VantageMed and Preferred Physician's Transcription Form Alliance to

Oct. 3, 2001
The companies will co-market their complementary products and services, providing physicians with the most effective way to take advantage of new healthcare information technologies.

RANCHO CORDOVA, Calif. - October 2, 2001 - VantageMed Corporation (Nasdaq: VMDC), a leading provider of healthcare information solutions, today announced that its Boulder regional office has formed a marketing alliance with Preferred Physician's Transcription (PPT), a Colorado-based supplier of transcription services. The combined products offer physicians a cost and time efficient method to bring together high-quality transcription services, computerized medical records (CMR) and comprehensive voice capture systems and services.

Under the alliance, the companies will co-market their complementary

products and services, providing physicians with the most effective way to take advantage of new healthcare information technologies.

PPT's extensive customer base consists primarily of hospital-based

physicians, the target market for VantageMed's ChartKeeper� product. ChartKeeper is a computerized medical records solution that simplifies record keeping for healthcare providers. Users can type, download, or scan patient information into the ChartKeeper system, which is then indexed by date of service, provider, specialty, location, content template or chart information section. Practitioners can then quickly retrieve critical information using a content-based search method. With minimal disruption of existing procedures, ChartKeeper increases the accuracy, accessibility and security of chart information. The result is a more streamlined office with higher levels of staff productivity and patient service.

"This alliance truly provides a creative way for VantageMed and

Preferred Physician's Transcription to differentiate our services from

the competition," said Joel Andersen, regional manager of operations,

VantageMed Corporation. Now our clients can access ChartKeeper's full benefits, due to PPT's extensive knowledge and training on our software.

At the same time, PPT's clients can benefit from the fastest turnaround

time on all transcription. By accessing their current and future client

base, VantageMed gains additional visibility within our primary market

and the opportunity to provide more comprehensive services."

"We are now able to provide our clients with real-time secure

transcription directly into ChartKeeper via the Internet, which is a

powerful point of differentiation for us," said Beth Tribelhorn,

president, Preferred Physician's Transcription. "There is a strong

synergy between VantageMed and PPT. Our staff is well versed on

ChartKeeper, so customers can rest assured that they are fully

benefiting from the features and capabilities of the system. We are

confident that the concurrent use of CMR and our transcription and voice capture services will enable healthcare providers to leverage new technology that contributes to their bottom line."