Privately Held DE Corporation

Funds Raised to Date: $76.5 million

Common Stock Equivalents: 51.5M

Management:
Tom Campbell, Chairman
Stephen Addington, Managing Director & CEO
John Macfarlane, Managing Director & CSO
Dan Scherder, Managing Director of Capital Strategy & Government
Sector
Tom Hohman, CFO
Laszlo Gasztonyi, COO
Kevin Hall, MD, Chief Medical Officer
John Shedletsky, PhD, EVP Engineering & Development
Gregg Cohen, PhD, SVP MEDxConnect Product Line Management
Albert Hernandez, VP, Engineering
Jim Way, VP, Operations

Industry: Software

Market: Healthcare Information Technology

Investment
Advisory Firm: Perella Weinberg Partners; Westwicke Partners

Law Firm: Sheppard, Mullin, Richter & Hampton Memorandum

CPA Firm: Rowland, Johnson & Co.

Offering: 10,000,000 million shares Series F Preferred Stock @

$1.50

Use & Application of Funds:

Deployment and Growth – 40%
Sales & Marketing – 30%
Operations & Services – 30%
Compressus Inc.
Financial Information:
2012 Revenue: $500,000
2013 Revenue: $3,000,000 September 2014
2014 Revenue: $6,000,000 estimated

Key Customers:
The Mayo Clinic
Outpatient Imaging Affiliates
Medical Imaging of the Northwest
MultiCare Health System
Green Oak Diagnostics

Key Channel Partners:

IBM
7Medical

Subsidiary:
Compressus Solutions (a NV Corp.) is a wholly owned subsidiary of
Compressus, which markets VIGILENT™, a critical incident
management solution to Federal, State, and Local governments.

Compressus Inc. Confidential

Table of Contents Page

1. Legal Disclaimer 2

2. Information for All Investors 3

3. Statements Regarding Forward-Looking Information 4

4. The Compressus Value Proposition 4

5. The Opportunity 5

6. Introduction 6

7. Investment Proposition 7

8. Market Opportunity 9

9. Company Overview 10

10. The Compressus Solution - MEDxConnect™ 14

11. Growth Strategy (or Go To Market Strategy) 18

12. Financial Highlights 19

13. Capital Strategy 21

14. Company Monetization Strategy 23

15. Conclusion 24

16. Glossary 25

APPENDIX 27

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
1. Legal Disclaimer
This confidential Investment Memorandum (the “Memo”) is based upon information supplied by
Compressus Inc. (“Compressus” or the “Company”). These materials are not intended to provide the
sole basis for evaluating the transaction and do not purport to contain all information that may be
required to evaluate the proposed transaction.
None of the Financial Advisors, Compressus nor any of their respective affiliates, stockholders, partners,
members, directors, officers, management, employees or representatives makes any representation or
warranty, express or implied, as to the accuracy or completeness of any of the information contained in
the Memo or any other information (whether communicated in written or oral form) transmitted or
made available to prospective investors. Each of the aforementioned parties expressly disclaims any
and all liability relating to or resulting from the use of the Memo or such other information, including
without limitation, any market analysis and financial projections that may be contained herein or
provided in connection herewith, by a prospective strategic or financial buyer or any of its management,
directors, employees, affiliates or representatives. Only those particular representations and warranties,
if any, which may be made in a definitive and final written agreement, when, as and if executed, and
subject to such limitations and restrictions as may be specified therein, will have any legal effect. By
accepting this Memo, the recipient acknowledges that it will conduct its own investigation and analysis
and will be solely responsible for forming its own view of Compressus and its business, assets,
operations, financial condition and future prospects.
This Memo is subject to the terms and conditions of that certain Confidentiality Agreement that the
recipient hereof executed with Compressus. Accordingly, the information contained herein is of a
confidential nature and is not to be used for any purpose other than in connection with the recipient’s
consideration of a potential transaction relating to the Company. By accepting this Memo, the recipient
acknowledges and agrees that it will treat the information contained herein in a confidential manner,
and that it will not, directly or indirectly, disclose or permit its representatives to disclose any
information contained herein to any other person or reproduce or distribute the Memo, in whole or in
part, except as expressly permitted by the Confidentiality Agreement. Each recipient agrees further,
upon request by the Financial Advisor or Compressus, to return the Memo and all copies thereof,
including any analysis based on this Memo, in whole or in part, distributed to any representatives and
other agents.
The market analysis and financial projections presented in this Memo represent the subjective views of
the management of Compressus and include management’s current estimates of future performance
based on assumptions that management believes are reasonable as of the date of this Memo, but which
may or may not prove to be correct. There can be no assurance that management’s views are accurate
or that management’s projections will be realized. Industry experts may disagree with these
assumptions and with management’s view of the market and the prospects for the Company. Such
projections and forward-looking statements reflect various assumptions of management concerning the
future performance of Compressus and are subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the control of Compressus. Accordingly,
there can be no assurance that such projections and forward-looking statements will be realized. Actual
results may vary from the anticipated results and such variations may be material.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
The Memo does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sole
purpose of the Memo is to assist prospective investors in deciding whether to proceed with further
investigation of the Company in connection with their consideration of a potential investment in the
Company. The Memo does not purport to contain all information that may be material to a potential
investment in, or strategic or financial partnership with, the Company, and recipients of the Memo
should conduct their own independent evaluations of the Company and consult their own tax, financial,
accounting, legal and other advisors. This Memo shall not be deemed an indication that there has been
no change in the business affairs of Compressus since the date hereof. The securities described herein
have not been registered under the Securities Act of 1933, as amended (the “1933 Act”) or the securities
laws of certain states and will be offered and sold to solely Accredited Investors (as defined in
Regulation D promulgated under the 1933 Act) in reliance on exemptions from the registration
requirements of the 1933 Act and such state laws. The securities described herein are subject to
restrictions on transferability and resale and may not be transferred or resold except as permitted under
the 1933 Act and the applicable state securities laws, pursuant to registration or exemption therefrom.
Compressus reserves the right, in its sole discretion and without giving any reasons therefore, to
conduct the process for the transaction as they in their sole discretion determine (including, without
limitation, negotiating with any of the prospective investors and entering into an agreement with
respect to a transaction without prior notice to the recipient or to any other person), to change or
terminate the procedures relating to its consideration of a transaction at any time and in any respect
without prior notice to any interested party, to reject any and all proposals made by any interested third
party with regard to a transaction, and to terminate discussions and negotiations with any interested
third party at any time for any reason. Neither Compressus nor the Financial Advisor intends to update
or otherwise review the Memo following its distribution.

