Medworxx third quarter revenue increases 85.2% to $2,084,962

Medworxx Solutions Inc. (the "Company")(TSX VENTURE:MWX) announced today that it has filed with the Canadian securities authorities its Interim Consolidated Financial Statements (Unaudited), and Management's Discussion and Analysis report for the three and nine month interim periods ended September 30, 2012. These documents may be viewed under the Company's profile at www.sedar.com.

“It is encouraging to note that we have been able to substantially increase revenue and profit while investing in growth through our new channel distribution strategy”

Highlights of the results include:

• Revenue for the nine months ended September 30, 2012 was $4,754,676, representing an increase of 33.9% over revenues of $3,550,306 in the same period last year. The increase is attributable primarily to growth in the Patient Flow Platform of 37.9% and the Compliance and Education Platform of 47.1%. Revenue for the quarter ended September 30, 2012 was $2,084,962, representing an increase of 85.2% over revenue of $1,125,679, in the same quarter last year.
• The Company was profitable with net income of $323,004 for the three months ended September 30, 2012 as compared to a net loss of ($122,158) for the three months ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $195,238 as compared to net income of $5,155 for the nine months ended September 30, 2011. The income this quarter is higher than anticipated due primarily to the USD $800,000 transaction referred to below, while our expense levels are well within the Company's budgeted results and reinforces the Company's focus on growing revenue and investing in building sales and partner channels for the Medworxx Patient Flow platform.
• EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, and Amortization, for the three months ended September 30, 2012 was $512,695 as compared to EBITDA of ($52,383) for the three months ended September 30, 2011, representing an increase of $565,078. For the nine months ended September 30, 2012, EBITDA was $519,803 as compared to EBITDA of $255,938 for the nine months ended September 30, 2011, representing an increase of $263,865.
• Adjusted EBITDA (a non-IFRS measure), defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the three months ended September 30, 2012 was $579,898 as compared to ($32,697) for the three months ended September 30, 2011, representing an increase of $612,595. For the nine months ended September 30, 2012 was $645,980 as compared to $298,778 for the nine months ended September 30, 2011, representing an increase of $612,595.
• Operating expenses before loss/gain on foreign exchange and interest on long-term debt for the three months ended September 30, 2012 were $1,396,745, an increase of 31.9% over expenses of $1,058,791 for the three months ended September 30, 2011. This increase is in line with Management's planned investment into the expansion of marketing and distribution channels for international distribution.
• In the quarter, Medworxx sold a worldwide, non-exclusive, non-transferrable license of the Policy and Document Management Software to a major US software company to use, copy, adapt and modify for USD $800,000. In addition to the license fees received, Medworxx can earn a royalty of 13% of the Customers Net Revenue from sales of any products which are based on or incorporate any element of the Software, for a period of three years.
• As of September 30, 2012, Medworxx Patient Flow solutions serve more than 33% of Canadian acute-care hospital beds (Medworxx sells licenses on a per bed basis), including implementations at the Provincial (LHIN), regional and local levels. Revenue on the Patient Flow platform for the three months ended September 30, 2012 was $885,115 representing an increase of 38% over revenues of $642,042 for the three months ended September 30, 2011. The number of beds under license in the Medworxx Patient Flow platform has grown by 3.1% in the quarter from 25,790 beds under license at June 30, 2012 to 26,584 beds under license at September 30, 2012. In October, it was announced that Royal Liverpool and Broadgreen University Hospitals NHS Trust won the national EHI Awards' category of 'Outstanding work in IT- enabled change in healthcare' for the project titled, 'First UK IT-enabled case management system'. This is an award that RLBUHT has received by the UK's EHealth Insider (EHI) for implementing Medworxx Utilization Management to enable and sustain greater patient flow within its busy hospitals.

"It is encouraging to note that we have been able to substantially increase revenue and profit while investing in growth through our new channel distribution strategy," says Dan Matlow, President and CEO, Medworxx. "Our expectations were to be generating slight losses during this period, but instead we have increased revenue and profitability while starting to build out our distribution channels."

Medworxx Patient Flow, including Medworxx Utilization Management and Medworxx Bed Board, provides hospitals with tools to bridge clinical and operational perspectives on daily patient flow - optimal for healthcare systems addressing issues of overcapacity, wait times and care coordination. Spurred onwards by uptake of the patient flow solution in 21,000 acute care beds in Canada and United Kingdom's National Health System (NHS), and a recent launch into the United States, Medworxx is expanding to leverage growth that includes agreements with four of Canada's 10 Provinces and also includes 1,000 beds in the UK NHS Trust.

Also, Medworxx announced that its board of directors has agreed to increase the exercise price of 456,400 options that were granted to directors and officers pursuant to the company's incentive stock option plan on October 4, 2012. The exercise price of such options has been increased from $0.27 per share to $0.35 per share effective October 4, 2012. The terms of such options otherwise remain unchanged.