VirtualSellers.com (OTCBB: VDOT)

While we generally bring you profiles of undiscovered stocks, we also want to provide follow up on companies we have profiled in the past. VirtualSellers.com Inc. (OTCBB: VDOT) issued some very interesting news today about a letter of intent to acquire Healthtrac, Inc. 

Healthtrac is the latest in a series of health-related acquisitions for VDOT.   Healthtrac delivers a Wellness Portal aimed at reducing the cost to self-insured employers for providing health care benfits to employees, while increasing the quality of life. The aim of the integrated channels within the portal is to provide education and motivation for participants, redefine patient / physician communications and one-on-one visits, establish a higher level of pharmaceutical efficiency, and give health care providers an opportunity to save on the cost of benefits while supplying individualized care plans that track patient-data and promote well-being. 
 
 

Healthtrac - an Integral Part of the Wellness Portal

As the chart shows below, acquiring Healthtrac is one of several key elements in establishing a Health and Wellness Portal. The Wellness Portal is the centerpiece of several diverse components and acts as a single platform that allows each distinct channel to wholly interact with every other channel. 

About  Healthtrac

• Healthtrac is an interactive, ongoing, early detection, self-health assessment and intervention program developed by in 1984 by Dr. James Fries, a medical researcher and professor at Stanford.

• Healthtrac provides appraisal, feedback, and self-management guidance on the participants medical state, gender, and lifestyle. 

• Healthtrac serves over 40 corporate clients including Bank of America, Citigroup, Caterpillar, Parker Hannifin and numerous HMOs and health care providers. 

• Healthtrac generated $3 million in revenues last year.

• Healthtrac receives an annual average of $30 per normal-risk participant and $100 for a high-risk participant.

• Healthtrac is transitioning from printed material only to a hybrid of printed material and Web content delivered via Internet/wireless devices, i.e.. PC, PDA, and WAP-enabled cell phones.

• Healthtrac is an integral part of a study by the RAND Corporation commissioned by the U.S. Department of Health & Human Services that is researching self-care and self-efficacy for Medicare recipients.

• Healthtrac participants reduce doctor visits by 25 percent and reduce hospitalization by 20 percent.

• Healthtrac posted an overall 4.50 to 1 return on investment for seven-year client Citigroup and on average, posts a 4 to 1 return on investment for normal-risk participants and a 10 to 1 return on investment for high-risk participants.

• Healthtrac programs have won the C. Everett Koop Award four times for outstanding quality and content.

Todays News

COMPANY CONTACT:
Everett Palmer, Investor Relations VirtualSellers.com, Inc. 312.920.9120
MEDIA & INVESTOR RELATIONS:
Shannon T. Squyres, Market Pathways (949)955-1860

FOR IMMEDIATE RELEASE 

CHICAGO, Ill., May 09, 2001 – VirtualSellers.com, Inc. (OTC BB: VDOT), a provider of enterprise application development solutions, announced today that it has executed a letter of intent to acquire all of the assets and business of Healthtrac Inc., a private corporation based in California’s Silicon Valley.  Healthtrac’s shareholders have approved the all-stock transaction, valued at $4.6 million. 

Healthtrac is a state of the art, analytical health assessment program developed by Dr. James F. Fries, a renowned medical researcher and professor at Stanford University.  Healthtrac was established in 1984 with the mission of improving personal health and reducing the employer’s cost of providing health care benefits to employees. By tracking an individual’s state of health and health-oriented behaviors, Healthtrac can identify health risks and, through prevention, early detection and prompt treatment, reduce the cost of providing health benefits. 

Using Healthrac’s health assessment tools, employee’s risk factors are identified and addressed through information, education and monitoring that assists the participant in changing health behaviors through self-management techniques.  Four independent, scientific studies have confirmed direct cost savings of the Healthtrac program of over $4.50 for every dollar spent by the employer.  The Bank of America and CalPERS studies are the largest and most definitive trials in the health enhancement field. This verified return on investment (ROI) provides a compelling value proposition that differentiates Healthtrac from its competitors. 

In the U.S. alone, Healthtrac serves over 40 corporate clients, generating annual sales of more than $3 million*.   Over 1 million individuals have participated in Healthtrac’s programs, including HMO and Health Plan members and employees of major corporations including, Bank of America, Citibank, Caterpillar and Parker Hannifin*.