2. Information for all Investors

AN INVESTMENT IN THE PREFERRED SERIES F STOCK IS SPECULATIVE AND INVOLVES A HIGH DEGREE
OF RISK. INVESTORS MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME AND BE ABLE TO WITHSTAND A TOTAL LOSS OF THEIR INVESTMENT.

The Company may pay fees to certain individuals who refer qualified investors to the Company. Such
fees may equal up to 10% of the offering price of the Common Stock sold to “qualified investors” (as
defined in the Securities Act) whose subscriptions are accepted by the Company and may be payable in
cash, options or in an equivalent amount of Common Stock, at the option of the referring party.

All communications or inquiries relating to these materials or to a possible transaction involving the
Offering should be directed to the Company through:

Daniel Scherder
Managing Director of Capital Strategy & the
Government Sector
Compressus Inc.
101 Constitution Avenue, N.W., Suite 800
Washington, DC 20001
Phone: 1 (202) 742-4307
Fax: 1 (202) 742-4286
email: dscherder@[Link]
with a copy to: ccrockett@[Link]
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
3. Statements Regarding Forward-Looking Information
This Compressus Investment Memorandum, including the schedules, exhibits and supplements attached
hereto, contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to
the financial condition of the Company, results of operations, business prospects, plans, objectives,
goals, strategies, future events, capital expenditures, and marketing and sales efforts. Words such as
“anticipates”, “expects”, “intends’, “plans”, forecasts”, “projects”, “budgets”, “believes”, “seeks”,
“estimates”, “could”, “might”, “should”, and similar expressions identify forward-looking statements.
Although management believes that Compressus’ plans, intentions, and expectations reflected in these
forward-looking statements are reasonable, these plans, intentions, or expectations may not be
achieved. Actual results, performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking statements contained or incorporated by
reference herein. Although the following list is not exhaustive, among the factors that could cause
actual results to differ materially from the forward-looking statements are changes in demand, changes
in the supply of products and services competitive to the Company’s products and services,
uncertainties involved in the sale of products to the government, technology advances by competitors,
and unexpected costs, or restrictions on, the production of the Company’s products or its supply of
services.

4. The Compressus Value Proposition

The healthcare industry is in the midst of a major transition. At the forefront of this change is the
ever-increasing need for interoperability of systems, allowing for the seamless flow of patient
information to users and the optimization of workflow. Demands from patients and insurance
companies for an increase in the quantity and quality of information, government regulations requiring
interoperability and the goal of transferring risk and cost to healthcare providers are fueling this shift
within the industry. Healthcare providers and organizations want to merge and affiliate themselves with
other providers in an effort to increase efficiency, but this cannot happen without a restructuring of the
current system.

Who Are We: The vision of Compressus is to create a software solution designed to increase
productivity, to reduce cost and to improve quality of care in the clinical environment. Our software
solution, MEDxConnect Version 4, is a key building block to this vision with its design capability to
intuitively route relevant patient information to the necessary healthcare professionals in real time. The
capabilities include the following - interoperability to connect disparate systems, workflow processing
for information management and analytics to improve clinical quality and productivity. We are pleased
to have The Mayo Clinic as our most recent install and deploy customer which “went live” in February,
2014 starting with Rochester MN campus then expanding to their other campuses and affiliates. We
continue to evaluate the challenges of the dynamic healthcare environment and our goal is to continue
to utilize our expertise in software design to enable better quality, efficiency, and productivity in the
healthcare environment.

Why Is It Important: A common vision of the HITECH, American Recovery and Reinvestment Act [ARRA]
and the Affordable Care Act [ACA], as well as healthcare thought leaders, is that healthcare
organizations should have the ability to capture, store, exchange and analyze patient information in an
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
electronic form to make patient care more efficient. Electronic health record systems have generally
achieved the necessary first step of digitizing the records. The Compressus MEDxConnect solution
enables the sequential steps and provides the capability to capture, exchange and analyze the
information in a seamless and real time environment.

This federal vision and initiative applies to both private and federal healthcare organizations. The
Veterans Administration, Department of Defense and their private sector Integrated Delivery Network
[IDN] partners face this same challenge. MEDxConnect can be integral to enabling the improvement of
the cost structure, increasing throughput and enhancing efficiency of their system while supporting
visibility and therefore accountability.

What Do We Do: MEDxConnect Version 4, initially deployed as a Radiology solution, provides the
platform that connects the key systems throughout a healthcare organization that will enable
ENTERPRISEWIDE INTEROPERABILITY, WORKFLOW MANAGEMENT AND ANALYTICS CAPABILITIES.
MEDxConnect Version 4 provides for true interoperability anticipated by the ACA by allowing the
information from legacy systems to be compiled together without degrading the performance of any
single system. As a result, physicians, care givers and other healthcare decision makers can have the
updated and relevant patient information they need in a format most appropriate for their diagnostic or
analytic needs.

What Is Our Plan: With EMR’s broadly in place, the healthcare industry is now seeking productivity and
analytics tools and Compressus has successfully developed and demonstrated this capability. Now we
are in the process of aggressively pursuing both the US private sector and the Federal sector markets to
meet this need.

Investment Opportunity: Compressus is raising capital to accelerate its growth by adding sales and
marketing resources that can reach out more aggressively to the healthcare market and fund the
expansion of the solution beyond radiology to the entire healthcare enterprise. The company is in a
prime position as a strategic healthcare technology solution. The company’s goal is to accelerate 2014
and 2015 revenues in order to enable the company to take advantage of the value and opportunities
that will become available in the Healthcare IT market over the next several years.

Compressus has recently launched a $15 million Series F Preferred Stock Offering consisting of 10 million
shares at the price per share of $1.50. The proceeds of this offering will be utilized as growth capital to
fund the Company’s aggressive move into the private sector and federal healthcare markets and to
further develop channel partner relationships with healthcare thought leaders.

Compressus is poised for significant growth over the next few years. Revenues grew from $500,000 in
2012 to $3.0 million in 2013 and the company is projecting $6.0 million in revenue in 2014.

