Colchester Orillia Contracts
May 3, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that its wholly owned subsidiary, QHR Atlantic Software Group Inc. (“QHRA”), has received two contracts that will add $500,000 in revenues during the terms of the agreements.
Contracts have been received from Colchester East Hants Health Authority on behalf of three Nova Scotia Health districts and the Orillia Soldiers Memorial Hospital in Orillia, Ontario. These clients currently serviced by an outdated payroll system are transitioning their employees to the Quadrant HR™ payroll module.
One of the contracts features an “Annual Right of Use” arrangement whereby the client will pay a fixed amount per year for use of the Quadrant HR™ payroll module. The initial arrangement covers a period of five years and continues as long as the client uses the software. Similar amounts will be paid annually for HR management functions and staff scheduling software that may be added at later dates.
Contractual arrangements include implementation, ongoing support and maintenance services to be delivered underthetermsoftheagreement. Thesecontractsadd2,900employeestotheservicebaseoftheCompanythat now manages over 50 clients. Various Quadrant HR™ software modules cover in excess of 90,000 employees with over 20,000 of these now implementing the new staff scheduling module released in September 2003.
The Company formed QHRA with Whidden Systems Ltd. of Halifax, Nova Scotia in March 2003. The plan was to create a business model that would eventually lead to the conversion in Atlantic Canada of 15,000 healthcare employees serviced by an outdated payroll system to a modern line of Quadrant HR™ software modules. Given the potential of this opportunity, QHR acquired 100% of the ownership of QHRA in March 2004.
Payroll software is the initial focus of the QHRA business plan. Once payroll conversions are completed, other QHR products such as staff scheduling and human resources may be added to clients’ HR management systems. To date, seven of thirty-six Whidden customers have contracted to use Quadrant HR™ products. New contracts under negotiations will be announced as they occur.
For a complete business and financial 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.
