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MEDecision, Inc. (MEDE) Enters into Merger with Health Care Service Corporation

MEDecision, Inc. (NASDAQ: MEDE) announced today that they have reached a merger agreement pursuant to which Health Care Service Corporation (HCSC) will acquire all of the outstanding shares of MEDecision common stock for $7.00 per share in cash. The transaction is valued at approximately $121 million, and includes consideration paid to holders of outstanding options and warrants. As a result of being acquired, MEDecision can continue to run independently by focusing on development, execution, and their customers. Health Care Service Corporation operates Blue Cross and Blue Shield plans throughout Illinois, New Mexico, Oklahoma, and Texas.

Each company’s board of directors have approved of the transaction unanimously. Furthermore, all who hold approximately 45% of the outstanding MEDecision common stock have entered into agreements with HCSC to vote in favor of the transaction. The transaction is expected to close late in the third quarter or at the beginning of the fourth quarter of 2008, but is still subjected to approval by MEDecision shareholders and customary regulatory conditions.

Founder and CEO of MEDecision, David St. Clair, stated, “transaction will deliver substantial current value to our shareholders and is a significant milestone for MEDecision and a very positive step forward in our evolution as a company. It underscores the strength of our collaborative health care management solutions, Alineo™ and Nexalign™. It also validates our vision of the health care industry and will enable us to further expand our technology development and strengthen our focus on customer service and satisfaction.”

“HCSC is committed to promoting accessible, cost-effective, quality health care through innovation and collaboration,” commented Pat Hemingway Hall, president and CEO of Health Care Service Corporation. “We are excited about joining forces with MEDecision who for two decades has demonstrated this same commitment to improving overall health outcomes with creative solutions that foster collaborative relationships between patients, payers and providers.”

MEDecision is an independent company that offers collaborative health care management solutions that provide a simplistic and concise way to manage the health of members and member populations in order to improve the quality and affordability of care. The company will continue to work diligently on the development of their Alineo™ and Nexalign™ health care management solutions. The transaction will provide the company with expanded resources to provide market-leading services to the country’s available health plans. At the closing of Wednesday’s trading, MEDecision’s stock rose 287.13%.

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