On April 12, the U.S. Patent and Trademark Office issued U.S. Patent No. 7,925,519 to MedEncentive, LLC. This patent covers the principal incentive method that distinguishes MedEncentive’s products and services.

“As a company, we believe in the development and protection of intellectual property,” says
MedEncentive CEO and founder Jeff Greene. “We are confident that the innovation covered by this
patent will have a profound effect on improving health and healthcare in an encouraging manner – a
manner that could make healthcare more affordable and accessible to everyone.”

Greene adds, “Developing this patent took a great deal of time and effort. We thank Larry Grable, our
patent attorney. Without his expertise, patience and insight into our unique invention, the issuance of
this patent would not have been possible.”

Founded in 2005, MedEncentive offers web-based incentive services designed to control healthcare
costs. The MedEncentive program accomplishes cost containment by financially rewarding both
doctors and patients for declaring or demonstrating adherence to best clinic practices and healthy
behaviors, provided the parties agree to allow one another to confirm or acknowledge their adherence.
MedEncentive has been testing its unique incentive system in several real-world trials in the states of
Oklahoma, Kansas and Washington. These trials have extended over a number of years. Recently, the
University of Kansas School of Medicine and The Loomis Company published findings from these trials
that confirm the cost containment effectiveness of the MedEncentive program.

“The fact that the issuance of our patent coincides with the validation of our program by independent
experts are important milestones that should help the company move quickly from proof of concept to
commercialization,” says Cliff Winburn, MedEncentive CFO and co-founder.

Section 101 provides a 6.2% Employer Social Security Tax Exemption (“Tax Exemption”) for each “qualified” employee hired after February 3, 2010 and before January 1, 2011, who certifies by signed affidavit that he or she has not been employed for more than 40 hours during the 60-day period ending on the date he or she begins employment.

Section 102 creates a Business Credit (“Retention Credit”) of either $1,000 for each “qualified” employee (as defined in Section 101), hired after February 3, 2010 and employed for at least 52 consecutive weeks, or 6.2% of wages paid to the “qualified” employee over the 52-week period, which ever is less.

Neither the Section 101 Tax Exemption, nor the Section 102 Retention Credit, is available if the employee is hired to replace another employee, unless the replaced employee was terminated for cause.