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October 8, 1999

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Johns Hopkins, SMS Sponsor Health Records Summit

Providers, Payers, Government Agencies, Technology, And Health Information Systems Companies Participate In Forum To Define HIPAA Security Implementation Guidelines

Johns Hopkins Medicine and Shared Medical Systems Corporation (SMS) (NYSE: SMS), today launched a Health Insurance Portability and Accountability Act (HIPAA) Security Summit at the Hyatt Regency in Baltimore, Maryland. The Summit, which will conclude on October 13, is an initiative driven by the two organizations, and facilitated by the Workgroup for Electronic Data Interchange (WEDI). One of the objectives of HIPAA security requirements is to protect the confidentiality of personal patient information captured, stored, and transmitted electronically.

More than 150 payers, providers, consultants, government agencies, technology, and health information systems companies are participating in the forum with an objective of developing an industry-wide approach to HIPAA security compliance. The Summit is the first in a series of events that the three organizations are developing to help the healthcare industry plan and prepare for pending HIPAA security regulations.

The administrative simplification portion of HIPAA will have a significant impact on how health data is captured, managed, stored and transmitted among the various parties involved in healthcare. HIPAA requirements are intended to establish national standards for electronic transactions between various entities across healthcare. Recognizing the implications this will have on the business operations of providers, payers, health information vendors, government agencies, and other organizations, Johns Hopkins, SMS, and WEDI are proactively bringing together a cross-section of healthcare industry leaders to develop tools, processes, and methods to implement and comply with HIPAA security regulations.

Jon Zimmerman, SMS solutions manager, with responsibility for SMS' HIPAA team, said, "With the HIPAA security regulations due in December, many organizations throughout the healthcare industry are uncertain about the most effective approaches to comply with HIPAA regulations. Through this Summit, we can create an industry-wide dialogue on scaleable and reasonable mechanisms to implement HIPAA security requirements across various business settings. The Summit is a landmark event bringing together organizations representing every facet of healthcare in a forum specifically designed to develop industry consensus on such a crucial issue."

Tom Goodman, data security and disaster recovery manager for Johns Hopkins Medicine, representing the perspective of the healthcare provider community points out that, "This Summit provides a unique opportunity for the healthcare industry as a whole to step forward and develop practices that will afford better protection to critical business processes that support the delivery of healthcare. Our industry relies heavily on information technology to deliver quality care, and we have an obligation to our patients to do everything possible to ensure that delivery of care."

About the HIPAA Summit
The HIPAA Summit is sponsored by Cisco Systems, Inc., Compaq Computer Corporation, IBM Corporation, Johns Hopkins Medicine, KSM Healthcare Resources, Microsoft Corporation, SMS, and TRW Healthcare Corporation. Planning for the HIPAA Summit was provided by a cross-section of recognized healthcare leaders, representing providers and vendors, including ADA, AFEHCT, Beacon Partners, CPRI, EDS, EHNAC, Georgetown University, HCFA, HDX, IBM, JCAHO, Johns Hopkins, Kaiser Permanente, KPMG, Mayo Clinic, MD Anderson, MGMA, MSA Corporation, NCHICA, SMS, WEDI, and the Forum on Privacy and Security in Healthcare. For more information on the Summit, visit the WEDI Web site at http://www.wedi.org

. About Johns Hopkins Medicine
Johns Hopkins Medicine, established in 1995 to unite Hopkins' biomedical research, clinical teaching and business enterprises, includes The Johns Hopkins University School of Medicine, theJohns Hopkins Hospital, Johns Hopkins Bayview Medical Center, Howard County General Hospital, Johns Hopkins Medical Services Corporation, Johns Hopkins Bayview Physicians, Johns Hopkins HealthCare and the Johns Hopkins Home Care Group. The $1.8 billion enterprise is one of the largest employers in Maryland. Its components consistently are named at the top of the national rankings for best hospital and School of Medicine, and its faculty consistently wins the largest share of NIH research funds. Results of this research continue to advance efforts to diagnose, treat, and prevent many diseases.

About SMS
SMS supplies information systems and professional services to over 5,000 health enterprises and health providers in North America, Europe, and New Zealand. The Company offers a full range of clinical, financial, and management applications to support health providers across the continuum of care. In addition, SMS is a leading provider of outsourcing, consulting, and implementation services.

Founded in 1969, SMS has 30 years of network computing experience, operating the industry's largest Information Services Center (ISC) and Health Information Network for application hosting, e-commerce, enterprise systems management, and managed Internet services. As the premier Application Service Provider (ASP) in healthcare, SMS' ISC operates health applications for over 1,000 health providers with connections to over 300,000 customer workstations and processes nearly 75 million transactions a day.

SMS, based in Malvern, Pennsylvania, reported revenues in excess of $1.1 billion for fiscal year 1998. Further information about SMS' systems and services is available at www.smed.com.

About WEDI
WEDI is a broad-based industry association, located in Reston, VA , which was designated in the HIPAA legislation as an advisor to the Secretary of Health and Human Services (HHS) regarding the development and implementation of EDI standards for administrative simplification in healthcare, and has been facilitating industry forums across the country to bring together key stakeholders to address key business issues and build consensus on the HIPAA regulations.

SMS is a registered trademark of Shared Medical Systems Corporation. All other referenced product and corporate names may be trademarks of their respective owners.

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Contact Information:

Press: Matthew DeCamara
(610) 219-5067

Maryellen Kaytrosh

Investors / Analysts: Julie McDowell
(610) 219-6528

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