MedAvant Announces Voluntary Reorganization Filing, Debtor-In-Possession Financing,...

MedAvant Announces Voluntary Reorganization Filing, Debtor-In-Possession
Financing, and Stalking Horse Bid

ATLANTA, July 23, 2008 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions
(MedAvant) (Nasdaq:PILL), a leader in healthcare technology and transaction
services, today announced that it filed a voluntary petition for reorganization
under Chapter 11 of the U.S. Bankruptcy Code, together with a
debtor-in-possession financing commitment of $8.1 million by its senior lender
Laurus Master Fund, Ltd., of which $2.9 million represents new credit
availability to support the Company's business operations during the chapter 11
case. In addition to the filing, the Company has filed a motion to sell its
assets to a private equity firm, Marlin Equity, under section 363 of the
Bankruptcy Code, subject to higher and better bids at an auction sale expected
to be conducted in 8-10 weeks.

"During the past year we have divested our non-core business lines in order to
focus on our electronic data interchange business with the goal of improving our
operating efficiencies," said Peter Fleming, MedAvant interim Chief Executive
Officer. "Our objective now is to align our financial structure with our new
business structure and bring in a partner to invest capital toward the growth of
our company. We believe this financial assistance will enable us to move through
this process as quickly as possible so we may resume our focus on building a
new, stronger company."

The debtor-in-possession financing commitment from Laurus Master Fund, Ltd is
expected to provide the necessary liquidity to enable the Company to continue
doing business as usual during the Chapter 11 process.

The Company has also filed a series of motions with the Bankruptcy Court to
assure the continuity and stability of the business, including the payment of
wages, the continuation of benefit and rebate programs, and the payment of
certain critical vendors.

MedAvant expects operations to continue as usual throughout this process.

The Company is represented in the bankruptcy filing by Michael P. Richman of
Foley & Lardner LLP and Michael Nestor of Young, Conaway, Stargatt & Taylor.

About MedAvant Healthcare Solutions

MedAvant is a national connectivity network that connects payers with providers
in a real-time environment for the purpose of transparently messaging
administrative, financial and clinical information in order to lower total
administrative costs, improve payer, provider and member relationships, and to
ultimately improve clinical outcomes. For more information, visit
http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.

The MedAvant Healthcare Solutions logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3540

Forward-Looking Statement

Statements in this release that are "forward-looking statements" are based on
current expectations and assumptions that are subject to risks and
uncertainties. In some cases, forward-looking statements can be identified by
terminology such as "may," "should," "potential," "continue," "expects,"
"anticipates," "intends," "plans," "believes," "estimates," and similar
expressions. Actual results could differ materially from projected results
because of factors such as: the soundness of our business strategies relative to
the perceived market opportunities; MedAvant's ability to successfully develop,
market, sell, cross-sell, install and upgrade its clinical and financial
transaction services and applications to current and new physicians, payers,
medical laboratories and pharmacies; the ability to compete effectively on price
and support services; MedAvant's ability and that of its business associates to
perform satisfactorily under the terms of its contractual obligations, and to
comply with various government rules regarding healthcare and patient privacy;
entry into markets with vigorous competition, market acceptance of existing
products and services, changes in licensing programs, product price discounts,
delays in product development and related product release schedules, any of
which may cause revenues and income to fall short of anticipated levels; the
availability of competitive products or services; the continued ability to
protect the company's intellectual property rights, implementation of operating
cost structures that align with revenue growth; uninsured losses; adverse
results in legal disputes resulting in liabilities; unanticipated tax
liabilities; the effects of a natural disaster or other catastrophic event
beyond our control that results in the destruction or disruption of any of our
critical business or information technology systems. Any of these factors could
cause the actual results to differ materially from the guidance given at this
time. For further cautions about the risks of investing in MedAvant, we refer
you to the documents MedAvant files from time to time with the Securities and
Exchange Commission, including, without limitation, its most recently filed
Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims,
any obligation to update information contained in this document. Although this
release may remain available on our website or elsewhere, its continued
availability does not indicate that we are reaffirming or confirming any of the
information contained herein.

-0-
CONTACT: Institutional Marketing Services, Inc.
Investor Relations Contact:
John G. Nesbett
jnesbett@institutionalms.com
Jennifer Belodeau
203-972-9200

MedAvant Healthcare Solutions
Media Contact:
Teresa Stubbs
812-206-4332
tstubbs@medavanthealth.com