In September 1994, HTN Inc. ("HTN") was incorporated as a wholly owned subsidiary of the Health Transaction Network Partnership ("HTNP"). HTNP, an Ontario limited partnership, had recently acquired all of the ownership and intellectual property rights to a medical software system, known at the time as HTN II for Windows, from United Software Management LTD an international corporation based holding company. HTN was appointed by HTNP as the worldwide Sales, Marketing and Development Agent for HTN II for Windows, which was renamed HERO™. During 1997, the structure was simplified for the purposes of attracting additional investment capital. All the rights to the HERO™ software now belong to HTN, which is approximately 67% owned by the HTNP partners, 15% by Adios Enterprises, 7% by A&L Computer Software Ltd. 3% by Intercorporate Research, and 8% by Gary Babcock, HTN's President and CEO.

HERO™ is both a Windows-based proprietary medical office automation and practice management system (HERO™ Software) and the transaction processing network (HERO™ Network). This software is part of a vertically integrated service, which uses 'state-of-the-art' communications and information management technology to connect medical offices to related healthcare industry partners. Client medical offices, by using the HERO™ software and connecting to the HTN Network's central server via modem, can:

· perform all routine medical office administrative management functions such as patient registration, billing, scheduling, accounting, sorting and record keeping in a Windows environment;
· maintain all their medical and patient records in an electronic format and transmit extracts from these records to medical authorities and other health providers;
· securely transmit their claims, laboratory requisitions, prescriptions and other trading information over cost effective public or private telecommunications networks to government health authorities, HMO/insurance companies, medical laboratories, pharmacies and other suppliers.
· ensure secure access and retrieval of their data electronically.

HTN's objective is to be the leading North American provider of medical office management software and transaction network services. In meeting this objective, HTN will remain committed to an aggressive and extensive research and development program.