Leading $1.3B Homecare Company Plans to Drive Down Administrative Costs with the Use of Trac Medical's CareCert Technology

SCHENECTADY, N.Y.
Mar 4, 2004

Trac Medical Solutions, Inc. (TracMed), a subsidiary of Authentidate Holding Corp. (Nasdaq:ADAT), announced today that it has signed an agreement with Apria Healthcare Group Inc. (NYSE:AHG), a leading home healthcare company. TracMed will deliver and implement its CareCert solution to electronically process Certificates of Medical Necessity (eCMNs) and Physician Written Orders. The solution will soon be available to Apria's 425 branch locations throughout the United States, providing a more efficient and cost-effective method to process these forms, which are required by government payors for certain healthcare products and services. Annually, Apria processes approximately 3 million CMNs and Written Orders throughout its network.

Apria Healthcare is the country's homecare leader in the alternate-site respiratory, HME and infusion markets, and services over 1.3 million patients a year. By significantly reducing form processing time, which currently can take several weeks due to the historical manual nature of the process, the CareCert solution enables faster third-party payment to occur. The applicable sections of the healthcare forms are securely populated online by authorized home medical equipment suppliers and then their referring physicians, and also require physician review and approval, which is confirmed by their electronic signature. Data sets are then made available to a third party for processing and reimbursement.

"From the very beginning of this project, I, along with others in the industry, felt that the eCMN solution had to be one that would benefit home medical equipment providers across the U.S.," said George Suda, Executive Vice President, information services, Apria Healthcare. "The open architecture allows for providers large and small to access its features and benefits."

TracMed's CareCert technology allows providers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS), to deliver certification of medical necessity (CMN) in a secure electronic format compliant with HIPAA regulations. The CareCert solution incorporates the use of the United States Postal Service Electronic Postmark(R) (USPS EPM(R)) which enables online verification of content authenticity, provides tamper detection, and stores evidence of electronic content for seven years.

"As everyone knows, managing the CMN process is a paper-intensive, manual process," said Larry Higby, President and CEO, Apria Healthcare. "We believe that the eCMN software will accomplish three things: it will significantly improve the efficiency and productivity of our employees who are dedicated to managing and retrieving CMNs, which fits well with Apria's productivity improvement initiatives this year. It will also streamline the process for our referring physicians and their staffs, and it will play a major part in our ongoing corporate compliance program. We are pleased to commit early to this software, as it also has the side benefit of contributing to the educational programs of the American Association for Homecare."

"Our ability to deliver a viable electronic alternative to the traditionally paper-intensive process for Certificates of Medical Necessity is being well received in the industry," said John Botti, Chairman and CEO of Authentidate Holding Corp. "The agreement with Apria Healthcare will result in a more efficient process for the thousands of people involved in the home medical equipment market and will ultimately enable a significant administrative time and cost savings."

While financial terms of the deal weren't disclosed, Trac Medical will generate revenue through per-location license fees and transaction fees.

More information is available about Trac Medical's CareCert technology and the eCMN solution at www.tracmed.com.

About Apria Healthcare

Apria provides home respiratory therapy, home infusion therapy and home medical equipment through approximately 425 branches serving patients in 50 states. With nearly $1.4 billion in annual revenues, it is the nation's leading homecare company.

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 around technology systems integration projects, staff augmentation, out-tasking, outsourcing services and resells computer related products. Trac Medical offers an electronic form processing solution and utilizes the USPS EPM technology to prove the authenticity of the content represented in completed Healthcare forms.

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.