliance network. As per the agreement, Premier members will receive the Premier discount on ExactCost’s solutions.

ExactCost's solutions are designed specifically for the healthcare industry, enabling healthcare enterprises to meet their strategic business objectives through cutting-edge technology that delivers activity-based cost and performance management. “What we do through solutions that apply activity-based methods to improve the operational and financial performance of healthcare organizations is in perfect sync with Premier’s mission of enabling high quality hospitals to be cost-effective,” said Ilan Mintz, President and CEO, ExactCost. “Just as Premier offers solutions in three areas where quality and financial performance are intimately linked, ExactCost has developed knowledge-driven Performance Management solutions that enable financial transformation, while at the same time facilitating better quality of care.”

“With ExactCost’s solutions in our portfolio of product offerings, we can deliver even more value to our alliance members,” said Jeff Aronson, Region Vice President-Florida, Premier, Inc. “For our healthcare system owners, with ExactCost, Premier is offering a leading-edge product and service offering that is unique to the healthcare marketplace. And we are providing access to this service and technology at a discounted price.”

Premier currently offers solutions targeted to the healthcare supply chain; performance measurement and improvement; and insurance and risk management. Through Premier's solutions and knowledge-sharing across the alliance, members and clients benefit from lower supply expense ratios; higher quality in key clinical areas of interest to regulators and the public; and reduced insurance costs and risk levels. “We feel that once the healthcare systems have a better understanding of how ExactCost can identify true costs and improve decision-making, there is going to be a high-level of excitement around what Premier and ExactCost can do together,” said Sean Angert, VP Consulting, Premier, Inc. “With ExactCost, we are able to offer something beyond traditional supply chain and operational savings. What is different here is that, through ExactCost, Premier can deliver a technology-based financial solution that will further help our healthcare systems measure finances and overall costs, including labor and materials.”

According to Modern Healthcare's September 4, 2006 annual GPO Survey, when it comes to group purchasing, Premier is the largest GPO in the U.S., with $27 billion in total purchasing volume. The organization aggregates purchasing for 1,500 hospitals and over 200 healthcare systems to drive down healthcare costs. The South Florida Regional Coalition of Premier, which represents the first Premier healthcare alliance members to enter this partnership, comprises Baptist Health of South Florida, Mt. Sinai Hospital, South Broward Hospital District and North Broward Hospital District.

“As a well-respected group purchasing organization (GPO), Premier will serve as a prestigious sales and marketing platform for ExactCost solutions and we welcome both the exposure and the credibility that Premier will afford ExactCost among its alliance member hospitals,” said John Ortiz, ExactCost's Senior Vice President Performance Management Division. “We look forward to enabling Premier members to become even more results-driven and to make the best decisions. ExactCost's solutions will enable them to measure the activities that make up their enterprise’s true costs and will empower them to effectively manage their business and improve their bottom-line.”

About Premier, Inc.
Premier, Inc. helps hospitals accelerate performance on both clinical outcomes and supply chain costs. Premier is a healthcare alliance entirely owned by more than 200 of the nation’s leading not-for-profit hospitals and healthcare systems. These organizations operate or are affiliated with nearly 1,500 hospitals and more than 42,500 other healthcare sites. Premier Purchasing Partners provides an array of services supporting health services delivery including group purchasing totaling more than $27 billion annually in supplies and equipment purchasing, as well as supply chain and clinical performance improvement services. Premier Healthcare Informatics offers performance measurement, benchmarking, and reporting products and advisory services supporting quality improvement. Premier Insurance Management Services helps hospitals manage insurance costs and improve risk management and claims capabilities. Headquartered in San Diego, CA, Premier has offices in Charlotte, NC and Washington, DC. For more information, visit http://www.premierinc.com/.

About ExactCost
ExactCost, Inc. is dedicated to improving healthcare performance and clinical quality by helping healthcare providers migrate from traditional financial methods to activity-based methods. ExactCost offers powerful, easy-to-use, and affordable Performance Management solutions that dramatically improve operational and financial performance and enhance the quality of care. ExactCost's goal is to lead the financial transformation of the healthcare industry and become the gold standard for knowledge-driven performance management among healthcare organizations. Currently, ExactCost has developed detailed data dictionaries and knowledge bases for laboratory, radiology, surgical and dental services, and physician groups. Founded in 1999, ExactCost is based in South Florida and operates as an Application Service Provider (ASP) delivering our solutions via the Internet. For more information, visit http://www.exactcost.com/.

NOTE: The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

ExactCost contact:
Joseph Artime
954-455-5665
joea@exactcost.com

Media contact:
Stuart Smith
Red Nine PR
336-896-1874
ssmith@redninePR.com