AXOLOTL RECEIVES THE 2006 FROST & SULLIVAN BUSINESS DEVELOPMENT STRATEGY LEADERSHIP AWARD

Mountain View, CA, June 26, 2006—The Frost & Sullivan Award for Business Development Strategy Leadership 2006 has been awarded to Axolotl for excellence in business development within the healthcare industry. The company provides solutions to manage communication and information for hospitals, physicians, and healthcare communities. The Award recognizes Axolotl's ability to best perceive industry needs, successfully introduce products or services to the industry, and identify new market segments to expand the existing customer base. Through a combination of vision, technology, and successful marketing, Axolotl has demonstrated superior market growth skills.

To select the recipient of this Award, the analyst team tracks all the major participants in the industry, paying close attention to their business development efforts. This process includes interviews with the market participants, customers, and suppliers, along with extensive secondary and technology research. The companies' business development efforts are then analyzed and ranked based on the number of new customers, new segments, and commitment to business expansion.

"Axolotl is a pioneer in the clinical messaging arena and provides market-leading capabilities to automate the healthcare continuum for hospitals, clinics, labs, radiology centers, and their affiliated physicians," says Steve Tobin, an analyst for Frost and Sullivan. "Long ahead of the health information exchange trend, the company has been providing sound applications that allow physicians and hospitals across organizations to connect and securely exchange healthcare information. With the ability to connect disparate applications and sophisticated tools to manage this process, its second-generation technology, e2, has evolved with super EMR and HIM functionality."

"The company provides leading solutions not only for clinical messaging but also in patient identification, clinical repository, EMRs, public health and others," continued Tobin. "We believe the company is well suited for the future deployment of regional health information exchanges and will continue to be the leader."

"We are honored to be the recipients of this prestigious award from Frost and Sullivan," stated Ray Scott, CEO at Axolotl. "We recognize the care and research that Frost and Sullivan puts forth to determine a business development leader and will continue to set the standard in connecting communities and exchanging clinical information."

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