MEDITECH and LSS Data Systems are pleased to announce an agreement for MEDITECH to acquire ownership of LSS Data Systems. Pending both companies' board approvals later this month and completion of the sale in February, MEDITECH will assume full responsibility for the development, marketing, sales, and implementation of LSS's Medical and Practice Management software, and will assume full responsibility for the service of customers using this product.

MEDITECH and LSS have enjoyed a close partnership for 28 years, developing products using shared technologies and integrating data between physician offices, clinics, and hospitals. Together, our companies have provided an unparalleled level of ambulatory and acute care integration, serving more than 2,300 hospitals and over 1,000 physician practices. We have shared common business practices, values, and success through the years.

Moving forward, the LSS Medical and Practice Management software product will be offered as MEDITECH's ambulatory solution for MAGIC, Client/Server, and 6.0 customers. LSS's staff of approximately 200 software professionals will remain in the company's two Minnesota offices, as welcomed members of MEDITECH's staff of over 3,300 professionals. These staff members will bring a much valued ambulatory expertise to MEDITECH. In addition, acquiring facilities in the center of the country and uniting the two companies will provide an opportunity for enhanced service to MEDITECH’s existing customer base.

MEDITECH and LSS both recognize the growing need for a cohesive ambulatory/acute care solution which is tightly coordinated with Home Health, Rehabilitation, Behavioral Health, and Long Term Care software. Both companies anticipate this need will be compounded further in the years ahead, as customers strive to improve care transitions and manage chronic diseases. We are excited by the prospects for new functionality and improved customer service that this unification brings.

In the next few weeks MEDITECH will communicate additional details for moving forward with this exciting arrangement, notify the MEDITECH and LSS customers, and announce its plans to the general public.