Healthrac is transitioning from a traditional mail-based business providing health news, updates and questionnaires to registered participants, to a comprehensive on-line health assessment tool providing highly specific information tailored to each participant’s needs.  With technology provided by VDOT, Healthtrac will be transferring a large part of that physical mail flow to email and other forms of electronic communications including PDA’s, and WAP enabled cell phones. Each participant establishes an individual, detailed health profile. Instead of receiving general information on generic health issues, Heathtrac provides participants with precise answers and information based upon the participant’s individual needs, assessment of risk, priorities, and changes over time. 

The new Internet-based initiative will enable more timely, efficient information exchange with participants and prepare an avenue for “wireless” delivery of critical information to PDAs, cell phones, and PCs via the technology being acquired from Healthtrac Inc.

VirtualSellers.com recently acquired the assets of MedWired.com as a first step in building a healthcare marketing division.  “This is a second step,” said Dennis Sinclair, PhD., president and CEO of VirtualSellers.com.  “The dynamic union of MedWired’s Practice Portal and Healthtrac provides an unparalleled menu of services to aggressively expand into the healthcare marketplace. This positions our company to become a leader in healthcare technology with innovative tools to meet the challenging task of reducing costs while providing greater access to information, allowing the patient to exercise greater control over his or her health. *

“The ultimate goal of the new Healthtrac.com Web site, which we expect to release in June 2001, is to provide an interactive medium that can be used by patient-provider networks, health plans and employees,” said Sinclair.   “This affords us a new vertical market for TAME V, our XML-based pure scripting language.  Utilizing TAME, we will be able to create a seamless integration of the channels at our Wellness Portal.” 

“Twenty-eight percent of the U.S. population, or 70 million people, visited a doctor last year,” said Sinclair.  “Healthtrac’s assessments lower the number of doctor visits and save money for the self-insured employer.  Up to 70 percent of healthcare costs are for treatment of preventable illnesses and injuries. Studies of Healthtrac participants demonstrate that health care expenditures, including visits to physicians, are reduced by 25 percent and participants require 20 percent less hospitalization.”*

In the private sector, self-insured companies such as Caterpillar (NYSE: CAT) use Healthtrac to improve employee health and reduce the cost of providing health benefits to employees. Earlier detection of health risks through preventative assessment plans leads the employee to seek information instead of repeatedly going to the doctor.  “It costs $400 to get hypertension medicine and $15,000 to treat a stroke,” said Sinclair.  “If we can get to the patient before the stroke, we can save the quality of life plus over 30 times the cost.” 

A MEDSTAT study of Citigroup, formerly Citibank, a Healthtrac client for seven years, indicates a net savings of over $6.6 million with a return on investment of over 4.5 to 1*.  In the public sector, government statistics show 65 to 85 year olds visit their doctors more often than 45 to 65 year olds and health costs were up 28 percent in the drug and cardiac area.  To reduce that percentage and save money, Healthtrac issues its interactive questionnaires and materials resulting in a 6 to 1 return on investment for high-risk individuals and a 4 to 1 return on investment for normal and low-risk individuals.

“Feedback on various studies within the analysis, both from control and non-control groups, show positive results from the intervention and tracking methods used to date,” said Bob Watson, president of VirtualSellers’ Healthcare Marketing Division. “This sequential intervention with participants receiving periodic summaries of their own health appraisal resulted in improved health risk scores and reduced medical costs.”

A current report contracted by the Health Care Financing Administration (HCFA) studies evidence from numerous sources to establish effectiveness and cost-effectiveness of senior-health promotion programs with the potential for reducing Medicare costs, improving senior health, and applying such programs across the broad-based population of Medicare. Healthtrac and Healthtrac programs are prominently cited as the best performing and best documented senior health enhancement programs.

One of the core applications delivered by the technology acquired from MedWired Corporation by VirtualSellers will be the interactive forum between physicians and their patients. “Also, by utilizing the tracking structure of Healthtrac, we can supply daily e-mails that update patients with the latest news about their specific chronic disorder and reduce the number of face-to-face physician-patient meetings.  This will save money for everyone in time, and will become an expected convenience,” said Sinclair.

“The mission at MedWired was to bring doctors, patients and drug companies onto the same page of communication and treatment,” said Watson. “At Healthtrac, the mission is for providers to reduce costs by assessing health behaviors of participants and supplying education and recommendations. The recently acquired MedWired technology creates a forum to provide greater communication between doctor and patient, and Healthtrac strives to minimize utilization of treatments through information. When combined, the unique synergy of MedWired and Healthtrac is a balanced platform, providing both reduced costs and improved health care.”*

“It’s a win-win situation for everyone.  Lives will be saved, time will be more efficiently spent, and costs will be reduced.  We are building a wellness-portal that will integrate our acquisitions, provide comprehensive health education and tracking, and will connect patients, providers, and physicians to a best-of-breed, pro-health prevention and management program,” said Sinclair.

