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PainCare Holdings and MedeFile International Form Partnership to Market Personal Electronic Medical Records Direct to Consumers

ORLANDO, Fla. and CEDAR KNOLLS, N.J., Oct. 17 /PRNewswire-FirstCall/ -- PainCare Holdings, Inc. (Amex: PRZ), one of the nation's leading providers of pain-focused medical and surgical solutions and services, and MedeFile International, Inc. (OTC Bulletin Board: MDFI), a company specializing in portable electronic medical records management solutions, today jointly announced the formation of a partnership created to market the MedeFile system, a proprietary personal electronic medical records management solution, direct to consumers nationwide.

Pursuant to the terms and conditions of the agreement, PainCare will be granted exclusive rights to market the MedeFile system direct to consumers in exchange for a 50% share of revenues generated strictly from PainCare's marketing activities. With plans to produce a national television informercial scheduled to begin airing in January 2008, PainCare has agreed to also support this marketing initiative with direct response advertising on the Internet and via direct mail.

According to Randy Lubinsky, CEO of PainCare, "Through its business relationship with our subsidiary Integrated Pain Solutions (IPS), MedeFile's management team has spent considerable time educating our corporate leadership on the tremendous benefits and competitive differentiation of the MedeFile system. In light of PainCare's underpinning mission to improve the standard of patient care in the U.S., we quickly determined that the MedeFile system represented a true patient-empowering solution that could yield material enhancements in the universal management of health records - particularly for those with chronic medical issues requiring care by multiple physicians. Consequently, PainCare believes that there is an opportunity to leverage the MedeFile system's many distinct user benefits and advantages to produce a new, potentially lucrative revenue channel for PainCare."

Irrespective of age, sex or ethnicity, every patient visit to a healthcare provider generates a medical or dental record of observations, medical or surgical interventions and treatment outcomes. This record may also include information that the patient provides concerning his or her symptoms and medical history, the results of examinations, reports of x-rays and laboratory tests, diagnoses, and treatment plans. Moreover, chronic or severe health issues can result in literally thousands of documents generated for a single patient by multiple care providers, ranging from physician notes to complex diagnostic test results. Unfortunately, there currently exists no universal standard for patient administration, record generation and record maintenance; nor has there been any logical or effective means derived to collect and maintain records that span a lifetime so that a patient's longitudinal health and treatment history is available for retrospective analysis by healthcare providers, when or if necessary.

MedeFile International was founded on the belief that consumers expect the same level of convenience, control and access to online medical portfolios as they may currently enjoy with online banking and e-commerce transactions. However, prevailing competitive electronic medical record solutions rely on the patient to gather, store and manage documents, which proves highly ineffective if the patient becomes inattentive or passive on record retrieval and management. Not so with MedeFile, because the MedeFile team does the work. MedeFile believes that individuals can and should be empowered with the ability to efficiently, safely and securely access, manage and control their own, as well as their family members', personal health and medical records - anywhere, anytime - without unnecessary frustration, stress or confusion. Consequently, the Company spent nearly a decade in research and development to engineer and implement a novel, patent pending, web-enabled digital solution representing a highly advanced, yet user-friendly, approach to portable, electronic personal medical records management.

Continuing, Lubinsky added, "By subscribing to the MedeFile system, not only will members empower themselves to take control of their own health and well-being, they empower all healthcare providers to make sound and lifesaving decisions with the most accurate, up-to-date medical information available. In addition, with MedeFile, members enjoy the peace of mind that comes from knowing that family medical records are protected from fire, natural disaster, document misplacement or the closing of a medical or dental practice. We are very excited about embarking upon this exciting marketing program with MedeFile, and fully expect that it will help PainCare play a vital and successful role in enhancing the quality of patient care in our country."

Milton Hauser, Chairman and CEO of MedeFile International, stated, "Our new partnership with PainCare represents a potential inflexion point in the history of our Company. To date, we have dedicated our resources to driving subscriptions of the MedeFile system primarily through our sales relationships with third party benefits administrators, medical providers and business partners. We believe that the partnership with PainCare will provide us with the means to drive broad national awareness of the MedeFile solution through consumer-driven televised and online ad campaigns that are aimed at providing swift and pronounced growth for the Company. We are very proud to be partnering with PainCare and look forward to building a lasting and beneficial partnership that endures for many years to come."

About MedeFile International, Inc.

MedeFile has developed a proprietary system for gathering and digitizing medical records so that individuals can have access to a comprehensive set of their medical records. MedeFile's primary product is the MedeFile system, a highly secure system for gathering and maintaining medical records. The MedeFile system is designed to gather all of its members' actual medical records and create a single resource that is accessible 24 hours a day, seven days a week.

Representing an advanced, yet easy-to-use, approach to portable, electronic medical records management, MedeFile combines state-of-the-art technology and the Internet to make medical data instantly accessible to each MedeFile subscriber and his or her authorized healthcare providers from anywhere in the world. In addition to accessing one's medical records through MedeFile's secure Internet portal found at, members can carry their entire medical history and emergency information wherever they go on a unique device called a MedeDrive - a proprietary USB drive designed to be carried on a keychain. The MedeDrive plugs into any USB port of a Windows- based PC; and because MedeDrive automatically loads its own viewer, users do not require any special programs or software to view data. MedeMobile provides on-the-go subscribers with the ability to enjoy even greater flexibility and access to their personal health information wherever and whenever they need it.

For more information about MedeFile and the MedeFile system, visit

About PainCare Holdings, Inc.

Headquartered in Orlando, Florida, PainCare Holdings, Inc. is one of the nation's leading providers of pain-focused medical and surgical solutions and services. Through its proprietary network of acquired or managed physician practices, and in partnership with independent physician practices and medical institutions throughout the United States and Canada, PainCare is committed to utilizing the most advanced science and technologies to diagnose and treat pain stemming from neurological and musculoskeletal conditions and disorders.

Through its wholly owned subsidiary, Caperian, Inc., PainCare offers medical real estate and development services. Through Integrated Pain Solutions, the Company is engaged in pioneering the nation's first managed services organization that offers a multi-disciplinary healthcare network focused on the treatment of pain. For more information on PainCare Holdings, please visit

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance, are subject to the following risks: the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins; the inability to attract new patients by our owned practices, the managed practices and the limited management practice; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with physician practices, whether due to competition or other factors; the inability to comply with regulatory requirements governing our owned practices, the managed practices and the limited management practices; that projected operating efficiencies will not be achieved due to implementation difficulties or contractual spending commitments that cannot be reduced; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

For More Information, Please Contact:

Media Relations

Suzanne Beranek, APR, Beranek Communications, LLC

407-475-0763 or via email at

Investor/Shareholder Relations

Elite Financial Communications Group, LLC

Dodi Handy, President and CEO, or

Daniel Conway, Chief Strategist

407-585-1080 or via email at

SOURCE PainCare Holdings, Inc.
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