DefenseWeb’s Strong Q2 Results Driven by New Contract Wins, Partnership Agreements with Industry Leaders

DefenseWeb Technologies, Inc., a premier developer of customized enterprise software for Department of Defense (DoD) health care and quality of life organizations, reported strong Q2 results, building on steady growth in Q1. By the numbers, Q2 sales, revenue, and profit were up more than 100% over the same period in 2005. The strong results were driven by 10 contract wins, as well as the opening of new partnership agreements with industry leaders Northrop Grunman and EDS – on enterprise-wide IT system updates for the Military Health System (MHS) and IDIQ contract vehicles, respectively (see below for more detail.)

The company also solidified its position as a preferred software and systems solutions provider for DoD by launching several marquis systems during Q2. Among other things, DefenseWeb went live with the Designated Provider Project for TRICARE Management Activity, which will help improve services for beneficiaries of the MHS.

“We are pleased with the Q2 results and confident that the momentum we’ve created during the first half of the year will carry us to a strong 2006 finish,” said DefenseWeb CEO Douglas Burke. “The opening of new partnerships with industry leaders Northrop Grunman and EDS, as well as the successful launches of major systems for our existing customers, gives us particular reason for optimism about the growth possibilities moving forward.”

Leaders in Military Family Health Series Launched

Drawing on distinguished members of the company’s Board of Directors and Board of Advisors, DefenseWeb launched the Leaders in Military Family Health article series last month. The series will allow DefenseWeb to showcase the expertise of a group that has collectively held nearly all of the top health positions at DoD and participated in some of the most cutting edge military health operations and research in recent times. The first installment, by former Walter Reed Army Medical Center Commander Dr. Harold Timboe, details the possibilities of military-civilian partnerships on disaster relief by recounting the landmark USNS Mercy/Project HOPE mission after the 2004 Southeast Asian tsunami.

In the second installment of the series, DefenseWeb Board member Harold M. Koenig, M.D., Vice Admiral US Navy, Retired offers a special look into the military’s top mental health issue—Post Traumatic Stress Disorder (PTSD). A former Surgeon General of the Navy and distinguished voice in military mental health and federal health policy, Dr. Koenig lays out a short history of the disorder and gives a candid assessment of what health professionals, families, and communities must do to combat it amid ongoing engagements.

Key Contract Wins

Over the last month, DefenseWeb Healthcare and Navy-Marine Corps departments won important new contracts and expanded on existing engagements with DoD customers.

DefenseWeb was recently awarded a sub-contract from Northrop Grumman to develop web services that will enhance the Armed Forces Health Longitudinal Technology Application (AHLTA), MHS’ new electronic system for managing medical records. The enterprise-wide system will increase the efficiency of the MHS.

The company also won the prime contract to maintain two critical IT components for the military’s vital TRICARE health insurance program – the Resources Information Technology Program Office (RITPO) and Patient Safety Reporting Web portals, part of the efforts to expand and improve services for TRICARE beneficiaries. RITPO’s portal is the gateway to information about systems that enable the Military Health System (MHS) to manage medical appointment scheduling, medical record coding, data collection, and cost analysis, among other important processes. DefenseWeb will also upgrade the DoD Patient Safety Reporting portal, a vital tool that allows TRICARE beneficiaries to report safety concerns relating to the program and enables medical specialists to track and respond to these issues across the MHS.

DefenseWeb also solidified a follow-on contract to support key partner SAIC in developing and implementing a pharmacy/prescription management capability for the TRICARE Online (TOL) system. Beneficiaries will soon be able to manage prescription refill requests and arrange local pharmacy pickup with the new online tools.

The company’s Army Department successfully delivered the revised Army Community Services (ACS) web-based Management Report for the Army’s Community and Family Support Center (CFSC) as well. The ACS Management Report consolidates statistical data on all tracked cases and incidents that ACS Staff members responded to at all Army installations in the preceding quarter. The report allows CFSC to carefully analyze the frequency and nature of the incidents ACS personnel respond to worldwide, and in turn, decide on the level of support needed for Soldiers and families in specific areas.

For more information, visit www.defenseweb.com.

About DefenseWeb® Technologies, Inc.

DefenseWeb Technologies, Inc. provides customized enterprise software development services for Department of Defense (DoD) organizations. Founded in 1998, DefenseWeb delivers Enterprise Information Portals, Case Management Systems, Clinical Information Systems, Business Process Automation Systems, Training Systems and Decision Support Systems for DoD health care, quality of life and family support organizations. The company's core competencies enable it to provide and maintain complex, mission-critical solutions on time, within budget and beyond expectations.