$675k Ontario Government Contracts

October 13, 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 purchase orders in the amount of $675,000 from the Ontario Ministry of Health and Long-Term Care Finance and Information Management Branch for several of their Community Care Access Centres (“CCAC”).

These orders cover the complete range of Quadrant HRTM software modules including Human Resources, Payroll and Staff Scheduling. Ten of the 37 CCAC sites in the province of Ontario are covered under this arrangement. CCACs in Ontario participated in the selection of a standardized HR system to uniformly meet their needs on a province-wide basis, similar to Alberta Well-Net.

This selection process was successful in favour of Quadrant HRTM, QSG and the Company. The arrangement is anticipated to generate significant revenue in the quarters to come. Implementation in the first CCAC sites will establish the methods for delivering standardized HR services at all other locations and will enable organization- wide reporting between CCACs across Ontario.

These orders include all terms and conditions for software licensing, implementation, consulting, project management, ongoing support and maintenance services. There will be an additional 1,200 employees added to the service base of the Company under this arrangement. The 37 CCACs in Ontario employ over 5,000 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 and Chief Executive Officer

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