Vidalink is the largest Pharmacy Benefits Management (PBM) company in Brazil and in Latin America, offering the most technologically advanced PBM services in the region. Our mission is to improve the quality of healthcare while providing IT solutions that enhance the bottom line for our clients, which include providers, payers, and suppliers. Vidalink's founders identified Brazil as the largest potential PBM market outside of the United States based on the fact that the country has the second largest private healthcare market in the world. They went on to found Vidalink in January 1999 after extensive analysis of the U.S. PBM industry and adaptation of the business model to the needs of the Brazilian healthcare sector.

Health benefit sponsors engage our services to help them provide a cost-effective drug benefit as part of their health plan, and to reduce their overall healthcare expenditures by contracting our disease management services, using our eligibility platform, encouraging members to adhere to formularies (lists of a health plan's preferred pharmaceutical products), and receiving discounted prescription services through the Vidalink retail pharmacy network.

Vidalink currently serves more than five million members in Brazil with a client base that includes the leading health insurers and HMOs in Brazil. The Vidalink pharmacy network consists of the leading pharmacy chains in the country. Vidalink has the most comprehensive formulary in Brazil, consisting of products from top multinational and national pharmaceutical manufacturers including:

Altana Merck
Bayer Novartis
Biosintética Organon
Boehringer Pfizer
Eurofarma Schering-Plough
Farmoquímica Stiefel
Jannssen-Cilag Torrent
Lilly Wyeth

Vidalink's state-of-the-art PBM system is one of its many competitive advantages:

· Exclusive back-end system
Vidalink uses the proprietary PBM central database system created by Prospective Health Inc. (PHI), a division of McKesson HBOC (NYSE: MCK). This "world class" system is currently used by several leading PBMs in the U.S., processing an average of 2 million claims per day, was customized by PHI for use in Brazil. Vidalink has the exclusive rights to use this system in Latin America.

· Proprietary front-end system
This system performs in-store prescription processing and links remotely to the Vidalink central database online and in real-time for claims adjudication.

Other competitive advantages that we enjoy include: an experienced management team with extensive U.S. PBM experience, leading financial and strategic investors, and independence from pharmaceutical manufacturer and drug store ownership.

Vidalink's shareholders have been critical to the company's success:

GRUPO MARTINS - The largest distributor in Latin America with yearly revenues exceeding US$ 800M. Martins distributes goods to 100% of the municipalities in Brazil and to more than 50% of all Brazilian pharmacies.
Grupo Martins is a strategic and financial shareholder and has played a vital role in Vidalink's growth. They provide access to pharmacies nationwide for expansion of the Vidalink pharmacy network in addition to actively participating in the strategic planning of the company.

LATINTECH CAPITAL INC. - A unit of the Globalvest Management Group with over 15 investments in Brazilian technology service and infrastructure companies.
Globalvest has over 20 years of experience investing in Latin America and is one of the three largest foreign investors in Brazil with over US$1.1 billion invested. Their blue chip client list includes GE Capital, Soros, Templeton, and Boston University.

Pharmacy Benefits Management (PBM) Industry Overview

Pharmacy benefit management involves the design and administration of programs created to lower the costs and improve the convenience, safety, and effectiveness of prescription drug use. PBM companies offer health plan sponsors a more efficient and less expensive means of managing their members' prescription drug use from both a financial (i.e., cost-savings) and quality of care perspective. Through volume discounts, retail pharmacy networks, mail pharmacy services, formulary administration, claims processing and drug utilization review, pharmacy benefit managers create an opportunity for health benefit sponsors to provide drugs to their members at a lower cost, while increasing physician and patient compliance with recommended guidelines for safe and effective drug use.

The first PBM companies emerged in the United States during the early 1980s, with the purpose of providing a cost effective drug distribution and claims processing for the healthcare industry. By the mid-1980s, they evolved to include retail pharmacy networks and drug utilization reviews to address the need to manage the total cost of pharmaceutical services. Many PBMs were created during the early 1990s, with some offering a wide array of services, and today they total an estimated 100 PBMs in the United States serving approximately 190 million members and processing approximately two billion prescriptions per year worth over US$80 B. The four largest of these PBMs account for approximately 80% of the total prescription volume and member lives.

Vidalink was the first PBM in Brazil to be based on the U.S. PBM model using U.S. PBM technology adapted to the needs of the Brazilian healthcare sector.