Healthnotes Adds Former J&J Exec to Management Team; Sees Accelerating Growth in Mainstream Supermarkets and Pharmacies

PORTLAND, Ore.—July 12, 2005— Healthnotes Inc. (HNI), the premier provider of reliable, easy-to-use health, food, and lifestyle information for Web sites and interactive touchscreen kiosks, today announced that Jeffrey P. Beyer, a longtime Johnson & Johnson executive and former president of WellMed, has joined HNI as chief operating officer. Beyer’s background in corporate expansion strategies, brand positioning, and consumer packaged goods, as well as his passion for making healthcare accessible and understandable, brings valuable experience and insight to HNI as it moves to the next phase of its growth strategy.

“With rising healthcare costs, the obesity epidemic, and an aging population driving interest in health and wellness to an all-time high, consumers are looking for reliable information, especially while they shop. This presents an enormous opportunity for retailers to offer an added level of service with resources on everything from foods to medications to vitamins and herbs,” stated Skye Lininger, HNI president and CEO. “As HNI helps retailers capitalize on this opportunity, Jeff's expertise and talent will be a valuable asset and we are excited to have him join our team.”

Building on its success in the health food and natural product markets, HNI is now growing its presence in mainstream supermarkets and pharmacies. According to numerous consumer trends and industry surveys, consumers look to supermarkets and pharmacies as the ideal locations to manage their overall health and wellness.

· 46% agree “I'll go out of my way to a store that teaches me about healthful eating and features products to help me do so.”

· 81% feel health and nutrition information is important in an ideal grocery store, but only 35% say their current stores do a good job of providing it.

“I’m excited to join HNI at a time when it’s primed for growth and expanding its retail solutions,” said Jeff Beyer, new HNI COO. “HNI has done a great job of navigating the turbulent economy over the last five years, and come out of it even stronger. With health and wellness a major focus for consumers and retailers, and with nearly twenty years experience in providing information to consumers, HNI is well-positioned to be a retailer’s partner for providing customers with the resources they need to make purchase decisions.”

Chief operating officer is a new position for HNI, reflecting the continued maturation and growth of the company. In this role, Beyer will focus on product management, operations, and corporate expansion strategy.

Most recently, Beyer was founder and CEO of Canyon Peak, a strategic consulting business. Prior to Canyon Peak, Beyer served as president and director of WellMed, an e-health company that helps employees manage their benefits and their family's health. He helped lead the successful sale of WellMed to WebMD in 2002. Prior to that Beyer founded and served as CEO of Canyon Seven, a prestige wellness business developed in partnership with Johnson & Johnson and Canyon Ranch Health Resorts. Beyer earlier spent 15 years with Johnson & Johnson in a wide variety of divisions across both the supply and demand sides of the business, including marketing, manufacturing, and global strategy.

About Healthnotes Inc.

Healthnotes Inc. (HNI) is the premier provider of reliable, easy-to-use health, food, and lifestyle information for Web sites and interactive touchscreen kiosks. Used by seven of the top ten US supermarkets, as well as pharmacies and health food stores in the United States, Canada, and the United Kingdom, Healthnotes® Retail Solutions empowers consumers to make educated decisions and drives product sales—online and in-store. HNI also generates Web applications that are licensed to e-commerce and health-related Internet sites worldwide. On the Web:

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