InfoLogix Positioned for Strategic Initiatives in Second Half of 2010

HATBORO, Pa., Aug. 26 /PRNewswire-FirstCall/ -- InfoLogix, Inc. (Nasdaq: IFLG), a leading technology provider of enterprise mobility solutions for the healthcare and commercial industries, today announced its strategic plans for the second half of 2010.

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David T. Gulian, president and chief executive officer of InfoLogix, said, "We are taking definitive actions with the goal of transitioning InfoLogix to a full solutions provider, and our higher margin consulting and professional services, such as those for Electronic Medical Records implementations, SAP® Supply Chain Execution implementations, and mobilization services are now at their greatest proportion of our revenue mix in company history.  As a result of this change in revenue mix of our products and services, as well as our ongoing cost cutting measures, we were able to achieve modest positive adjusted EBITDA for the quarterly period ended June 30, 2010.   We define adjusted EBITDA as net earnings before net interest income (expense), income taxes, depreciation, amortization and non-cash expenditures for stock-based compensation."

"We are continuing to work towards a stable financial foundation in other ways as well," said Mr. Gulian.  "For instance, as disclosed in our recent Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010, during the second quarter we sold one of our nineteen patents, and realized a gain of $1.9 million on the sale. With the sale of the patent, we reached positive net income during the quarter. Additionally, our senior lender, Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC) recently converted $5 million of aggregate principal amount of our debt into shares of our common stock.  The debt conversion will reduce our interest expense and is expected to help us improve our liquidity position."

Mr. Gulian continued, "In our view, 2010 is shaping up to be a critical turning point for our company, even in the face of challenging economic conditions, our strained liquidity, and the regulatory transition in the healthcare industry that is causing delays of projects with some of our key customers. Despite the challenges we have faced and we continue to face, we have recently won new business opportunities with major healthcare and enterprise customers nationwide and internationally. For example, on the enterprise side, we have recently started professional services engagements with a major retailer in Mexico and a leading consumer packaged goods client in Kentucky. On the healthcare side, we recently won contracts to provide a full-scale MEDITECH 6.0 EMR integration solution including WaaS wireless–as-a-service for Hilo Medical Center in Hawaii, and a major implementation at Rochester General Hospital in New York. We believe that these recent customer engagements are in many ways the prototypical new business wins for InfoLogix, in part because each of these new service engagements may helps us win multiple additional opportunities with the client going forward.  We also continue to believe that healthcare reform will drive widespread adoption of Electronic Medical Records in the near future, and InfoLogix's professional services and managed services solutions are well-positioned to be an important player in this market."

"It is our intention to continue to control our costs and to grow our business," said Mr. Gulian. "Our growth plan involves securing additional funding and restructuring certain of our indebtedness to meet our working capital needs and debt payment obligations, while also permitting our expansion geographically to markets outside of the United States and vertically to adjacent healthcare and other complementary emerging commercial markets. We currently have ongoing projects in Canada and Mexico, and we are working on SAP® Supply Chain Execution opportunities in Europe.  We believe that our industry's highly-fragmented competitive landscape provides us with opportunities to capitalize on our strengths and broaden the footprint of our business."

InfoLogix's strategic plan for 2010 is to continue to:

• Reposition the company around Electronic Medical Records, SAP® Supply Chain Execution, and Mobility solutions, three sectors of the market where we see new business opportunities.

• Carefully manage expenses, selectively reduce them wherever possible, and secure additional funding and restructure certain of our current indebtedness to meet our working capital and debt payment obligations.

• Transition our healthcare infrastructure business from a reseller model to the sale of proprietary InfoLogix-branded services and products.

In commenting on the strategic plan, Mr. Gulian said, "In early 2010, as we expected, our healthcare infrastructure business was negatively impacted, not only by weak economic conditions generally, but also by the transition of our business model, as our legacy reseller business runs off and the production and sale of InfoLogix branded product ramps up. However, we also believe that this transition will drive improved margins, improved brand recognition, and stronger customer relationships over time.  We expect increased demand for our Electronic Medical Records and mobility solutions to accelerate in the healthcare industry.  We also expect strong growth in our SAP Supply Chain Execution and Mobility business. If we continue to respond to these challenging times by continuing to control our costs, securing additional funding and restructuring certain of our indebtedness, as well as managing our liquidity needs, we believe that our focus on growth, execution, and driving strong financial performance can allow us to build on our modest second quarter net income and position ourselves for future success."

"Notwithstanding our strategic plan, as we previously announced, in May 2010 our board of directors formed a special committee of the independent directors to work with financial advisors in reviewing strategic alternatives to address various financial and operational challenges facing the company, including such alternatives as securing additional financing, further restructuring our debt and effecting one or more strategic transactions," said Mr. Gulian.

About InfoLogix, Inc.

InfoLogix is a leading provider of enterprise mobility solutions for the healthcare and commercial industries.  InfoLogix uses the industry's most advanced technologies to increase the efficiency, accuracy, and transparency of complex business and clinical processes.  With 19 issued patents, InfoLogix provides mobile managed solutions, on-demand software applications, mobile infrastructure products, and strategic consulting services to over 2,000 clients in North America including Kraft Foods, Merck and Company, General Electric, Kaiser Permanente, MultiCare Health System and Stanford School of Medicine.  InfoLogix is a publicly-traded company (NASDAQ:  IFLG).  For more information visit www.infologix.com.

Safe Harbor

InfoLogix makes forward-looking statements in this press release which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including the risks described in our Annual Report on Form 10-K for the period ended December 31, 2009, the quarterly report on Form 10-Q for the period ended March 31, 2010, the quarterly report on Form 10-Q for the period ended June 30, 2010, and other filings we make with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. We do not make any commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement is made.

SOURCE InfoLogix, Inc.