Integrated Services, Inc., Selects Phoenix Health Systems as its New IT Outsourcing Partner

Montgomery Village, Maryland – March 8, 2006 – Phoenix Health Systems, Inc. (Phoenix), a leading provider of outsourcing and consulting services to the healthcare industry, announced today the signing of a long-term contract with Integrated Services Inc. (ISI), a wholly-owned subsidiary of the Hawaii Medical Service Association (HMSA).

Under the multi-year agreement, Phoenix will provide a wide range of services including IT leadership, infrastructure management, and application development and maintenance. As part of the services, Phoenix will be transitioning existing ISI IT staff and migrating the infrastructure environment to a new Leveraged Service Center in Honolulu. This new base of operations will allow Phoenix to greater service ISI and additional clients throughout the Hawaiian Islands.

The current ISI IT operation will be augmented by utilizing proprietary Phoenix business and technology-related methodologies and industry leading best practices to provide enhanced stability, efficiency, and scalability for ISI. Phoenix will also perform web-based application development to support critical e-commerce initiatives in support of HMSA's members, physicians, and employers.

"We believe the partnership with Phoenix will allow us to take advantage of a wide range of IT skill sets from an experienced national company that will enhance service levels for both our internal and external customers," said Paul Schnur, Vice President, Integrated Services Inc. "Phoenix will provide us with a state-of-the-art data center with quick expansion capabilities to meet our rapidly growing business needs."

"Phoenix is pleased to enter into this Information Technology partnership with ISI and excited about becoming a part of the Hawaii technology and healthcare community," said Darin LeGrange, President and CEO of Phoenix Health Systems. "Through this partnership with ISI, we are committed to providing innovative IT-based solutions that will reduce costs and improve overall IT operations."

About Integrated Services, Inc.

Integrated Services, Inc. (ISI), located in Honolulu, Hawaii, provides Hawaii Medical Service Association, its members, employer groups, and participating providers with a dynamic, high-value resource for improving the cost, quality, and accessibility of healthcare across the State of Hawaii. ISI is a for-profit corporation, wholly-owned by HMSA. HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. Nationally, HMSA and 40 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 88 million members. For more information, visit www.hmsa.com.

About Phoenix Health Systems

Based in Montgomery Village, Maryland, Phoenix Health Systems is a privately-held healthcare information systems outsourcing and consulting firm employing 160+ professionals. Founded in 1987, Phoenix is a national provider of innovative IT outsourcing and consulting solutions to hospital organizations. Services include comprehensive IT department outsourcing, interim IT management, clinical and business transformation, revenue cycle management, information security, and a wide breadth of strategic and technical IT consulting services. For additional information, please contact Christopher Madeira at (240) 912-1500, or visit www.phoenixhealth.com.