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MedCom USA Signs Southwood Medical Marketing to Distribute MedCom System

SCOTTSDALE, Ariz., Feb. 26 /PRNewswire-FirstCall/ -- MedCom USA, Inc. (OTC Bulletin Board: EMED), a leading provider of HIPAA compliant healthcare and financial transaction solutions for the healthcare industry, has signed a distribution agreement with Southwood Medical to distribute, through their national sales force, the product line of MedCom USA. MedCom's products offer real-time Patient Eligibility and a suite of payment options which include Credit/Debit, Easy Pay and Check Guarantee/EFT all delivered through its online Web Portal,

Mr. Bob Schwartz, COO of Southwood, stated, "We have been looking for products and services which would compliment our core business and give our thousands of current Physician Practices, as well as our new practices, viable products to help them check their patients' eligibility and then ensure that they will be paid for their services. MedCom provides these products on its fast user-friendly Web Portal. Southwood's comprehensive services are designed to enhance in-office dispensing, which allows for added revenue for the practice and convenience for the patient as they can get their prescriptions filled at the office at time of visit."

Mr. Bill Williams, President and CEO, MedCom USA, stated, "We are very excited to work with Southwood who will be offering our services through their existing nationwide distribution channels. The calendar year 2007 has been a year of change for MedCom; by transitioning primarily over to the Web Portal platform from a Point of Service Terminal, we have been able to cut our cost of sales and reduce our overhead dramatically. Cost of deliverables for the quarter ended September 30, 2007 decreased 60% as compared to 2006. This transition has also allowed us to reduce our operation staff by two thirds."

The completion of the Check Guarantee/EFT program on the Web Portal now gives MedCom a unique distinction of being able to offer a full complement of payment options on-line for the Physician/Dental offices and Hospitals.

The company has also had to recruit a sales force more adept in selling online services. With the offering of the largest real time patient eligibility, easy pay and online check guarantee services on a user-friendly Web Portal, we are looking for 2008 to be a year of growth without having to increase our infrastructure.

MedCom owns approximately 40% of the issued shares of Card Activation Technologies Card Activation Technology (OTC Bulletin Board: CDVT), owners of a patented point-of-sale technology for the activation and processing of transactions related to debit styled cards, which include gift cards, phone cards and other stored value cards. MedCom spun out Card Activation Technologies in 2006 into a separate trading company due to the huge potential for licensing of the company's technology in the prepaid card market. The Federal Reserve Bank of Philadelphia estimated prepaid card market to be valued in excess of $181.7 billion in transactions in 2006. For further information about Card Activation Technologies go to

About MedCom USA, Inc. -- MedCom USA, Inc. (EMED) provides innovative solutions for electronically processing HIPAA compliant transactions within the healthcare industry. MedCom USA provides a Web Portal for medical and dental professionals as well as healthcare institutions. MedCom USA offers its clientele the ability to facilitate the following transactions: Real-time Patient Eligibility, Patient Easy Pay, Merchant Processing, Electronic Check Guarantee Service.

About Southwood Medical Marketing. -- Incorporated in 1989 to focus on supplying prepackaged prescriptions to dispensing physicians. Building from a local client base, the company gradually expanded to become one of the largest drug repackagers in the country. As one of the pioneering companies in the industry, Southwood has watched other repackaging companies emerge, disappear and be absorbed into each other. Throughout this evolution, Southwood has differentiated itself by adhering to the principles that inspired its creation;
1. Letting the physician specify the drug of choice and therapeutic

quantity that would most effectively treat his or her patients.

2. Supplying only high-quality bio-equivalent generic drugs when indicated

by the prescriber

3. Providing easy-to-use systems for the physician to maintain inventory,

dispensing records, and to conduct patient consultation.

4. Maintaining a registered pharmacist on-call to assist and consult with

the prescriber as required

5. Continually investing in new technology to be used in the preparation

and delivery of drug products.

Southwood remains committed to improving patient care and is prepared to offer additional products and services for medical providers.

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of MedCom USA Inc (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) fulfill its business plan; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at under "Search for Company Filings."

Contact for MedCom, USA Inc. Contact for Southwood Medical Marketing

Kent Barghols Bob Schwartz

Ph. 515-276-1180 Ph. 800-542-1257

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