7 Medical Completes Type II SAS 70 Audit

On-demand service provider assures healthcare customers the highest level
of operational and data security for handling business and patient data, systems
and transactions

MINNEAPOLIS—December 9 , 2009—7 Medical Systems™,a leader in on-demand picture archiving and communication system (PACS), teleradiology, disaster recovery and electronic medical record (EMR) solutions for healthcare, today announced that it has successfully completed a service auditor's review, commonly known as a SAS 70 audit, of its general controls supporting data center operations.

The company had engaged SAS 70 CPA, one of the nation's leading independent SAS 70 auditing firms, to conduct a Type II SAS 70 audit. SAS 70 CPA performed extensive testing of the control activities that have been implemented by 7 Medical to ensure that control objectives were met and has rendered the following opinion, without exception:

• That the description of the controls prepared by 7 Medical presents fairly, in all material respects, the relevant aspects of the company's controls that had been placed in operation as of October 31, 2009;
• That the controls are suitably designed to provide reasonable assurance that the specified control objectives would be achieved if those controls were complied with satisfactorily; and
• That the controls that were tested were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives were achieved during the review period of May 1, 2009 through October 31, 2009.

"7 Medical understands the importance of corporate governance and the impact of the company's services on its clients' internal controls. Successful completion of the Type II SAS 70 audit assures healthcare clients of 7 Medical's continued commitment to maintaining the highest level of operational and data security standards for handling business and patient data, systems and transactions that also meets the requirements of Sarbanes-Oxley," said Joseph E. Maddox, CPA, CA and president of SAS 70 CPA. "Nothing speaks louder than sound business practices like Type II SAS 70 certification, and the HIPAA compliance 7 Medical recently attained. We were also impressed with the speed with which they were able to complete their audit."

Because Sarbanes-Oxley legislation has placed an increased focus on the internal controls of business partners, the SAS 70 audit report is designed to provide 7 Medical clients with a certain level of assurance regarding the controls that are maintained by the company. The SAS 70 report addresses all five components of internal control outlined in Sarbanes-Oxley, including the control environment, risk assessment, monitoring, information systems and communication.

"As an on-demand service provider, hospitals and practices depend on our health IT systems to improve the delivery and quality of care while dramatically reducing costs. That's why it's critical that the service and support we provide meets the highest standards for security and service availability," said Jason Studsrud, chief executive officer of 7 Medical Systems. "We want to assure customers, vendors and business associates that it is safe to do business with us, and they should not settle for any less."

The successful completion of the Type II SAS 70 audit is only part of 7 Medical's continued commitment to maintaining a high level of internal control. To ensure ongoing adherence to the latest operational and data security standards, 7 Medical intends to undergo a Type II audit on an annual basis.

ABOUT TYPE II SAS 70 AUDITS
Statement on Auditing Standards No. 70: Service Organizations (SAS 70) is an auditing statement issued by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA). SAS 70 provides guidance to service auditors when assessing the internal controls of a service organization and issuing a service auditor's report. SAS 70 also provides guidance to auditors of financial statements of an entity that uses one or more service organizations. Service organizations are entities that provide outsourcing services that impact the control environment of their customers, such as insurance and medical claims processors, on-demand service providers, hosted data centers, credit processing organizations and clearinghouses.

There are two types of service auditor reports. A Type I service auditor's report includes the service auditor's opinion on the fairness of the presentation of the service organization's description of controls that had been placed in operation and the suitability of the design of the controls to achieve the specified control objectives. A Type II service auditor's report includes the information contained in a Type I service auditor's report and also includes the service auditor's opinion on whether the specific controls were operating effectively during the period under review.

With the introduction of the Sarbanes-Oxley Act of 2002 (SOX), SAS 70 took on increased importance. SOX resulted from a need for transparency and a better understanding of the controls over financial reporting. Since SOX adopted the same method of controls that SAS 70 audits have used since inception, Type II SAS 70 reports are the only acceptable method recognized by the Securities and Exchange Commission (SEC) for management to obtain assertions about a service organization's internal controls without conducting separate audits.

ABOUT 7 MEDICAL SYSTEMS, LLC
7 Medical Systems™, LLC (www.7medical.com) is a leading provider of on-demand PACS, teleradiology, EMR, disaster recovery and computing solutions for healthcare. The Minneapolis-based company delivers reliable, affordable solutions to critical access hospitals, imaging centers, radiology groups and ambulatory clinics. Rather than investing capital to own and manage servers, hardware, software and IT resources in-house, healthcare facilities outsource these critical functions to 7 Medical. They trade in hefty capital expenses for more affordable monthly usage fees-paying only for what they use. 7 Medical's clinical project managers enable facilities to efficiently automate workflows and integrate disparate systems to ensure successful integration, implementation and training. On-demand services are available anytime, anywhere, with 24/7 service and support and built-in disaster recovery, as well as Type II SAS 70 and HIPAA compliance.

ABOUT SAS 70 CPA
Located in Trinity, Florida, SAS 70 CPA is one of the nation's leading SAS 70 auditing firms. The company is a licensed Certified Public Accounting (CPA) firm, registered with the American Institute of Certified Public Accounts (AICPA), and the Public Company Accounting Oversight Board (PCAOB). SAS 70 CPA provides professional and affordable SAS 70 audits to small and medium-sized businesses throughout the US and Canada and is 100% focused on SAS 70 audits. For more information about SAS 70 audits and SAS 70 CPA, visit http://sas70cpa.com.

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7 Medical Systems™ and the 7 Medical Systems logo are trademarks for 7 Medical Systems, LLC. All other trademarks or trade names are the properties of their respective holders.

Media Contact:
Loan D. Gordon
7 Medical Systems, LLC
952.230.9220
lgordon@7medical.com