Manitoba Ontario Contracts

September 1, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that its wholly owned subsidiaries, QHR Software Group Inc. and QHR Atlantic Software Group Inc. have received new contracts that will add approximately $250,000 to the future revenues of the Company.

Contracts have been received from a Regional Health Authority in Manitoba, a hospital in Ontario and two long term care facilities in Nova Scotia. Terms cover the installation and use of the Company’s Quadrant HRTM software that includes the payroll, staff scheduling and human resources modules. Contractual obligations include software implementation, ongoing product support and maintenance services. These software contracts will be used to service over 750 healthcare employees.

Several of the contracts feature a “Right of Use” arrangement whereby the client will rent the Quadrant HRTM payroll processing software on monthly basis. This type of contractual arrangement is part of QHR’s service bureau offering whereby monthly fees will be paid to the Company as long as clients continue to use the software.

The monthly “Right of Use” alternative is designed to be a more affordable option for clients with capital budget limitations and is meant to build reliable long term cash flows for the Company. These types of arrangements are expected to increase customer adoption rates thereby diminishing the reliance on large contract sales. They are also expected to reduce the negative effects of lengthy sales cycles and complicated contractual terms on the operational accounting and financial health of the Company.

Electronic management information systems tailored for strategic markets such as healthcare applications remain the main emphasis of the Company’s business plans. By designing accurate data collection systems and linking them with powerful administration and reporting software, the Company’s Quadrant HRTM and AccuroTM software products allow professional managers and physicians to access critical information to assist their decision making in a more timely and efficient manner.

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 and Chief Executive Officer

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