5. The Opportunity
Compressus offers a solution that, when broadly adopted, has the potential to transform the way
healthcare providers interoperate with different IT systems regardless of location, solving one of the
largest pain points in the industry. Despite healthcare providers spending nearly $1 trillion on health IT

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
solutions since 2000, hospitals have yet to fully realize the promise of the investments they have already
made. In 2012, the global health IT market exceeded $120 billion and is projected to grow at a 10.1%
annual rate through 2016. This large and growing market continues to struggle with interoperability.

Compressus’ great potential can be attributed to an inflection point in the Healthcare Information
Technology (HIT) Market that has resulted in viral growth, allowing us to take our position as the
preferred first of a kind solution. As healthcare delivery shifts to a more Accountable Care model (ACO),
providers are bearing more risk. In an effort to improve a providers’ ability to accurately assess a
patients risk and improve patient outcomes, providers need access to a full spectrum of patient data.
The Compressus solution allows seamless access to patient data that was previously trapped in
disparate systems across the enterprise. The inflection point is the convergence of the following key
factors:

1) Market Dynamics – a shift to a healthcare delivery model where providers bear more risk,
industry consolidation and government regulations have accelerated the growth of digital
communication in healthcare.
2) Market-tuned Solution – our first to market, vendor-neutral interoperability and workflow
solution is well positioned in the market to address the overwhelming need for physicians to
be able to collaborate and securely share patient information to improve outcomes.
3) Growth Strategy – our go-to-market strategy leverages both an internal sales force, as well
as leading channel partners to accelerate the adoption of our solutions.

This Investment Memorandum further explains these developments within the Healthcare Information
Technology Market and how Compressus’ strategy will capitalize on this dynamic period.

6. Introduction
Compressus, a rapidly growing Healthcare Information Technology company, has developed a vendor-
neutral software solution for enterprise clinical system interoperability and workflow optimization
that could transform the healthcare industry. Healthcare has experienced a digital evolution over the
past two decades allowing doctors to access significantly more patient information; however, this
transformation has also created an efficiency problem. In order for today’s physicians to deliver the
highest quality care, they are required to access numerous systems and databases to identify the
relevant patient information in an ever-growing pool of data, lab results and physician notes. In
addition, over the last twenty years, dozens of vendors have developed software platforms focusing on
specific departments. All of these systems and solutions were not designed to work together and, as a
result, create tremendous inefficiencies in the delivery of care.

Compressus’ software was the first solution with the ability to index, integrate and route all relevant
patient medical information to the healthcare professional in real time, thus dramatically improving
physician efficiency, reducing enterprise costs and increasing patient safety. The Company’s flagship
product, MEDxConnect™ V3, has been successfully deployed in several hospitals and radiology centers,
allowing the Company to prove their vision of the product and develop a long-term road map.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
In the first quarter of 2013, Compressus released the next generation product, MEDxConnect™ V4, and
now offers a platform that supports the inclusion of such capabilities as enhanced analytics, scalability
and a customizable workflow.

Core Components of MEDxConnect V4

 Interfaces: MEDxConnect™ has the ability to communicate with hospitals’ existing legacy
healthcare IT systems to extract the necessary patient data.
 Rules Engine: Compressus’ rules engine has been coded to understand the information in
context and route it to the appropriate physician.
 Customizable Workflow: MEDxConnect™ V4 is the first version that allows the end user to
quickly customize how the information is distributed within their unique facility.

In order to achieve the comprehensive vision for MEDxConnect™ V4, Compressus entered into a
strategic partnership with IBM in October 2011. This partnership helps facilitate product development
and leverages IBM’s extensive salesforce. From a development standpoint, Compressus has embedded
significant IBM software, including a secure database and programmable workflow, into MEDxConnect™
V4. From a sales standpoint, Compressus is working to leverage IBM’s 8,000 salespeople to rapidly
deploy and mass-market the product.

As a result of the increased functionality of MEDxConnect™V4, Compressus has sold the solution to its
first significant client, The Mayo Clinic. Deployment began in the second quarter of 2013, drove
meaningful revenue for the Company in 2013 and “went live” at The Mayo Clinic in early February 2014
with the first phase of a multi-year agreement. These activities and the addition of a marquee lead
customer create a compelling and immediate investment opportunity.

7. Investment Proposition
The investment opportunity in Compressus is attractive and immediate and is driven by the following
macro industry trends:

Interoperability within Healthcare IT Represents a Material Revenue Opportunity

The creation of a universal electronic health record is a key priority of the current Administration, with
the stimulus package allocating $19 billion towards this goal. Unfortunately, the numerous systems that
hospitals depend on to deliver care are often unable to communicate with each other. The U.S.
Congressional General Accountability Office estimates that the lack of healthcare IT interoperability
costs $80 billion annually in the U.S. alone and will therefore be a priority regardless of political party
affiliation. Companies with proven solutions, like Compressus, will benefit greatly from these factors.

Healthcare Interoperability / Radiology Image Management is a Large and Growing Market

From 2010 through 2020, the government expects healthcare spending to grow at an average annual
rate of 5.8% - including the impact of health reform. Spending on healthcare IT solutions is expected to
grow at a faster rate over a similar period. The government estimates that by 2020, healthcare spending
will account for 20% of the nation’s economic output – up from 17.6% of the GDP in 2010. (Source: CNN
Money, “U.S. will pay for half of all healthcare costs by 2020:, July 28, 2011.)
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Significant Global Market Opportunity
The world healthcare IT market is expected to grow from $99.6 billion in 2010 to $162.2 billion in 2015,
at a CAGR of 10.2% from 2010 to 2015. The need to cut healthcare costs and enhance
clinical/administrative workflow of hospitals, along with a huge demand for faster, error-free, efficient
healthcare delivery is fueling the healthcare provider IT market worldwide. (Source:
[Link], “World Healthcare IT Market: Trends and Forecast 2010-2015”, August, 2011.)

Unlike other healthcare IT systems that have had difficulty extending into the international markets due
to the regulations, different procedural coding and reimbursement requirements, MEDxConnect™ is
agnostic to a country’s method of healthcare delivery. MEDxConnect™ links directly to the hospitals’
systems to gather the necessary information and populates a variety of physicians’ interfaces.
Furthermore, the customizable work flow, which is a key feature of MEDxConnect™ V4, provides the
flexibility to adjust the information process to each particular country.

Attractive Dynamics in the Radiology Market

The global diagnostic imaging market will grow from $20.7 billion in 2010 to $26.6 billion by 2016, driven
by an aging population and advancements in the field. (Source: [Link], “Global Imaging
Market to reach $26.6B”, July 25, 2011.)

