Sutter Connect Renews Contract with DxCG and Upgrades to RiskSmartTM

BOSTON — November 10, 2004 — DxCG®, Inc., the leading provider of predictive modeling software for health care organizations, today announced that Sutter Connect, an affiliate of Sutter Health, one of the nation's leading not-for-profit integrated delivery systems, has renewed its software license with DxCG and has upgraded to DxCG RiskSmartTM. Terms of the agreement were not disclosed.

Sutter Connect, based in Sacramento, CA, has successfully used DxCG's Diagnostic Cost Group (DCG) models to evaluate provider effectiveness in coordinating care. Sutter Connect will advance its uses of DxCG predictive modeling software by migrating to RiskSmart, DxCG's web-based suite of predictive models. DxCG RiskSmart will give Sutter the flexibility to incorporate risk adjustment into other plan activities, such as provider analysis, efficiency indexing, and care and disease management.

"DxCG models have played a key role in our ability to deliver quality care to our members by allowing our clients to understand how well they are doing in focusing clinical resources where they are needed," said Brian Ely, M.D., chief medical officer of Sutter Connect. "RiskSmart will further expand our uses of the models to help us identify opportunities to measure and improve practices that can assure quality and affordability to our members."

"We are delighted that Sutter Connect is renewing their contract with DxCG and upgrading to RiskSmart," said Marilyn Schlein Kramer, president of DxCG, Inc. "Their migration to RiskSmart will advance their uses of predictive modeling by giving them access to a variety of predictive models to identify additional areas for improvement."

Sutter Connect represents DxCG's growing community of DxCG users in California. In addition to Sutter, Kaiser Permanente, Health Net, Blue Shield of California and Pacific Business Group on Health, all make up the "community of DxCG users" in the region. Employers, providers, health plans/insurers, and government agencies across the U.S. and around the world are extensively using DxCG models to improve the management, financing and quality of health care.

About Sutter Health
Sutter Health, one of the nation's leading not-for-profit networks of community-based health care services, serves more than 100 Northern California communities, from the Oregon border to the San Joaquin Valley, and from the Pacific coast to the Sierra foothills.

About Sutter Connect
Sutter Connect is an administrative services organization providing billing and accounts receivable, managed care administration, medical management and physician practice management services to many Sutter Health affiliates and other organizations across Northern California.

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 Group (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.

Release: Immediate

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

Stephanie Martinovich (DxCG, Inc.)
617-896-5919
stephanie.martinovich@dxcg.com

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