Trac Medical Solutions Announces Strategic Marketing Agreement With Industry Leader The MED Group

SCHENECTADY, NY

March 29, 2004

Trac Medical Solutions, Inc. (TracMed), a subsidiary of Authentidate Holding Corp. (Nasdaq: ADAT), announced today that it has reached an agreement with The MED Group of Lubbock, Texas. The agreement creates a strategic marketing relationship between TracMed and The MED Group and allows The MED Group to purchase blocks of transactions for their members to use for processing Certificates of Medical Necessity and Written Orders electronically using the TracMed CareCert^TM Solution.

The MED Group is a nationally recognized organization that provides management, educational, marketing, technical, and contract services to its approximately 200 members which have more than 700 locations throughout the United States. MED Members provide home medical equipment and supplies, rehabilitation technology, respiratory products and services, home infusion therapy, and medical equipment repairs.

While financial terms were not disclosed, The MED Group will pre-purchase large blocks of e-CMN transactions for use on Trac Med's CareCert e-CMN platform on behalf of its membership. TracMed will generate additional revenue through monthly per location fees paid by MED Group members utilizing the CareCert e-CMN platform.

"MED is pleased to work with TracMed by enabling our membership to achieve operational efficiencies in processing CMNs and written orders electronically," said Jeff Woodham, Senior Vice President of Operations with The MED Group. "The CareCert^TM Solution will help drive cost out and accelerate the cash collections of the HME business, which is critical as our industry faces complex reimbursement challenges."

"We believe the ultimate endorsement for this solution is having yet another well respected group such as The MED Group validate the CareCert Solution, " added John Botti, Authentidate's Chairman and CEO. "We look forward to assisting The MED Group in enhancing the success of its members."

About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company of five business units; DocStar, Authentidate International AG, Authentidate, 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 uses the Authentidate service in the medical supply business.

About The MED Group

Since January 1968, The MED Group has supported its members with management, educational, marketing, technical, and contract services. There are approximately 200 MED Group members with more than 700 locations throughout the United States, the District of Columbia, and Puerto Rico that provide home medical equipment and supplies, rehabilitation technology, respiratory products and services, home infusion therapy, and medical equipment repairs. MED's national headquarters are located at 3223 S. Loop 289, Suite 600, Lubbock, Texas 79423, and its website address is www.medgroup.com.

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.