CBay Systems, Ltd. Opens its India Development and Process Center
Annapolis, MD and Bangalore, India-September 9, 2002

CBay Systems, Ltd. ("CBay"), the healthcare business process outsourcing Company promoted by NRIs, Godrej Industries, TDA Capital Partners and some large US institutional investors proudly announces the grand opening of its India Development and Process Center, on Lavelle Road in Bangalore, India.

"This new Development Center prepares the company for our rapid expansion and development needs driven by HIPAA," said Mr. V. Raman Kumar, Chairman of CBay. "We believe that the implementation of HIPAA will speed up the implementation of the electronic patient record, which will, in turn, more than double the volume of medical transcription in the short term. When you have a computerized record, the most convenient way to input data is through dictation and transcription, so we can expect the hand written medical report to become a thing of the past," Mr. Kumar continued.

CBay's Development Center has already built CBayScribeTM, a state-of-the-art medial transcription platform which supports clinical and doctor's office applications in the United States, using digital voice recorder and PDA technologies. CBayScribe's success, which has been more than a 15% growth per month, month-on-month, was one of the key factors in giving CBay the confidence to build out this fine Development Center.

CBay's Development Center also supports the A+Network, CBay's joint Venture with Arrendale Associates, Inc. ("AAI") of Cornelius, North Carolina. The Development Center is taking on further development of the TAe Series hospital based dictation, transcription, and document management platform, which allows CBay to work conveniently with its 35 Production Centers and 2,000 medical transcriptionists in the Republic of India.

"CBay has begun to experience frequent noteworthy events," said Skip Conover, president of CBay, who is known for being an innovator in the medical transcription industry in India "Our new Development and Process Center will provide excellent support to CBay's rapid growth, driven by its acquisition of Advanced Transcription Services, inc. two weeks ago. We expect that acquisition to push CBay's further development of production centers in the Republic of Inida.

Del Arrendale, President of AAI, said, "I'm very excited! CBay is the only company in the U.S. medical transcription industry with significant capacity available. Combining that capacity with TAe Series' capabilities will make CBay one of the largest medical transcription companies in the world over the coming year. We very much look forward to continuing to develop the A+Network, which is the joint venture between CBay and AAI, and this effort will be excellently supported by CBay's new development and Process Center.

Mahidhar Reddy, President of CBay's CBayScribe Division in the United States, beamed with pleasure as he inaugurated the new facility. "Mahi," as he is known, was the founder of CBay's original efforts in Bangalore four years ago.

The Development and Process Center utilizes and develops multiple state-of-the-art technologies, while providing 7/24/365 support to its international clients. The clients incorporates the latest technology for Internet security, physical plant security and monitoring, systems backup and redundancy needed to house critical digital information. The Center is capable of storing many terabytes of data with strict considerations for security and privacy as per HIPAA guidelines.

Special guests who attended the inaugural ceremony included Mr. V. Raman Kumar, Chairman of CBay systems, Ltd., Mr. Skip Conover President of CBay systems, Ltd, Mr Mahidhar Reddy, President and COO of CBayScribe, Mr. Del Arrendale, President of Arrendale Associates and Mr. Keith Dicken of AAI.