Eastman Contract

June 5, 2003 (QHR – TSX) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce a new contract with South Eastman Health/Sante Sud-Est Inc. (“SEHI”) headquartered in La Broquerie, Manitoba. The contract covers the purchase and implementation of the complete suite of human resource (“HR”) software products that includes the Company’s HR, payroll and staff scheduling modules collectively known as Quadrant HR. The contract provides for $250,000 in first year revenues that are to be recognized in 2003. QHR is providing overall implementation and project management duties.
Additional revenues for ongoing support and maintenance will be billed as part of the annual service contract.

SEHI services an area population of 55,000 people and has 850 employees licensed under this contract. In addition to providing a wide range of health services in the south-east region of Manitoba, SEHI also provides healthcare management services to a number of other healthcare facilities throughout the region.

With this latest contract, QHR now services over 10,000 employees in 6 of the 11 Provincial Health Authorities in Manitoba and two long-term care facilities in Winnipeg. Discussions with the other 5 health care organizations in Manitoba, covering an additional 25,000 employees, are currently in process. The Company works in conjunction with Momentum Healthware Corporation of Winnipeg to interface the Quadrant HR payroll module with their suite of healthcare financial software products.

Quadrant HR focuses on the effective administration of personnel information in complex organizations such as healthcare facilities. The key design concept is that all HR data is processed once then stored and utilized from a single database. Employee information is then available to administrate all elements of a client’s HR, payroll and staff scheduling needs through an integrated software system.

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

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.