Health Grades, Inc. Announces Second Quarter Results

-- Total revenues for the quarter increased 74% to $3.5 million from $2.0 million in the second quarter of 2003 as a result of strong growth across all of our product areas. Sales of HealthGrades’ suite of marketing and quality assessment and improvement products to hospitals accounted for approximately $830,000 or 56% of the increase in revenue; and sales of our quality information to employers, benefits consulting firms, consumers and others accounted for approximately $661,000 or 44% of the increase. Revenues for the six months ended June 30, 2004, were $6.7 million compared to $3.7 million in the six months ended June 30, 2003.