Compressus initially focused its sales and development efforts on the Radiology Image Management
Market for the following reasons:

 Radiology is the most digitally advanced segment in healthcare

 Opportunity for Compressus to quickly become a market leader
 Population demographics resulting in a steadily growing number of images
 Exam data size is large and complex
 Provider consolidation and government regulation are accelerating growth in the
radiology market
 Tremendous inefficiencies resulting from lack of system interoperability

The imaging market also continues to lack experienced and well-trained radiologists to read the
increasingly complex studies requiring more skill and time to interpret.

Due to this worldwide shortage, it is now increasingly necessary to remotely provide images to
radiologists, which can only be done through tightly integrated systems that allow for increased
efficiency and improved physician productivity through better workflow.

Hospital Consolidation
The pace of consolidation and partnerships between hospital systems has increased as a result of the
Affordable Care Act. Data from Irving Levin Associates shows that in 2011, the latest year available,
there were roughly 90 hospital mergers or acquisitions — the highest number in the past decade. These
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
new larger entities are faced with the complex task of integrating the disparate IT systems. Chief
Information Officers at hospitals are asked to choose between completely replacing systems to unify on
a single platform or find a solution, such as MEDxConnect™, that make the two systems operate
together seamlessly.

Positioned to Become Core Interoperability Platform for Healthcare IT

The Company’s early entry to the market coupled with the commercial acceptance of MEDxConnect™ as
a leading middleware solution for Healthcare IT Interoperability and intelligent workflow positions the
solution to become the de facto standard.

8. Market Opportunity
The healthcare industry has been evolving over the past two decades to an electronic format, similar to
the banking industry, in which access to account and balance information is immediate and available
from anywhere. The first step of this evolution in the healthcare industry was the development of
electronic documentation of patient care. While a bulk of the “electronification” has been accomplished,
the patient information resides in separate data silos. As the Electronic Health Records (EHR) companies
gained traction, vendors developed their own systems to capture the data in proprietary environments
to preserve the integrity of the patient data. Unfortunately, these systems do not allow for information
sharing between adjacent systems and can hinder efficiency. The next critical step in this development
will be to bring information together and create the ability to analyze this data to optimize the overall
care of the patient.

The lack of communication between hospital vendors and further segmentation of physician’s data has
caused significant interoperability challenges. As a result, interoperability has become one of the
highest priorities for hospital executives. In the 2013 Health Information and Management Systems
Society (HIMSS) Leadership Survey, four of the top ten CEO and CIO IT priorities address these
challenges: optimizing use of current systems, leveraging information, interoperability, and exchanging
information with other entities. Compressus’ solutions help solve all of these priorities and challenges.

Beyond the hospital level, interoperability has become a Federal priority. According to Marilyn
Tavenner, Acting Administrator of Centers for Medicare & Medicaid Services (CMS), and Farzad
Mostashari M.D., National Coordinator for Health Information Technology, improving interoperability
was one of their five core agenda items for 2013. In addition to a Federal focus on interoperability,
there are several factors that will continue to drive demand:

 Consolidation within the hospital industry

 Focus on personalized healthcare
 Cost saving concerns due to reimbursement pressures
 Increase in the number of medical images
 Need to increase efficiency

The Healthcare IT industry is a large and growing market, cluttered with hundreds of vendors and legacy
systems that were, at best, not created to work together, but more likely designed entirely as a

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
proprietary system which has resulted in a fragmented Healthcare IT environment. These dynamics
present an immediate opportunity for Compressus to dominate the Healthcare interoperability and
workflow market. The Company and its MEDxConnect™ solution are at the right place at the right
time.

Another key force behind the explosive growth of Healthcare IT Interoperability is Provider
Consolidation. The quest for greater economies of scale, access to capital and sustainability in the new
healthcare paradigm is driving the consolidation and related Mergers & Acquisitions activity of all types
of providers – from large acute care facilities to physician practices.

"Acute care hospital consolidation is among the most significant healthcare trends today.
Increasing margin pressure from government and commercial payors and escalating intensity
of competition for healthcare dollars indicate that acute care mergers and acquisitions will
happen with greater frequency and complexity in the near future. ."(Source: Yanci, Jim. "What
Hospital Executives Should Be Considering in Hospital M&A." Dixon Hughes Goodman. Dixon Hughes Goodman,
Winter 2013. Web. 29 Apr. 2013.)

Consolidation is being driven even further by the Federal government’s mandates with related financial
incentives/disincentives to achieve improved outcomes while reducing costs. To achieve these
outcomes, medical providers now must:

 Evolve their business processes from paper-based to electronic records

 Exchange data with each other and their patients
 Adjust business models to accommodate new service delivery and reimbursement models

Multiple providers treating a single patient will no longer be paid full fee-for-service reimbursements.
Instead, with models such as Patient Centered Medical Homes (PCMHs), they must coordinate care with
other providers. Providers will be jointly accountable for care delivery and outcomes, while sharing
reimbursements capped according to the average cost of treatment per encounter.

These industry factors further are creating a market inflection point that is highly attractive to
Compressus as a solution provider.

