Central RK MacDonald Contracts

December 5, 2003 (QHR – TSX-Venture) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that QHR has executed two new contracts that will add over $650,000 of new revenue to the Company’s operations over the next 13 months.

The contracts have been received from East Central Health (“ECH”) of Camrose, Alberta and R.K. MacDonald Nursing Home (“RKM”) located in Antigonish, Nova Scotia. These contracts cover the purchase of the recently released Version 2.0 of the Company’s integrated suite of software products known as Quadrant HR. The majority of the revenue generated from these contracts will be recognized in the financial results for 2004. At this stage of the year, most new contract revenue will accumulate as backlog work for delivery in 2004. This backlog now exceeds $2,000,000 and contributes to the achievement of next year’s growth objectives.

These transactions will add approximately 3,350 employees to the employee service base of QHR. ECH will place 3,200 employees on Quadrant HR while RKM will add 150 employees. The ECH agreement is the third Alberta Health Region to contract with QHR under the Company’s Alberta Wellnet Standing Offer (previously announced in 2002). With this contract, there are now 11 clients being serviced in Alberta.

Version 2.0 is designed to seamlessly integrate Human Resource management, payroll administration and staff scheduling functions within one system. These integrated functions are the cornerstone of the unique design concept that QHR is advancing in its business model.

QHR services more than fifty client organizations with over 90,000 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 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

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