WebMD-Microsoft Technology Pact Ends

Internet health care company WebMD Corp.
announced Sunday that its technology pact with Microsoft Corp. has been terminated by
the firms. The agreement, which was sealed in April 2001, had been
contingent on the parties reaching agreement on certain technology
requirements and licensing terms.

However, according to a WebMD statement, all other aspects of WebMD and
Microsoft’s strategic relationship will continue unchanged as the company
will continue to provide health programming on MSN and other
Microsoft-affiliated sites.

The Elmwood Park, N.J. company also said it may have trouble hitting its
quarterly revenue target due to shipping delays, telecommunications
difficulties and scheduling conflicts stemming from events last week in New
York City.

“Although travel and shipping delays, telecommunication difficulties,
scheduling conflicts and other after effects of last week’s events may have
some impact on our revenue expectations for the September quarter,
particularly in our physician software product offerings, we were fortunate
that substantially all our employees, facilities and business operations
were not significantly impacted by the events of last week,” said Chairman
and Chief Executive Martin Wygod.

But neither delays nor the termination of the pact with Microsoft will
impact the rollout of its newest products, ULTIA and Intergy. WebMD
said that it will continue to use and PocketPC for ULTIA and will also
continue to seek out new ways to work together with Microsoft in other areas
of their respective businesses.

Furthermore, the company said it may take a non-cash charge to write
down goodwill and other intangible assets stemming from a number of
acquisitions made during the past two years.