SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 5, 2004--Crown Medical Systems Inc. (OTCBB: CWMS) announced today that the company is currently presenting its total solution for EMR (Electronic Medical Records), privacy and security at a hospital in North Carolina.

Crown expects the national marketing program to result in the sale of its small hospital solution to a minimum of 12 qualified hospitals during calendar year 2004. Crown expects total revenue from implementation of its hosted service and on-site hardware solution to be in excess of $5M in 2004, with recurring monthly revenue in the form of hosting fees to be in excess of $200,000 per month by year-end.

Crown has been working diligently to begin implementation of its national marketing campaign to present the Crown solution to small hospitals that are seeking development of their technology and security resources. Crown has spent a substantial amount of its resources over the past 90 days completing enhancements to its suite of software and hardware products in anticipation of this national marketing rollout.

This particular hospital in North Carolina is a 25-bed critical access hospital. The hospital is looking at the Crown total solution, inclusive of hardware and wireless technologies, to be implemented both within the hospital and surrounding physician practices involved in the project. The technology includes the Crown private label Pen Tablet PC, used to provide portable, seamless communications for secure systemwide transmission of patient and billing information. The Crown total solution will enhance the hospital and other participating medical facilities' abilities to address HIPAA (Health Insurance Portability and Accountability Act) issues. It will also provide extensive tools to immediately stabilize and improve their revenue.

William Sklar, president of Crown, stated, "We at Crown are very pleased to be presenting our total solution to the first prospective small hospital client as well as the outlying area physicians. This is a step forward to achieving our corporate mandate which has always been to develop and commercialize technology to safeguard the healthcare provider."

About Crown Medical Systems Inc.

Crown Medical Systems Inc. offers a total patient information privacy and security solution within the physician office, clinic, and hospital. This solution includes secure computer servers and portables, encrypted Internet and wireless technology, Electronic Medical Record, Practice Management and Patient Billing software, installation, training, help desk, and technical support.

ON BEHALF OF THE BOARD OF

CROWN MEDICAL SYSTEMS INC.

William L. Sklar, President

Safe Harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Crown Medical Systems Inc. has little or no control.

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