CBay Awarded Multi-Year Contract with Premier Inc.

CBay Will Provide 1,500 Member Hospitals Access to Greater Efficiencies and Cost Savings on Medical Transcription

Annapolis, Maryland (January 18, 2006) – CBay Systems announced today that it was awarded a contract by Premier Inc. to provide integrated dictation capture, transcription and web-based document management solutions to its member healthcare facilities. Under the terms of the agreement, CBay is the approved provider to Premier's alliance of approximately 1,500 hospitals and healthcare systems across the United States.

A leading provider of healthcare technology and business process outsourcing (BPO) services, CBay addresses various issues in the healthcare sector, primarily focusing on transcription process improvement and receivables management. By leveraging HIPAA-compliant Internet technologies and highly credentialed global resources, CBay delivers measurable efficiencies and savings to hundreds of hospitals, clinics and physician groups.

A selection committee at Premier evaluated numerous medical transcription service organizations from across the country and determined that CBay's solutions were the right choice for its members.

"CBay is very excited about this opportunity to provide medical transcription services to Premier's member hospitals," said Michael Kimball, CBay's senior vice president of sales and marketing. "We offer the ideal blend of service, experience, technology, and value to ensure that Premier's members receive timely and accurate medical documentation to help them provide the best patient care."

About CBay Systems
CBay Systems and Services Inc. is a leading provider of healthcare technology and business process outsourcing (BPO) services and the largest global provider of transcription services to the healthcare industry. CBay delivers fully integrated transcription and receivables management solutions that improve processes, lower costs, and ultimately help physicians to provide superior patient care. Using HIPAA compliant web-based technologies, CBay's more than 5,200 highly credentialed medical language specialists and customer service professionals deliver the highest quality medical documentation to 650+ clients. Since 1998, CBay has been serving major health systems, hospitals, clinics and physician practices 24 hours a day, 365 days a year-always with a commitment to the highest standards of quality and customer service. CBay is headquartered in Annapolis, Maryland. For more information, visit www.cbaysystems.com.

About Premier, Inc.
Premier, Inc., the leader in helping hospitals accelerate performance on both clinical outcomes and supply chain costs, is a healthcare alliance entirely owned by more than 200 of the nation's leading not-for-profit hospitals and healthcare systems. These organizations operate or are affiliated with nearly 1,500 hospitals and more than 37,000 other healthcare sites. Premier Purchasing Partners provides an array of services supporting health services delivery including group purchasing totaling more than $25 billion annually in supplies and equipment purchasing, as well as supply chain and clinical performance improvement services. Premier Healthcare Informatics offers performance measurement, benchmarking, and reporting products and advisory services supporting quality improvement. Premier Insurance Management Services helps hospitals manage insurance costs and improve risk management and claims capabilities. Headquartered in San Diego, Premier has offices in Charlotte, N.C., Chicago, and Washington. For more information, visit www.premierinc.com.

For additional information contact:

Linda Fortunato
Tel: 866.295.4600 x3139
lfortunato@cbaysystems.com
www.cbaysystems.com.