QHR ANNOUNCES Q2 2010 RECORD REVENUE OF $5.1 MILLION

QHR ANNOUNCES Q2 2010 RECORD REVENUE OF $5.1 MILLION

Kelowna, BC, August 16, 2010 – (TSX-V: QHR) Al Hildebrandt, President and CEO of QHR Technologies Inc. (“QHR” or the “Company”), announces Q2 2010 financial results with record quarterly revenue of $5.1 million for the 3 month period ended June 30, 2010. The EMR division revenue increased $1.6 million over the same period in 2009 to $2.5 million, up 194%. The EMS division revenue increased by 17% to $2.6 million. Q2 2010 earnings are $308,166 or 1 cent per share, compared to a $205,983 loss or 1cent per share for the same period in 2009.

HIGHLIGHTS
• A record $5.1 million revenue in Q2 2010, an increase of $2.4 million or 90% over revenue of $2.7 million in Q2 2009.
• Q2’s $5.1 million was $430,516 greater than Q1 2010 revenue, the previous record quarter of $4.7 million.
• Earnings for Q2 2010 were $308,166 or 1 cent per share.
• EBITDA for Q2 2010 was $935,382 or 3 cents per share, compared to $121,062 in Q2 2009.
• EMR division revenue was $2.5 million, an increase of $1.6 million or 194%.
• Current liabilities of $7.6 million at December 31, 2009 reduced to $4.6 million at June 30, 2010 including approximately $3.0 million of the liabilities directly associated with the Clinicare acquisition in Q4 2009.
• Accounts Receivable of $3.6 million at June 30, 2010, the highest in our history, thanks to increased sales and implementation services.

“2010 continues to be an impressive year of revenue growth for QHR. Q1 2010 was the first time QHR crossed the $4 million mark with quarterly revenue of $4.7 million. Now, one quarter later we’ve exceeded the $5 million mark with a record $5.1M. We are most pleased by the balance of organic growth from our core Accuro EMR product line and the revenue increase from the December 2009 Clinicare acquisition.” stated Hildebrandt.

Over the past 8 quarter, QHR’s quarterly revenue increase has made significant gains as shown graphical below.

OPERATING RESULTS

Revenue – for the 3 month period ended June 30

2010 2009 $ Increase % Increase

EMS division $ 2,596,561 $ 1,821,725 $ 774,836 43%

EMR division 2,495,901 848,989 1,646,912 194%

Total revenue $ 5,092,462 $ 2,690,714 $ 2,401,748 91%

Q2 2010 revenue was $5,092,462, an increase of $2,401,748 over the Q2 2009 revenue of $2,690,714. The EMS division accounted for 33% of the increase thru increased services revenues and licensing. The EMR division accounted 67% of the quarterly revenue increase, with $734,000 of this revenue being organic growth, and $912,000 associated with the Clinicare acquisition.

Operating expenses – for the 3 month period ended June 30

Operating Expenses 2010 2009 % Increase

Cost of goods $ 546,061 $ 105,467 417%
Service costs 2,174,863 1,733,086 25%
Selling/admin 1,436,156 711,099 100%
Other Items 627,216 327,045 91%
Total $ 4,784,296 $ 2,876,697 66%

Service costs of $2,174,863 in Q2 2010 increased 25% over Q2 2009 due to the Clinicare acquisitions made during the year which was predominately development and client support particularly differences over the prior year.

Selling and administrative expenses doubled from $711,099 in Q2 2009 to $1,436,156 in Q2 2010, also reflecting the operating costs of acquisitions made during the year and other corporate development activities. Q2’s 2010 selling and administration expenses of $1,436,156 was $407,954 lower than Q1 2010 which was an unusually high quarter for the administration portion of expenses.

Other items including amortization, interest, stock-based compensation increased from $327,045 in Q2 2009 to $627,216. Included in the Q2 2010 total was interest expense of $127,576, half of which is related to debt service costs for the acquisition of Clinicare which is expected to be completed in Q3.

Net earnings

Net earnings for the quarter ended June 30, 2010 was $308,166 or 1 cent per share, compared to a loss of $205,983 or 1 cent per share in Q2 2009 for a $514,149 improvement. On a year-to-date basis, the Company recognized a $26,567 loss compared to $368,538 of net earnings for the same time frame in 2009. The reduction in earnings is attributable in part to a large, high margin EMS software sales in the first quarter of 2009 combined with unusual corporate costs in the first quarter of 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

Legal Notice Regarding Forward Looking Statements

This news release may contain “forward looking statements” within the meaning of applicable Canadian securities legislation. 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 statement. Forward looking statements in this press release may include that profitability of the Company should continue to improve; that we can add new revenues at low marginal costs; that the Company’s industry will grow in coming years; that spending in the industry are stable; that trends of the medical industry include interoperable systems and cost control, and the Company is well situated to assist in these endeavours; Risks that may prevent or delay the forward looking statements from coming to fruition include that we may not offer products that are acceptable to industry regulators or customers; competitors may offer better or cheaper products; we may not be able to raise sufficient capital to improve products to remain competitive; changing regulatory requirements may prevent our products from being sold as expected; we may not be able to attract or retain key personnel; our technology may become obsolete; and market factors may increase our costs more than expected. QHR is a technology business development enterprise where investment and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. It is our policy not to update forward looking statements. Further information on the Company is available at www.sedar.com.
For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.com.

For further information, please contact:
Al Hildebrandt at (250) 979-1701
ahildebrandt@QHRtechnologies.com

Investor Relations – Tangent Mgmt. 1-866-345-0115
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