TORONTO, October, 2007 – Medworxx, the makers of a strategic software platform that hospitals use to communicate, aggregate, and analyze knowledge, and Canadian Healthcare Management Inc., the leading Canadian Clinical Utilization consulting firm, today announced a strategic partnership that will deliver a comprehensive Clinical Utilization Management solution to hospitals. This solution will combine the leading Utilization Management software application in Canada with the leading Quality Improvement and Best Practices strategies to drive improved results.

“We have a proven method that helps develop a process to measure and identify multiple ways to make financial and quality improvements in many areas of a hospital”, said John Sexton, Managing Partner, Canadian Healthcare Management. “Combining this methodology with the leading Utilization Management software in the country provides a truly comprehensive solution that drives a true return on investment for hospitals.”

The consulting services provided by Canadian Healthcare Management will help to realize and sustain the value that hospitals derive from the Medworxx Utilization Management System. Medworxx has 90 hospitals using its Utilization Management System. Recent hospitals joining the Medworxx family of customers include St Joseph’s General Hospital (Comox, Vancouver Island, BC), North Bay General Hospital (North Bay, ON), Orillia Soldiers Memorial Hospital (Orillia, ON), and Southlake Regional Health Centre (Newmarket, ON).

“Our customers and prospective customers are looking for additional expertise in improving their tools, skills, and ability to deliver high performance, patient focused healthcare”, said Dan Matlow, President & CEO, Medworxx. “Partnering with Canadian Healthcare Management gives us the ability to provide that service to our customers, to complement the best Utilization Management software in the industry.”

About Canadian Healthcare Management
Canadian Healthcare Management is the leading Canadian Clinical Utilization consulting firm whose role is to assist acute care organizations in improving patient outcomes by fostering an integrated, quality of care management process in hospitals. Identifying opportunities, implementing solutions, achieving results and sustaining those improvements over the long term have set Canadian Healthcare Management apart from other consulting firms. For more information, visit www.cdnhealthcare.com.

About Medworxx
Founded in 2004 and publicly traded on the Toronto Venture Exchange, Medworxx (MWX: TSXV) makes a strategic software platform that hospitals use to communicate, aggregate, and analyze knowledge. Headquartered in Toronto, Ontario, Medworxx products are used by more than 200,000 people at over 200 hospitals across North America. Medworxx: our market is healthcare, our vertical is knowledge. For more information, visit www.medworxx.com.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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Contact:
Susan Gershman, EVP Operations & Marketing
416-642-1278 x320
416-574-2349
sgershman@medworxx.com