QHR ANNOUNCES RECORD Q1 2010 REVENUE OF $4.7 MILLION

Kelowna, BC, May 27, 2010 – (TSX-V: QHR) Al Hildebrandt, President and CEO of QHR Technologies Inc. (“QHR” or the “Company”), announces the release of  Q1 2010 financial results with record revenue of $4.7 million for the 3 month period ended March 31, 2010.  Revenue in the EMR division increased $1.5million over the same period in 2009.  Net loss for Q1 2010 was 1 cent per share compared to earnings of 3 cents per share for the same period last year.

HIGHLIGHTS

• Record revenue in Q1 2010 of $4.7 million, an increase of $1.5 million or 45% over revenue of $3.2 million in Q1 2009, and $.5 million greater than revenue in Q4 2009.
• EMR division revenue was $2.2 million , an increase of $1.5 million  or 205%
• During Q1 2010, the Company reduced its current liabilities from $7.6 million at December 31, 2009 to $4.9 million at March 31, 2010 including approximately $2.5 million of the liabilities associated with the Clinicare acquisition in Q4 2009. 
• Shareholders’ equity at March 31, 2010 was $6.8 million compared to $6.1 million at the end of 2009.

“We are very pleased to see such significant revenue growth in the EMR division which is the culmination of organic growth of our core Accuro EMR product line and revenue increase from the recent Clinicare acquisition are integrated into our overall EMR business.  Transition of Clinicare clients to Accuro is occurring faster than originally anticipated and the business integration of Optimed and Clinicare is nearing completion” stated Hildebrandt

OPERATING RESULTS

 Revenue – for the 3 month period ended March 31Q1 2010 revenue was $4,661,946, an increase of $1,488,180 over the 2009 Q1 revenue of $3,213,766.   All of this revenue increase was tied to organic growth in the EMR division and the impact of full quarter results of the Clinicare acquisition.

Operating expenses – for the 3 month period ended March 31

Service costs of $1,844,110 in Q1 2010 increased 115% over Q1 2009 due to the inclusion of the operating costs of the acquisitions made during the year and the addition of implementation staff, particularly in Ontario, where the Company has grown its EMS services business.  

Selling and administrative expenses increased from $1,046,000 in Q1 2009 to $1,844,110 in Q1 2010, also reflecting the operating costs of acquisitions made during the year and other corporate development activities. 

Other items including amortization, interest, stock-based compensation increased from $407,657 in Q1 2009 to $575,648.  Included in the Q1 2010 total was interest expense of $149,290, which is similar to Q1 2009 interest cost of $145,980, reflecting debt service costs relating to the acquisition of Momentum Financials in Q1 2009 and Clinicare in Q4 2009.   

Net earnings

Net loss for the quarter ended March 31, 2010 was $334,733 or 1 cent per share, compared to earnings of $574,521 or 3 cents per share in 2009.   The difference between Q1 2010 and  Q1 2009 earnings was $909,254 and is due, in part, to a significant software contract recognized in Q1 2009 resulting in high Q1 2009 earnings as well as increased costs associated with the December 1, 2009 Clinicare acquisition. Additional one-time corporate activity costs of approximately $250,000 were incurred in Q1 2010.

About QHR

The Enterprise Management Software (“EMS”) division specializes in workforce management software which consists of integrated payroll, staff scheduling and human resource applications; and in customized financial management software built on the Microsoft Dynamics GP platform. These products are targeted at complex healthcare and social services environments.

The Electronic Medical Records (“EMR”) division offers a suite of medical software modules that provides computer-based medical records for physicians, medical specialists and surgeons, as well as an electronic patient record that is a key component of the move throughout Canada to provide electronic health records for all Canadians.

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 and CEO