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QHR Technologies Releases 2006 Financial Results

Friday, April 27, 2007

April 27, 2007 (QHR - TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its annual audited financial statements for the year ended December 31, 2006. The Company reports 2006 revenue has increased to $4,721,439 as compared to $4,288,705 in 2005. For the year ended December 31, 2006 the company had a loss of $520,646 ($0.03 per share), an improvement from the loss of $973,213 ($0.06 per share) in 2005.

Financial Highlights for 2006

• The Company grew its revenue to $4,721,439 for the year ended December 31 2006 compared to $4,288,705 for 2005 - growth of 10 %.
• EBITDA was a loss of $118,670 for the year compared to a loss of $581,793 for 2005, a $463,123 turnaround from the prior year.
• Net loss for 2006 was $520,646, which compares to $973,213 - a $452,567 turnaround from the prior year.
• Amortization of intangible and capital assets was $385,229 in 2006 and $362,101 in 2005.
• The Company's operations turned profitable in the third quarter of 2006.
• The Company earned $243,501 over the last six months of 2006.
• Cash flows from operations were sufficient to maintain financial health during 2006.
• At the end of 2006 cash on deposit was $48,182, accounts receivable stood at $860,469 with another $212,463 in long term accounts receivable.
• Annual recurring revenue reached $200,000 per month or 50% of overall anticipated annual expenditures by the end of 2006.

The Company invested $1,098,637 in sales and marketing activities for Quadrant HR™ and Accuro™ EMR during the year ended December 31, 2006 compared to $903,676 in 2005. 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 year ended December 31, 2006 increased to $1,472,403 compared to $1,278,396 for 2005. 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 2006.

Administrative expenses for the year ended December 31, 2006 decreased to $1,098,341 compared to $1,289,368 for 2005. Administration costs have stabilized and now fully reflect the regulatory requirements of the corporate governance of a public company.

Research and development expenditures for the year ended December 31, 2006 decreased to $1,170,728 compared to $1,399,058 for 2005. Costs associated with new product development and the maintenance of Quadrant HR™ and Accuro™ EMR are expensed as incurred. The Company markets are highly competitive and these expenditures continue to be made for ongoing improvements to Quadrant HR™ and Accuro™ EMR to ensure customer value, acceptance and adoption. Total assets decreased to $1,819,943 at December 31, 2006 compared to $2,541,868 at December 31, 2005 due to the scheduled amortization of intangible and capital assets, recognition of deferred revenue as revenue on the income statement and expensing of R&D. As a result, shareholders' equity was a deficit of $260,854 at December 31, 2006 compared to a surplus of $259,792 at December 31, 2005.

The Company had cash on deposit of $48,182; accounts receivable in the amount of $860,469; and $94,415 in prepaid expenses and deposits for a total current asset position of $1,003,066 at December 31, 2006. QHR also has long-term cash commitments from several customers recorded as long-term receivables. The non-current balance of these receivables stood at $212,463 at December 31, 2006.

The ability of the Company to meet its financial obligations as they come due is largely dependent on its ability to generate profitable revenues as budgeted in its business plans, collect accounts receivable and to attract new equity capital from the investment community to cover product development expenditures and unexpected operational shortfalls. Current liabilities not including deferred revenues total $442,777 at December 31, 2006. Included in this amount is $140,000 of accrued vacation obligations.

The Company had a working capital deficiency of $981,971 at December 31, 2006. The working capital deficiency includes $1,232,387 of deferred revenue that will be satisfied through the delivery of products and services in future periods. No additional corporate resources are required to fulfill the delivery of these products and services. Management calculates its adjusted working capital for internal operational purposes as current assets less current liabilities before deferred revenue. At December 31, 2006, this adjusted working capital amount was $250,416.

Management believes that the reported financial results are indicative of a developing software company that is using marketing initiatives to educate potential customers to the merits of the Company's products and investing heavily in product development. Management believes that its recurring annual revenue model is making healthy progress toward reliable long-term profitability.

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. Forwardlooking statements are indicated expectations or intentions. Forward-looking statements included in this news release include that "Management believes that its recurring annual revenue model is making healthy progress toward reliable long-term profitability". 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.

For further information, please contact:

Al Hildebrandt at (250) 979-1701
ahildebrandt@QHRtechnologies.com

Investor Relations - Tangent Mgmt. 1-866-345-0115
info@tangentmanagementcorp.com

Toll Free: 1-866-345-0115

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© 2007, QHR Technologies Inc.

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