New Release of OF DxCG RiskSmart Suite Highlights Provider Profiling: Predictive Models Enhance Physician and Hospital Reporting

BOSTON, June 29, 2004 — DxCG®, Inc., the leading provider of predictive modeling software for health care organizations, today announced release of RiskSmart™ 1.2, the latest version of its solution that now includes the Provider Analysis Module, which embeds DxCG's predictive models into physician and hospital reports to help clients assess provider performance by physician,risk pool or network.

The Provider Reporting Module, the fifth module in the RiskSmart suite, profiles the illness burden of patients seen by physicians or hospitals. Its reports adjust expense and utilization measures based on patient illness burden, or severity, thereby allowing for fair comparisons among providers.

"RiskSmart product suite continues to grow in response to the market's widespread adoption of predictive modeling," said Marilyn Schlein Kramer, president of DxCG. "With this new module, RiskSmart helps health plans and employers develop ‘tiered' or narrow networks of the best performing providers. Too often, health plans assume teaching hospitals treat the sickest patients. This is not always the case."

The new release of RiskSmart also includes enhanced filtering to identify cases for care and disease management. Users can now filter using lab results, results of health-risk appraisals and/or other data not available in medical claims or administrative data sets.

About RiskSmart
DxCG RiskSmart, a combination of DxCG's Diagnostic Cost Groups (DCG) and RxGroups® models, is the health care industry's most proven risk assessment tool. It analyzes demographic, medical and pharmacy claims information using unique filtering techniques to profile the range and intensity of medical problems for a given population over time. Diagnostic and pharmacy data quantify a patient population's health status and added filtering options help clients better identify populations for disease management programs and reconcile the gap between expected health care needs and actual health care use. RiskSmart helps clients more accurately measure the impact of health status on medical costs and forecast annual health care costs, which facilitate budgeting of medical and financial resources.

Pricing and Availability
DxCG RiskSmart modules, which are scalable and secure, are based on Microsoft®'s .NET. They offer familiar and intuitive user elements, such as drop-down menus, lists and tabs that can be customized. DxCG RiskSmart modules generate standard and ad hoc reports that users can access via a conventional web browser. Users can deploy the modules within their existing network or run them remotely under an application service provider (ASP) arrangement or in a data warehouse.

DxCG RiskSmart modules are priced according to the size and scope of each client's implementation. DxCG sells DxCG RiskSmart through its direct sales force and its channel partners. For more information about RiskSmart, contact DxCG at 617-896-5909 or info@dxcg.com.

About DxCG®, Inc.
DxCG, a unit of ISO, promotes fair and efficient health care by providing software solutions to more accurately plan, budget and evaluate health care management programs. DxCG has more than 175 clients,covering over 75 million lives in the U.S. and abroad. The company's Diagnostic Cost Groups(DCG) and RxGroups® predictive models are used to negotiate health-based payments, identify opportunities for disease management, profile physicians and evaluate managed care programs. Recognized by leading independent researchers as the most proven models available, DxCG's methodologies are used by the federal government to set payment rates for Medicare.

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

DxCG and RxGroups are registered trademarks and RiskSmart is a trademark of DxCG, Inc.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com

Stephanie Martinovich (DxCG)
617-896-5919
Stephanie.Martinovich@dxcg.com