About Healthtrac Inc.
Healthtrac programs are specifically designed to identify modifiable risk factors, to reduce or prevent chronic conditions through behavior change, and to teach participants self-efficacy and self-care. In the U.S. alone, Healthtrac is currently serving over 40 clients through its programs and is strategically aligned with prominent health care companies to provide health improvement programs focusing on need and demand reduction. Healthtrac programs have won the coveted C. Everett Koop National Health Award four times for outstanding quality and content.

About VirtualSellers.com
VirtualSellers.com has two synergistic business units that develop solutions for its client base.  As a provider of turnkey e-commerce solutions, the company combines Web-based and 800 inbound transaction processing. The company’s TAME (Tag Activated Markup Enhancer) software is a rapid application development language for Web/intranet/browser solutions.  The software can be purchased on a license basis or used via VirtualSellers.com ASIP (Application Services Infrastructure Provider). The Professional Services Group (PSG) provides solution-focused consulting, development and project management. 

Links to Studies Referred to in This Release

http://healthproject.stanford.edu/amjhealth99_14_1.htm
http://www.hcfa.gov/healthyaging/download/2c2.pdf
http://healthproject.stanford.edu/koop/Citibank/documentation.html

Legal Notice Regarding Forward-Looking Statements 

This press release contains “forward-looking statements,” including “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this press release have been identified with an “*” and include statements regarding:

a) VirtualSellers anticipating that it will be able to generate significant revenues from Heathtrac assets and maintain or expand Healthtrac’s customer base;
b) VirtualSellers positioning itself to be a leading provider of healthcare technology and information;
c) VirtualSellers.com anticipating that use of the Healthtrac system will lead to reduced healthcare expenditures, reduced visits to physicians and reduced hospitalization; and
d) VirtualSellers anticipating that the users of Healthtrac will experience increased profits and improved healthcare.

It is important to note that the company’s actual results and outcomes may differ materially from those contained in the forward-looking statements in this press release.  Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties such as changes in laws and legislation which may govern the use and disclosure of health information and govern the provision of healthcare information over the Internet, risks associated with providing negligent or faulty medical advice or information, insufficient demand and market acceptance of the Healthtrac technology, Medwired.com, or any future healthcare related products that the Company introduces, emergence of companies with competing or superior healthcare information and software products and/or services, unforeseen changes in the software and hardware technology used in connection with the Internet, unforeseen claims in connection with the Company’s intellectual property rights in connection with its TAME software, continued development and maintenance of the infrastructure required for the Internet, continued and expanded use of the Internet as a basis for commerce, communication and computing, and the overall success of the company and its subsidiaries in general.

Although VirtualSellers.com, Inc. believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions that will prove to be accurate. Readers should refer to the risk disclosures outlined in the Company’s annual report of Form 10-K for the 2000 fiscal year, the Company’s quarterly reports on Form 10-Q and the Company’s other periodic reports filed time-to-time with the Securities Exchange Commission. 

TAME and TAME V are trademarks of VirtualSellers.com, Inc.

VirtualSellers.com Company Web Sites

www.virtualsellers.com
www.medwired.com
www.sullivanpark.com
www.tameable.com
www.northstartele.com
www.calldirect.com
 

Previous VDOT Corporate Profile on StockUpTicks.com

http://www.stockupticks.com/profiles/3-3-01.html
 

Disclaimer and Safe Harbor Statement:

Statements contained in this document, including those pertaining to acquisitions, earnings estimates and related commercial plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made.

Disclaimer:
StockUpTicks.com is a property of Market Pathways Financial Relations Incorporated (MP).  The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness.  This report is for information purposes only and should not be used as the basis for any investment decision. MP represents VirtualSellers.com as its financial PR counsel and is paid a monthly fee of $6,000 and has been granted an option to purchase 600,000 shares of VirtualSellers.com stock at 40 cents per share during the next two years.  This compensation constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.    MP is not an investment advisor and this report is not investment advice.  This information is neither a solicitation to buy nor an offer to sell securities.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice.  MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  It is the responsibility of the brokerage firm to verify “Blue Sky” status in each trading state.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.