AXOLOTL RECEIVES THE 2006 FROST & SULLIVAN AWARD FOR MARKET LEADERSHIP IN HEALTHCARE

Mountain View, CA, June 26, 2006—The annual Frost & Sullivan Market Leadership Award was awarded to Axolotl Corp. Axolotl, the leading software provider for connecting disparate healthcare entities across the continuum of care, was chosen after an extensive analyst review of competitors in the industry.

"Axolotl has displayed excellence in identification of market challenges, drivers, and restraints, as well as strategy development and methods of addressing these market dynamics," stated Steve Tobin, an analyst at Frost and Sullivan. "Furthermore, Axolotl has continually demonstrated solutions for monitoring market changes and for implementing superior market strategies. By utilizing these strategies for success, Axolotl has established itself as the market share leader in its respective industry.

To choose the recipient of this Award, analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.

Steve Tobin shared, "Axolotl has a clear trend of proven success in the regional health information environment. With approximately twelve fully functional regional health information exchanges at present, Axolotl has captured significant market share. Their technology for connecting communities is deployed in several leading RHIOs, including The Greater Cincinnati Healthbridge, Santa Cruz County, and Western Colorado's Quality Health Network (QHN). Axolotl's solutions consistently prove to be reliable and have extended value to the user through financial returns. Healthbridge connects seventeen hospitals, reference labs, and public health organizations and saves millions each year for the various stakeholders. Santa Cruz has been widely known as a tremendous success with strong physician practice, public health, and provider adoption and continues to see improved quality and productivity outcomes. Quality Health Network has implemented electronic medical records, prescription writing, disease registries, and other technologies provided by Axolotl."

"Axolotl's chronic disease registry is at the center of the growing need to implement strong care management programs," continued Tobin. "Their Elysium Disease Registry application queries discrete variables to identify and deliver results that track areas such as chronic care, diabetes, and infectious disease. Monitoring trend analysis, this program is at the forefront of next generation healthcare. With these and other technologies, Axolotl remains a leader in capturing the opportunity to provide technologies for information exchange, leading the nation to a more connected method for the delivery of healthcare."

"Axolotl is honored to have received this recognition by a very well respected global growth consulting company," stated Ray Scott, CEO at Axolotl. "We strive to be the market leader in our industry, to partner with our customers and to continually provide innovative solutions that enhance the quality and efficiency of healthcare delivery."

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.awards.frost.com.

About Axolotl
Axolotl provides advanced Web-based products and services that automate health information exchange and management between HIM departments, hospitals, clinics, labs, and physician offices. By connecting the healthcare community, our e2 technology increases efficiency, cuts the cost of information exchange, and improves the quality of care. Thousands of healthcare professionals nationwide are using Axolotl for electronic health record creation, health information access, exchange, and management, and transcription services. For more information, visit www.axolotl.com.

Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and service offering growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Any forward-looking statements are estimates, reflecting the best judgment of the party making such statements based upon currently available information and involve a number of risks, uncertainties, and other factors which could cause actual results to differ materially from those stated in such statements.

Contact:

PR@axolotl.com