$300k Manitoba Contracts

July 5, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that its wholly owned subsidiary, QHR Software Group Inc. (“QSG”), has received two new contracts that will add approximately $300,000 in revenues over the multi–year duration of the agreements.

Contracts have been received from two long-term health care facilities in Winnipeg, Manitoba. They cover the purchase and installation of the Company’s Quadrant HRTM software modules that include Payroll, Staff Scheduling and Human Resources. Contractual obligations include software implementation, ongoing product supportandmaintenanceservicestobedelivered. Theagreementswillbeusedtoadministrateandserviceover 500 new employees.

These contracts feature an “Annual Right of Use” arrangement whereby the client will pay a fixed amount per month for use of Quadrant HRTM. The terms of the contracts guarantee sixty months of use but financial terms will be ongoing as long as the clients continue to use the software.

These contracts are part of the aggressive business initiatives of QSG to build long term cash flows from its software assets based on an attractive “annuity purchase” option for its products. Although these arrangements somewhat diminish the financial results of software licensing for the Company on a short term basis, the long term affect on the future financial health of the Company is very positive. The key contribution of this marketing tactic is that purchase terms are more favourable towards clients operational expenses rather than capital expenditures. This pricing option is expected to increase customer adoption rates and thereby reduce the negative effects of lengthy sales cycles on the financial health of the Company.

With these contracts, QSG will now service eleven clients in Manitoba representing 11,500 employees who are either using or contracted to use Quadrant HRTM products. This represents approximately 25% of the current Manitoba market of healthcare employees.

For a complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.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.