9. Company Overview
History

Compressus Inc. is a privately held Delaware Corporation established in 2000. The Company’s core
intellectual property is based on autonomous routing, interoperability, work flow and image
compression technology, and was originally designed to route time-sensitive medical images resulting
from military field operations for the U.S. Air Force. The alpha product, then known as RadSight, helped
Compressus secure five (5) U.S. Patents and three (3) U.S. Pending Patents. In 2005, the Company
entered into the development stage of its beta product, MEDxConnect™, with a clear strategy and vision
to produce the world’s first intelligent workflow solution for healthcare.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Key Milestones
 Third Quarter of 2014 – Expanded Compressus Board of Directors. Compressus has elected James
Sierk and Craig Kuhl to its Board of Directors in order to provide additional key expertise as the
Company takes the necessary steps to maximize stockholder value. Mr. Sierk and Mr. Kuhl have
significant knowledge in the financial, healthcare and information technology markets as well
extensive experience in guiding companies through monetization strategies and exit transactions.
 June 2014 – Further expansion of senior management team. Compressus has enhanced the
Executive Management team with the addition of Dr. Kevin Hall as Chief Medical Officer and Dr.
Gregg Cohen as Senior Vice-President of the MEDxConnect Product Line. Dr. Hall and Dr. Cohen
bring a wealth of knowledge, experience and relationships in both the private sector and federal
healthcare markets and will be focused on driving the MEDxConnect solution in the marketplace.
 May 2014 – Realigned the Compressus team and organizational structure in order to optimize each
team member’s expertise and accomplish the Company’s objectives of achieving revenue growth
and positioning ourselves in the capital market. The Board of Directors has established three
Managing Directors positions who will report directly to the Board. Stephen Addington has been
named as Managing Director and Chief Executive Officer, John Macfarlane has been named as
Managing Director and Chief Strategy Officer and Dan Scherder has been named as Managing
Director of Capital Strategy and the Government Sector. In addition, Laszlo Gasztonyi has been
named the Chief Operating Officer of Compressus.
 February 2014 – MEDxConnect™ V4 goes live at The Mayo Clinic. The Mayo Clinic began using the
Compressus solution in early February 2014 in a live operating setting after nine months of
deployment. The third phase of the contract will add additional Mayo Clinic sites and is expected to
commence in the fourth quarter with the end goal being to utilize the Compressus solution
throughout the entire Mayo Clinic imaging system.
 October 2013 - Compressus installed MEDxConnect™ V4 at OIA. This contract is the first
productive use of MEDxConnect V4 in the marketplace.
 April 2013 – Commenced Mayo Clinic implementation. Since the signing of the master contract
with The Mayo Clinic in July 2012, Compressus has been working with Mayo under a consulting
contract to define their deployment requirements. In April 2013, Compressus began the first phase
of implementing MEDxConnect™ V4 into The Mayo Clinic.
 April 2013 – Volume based contract and productive use with Outpatient Imaging Affiliates. In
2011, Compressus signed Outpatient Imaging Affiliates (OIA), which manages 25 imaging centers
located in the Mid-Atlantic and southern U.S., as a MEDxConnect™ V3 customer. In the second
quarter of 2013, Compressus negotiated a 3 year volume-based contract for MEDxConnect™ V4,
whereby OIA pays monthly based on the number of studies. Compressus installed MEDxConnect™
V4 at OIA in October 2013.
 Second quarter of 2013 – Launched MEDxConnect™ V4. MEDxConnect™ V4 was released in Q2
with a robust platform that supports our ideal customer profile of large hospital enterprises like The
Mayo Clinic. This next generation solution includes enhanced analytic capabilities, improved
scalability and an easily customizable workflow.
 November 2012 - June 2013 – Expanded senior management team. Compressus enhanced the
Executive Management team to aggressively pursue the market and accelerate the revenue growth
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
 of the Company. Tom Hohman joined the Company as Chief Financial Officer in January 2013; John
Shedletsky, PhD joined the Company as Executive Vice President of Engineering and Development in
June 2013 and Jim Way joined the Company as Vice President of Operations in August 2013.
 January 2012 – December 2012 – Completed IBM Development project. Significant IBM software
was embedded into MEDxConnect™ V4 including analytical capabilities, clinical analysis, secure
databases and programmable workflow.
 July 2012 – Signed the Mayo Clinic as a customer. In July 2012, Compressus signed a 5 year master
agreement with two one-year extensions with The Mayo Clinic to deploy MEDxConnect™ V4
throughout their Radiology System beginning in 2013. The project includes the implementation of
an enterprise-wide workflow solution for delivering medical imaging data across the entire Mayo
Clinic Imaging Organization. The contract has an estimated unfunded value in excess of $14 million.
Funding of the contract will occur annually with 2013 at $3 million and 2014 through 2016 at $1-7
million each.
 July 2012 – Integrated MEDxConnect™ to Calgary Scientific solutions. The agreement covers the
integration of Compressus’ MEDxConnect™ System V4 interoperability and workflow platform and
the Resolution MDTM software solution from Calgary Scientific. The integrated solution will provide
users with secure, real time, diagnostic quality access to patient data and images in PACS, VNA and
cloud archive environments from a consolidated work list.
 June 2012 – Certified as part of IBM’s Health Integration Framework. In June 2012, Compressus’
solutions were certified as part of IBM’s Health Integration Framework. The IBM Health Integration
Framework is a software platform based on industry standards. It supports IBM and IBM Business
Partner solutions and applications for providers, health plans and life sciences organizations.

Vision

The Company’s vision is to achieve a leading market position in the rapidly growing healthcare IT
interoperability space. To that end, Compressus launched MEDxConnect™ in 2008 and has validated the
solution in the market. The Company now has a strong set of development partners and continues to
develop additional partnerships with some of the top HIT providers and healthcare integration
companies in the world. The next generation MEDxConnect™, launched in April 2013, features
improvements in customizable workflows, reporting analytics and scalability.

To date, the Company has raised in excess of $75 Million to invest in the overall product development
and market validation of the MEDxConnect™ technology. The Company is now actively raising strategic
capital to increase the visibility of the MEDxConnect™ V4 solution, accelerate market adoption, and
capture a market leading position.

Evolution

The Company has evolved from a PACS provider to a leading HIT interoperability and workflow solution
provider.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
 EVOLUTION
The following chart highlights the Company’s evolution:

2005 HIT Vision & Strategy

Strategic Scalability Plan

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

 Market Scale
Example
RadSight textLaunch
PACS  Profitability / Sustainable Independence
 Channel positioning
 Strategic transaction position
 Global de facto standard position
MEDxConnect 3.0
 Core Product / IP
 Core Team
 USAF Contract  Beta Product GA
 PACS / IM Focus  Development Customers
 First customer installs  Major channels
MEDxConnect 4.0 Commercialization
 Revenue realization
 Commercial Roadmap

Series A,B Series C,D Current Round

Management

The Company’s vision and operating plans are directed by a strong and experienced management team,
active board members and strategic advisors.

Tom Campbell Former Fortune 100 Company executive; led Washington

Chairman & Co Founder public affairs firm

Stephen Addington 20+ years leadership experience in corporate, financial and

Managing Director & CEO healthcare management including capital markets and M & A

John Macfarlane 30+ years corporate experience; led integrated

Managing Director & CSO marketing/sales for IBM

Dan Scherder
Managing Director of Capital 30+ years of experience in corporate financial management,
Strategy and the Government Sector capital strategy and financial operations.

