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Streamline Health Solutions, Inc. Reports Fourth Quarter and Fiscal Year 2007 Results
Date:3/31/2008

gnificant transactions in the fourth quarter of the 2007 fiscal year. Our operating results in the fourth quarter of the 2006 fiscal year and the first three quarters of the 2007 fiscal year were adversely impacted by protracted contract negotiations and the inability to recognize revenue on a major contract signed in the second quarter of the 2007 fiscal year until such time as site specific integration of our standard software required by the customer can be completed.

As I have stated in the past, significant quarterly fluctuations in revenues and operating profit may result from the timing of contract closings, as these contracts can be complex and often require extensive negotiations. Because our 2007 revenues were adversely impacted by these delays and not by the loss of any anticipated opportunities in the pipeline, we have revised our annual revenue growth expectations upward for fiscal 2008.

Since we expect to complete the site specific integration in 2008 on a major contract signed in 2007, we anticipate we will be able to recognize the software revenue for that transaction in 2008. Although we believe that there may continue to be instances where we will not be able to recognize software revenues on other transactions in the future due to potential provisions for future deliverables in those contracts, we will discontinue reporting revenues on a non-GAAP basis in 2008. We believe we have now reached a point where there will be relative balance between the revenue benefits from previous

year's revenue deferment and the deferment of revenue into future fiscal years.

Here are some of the more significant milestones for fiscal 2007:

Announced that Oregon Health Science University went live with our workflow solutions, integrated with EPIC Systems in the first quarter;

Added an additional remote hosting solution client in the first quarter;

Added a new multi-facility healthcare organization in the second quarter
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SOURCE Streamline Health Solutions, Inc.
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