NEHA Contract

March 4, 2003 (QHR – TSX) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce the execution of a new contract with North Eastman Health Association Inc. (“NEHA”) headquartered in Pinawa, Manitoba. The contract is for the purchase of the complete suite of HR software products known as Quadrant HR. The contract will be in effect over the next 5 years. It is anticipated to add in excess of Cdn$400,000 in revenue over this period.

This contract represents a milestone in the product development and the marketing initiatives of QHR. The new staff-scheduling module currently being developed by the Company for applications in healthcare is included in the contract as part of the Quadrant HR implementation.

In the past, QHR would source staff scheduling software from third party software vendors to provide this function through an interface with Quadrant HR for timecard processing. With the new staff scheduling module fully integrated into Quadrant HR, customers will be provided increased flexibility and operational efficiencies. Capital savings will be realised in the initial purchase of their staff scheduling software as well as in the required computer systems. A decrease in implementation time will provide additional cost savings. When compared to purchasing a stand-alone staff scheduling system, QHR anticipates that customers choosing Quadrant HR may realise an overall 50% cost savings for their staff scheduling requirements. These types of product advantages are responsible for the current growth success of the Company.

The NEHA agreement adds another 1,100 employees to the nearly 80,000 employees currently serviced by Quadrant HR. The execution of the contract secures the fifth region of a possible ten Manitoba Health Regions for QHR. The other regions are considering a transition from their current service bureau systems.

The primary design concept of Quadrant HR focuses on the effective administration of personnel information at complex organizations such as healthcare facilities. The premise is that all HR data should only be processed once, and available to administrate all elements of their Human Resources (HR), payroll and staff scheduling needs within one system. Quadrant HR is designed to store, process and utilise accurate employee information, especially in complex payroll, multi-position environments, from a single HR database.

For a more complete corporate profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRsoftware.com.

On behalf of the Board of Directors
Al Hildebrandt President & Chief Executive Officer

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