Tom Hohman 20+ years corporate/financial experience, including several

CFO successful start-ups

Laszlo Gasztonyi 25+ years of technical/managerial experience in Healthcare IT,

COO Aerospace & Wireless Telecommunications
Kevin Hall, MD 30+ years of practice, provider and executive healthcare
Chief Medical Officer experience in both the private and federal sectors

John Shedletsky , PhD 30+ years of experience in software, software development

EVP, Engineering & Development and research and strategy

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Gregg Cohen, PhD 25+ years of experience of technical, sales and marketing
SVP, MEDxConnect Product Line experience in Healthcare IT and software development

Jim Way 30+ years of operations, technology services and project

VP, Operations management in Healthcare

Ronald Evens, M.D. 40+ years expertise in medical field, former President of
Chief Medical Advisor Barnes-Jewish Hospital and American College of Radiology

Robert L. Smith 50+ years in all aspects of SEC Compliance, Due Diligence,
Financial / Corporate Advisor Securities Sales Management, and Tax Planning

Craig Kuhl Retired executive and PWC Partner and CFO of Pharmasset Inc.
Corporate Advisor where he helped guide a significant IPO

President and Principal of The Roberts Company, which has

created and managed 60+ companies with the past 30 years in
Steven C. Roberts a variety of business areas including media, property
Government/Business Advisor development and management and telecommunications.

Leading expert in medical field specializing in spinal surgery;

Stephen Hochschuler, M.D. member of various medical advisory boards and manager of
Medical /Corporate Advisor medical venture funds.

David Lewis Retired financial executive and PWC Partner as well as a past
Corporate Advisor IBM executive.

A comprehensive biography of Company’s Executives, Board Members and Senior Advisors is detailed in
Appendix A.

The Company’s background provides a strong foundation to execute and manage the rapid growth
that which will follow the launch of MEDxConnect™ V4.

[Link] Compressus Solution – MEDxConnect™

Overview

MEDxConnect™ is a Software Solution that has been designed specifically for healthcare providers and
their staffs. At the core of the MEDxConnectTM productline is the Medical Message Mediator™, or M3.
The M3 is a highly scalable set of software services that allows access to healthcare data that is typically
located in several locations, and formats, and is capable of translating several edge protocols not
typically used in internet based applications.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Intellectual Property / Patents

MEDxConnect™ is comprised of over 3 million lines of code and relies on a combination of five (5) U.S.
patents, copyright and trade secret laws, employee and third party confidentiality agreements

The following table highlights current U.S. Patent Status:

U.S. PATENTS

PATENT PATENT NO. / ISSUE SERIES CODE/SERIES STATUS

DATE NO. FILING DATE

Autonomous Routing of Network Messages US 7,630,371 11/233,775 Active

12/8/2009 9/22/2005
Method and Apparatus for Boundary-Based US 7,653,252 11/233,777 Active
Image Compression 1/26/2010 9/22/2005

Method and Apparatus for Adjustable US 7,801,382 11/233,778 Active

Image Compression 9/21/2010 9/22/2005
Escalation and Notification of Workflow US 7,836,081 11/23,/776 Active
Items 11/16/2010 9/22/2005
System Management Dashboard US 8,131,562 11/944,530 Active
03/06/2012 11/23/2007

Technology Evolution

MEDxConnect™ has evolved from a solution focused on helping radiologists improve patient care by
providing the ability to view numerous sources of patient information in V3 to a powerful and
intelligent workflow solution platform in Version 4. This technology evolution has positioned the
solution to seamlessly integrate to adjacent healthcare IT environments such as cardiology and
pathology.

The next generation MEDxConnect™, launched in April 2013, features:

 Improved scalability
 Enterprise work list
 Customizable work flow
 Patient matching
 Business reporting dashboard
 Platform for application plug-in

MEDxConnect™V4 leverages years of experience with clinical workflow models in radiology and is
designed as a middleware solution that can readily integrate to other HIT systems. MEDxConnect™V4 is
aimed at solving workflow problems in complex work environments while maintaining its core
competency of improving clinician productivity.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Scalable and Flexible Architecture – The MEDxConnect™ Platform

MEDxConnect™ allows providers to build integrated, enterprise-wide, cooperative and flexible networks
to optimize and unify the delivery of healthcare IT services regardless of affiliation. MEDxConnect™ is
built on an architecture that can interface with legacy IT systems and enable customers to efficiently
migrate to private and public cloud services to help healthcare providers consume IT services with
configurable business rules and programmable workflow.

MEDxConnect™ technology provides seamless connectivity and interoperability among diagnostic

acquisition devices, picture archiving and communication systems (PACS), hospital information systems
(HIS), radiology information systems (RIS) and their related information systems.

The following system architecture diagram details the key components of the MEDxConnectTM
Enterprise Integration Solution:

Compressus’ core technology is developed around proprietary, large-scale data handling, including
imagery and associated meta data. The technology takes into account factors such as Quality of Service,
network constraints and prioritization of data delivery.

In the case of imagery, Compressus applies compression technology that can be scaled, based on need,
from lossless (no change from original data) to selectively lossy based on user needs. This technology
allows for critical information to be transmitted in an optimal fashion over a variety of media, from
telephone systems to gigabit fiber networks.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
The Compressus data transfer technology has the capability to send information at rates which exceed
network capabilities, so Compressus’ solutions also support bandwidth shaping to allow for other
important information systems to continue operating.

The Compressus technology was first used in 2002 by the United States Air Force for the transmission
and storage of retinal and radiological imagery over Iridium satellite-based networks with low quality of
service at only 2400 bps transfer rates. This challenging environment presented a near worst-case
scenario in the ability to transfer large data messages in an efficient way.

MEDxConnect™ can also utilize a Software as a Service (SaaS) delivery model allowing a customer to
migrate to a cloud network and purchase IT services rather than provide IT services through a large
internal IT department.

MEDxConnect™ allows healthcare providers to access information across the enterprise, irrespective of
location or format. MEDxConnect™ provides interoperability to legacy systems that use HL7, DICOM,
and other healthcare protocols. By providing the middleware “glue”, Compressus helps healthcare
providers avoid the costly “rip and replace” method of upgrading systems and allows them to derive
more usefulness from their existing IT systems in place while interacting with an ever growing
healthcare eco-system.

The MEDxConnect solution offers several immediate technical benefits:

 For the healthcare provider, the key is the ability to access patient information from multiple
silos in multiple locations and reduce the related logistical costs to provide services as clinical
information from all locations that can be accessed by the appropriate physician.
 For the healthcare IT manager, a consolidation of IT staff around a common platform can be
realized. This means serving many departments with one common set of data silos, services,
and administration functions.
 For the healthcare executive, MEDxConnect offers the option to drive more value from existing
systems rather than “ripping and replacing” their existing hardware and software solutions.
 For healthcare IT vendors and integrators, the MEDxConnect solution will allow the vendors to
provide “the things they are best at” in a non-exclusive environment so their capabilities can be
accessed by a larger healthcare community that have taken the best of breed approach.

