QHR ANNOUNCES FOURTH CONSECUTIVE PROFITABLE QUARTER

August 17, 2007 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its interim financial statements for the six months ended June 30, 2007. The Company reports that revenues reached $2,611,764 for the six months ended June 30, 2007 with earnings $38,796 compared to revenues of $1,876,557 and a loss of $764,147 for the same period in 2006. This is the fourth consecutive quarter commencing in the third quarter of 2006 that earnings have been achieved. This can be directly attributed to the Company’s long-term plan of developing reliable annual recurring revenue from new and existing clientele through acquisitions and sales initiatives.

Financial Highlights for the First Six Months 2007

• The Company grew its revenue to $2,611,764 for the six months ended June 30, 2007 compared with $1,876,557 for the same period in 2006 – growth of 39 %.
• EBITDA recovers to $231,876 for the first six-month period of 2007 compared to a loss of $546,852 for the same period in 2006 – a $778,728 turnaround from the prior year.
• Net earnings for the first six months of the year were $38,796 compared to a loss of $764,147 – an $802,943 turnaround from the prior year.
• Total assets recover by 36% from year-end 2006 to $2,475,000 at June 30, 2007.
• The Company’s operations have been profitable since the third quarter of 2006.
• The Company has earned $282,297 over the last four reported quarters.
• Cash flow from operations was sufficient to maintain financial health during the first six months of 2007.
• At June 30, 2007 cash on deposit was $431,612 up from $48,182 at year-end.
• At June 30, 2007 accounts receivables to be collected were in the amount of $1,119,214 up from $860,469 at year-end.
• Annual recurring revenue reached $220,000 per month or 50% of overall anticipated annual expenditures by the end of June 30, 2007.

The Company recognized revenue in the amount of $2,611,764 for the six months ended June 30, 2007 compared to $1,876,557 in 2006. Earnings for the six months ended June 30, 2007 were $38,796 or $0.00 per share compared to a loss of $764,147 or $0.05 per share in 2006. The reduction in loss from the previous year reflects the receipt of a new business in the first six months of 2007 and the qualification under GAAP for the capitalization of new product development.

The Company had a working capital deficiency of $879,815 at June 30, 2007. The working capital deficiency includes $2,140,755 of deferred revenue that will be satisfied through the delivery of products and services in future periods. Deferred revenue changes are dependent on the timing differences between the receipt of new contracts and the delivery of products and services contracted. All deferred revenue obligations can be met from current corporate resources. No additional corporate resources are required to fulfill the delivery of these products and services. Hence, management calculates its adjusted working capital for internal operational purposes as current assets less current liabilities before deferred revenue. At June 30, 2007, this adjusted working capital amount was $1,260,940.

NEWS RELEASE

Earnings for the six months ended June 30, 2007 include non-cash write-downs for depreciation and amortization in the amount of $175,832 compared to $209,154 for 2006. These non-cash items relate to the recent increases in capital assets causing an increase in overall amortization.

The Company invested $549,672 in sales and marketing activities for Quadrant HR and Accuro EMR during the six months ended June 30, 2007 compared to $526,507 in 2006. The increase is due to the addition of marketing staff, Web Based marketing tools and increases in sales activity. The Company is focused on long- term annual recurring revenue that has a higher marketing cost to establish.
Service delivery expenses for the six months ended June 30, 2007 increased to $818,304 compared to $661,331 for 2006. These expenses include the cost of software implementation, training and support for both Quadrant HR and Accuro. These costs are variable as this cost centre serviced the increase in revenue in 2007.

Administrative expenses for the six months ended June 30, 2007 decreased to $513,826 compared to $616,397 for 2006. Increases in past years were due to the rental of additional office space to house Optimed operations, increases in legal fees, and the addition of administrative staff for QHR, QHRS and Optimed. Administration costs have stabilized and fully reflect the regulatory requirements of the corporate governance of a public company.

Product development expenditures for the six months ended June 30, 2007 decreased to $498,086 compared to $619,174 for 2006. Costs associated with new product development are capitalized and the maintenance costs of Quadrant HR and Accuro EMR are expensed as incurred. Our markets are highly competitive and these expenditures continue to be made for ongoing improvements to Quadrant HRTM and AccuroTM EMR to ensure customer value, acceptance and adoption.

Total assets increased to $2,475,000 at June 30, 2007 compared to $1,819,943 at December 31, 2006 primarily due to the new business and the billing of annual support contracts to existing customers in the first quarter of 2007. Shareholders’ equity increased slightly to a deficit of $222,058 at June 30, 2007 compared to a deficit of $260,854 at December 31, 2006.

Market opportunities and conditions remain favourable. The Company has recorded earnings of $282,297 against revenue of $5,456,646 over the last 12 months of operations ending June 30, 2007 and business momentum appears to be continuing.
For a more 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

Legal Notice Regarding Forward Looking Statements

This news release contains “forward looking statements” within the meaning of applicable Canadian securities legislation. Forward- looking statements are indicated expectations or intentions. Forward-looking statements included in this news release include that market opportunities and conditions remain favourable. Results from operations in any given period are not necessarily indicative of results to be expected in future periods. QHR is a technology business development enterprise where investment; various trends and factors in the marketplace; and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Further risk information on the Company is available at www.sedar.com.