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Authentidate Announces Termination of Merger Agreement With Parascript, LLC
Date:1/26/2009

BERKELEY HEIGHTS, N.J., Jan. 26 /PRNewswire-FirstCall/ -- Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide provider of secure Health Information Exchange and workflow management services, announced today that it has received notification from representatives of Parascript, LLC and Parascript Management, Inc. (collectively "Parascript") that Parascript is terminating the Agreement and Plan of Merger it entered into with Authentidate. The merger agreement, dated as of August 6, 2008, provided for its termination by either Authentidate or Parascript if the transaction was not completed by December 31, 2008. The Company previously announced that it was conducting discussions with Parascript to restructure the terms of the merger in light of the uncertainties in the credit markets and changes in Parascript's business. The parties did not agree to any revised proposal.

The Board of Directors of Authentidate is reviewing its rights under the merger agreement. The Company remains committed to implementing its business strategy although alternatives that may be in the best interests of the shareholders of Authentidate may be considered.

About Authentidate Holding Corp.

Authentidate Holding Corp. is a worldwide provider of secure Health Information Exchange and workflow management services. The company's software and web-based services enable healthcare organizations and other enterprises to increase revenues, improve productivity and reduce costs by eliminating paper and manual work steps from clinical, administrative and other processes and enhancing compliance with regulatory requirements. The web-based services are delivered as Software as a Service (Saas) to customers. These solutions incorporate rules-based electronic forms, intelligent routing, transaction management, electronic signatures, identity credenti
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SOURCE Authentidate Holding Corp.
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