MedicalWorks: Press Release: July 1, 2002

DATE: July 1, 2002

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Cheryl Kelmar, MedicalWorks, Inc.
(831) 440-1088, FAX (831) 439-0393

HEADLINE: MedicalWorks AWARDED FOURTH NIH GRANT

Scotts Valley, California, July 1, 2002 – MedicalWorks Inc., developers of health-focused educational game software, announced today their official receipt of a National Institutes of Health (NIH) Small Business Innovative Research (SBIR) Phase II grant to develop an Internet multiplayer smoking cessation game for youth.

“Finding out in April we were likely to be funded wasn’t nearly as satisfying as officially receiving the grant today,” said Cheryl Kelmar, President and CEO for MedicalWorks. “This project is important because nearly all adult smokers start using tobacco before the age of 18. Our children are being targeted by tobacco advertisers and we have to teach youth the real facts about the social stigmas, health costs, physical harm and chemical addiction associated with tobacco use.”

Kelmar, with a master’s degree in electrical engineering, did not start her professional career with a focus on tobacco cessation. Her previous software projects ranged from topics such as diabetes to photodynamic therapy for cancer patients. It was the very personal experience of watching her father die at the age 55 from emphysema that focused her attention on tobacco addiction. Kelmar incorporated MedicalWorks in 1995, and subsequently was awarded three NIH SBIR grants to create innovative game software for the prevention and cessation of smoking among the youth population. The Phase II grant received today is MedicalWorks’ fourth NIH SBIR grant.

"Receiving this Phase II funding from the NIH will allow MedicalWorks to hire additional employees and develop our online community in which teens can assist each other to stop smoking through chat and mini-games. Additionally, support from the NIH positively impacts our company's ability to raise capital and influences potential partners and sponsors, which advances our growth as a company." said Kelmar.

MedicalWorks™ is a leading provider of health-focused educational game software for the health industry, educational institutions and corporate wellness programs. The Scotts Valley, California, company develops media rich games, engaging AdverGames, online communities and custom game applications. Product topics include tobacco education, nutrition, diabetes, general health and wellness, as well as custom topics. MedicalWorks’ titles are developed in collaboration with renowned consultants associated with elite universities including Stanford, UCLA, UC Santa Barbara, UC Davis and Harvard University. MedicalWorks’ software is rigorously tested and proven effective in scientific user studies. For more information about MedicalWorks, visit our website at www.MedicalWorks.com.