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QMed, Inc. Reports Third Quarter Results
Date:10/8/2007

tion rate.

Jane Murray, QMed president and CEO said, "We believe that medical expenses will moderate over time as:

-- Medicare premium payments rise based upon data submitted through our

proprietary technology

-- Members are in our programs longer, so that our interventions gain

traction."

"We have seen both phenomena. We received an increase in 2007 for members who joined in 2006. In addition, we have observed in both Medicare demonstrations and in managing Medicare members for other health plan customers, that length of time in the program (LOTIP) correlates with increasingly positive health and financial outcomes."

"We continue to experience strong sequential quarterly growth and obviously expect it to continue. The third quarter's revenue increase is the result of continued strong enrollment in our Medicare Advantage Special Needs Plans in South Dakota coupled with more modest growth in New Jersey. In September we experienced similar trends, as we added another 149 in our chronic SNP in South Dakota, 33 members in New Jersey and 46 in the South Dakota SNP for Duals."

"We enter the 2008 marketing season with strong momentum. As of the end of the third quarter, our revenue run rate was $44,000,000. In addition, we will offer five SNPs in 2008. These include an SNP for those dually eligible for Medicare and Medicaid in South Dakota, as well as a SNP for diabetes and a SNP for cardiovascular disease and stroke in both New Jersey and South Dakota. As we have stated previously, these offerings have the effect of increasing the number of those eligible for our chronic SNPs by nearly 80% in both New Jersey and South Dakota. These two facts, run rate and major expansion of our pool of potential enrollees, combined with increasing confidence among selling agents, providers and our own members, provide a basis for our guidance of $88-$95 million," she concluded.

The Company will hold its quarterly conference call
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SOURCE QMed, Inc.
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