OTTAWA, July 24, 2006 - Halogen Software Inc., the leading provider of Web-based employee performance management (EPM) software today announced that Scottsdale Healthcare had selected Halogen eAppraisal Healthcare to replace its paper-based system. Scottsdale, the healthcare provider of choice for the northeast metropolitan area of Phoenix, Arizona has credited eAppraisal and Multi-rater module as powerful tools in more accurately and more easily measuring employee performance.

"In addition to implementing Halogen eAppraisal Healthcare, we are seeking Magnet designation in order to retain and recruit high-level talent, both nurses and physicians, and to improve the quality of the care we provide overall," said Judy Seiler, manager of training and development at Scottsdale Healthcare. "The Multi-rater component will help us provide improved feedback to increase the quality of our nursing assessments."

Magnet designation recognizes the quality of an organization's nursing program and demonstrates its importance, and the importance of nurses to the success of the entire organization. Magnet designated facilities consistently out perform their peers in recruiting and retaining nurses, which in turn has proven to attract high-quality physicians and specialists.

Scottsdale Healthcare had determined for some time that it was not satisfied with the direction of its performance appraisals. Managers up through the executive wrote improving the EPM system into the organization's system-wide balanced scorecard, making improving appraisals a requirement to meet the organization's system competencies. This initiative became part of what Seiler refers to as their "talent tactic."

"Our goal, by the end of the year, is to have our 3800 clinical staff involved in the process and benefiting from Halogen's consistent, time- efficient solution," said Seiler. "Halogen was highly recommended by our Director of HR who had previously implemented eAppraisal Healthcare at another hospital and we are anticipating being able to easily keep track of and communicate to people when appraisals are due. We will also be able to generate reports that will identify those who possess competencies important to our organization."

About Scottsdale Healthcare

Established in 1962 and governed by a local volunteer board of directors, Scottsdale Healthcare is the not-for-profit parent organization of the Scottsdale Healthcare Shea, Scottsdale Healthcare Osborn and Scottsdale Healthcare Thompson Peak hospitals, the Virginia G. Piper Cancer Center, Scottsdale Clinical Research Institute, Scottsdale Healthcare Home Health Services and Scottsdale Healthcare Community Health Services. Its 5,700 staff members and 1,600 active physicians, representing more than 50 specialties, are dedicated to keeping the community well.

About Halogen Software

With more than 450 customers, Halogen Software Inc. has established itself as the leading provider of employee performance management (EPM) solutions. Founded in 2001 as a subsidiary of a successful consulting company, Halogen offers powerful, easy-to-use, and affordable Web-based software that dramatically improves HR and line-manager productivity and helps organizations align employee goals to drive bottom line success. The company's flagship product, Halogen eAppraisal(TM), automates and simplifies time-consuming employee appraisals. Halogen eAppraisal(TM) Healthcare, created specifically for the healthcare industry, helps to simplify the tasks of performing appraisals and meeting accreditation criteria. Halogen e360(TM) automates formal 360-degree feedback procedures and offers sophisticated performance reporting. Halogen eCompensation(TM) automates the entire compensation adjustment process, including budget distribution and approval.