SCHENECTADY, N.Y.

Aug 16, 2004

Trac Medical (TracMed) Solutions, Inc., a subsidiary of Authentidate Holding Corp. (Nasdaq: ADAT), announced today that Rotech Healthcare, based in Orlando, Florida, has signed a sixty-month contract to use TracMed's CareCert Enterprise Solution (ES)(TM) through TracMed's reseller agreement with bConnected Software, of Louisville, Colorado. The TracMed CareCert Enterprise Solution lets home healthcare providers electronically process Certificates of Medical Necessity (CMNs) and Written Orders.

Rotech processes several million CMNs and Written Orders annually and has approximately 500 locations throughout the United States.

"We are excited to have Rotech join the growing list of home healthcare providers that use this solution to more efficiently process CMNs and Written Orders," said John Botti, Chairman and CEO of Authentidate. "Rotech is the first company to sign under our reseller agreement with bConnected. We believe that the reseller agreement provides an excellent extension of our sales force, and everyone at bConnected shares our goal of streamlining healthcare processes."

Frank Bergen, bConnected Software Chairman and CEO, said, "Authentidate's revolutionary technology is a perfect fit for our customers' compliance and audit trail needs. This agreement lets us build on our success with TracMed to provide the first business solution endorsed by the Home Care Industry that features a secure signing platform for physicians that's easy to use."

About Authentidate Holding Corp.

Authentidate Holding Corp. (AHC) is the holding company of five business units: DocStar; Authentidate International AG; Authentidate, Inc.; DJS Marketing Group/Computer Professionals International; and Trac Medical Solutions, Inc. DocStar sells proprietary document imaging software that includes the Authentidate technology. Authentidate and Authentidate AG provide the authentication of digital data through its proprietary and patent-pending technology. Authentidate intends to establish itself as the authority on "content security" as it is a growing sector of the electronic network security infrastructure market. DJS delivers professional services centered on technology systems integration projects, staff augmentation, out-tasking, and outsourcing services, and resells computer-related products. Trac Medical offers an electronic form processing solution and utilizes the Authentidate technology to prove the authenticity of the content represented in completed healthcare forms.

bConnected Software

Business Process Management Solutions from bConnected Software provide healthcare companies with a software-based processing engine and applications that quickly and accurately connect disparate computer systems, and aggregate and process data to provide immediate and on-going access to critical transaction information. bConnected improves the way transactions are managed and consolidates information into powerful views of the enterprise using bConnected's proprietary Dynamic Process Modeler. Designed to be fully scalable with a wide variety of databases and server platforms, the processing engine provides a highly flexible easy-to-use solution. bConnected's Powered Procurement application is used in the healthcare industry to simplify and speed up complicated purchasing relationships between homecare medical companies and their hundreds of suppliers and vendors. In addition, bConnected offers a full Enterprise Solution, M&A Integration, and Financial Transaction Audit Trail, and is developing an SOS Sarbanes-Oxley application that utilizes the rapid information-gathering capabilities of its business process engine. For additional information about bConnected Software please visit www.bconnected.com.

About Rotech Healthcare

Rotech Healthcare Inc. is a leading provider of home respiratory care and durable medical equipment and services to patients with breathing disorders such as chronic obstructive pulmonary disease (COPD). The Company provides its equipment and services in 48 states through approximately 500 operating centers, located principally in non-urban markets. Rotech's local operating centers ensure that patients receive individualized care, while its nationwide coverage allows the Company to benefit from significant operating efficiencies.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of The Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the Company's ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

SOURCE: Authentidate Holding Corp.