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- Transaction expands Company's North American footprint and enhances its technology leadership - - Transaction follows Company's recent win of one of the Largest EMR Contracts in Canada - - Company to host a conference call December 20(th) at 8:30 a.m. - MARKHAM, ON, Dec. 19, 2011 /CNW/ - Nightingale Informatix Corporation www.nightingalemd.com "Nightingale" or "Company", an application service provider (ASP) of electronic medical record (EMR) software and related services, today announced that it has acquired all the assets related to Medrium Inc's (Medrium)  Practice Management software business. "This transaction is another step toward gaining critical mass and positioning us as a leading North American healthcare technology company," said Sam Chebib, President and CEO of Nightingale. "We are expanding our reach across Canada and further strengthening our foothold in the U.S. market. In addition, this better equips us to further our product leadership with the expansion of our technology platform and development team. We expect this transaction to add in excess of $2.0 million annually to our base of recurring revenue and to be immediately accretive to EBITDA. In addition, we believe there are opportunities to recognize operating cost synergies as we integrate our offerings." Through this transaction, Nightingale is acquiring Medrium's cloud-based Practice Management solution that is currently used by 1,500 U.S.-based healthcare practitioners at small- and medium-sized clinics as well as billing service companies under a Software-as-a-Service delivery model. In addition, Nightingale is acquiring a development team in Quebec, expanding its Canadian footprint into new market regions, and further strengthening its U.S. customer support infrastructure with an additional office in California. Under the terms of the purchase agreement, Nightingale will pay US$1.75 million in cash for the assets. Medrium's Practice Management business generated approximately US$2.30 million in annual recurring revenue and approximately US$650,000 in annual EBITDA. The Company expects that operational synergies post-closing will further improve the EBITDA contribution of the acquired business. The Company expects the transaction to close on, or around, December 19, 2011. "We are excited to be adding to the Nightingale team and expanding our healthcare technology expertise through this acquisition," continued Mr. Chebib. "We believe the acquired Practice Management software will integrate well with our web-based EMR and Practice Management offering, Nightingale On Demand, creating an ever better overall solution for our customers.  The additional U.S. customers represent an excellent cross sell opportunity for our EMR given we are funding eligible under the meaningful use criteria, and with a presence in Quebec, we believe we are now better positioned to accelerate sales of our bilingual EMR in regions of Canada where French is a requirement." The acquisition will be funded in cash only. Nightingale will not issue securities as a result of this transaction. In relation to the acquisition, the Company will be adding US$2.5 million of senior term debt to its existing CDN$1.0 million senior term debt facility for a combined term of 48 months. Nightingale is not acquiring any of the other service businesses operated by Medrium Inc. This transaction follows the Company's December 6(th), 2011 announcement regarding its EMR contract win with the Association of Ontario Health Centres (AOHC). Covering 3,500 healthcare providers across Ontario, the contract with the AOHC is valued at approximately CDN$9.0 million over the first three years. Conference call details Nightingale will host a conference call on Tuesday, December 20(th), 2011, at 8:30 a.m. Eastern Standard Time. To access the conference call, dial (888) 231-8191 or (647) 427-7450. Please connect approximately fifteen minutes prior to the call, and reference conference ID 37458326 prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Tuesday, December 27, 2011. To access the archived conference call, dial 416-849-0833 or 1-855-859-2056 and enter reference 37458326#. To listen to the conference call replay on the internet please visit the Nightingale website shortly after the call at www.nightingalemd.com. About Nightingale Informatix Corporation (www.nightingalemd.com) Nightingale is one of the fastest growing health care service and software companies in North America and is recognized as an industry leader in Web-based clinician and community based electronic medical records (EMR) serving the needs of small primary care practices, multi-physician outpatient clinics, and large scale regional health organizations and networks. Coupled with integrated practice management, transcription and revenue cycle management, Nightingale's comprehensive service offering allows customers to enhance patient care, increase revenue opportunities and optimize operations. Nightingale is continuously innovating and enhancing its services to meet the needs of its growing and diverse customer base. Nightingale - Health care connected. www.nightingalemd.com About Medrium Medrium serves physicians and medical practices by providing web-based billing solutions that optimize and expedite reimbursement and increase backend efficiencies. Physicians benefit from the user-friendly, web-based solution that offers 24/7 access to patient records, real-time claims' status and payment processing. As a custom-built system, Medrium's technology is scaleable to support rapid expansion. The Company is continually adding new enhancements to ensure physicians and practices a great return on their investment. Forward-Looking Statement This press release contains "forward-looking statements" respecting the issuance and cancellation of securities of the Company within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "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 are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nightingale to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risk that the Medrium acquisition will not achieve the expected levels of revenue and EBITDA accretion; the risk of unanticipated liabilities inherent in the Medrium acquisition; the risk that the anticipated synergies will not be achieved to the extent anticipated or at all ;   risks related to the speculative nature of the medical software industry, which is affected by numerous factors beyond Nightingale's control; the ability of Nightingale to successfully integrate its acquisitions and any liabilities arising as a result of such acquisitions, access to capital and agreements with its Lenders; the existence of present and possible future government regulation; access to debt or equity financing and agreements with its Lenders; the significant and increasing competition that exists in the medical software industry; the early stage of Nightingale's business; and therefore it is subject to the risks associated with early stage companies, including uncertainty of revenues, markets and profitability and the need to raise additional funding.  All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although management believes the assumptions used to make such statements are reasonable at this time, our assumptions may not to be as anticipated, estimated or intended. Certain material factors or assumptions applied by management in making forward-looking statements, include without limitation, factors and assumptions regarding Nightingale's continued ability to fund its business, rates of customer defaults, relationships with, and payments to, lenders, demand for Nightingale's products, as well as Nightingale's operating cost structure. Although Nightingale has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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. Nightingale does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Further information on Nightingale Informatix Corporation is available at www.sedar.com. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Nightingale Informatix Corporation CONTACT: Media InquiriesJohn BodolaiNightingale Informatix CorporationTel: 905.307.3650jbodolai@nightingalemd.comInvestor InquiriesMichael FordCFO, Nightingale Informatix CorporationTel: 905.307.7870mford@nightingalemd.comKristen Dickson, M.Sc.TMX EquicomTel: 416.815.0700 ext. 273kdickson@equicomgroup.com

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