PRESS RELEASE

NextStage Capital Invests in Hx Technologies

Philadelphia, PA – May 24, 2007 – NextStage Capital, an early stage venture capital fund focused on Mid-Atlantic technology companies, announced that it has participated in an investment round in Hx Technologies Inc. (HxTI). Based in Philadelphia, HxTI is a leading provider of diagnostic imaging management services and health information exchanges.

HxTI works with healthcare payers, providers, and regional health information organizations (RHIOs) to improve patient outcomes and reduce costs through real-time, web-based access to a patient's full set of diagnostic images and reports. Such patient records are often scattered across multiple healthcare facilities and typically out of reach of their physicians introducing diagnostic uncertainty, delay and significant additional cost.

The company's iHistory® service electronically links healthcare providers across a given geography into a virtual imaging archive, permitting HIPAA-compliant, secure exchange of clinical data on shared patients. Delivering the right images to the right place at the right time, HxTI enables more accurate diagnoses and substantial reductions in the redundant and avoidable exams that can exceed 15% of the imaging dollar while exposing patients to unnecessary ionizing radiation and delayed interventions.

The company earlier received $2.3 million from the National Institutes of Health to build and operate the Philadelphia Health Information Exchange, the nation's first diagnostic imaging exchange linking rival healthcare providers. The proceeds of this investment round will be used to execute on current engagements with national and regional managed care organizations using the company's technology-based services to better manage the quality and cost of their imaging benefits in several geographic markets.

"HxTI has a unique approach to addressing the second largest healthcare cost for insurance companies - medical images," said Dan McKinney, Managing Partner of NextStage Capital. "Using mostly grant money, the company has been an early innovator in developing a virtual image repository that taps into the existing infrastructure in which healthcare facilities have invested over the years. We are excited about HxTI because they offer a strong economic value proposition to payers, a strong clinical value to patients and providers, and require no investment by payers or providers to benefit from the system."

"We're delighted to welcome NextStage Capital as an investor and partner," said Dr. Elliot Menschik, HxTI's President. "We're very much looking forward to their guidance and insights as we work together to further grow our enterprise through unparalleled value creation and service delivery to healthcare stakeholders."

About NextStage Capital
NextStage Capital, L.P. is an early stage venture capital fund focused on investing in undiscovered software and hardware technology and/or services companies in the Mid-Atlantic region. NextStage Capital's investment approach is to find entrepreneurs with solid track records who offer a unique and powerful value proposition to customers in growing market sectors. In addition to providing strategic counsel, NextStage Capital offers its portfolio companies value-added recruiting services at no charge through its partnership with TWC Group, a recruitment process outsourcing company with more than a decade of building management teams for many of the region's most successful venture-backed companies. For more information on NextStage Capital, please visit www.nextstagecapital.com. Information on TWC Group can be found at www.twcgroup.com.

About Hx Technologies
Hx Technologies (HxTI) is a technology-based healthcare services company that works with health plans and providers to implement and operate the next generation of diagnostic imaging management programs. The company offers solutions that leverage the real-time electronic exchange of imaging results between providers to increase the accuracy and timeliness of diagnoses and interventions while eliminating redundant and avoidable procedures. With the support of the National Institutes of Health, the company has pioneered the building and operation of secure electronic networks that enable patients' medical information to follow them privately and seamlessly wherever they receive care. HxTI launched and operates the Philadelphia Health Information Exchange, the nation's first exchange of diagnostic imaging data, which has been recognized as one of the few functioning HIE/RHIOs in the United States. For more information, please visit www.hxti.com.