SCO Contract

July 18, 2003 (QHR – TSX-Venture) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce the execution of a new contract with the Sisters of Charity of Ottawa Health Service (“SCO”). The contract is for the purchase of a complete suite of the Company’s proprietary Human Resource (“HR”) software, collectively known as Quadrant HR. The contract will generate approximately $375,000 in new revenue. Two thirds of this new business will be recognized as revenue in fiscal 2003.

Implementation of the HR, Payroll and Staff Scheduling modules is underway. An integral part of the contract includes the purchase of the new Staff Scheduling and Web Applicant-Tracking modules recently announced by QHR on July 14, 2003. This is an exciting milestone for the Company as it begins to prove the powerful competitive advantages of the integration concepts of Quadrant HR to the commercial marketplace.

SCO was formed in 1993 with the merger of Élisabeth Bruyère Health Centre, Saint-Vincent Hospital, and Résidence Saint-Louis. The original vision was launched by the Sisters of Charity of Ottawa in 1866.

Today, SCO is one of the largest health care centres of its kind in Canada. It provides long term care, complex continuing care, palliative care and rehabilitation services through its three main sites in Ottawa-Carleton region. SCO operates 920 beds, receives over 70,000 outpatient visits per year and has 2,000 employees. SCO is a model institution in Canadian healthcare. It is well known in the industry for its innovative approach and successful use of many technology-related projects to efficiently improve its operational effectiveness.

QHR services over forty client organizations (including ten in Ontario) with more than 85,000 employees across North America. The primary design concept of Quadrant HR focuses on the effective administration of employee information in complex organizations such as healthcare facilities. The premise is that all HR data should be processed only once and then available to administrate all elements of HR, payroll and staff scheduling. Quadrant HR is designed to store, process and utilize accurate employee information, from a single HR database, especially in complex payroll, multi-position HR environments.

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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