This powerful capability can be easily tailored for various healthcare environments and can also be
extended to the patient and delivered as a service due to our customizable workflow solution.

This solution compliments the strategies of major system integrators such as IBM and Dell and will
augment the migration to cloud computing as customers move to adopt new technologies and
platforms.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
[Link] Strategy (or Go To Market Strategy)
Compressus’ growth strategy incorporates both near-term and long-term objectives, designed to rapidly
establish MEDxConnect™ as the “go-to” interoperability solution in the healthcare market. Near-term
priorities include expanding our customer footprint by targeting large hospital systems and radiology
organizations. To reach the widest possible audience, Compressus utilizes both an internal salesforce
and channel partners.

Direct Sales Force

The internal salesforce, in addition to creating sales opportunities, serves as MEDxConnect™ experts in
sales opportunities with our channel partners. The Company is currently expanding its direct sales
efforts, which will result in more effective market coverage in the U.S. A strong marketing program will
complement the expansion to create demand and produce qualified leads.

Partnership Framework

Compressus utilizes external channel partners for numerous benefits, including: large sales forces (i.e.
IBM has over 8,000 healthcare sales reps), existing customers, established relationships with many of
the leading healthcare providers and the opportunity to participate in large federal and international
deals.

MEDxConnect™ V4 is being globally marketed by IBM Healthcare sales and sales support personnel
under a non-exclusive partnership agreement. The solution has been validated for global sales and is
included in IBM’s Healthcare Integration Framework solution catalog. This makes it easy for IBM sales
executives to quote and sell MEDxConnect™ and easy for Compressus to provide on-going training and
education to drive awareness and support sales activities. The IBM partnership is critical to the
Compressus’ marketing strategy for the following reasons:

1. It fills a critical gap in IBM’s healthcare framework and supports IBM overall strategy.
2. Meaningfully increases Compressus’ visibility in the market.
3. Association in the market with a thought leader.
4. Allows MEDxConnect to be sold by the more than 8,000 IBM healthcare sales reps.
5. Attractive margin profile.
6. Provides international reach at a fraction of the cost.

Since the partnership with IBM launched in October, 2011 the relationship has accelerated at a rapid
pace. IBM has generated new business opportunities and completed product validations far in advance
of original planning. This has created immediate sales opportunities from the IBM sales organization as
the market continues to demand interoperability and workflow solutions.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
This strategy will allow the company to grow at a steady pace and control implementation and support
costs through the development phase. It is anticipated that the majority of Company revenues will result
from current channel partnerships with IBM and from additional partnerships with companies such as
EMC, PricewaterhouseCoopers and Deloitte. Active discussions and product testing with all these
companies, as well as numerous others, are under way and progressing rapidly.

Customer Targets

Compressus currently pursues customers and supports channel opportunities in the following key
market segments:

1. Leading Hospital Systems

2. Complex Healthcare Integrated Delivery Networks (IDN)
3. Large Radiology Practices
4. Health Systems Consolidators

These targets represent the best revenue opportunities for the Company’s direct solution sales
approach, as well as compliment the sales strategies of IBM and other developing channel partners.

Long-Term Growth Priorities

Compressus’ long-term growth priorities include applying the MEDxConnect™ solution to other
“Ologies” with disciplines that are image intensive, including cardiology, pathology and oncology. Cross
selling the additional interoperability and workflow solutions to our existing radiology customers is a
natural progression of our growth strategy, as the customers will already be utilizing the MEDxConnect
platform. Furthermore, we believe that MEDxConnect™ can also solve the interoperability issues that
are inherent in the Electronic Medical Record (EMR) industry today. In addition to the meaningful
domestic opportunity in our core radiology market, we have been introduced to opportunities
worldwide by our channel partners.

12. Financial Highlights

The following financial highlights provide projections of the Company’s revenue opportunity based on
the timely implementation of MEDxConnect™ V4 and the requisite resources resulting from the
Company’s capital raise.

Revenue Projections

Revenues ramped significantly in 2013 due to the launch of MEDxConnect™ V4 and the complimentary
marketing strategy, which will allow the Company to generate positive cash flow from operations over
the next twelve months.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
 Quarterly Revenue Projections Annual Revenue Projections
$2 $7
Revenue (US$ millions)

Revenue (US$ millions)

$6
$5
$4
$1
$3
$2
$1
$0 $0
1Q13 2Q13 3Q13 4Q13 2012 2013 2014E

The Company recorded $3.0 million in revenue in 2013 and is projecting revenue to a run rate of $6.0
million in 2014. The Company is in the throes of moving from a perpetual licensing model to a “per
study” model which will have the initial effect of delaying revenue, but in the long run produces higher
value contracts and more reliable revenue streams. The Company plans to add sales and marketing
resources with funds from the current capital raise, which should contribute to achieving or exceeding
the projected revenue growth in 2014 and beyond.

We have thoroughly reviewed our sales pipeline and have categorized our potential customers into
three customer profiles. After a detailed discussion with our sales team and strategic channel partners,
the management team has assigned a probability and potential closing date for each contract we are
working on. The following table provides a description and metrics for each of our typical customer
profiles.

Customer Profiles for Revenue Projections

Large Radiology group Large and growing hospital Very large hospital group
Multiple sites & multiple group & multiple Large network with multiple
Multiple hospitals
Customer Description
systems systems locations and numerous
Annual Imaging Studies Processed 500,000 - 700,000 1.5 - 2.5 million systems
+4 million
Anticipated Revenue $6 - 7 million $12 - 16 million $30 – 35 million
Revenue Composition
Software 33% 40% 40%
Professional Services 37% 25% 22%
Software Support 30% 35% 38%
Gross Margin ~60% ~65% ~65%
Terms 5-7 years 5-7 years 5-7 years

Revenue Model

The Company produces revenue by the sale of software licenses to end users and distribution partners.
Typical customer contract terms include a 5-year license agreement with service and support for years
2-5. Service and Support pricing ranges from 18%-25% of list price. Pricing per contract is based on the
number of clinical studies performed per year in the health system or site. The Company is in the throes
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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
of moving from a perpetual licensing model to a “per study” model which will have the initial effect of
delaying revenue, but in the long run produces a higher value contracts and more reliable revenue
streams.

