LanVision Systems, Inc. Announces Record Operating Results for the Third Quarter and Continued Improvement for the First Nine Months of Fiscal 2000.

MASON, Ohio, Nov. 21 /PRNewswire/ --

LanVision Systems, Inc. (Nasdaq: LANV) today announced record operating results for the third quarter, and continued improvement in operations for the first nine months ended October 31, 2000. LanVision has reported improved operating results during each of the last ten quarters when compared to the comparable prior quarters.

LanVision reported revenues for the third quarter of $2,646,686, compared with $2,984,069, reported in the third quarter of last year. The third quarter operating profit was $421,250, compared with an operating loss of $83,645 reported in the third quarter of last year. The net income for the quarter was $39,354, or $0.00 per basic and diluted common share, compared with a net loss of $494,142, or $0.06 per basic and diluted common share, in the third quarter of last year. Revenues for the first nine months were $6,757,056, compared with $7,357,600, reported in the first nine months of last year. The first nine months' operating loss was $615,178, compared with an operating loss of $2,528,431 reported in the first nine months of last year. The net loss for the first nine months was $284,642, or $0.03 per basic and diluted common share, compared with a net loss of $3,633,201, or $0.41 per basic and diluted common share, in the first nine months of last year.

Brian Patsy, President and Chief Executive Officer, commented, "LanVision improved its quarterly operating results by $504,895, compared with the third quarter of last year and improved year-to-date operating results by $1,913,253 compared with the first nine months of last year. LanVision has, and continues to make, significant progress to lower the Company's cost structure and expand revenue opportunities. During the current quarter and year-to- date, software and professional services revenues were lower than last year's comparable periods as fewer systems were installed this year compared to last year when many customers were upgrading and remediating systems for Year 2000 compliance. Notwithstanding the lower revenues we continue to install systems from our backlog and significantly expand existing systems. Our largest installed system at Memorial Sloan-Kettering Cancer Center was expanded during the quarter and now has 850 concurrent users on more than 4,000 workstations, arguably one of the largest and most successful uses of our Electronic Medical Record (EMR) application technology in the country. The scalability and high performance of our EMR products, under such demanding circumstances, demonstrates that our customers are enjoying significant operating success with our products while improving patient care."

Mr. Patsy further commented: "As previously announced in the first quarter, LanVision sold its data center facilities, thereby executing our strategic plan to outsource those facilities and focus on higher margin Application Service Provider (ASP) services. In this regard, LanVision has previously announced a significant new distribution agreement with eSmartHealth, Inc. ("eSmartHealth"), to utilize our MicroVision(TM) EMR application to provide affordable web-based EMR document management and viewing ASP services to hospitals and clinics via the Internet. Our current estimate is that eSmartHealth will begin utilizing our software starting in our fourth fiscal quarter, which will result in an additional source of revenues to LanVision as they begin providing their ASP services to their customers. eSmartHealth, through its affiliation with Smart Professional Photocopy Corporation, has access to an existing customer base of over 1,000 hospitals and 6,000 clinics throughout the United States."

Mr. Patsy also noted that, "LanVision also announced today that it had entered into a significant new eHealth Services agreement with Provider HealthNet Services Inc. ("PHNS") which will allow PHNS to offer the LanVision MicroVision(TM) Electronic Medical Record product to PHNS' customers." Commenting on this important relationship Mr. Patsy said, "We are delighted to form a new strategic relationship with PHNS. Over the past year LanVision has been aggressively pursuing additional strategic partners such as PHNS to distribute our ASP-based eHealth Services. We believe PHNS' vision for combining the benefits of our robust EMR technology with their information technology and business process outsourcing services via an ASP-based delivery model creates an opportunity for healthcare organizations to significantly reduce their operating expenses while enhancing patient care. We are confident that PHNS will quickly emerge as a market leader in the rapidly growing healthcare information technology and business process outsourcing marketplace."

Regarding operating results and revenue opportunities, Mr. Patsy further commented, "We continue to improve our operating results by reducing and carefully monitoring expenses and we believe that our revenues should increase as we: 1.) install the new systems previously sold by our remarketing partner, Shared Medical Systems (SMS); 2.) begin to receive revenues from the eSmartHealth agreement; 3.) sign anticipated new ASP distribution agreements, similar to eSmartHealth and PHNS ; 4.) continue to expand existing systems enterprisewide or upgrade current customers existing EMR systems; and 5.) sign additional remarketing and distribution agreements. We are very encouraged by the increased focus and volume of SMS sales activity over the past several months as a result of the incredible success of their recent Imaging User Exchange conducted at their showcase EMR installation at Denver Health."