Healthnostics Provides Update on New Hospitalist Quality Improvement Strategy

WASHINGTON, DC--(Marketwire - January 19, 2010) -

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Healthnostics, Inc.

Healthnostics, Inc. (PINKSHEETS: HNSS), a medical and biotechnology analytics company, is providing this update on its previously announced entry in the Hospitalist quality management market with the inclusion of a hospitalist focus for the MedGuardian patient clinical monitoring and risk management system. The Company has received favorable inquiries that confirm the validity of this market for their MedGuardian product.

The Hospitalist market is a rapidly growing market sector within Healthcare that presently has great need for operational and statistical data supporting the improvement of quality and risk reduction for hospitals. As more hospitals utilize the Hospitalist approach and its growth and relevance trend continues upward, the hospital oversight of these groups becomes vital.

Presently, according to the Society of Hospital Medicine's (SHM) recent analysis of data from the 2007 American Hospital Association (AHA) survey, there are currently 28,000 practicing hospitalists in the United States, with estimates surpassing 30,000 in 2010. These hospitalists practice in approximately half of the nation's community hospitals. Therefore, the hospitalist segment is an integral part of hospital care spending, estimated at $648 billion in 2006 and growing annually according to the centers for Medicare and Medicaid Services.

Healthnostics' MedGuardian target market has been the 4,200 small to medium sized acute care community hospitals that constitute the majority of hospitals in the U.S. The inclusion of features addressing the needs of hospitalists, one of the fastest growing forms of medical practice in the United States, brings MedGuardian in line with this major new organizational change affecting hospitals. MedGuardian will assist hospitals and hospitalists in managing such processes as length of stay, workflow, diverse case mix, and especially provide bi-directional primary care providers communication.

About Healthnostics

Healthnostics, Inc. is a medical and biotechnology analytics company that provides comprehensive patient clinical monitoring and risk management systems to acute care hospitals and utilizes its Internet portals to deliver medical and biotechnology resource information to industry professionals as well as to the general public. Healthnostics' major products include: MedGuardian, a patient care monitoring and risk management system for hospitals that is fully Web-based; and through the MedBioWeb subsidiary, MedBioWorld™, one of the largest professional medical and biotechnology directory resource and reference portal sites on the Internet, and FamilyMedicalNet, a companion consumer healthcare information portal.

For further information please visit Healthnostics www.healthnostics.com, MedBioWorld www.medbioworld.com, and FamilyMedicalNet www.familymedicalnet.com.

This press release may contain certain statements that are not descriptions of historical information, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. These forward-looking statements refer to matters that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.