Revenue is recognized based on completed customer project milestones as governed by Healthcare IT

GAAP guidelines. Currently, typical implementations are completed in 6 months. Improved
implementation tools in MEDxConnect™ V4 will reduce implementation time by half resulting in a
significant improvement in revenue recognition.

In a typical multi-site contract, Compressus anticipates recognizing ~$2 million in revenue during in the
first year of the contract and ~$13 million in total revenue over the life of the contract. The table below
depicts the percentage of revenue derived from support, professional services and software sales
annually over the first seven years of a contact.

100%
90%
80%
70%
60%
Support
50%
Professional Services
40%
Software
30%
20%
10%
0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Revenue Visibility

The Company is currently managing a sales funnel that exceeds $38 million and projects revenues will
grow in 2014 and beyond as the MEDxConnect™ V4 solution gains traction in the marketplace.

While The Mayo Clinic contract accounted for the majority of the 2013 revenue, Management foresees
revenue becoming less concentrated in the coming years as we add additional large customers.

13. Capital Strategy

Investment Opportunity
Compressus continues to utilize a value-driven investment strategy to raise the capital required to
achieve a position of market leadership. The Company is currently offering a Private Placement Offering
of $15 million to Accredited Investors comprised of 10,000,000 shares of Series F Preferred Stock at the
price per share of $1.50. The shares are available for purchase by accredited and qualified investors.

In addition, the Company is also offering $10 million through several short term debt vehicles varying in
length and interest rate, all of which have stock warrants attached equal to twenty five percent (25%) of
the principal amount of the loan with an exercise price of $3.00 per share. These three debt options are

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
outlined below and give investors the opportunity to earn a significant return in today’s low interest
market.

1) 12 month loan paying 7% interest per annum paid monthly

2) 24 month loan paying 10% interest per annum paid monthly
3) 36 month loan paying 12% interest per annum paid monthly

The Investment Opportunity is Compelling and Immediate

 Compressus is the first solution to offer an enterprise-wide solution with the ability to move
across an organization through our programmable workflow capabilities.
 Compressus is the first solution competing in the interoperability market that solves the major
issue of data flow and workflow management in Healthcare IT today.
 The Company addresses a large, rapidly growing market with attractive adjacent opportunities
and the potential to attain a leading market share.
 The Compressus solution is scalable to any size hospital network or radiology center.
 The intellectual property is protected by several patents.
 The recent contract with The Mayo Clinic and our business partnership with IBM have
accelerated sales momentum and increased the Company’s visibility in the market.
 The Company has a signed, unfunded backlog of contracts in excess of $14 million to deploy our
MEDxConnect™ solution.
 Compressus has a strong, experienced management team and a committed Board of Directors
who understand how to manage a company through a period of rapid growth.

Use of Proceeds
The company intends to use the Series F financing proceeds to:

 Accelerate revenue growth by adding sales and marketing resources to close existing sales
opportunities and substantially increase the sales pipeline.
 Build the infrastructure of Compressus to execute on our rapid growth projections including the
expansion of the Mayo contract and other customer opportunities on an enterprise wide basis.
 Add resources to provide subject matter expertise to our channel partner opportunities.
 Hire resources to manage the additional MEDxConnect™ V4 implementations in 2014 and
beyond.
 Expand senior leadership in select positions to guide Compressus through the anticipated near
term high growth and rapid product adoption phases.
 Further enhance the solution to take advantage of additional opportunities in Healthcare IT.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Historical Capital Highlights

As of March 31, 2014, approximately $76.5M of capital has been raised by the company through the sale
of Common Stock, Convertible Preferred Stock, Convertible Promissory Notes and Loan Vehicles.

After the 1:3 reverse stock split conducted in July 2010, the Company had approximately 29.6M
common stock equivalents at a par value of $0.01 issued and outstanding, and approximately 51.5M
shares Issued, Outstanding, or Reserved on a fully diluted basis as of March 31, 2014.

14. Company Monetization Strategy

Strategy Flexibility

Compressus has developed a strategy to maximize shareholder value by positioning the Compressus
solution as the de facto standard in Healthcare IT interoperability and intelligent workflow. This strategy
has taken hold in the market as we have developed and deployed a first of a kind solution which has
been validated by a number of major HIT and healthcare vendors and customers. This validation is the
basis for the channel relationships previously described.

The Company's strategy is to develop strategic partnerships with large IT integrators, HIT providers, and
imaging hardware OEMs as we continue to grow our revenues. Under the guidance of our Wall Street
Advisor, Perella Weinberg Partners, we believe that our strategy will provide Compressus the
opportunity to maximize shareholder value through an exit transaction.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Market Activity and Industry Comparatives

The healthcare IT sector saw almost a half billion dollars in private equity funding in 2012 and over $6
Billion in M&A activity in the same time period.

According to a February 11, 2013 Healthcare IT report from Mercom Capital Group, health information
management companies accounted for $6.5 billion of total 2012 M&A activity in the U.S. Compressus
shares similarities with some of the companies involved in recent M&A and IPO activities:

1. It represents transformational technology.

2. It capitalizes on market inflection points.
3. It addresses a very large market, growing faster than other segments.

Additional industry comparatives of publicly traded companies can be found in Appendix C.

15. Conclusion
We believe that three key factors will drive demand for the Compressus Interoperability Solution: (1) the
transformational technology of Compressus' Interoperability and Intelligent Workflow Solutions, (2) a
large and growing healthcare IT market fraught with interoperability issues between systems and
vendors, and (3) the significant partnerships that Compressus is developing with many of the principal
"Thought Leaders" within the Healthcare Industry. Compressus presents an excellent investment
opportunity for investors who wish to capitalize on the inflection points of this rapidly evolving
technology.

Under the guidance of our Wall Street Advisor, Perella Weinberg Partners, we believe that our strategy
will provide Compressus the opportunity to maximize shareholder value through an exit transaction.

A comprehensive set of Investor Offering Documents is available to provide a more in-depth look at the
Company, the market and the financial opportunity. For additional information, please inquire to Mr.
Dan Scherder, Managing Director of Capital Strategy and the Government Sector.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
16. Glossary
Acute care – active, but short term healthcare (opposite of chronic/long term care).

Ambulatory care – healthcare delivered on an outpatient basis (i.e. single day).

Bellwether – any entity in a given arena that serves to create or influence trends or to predict future
happenings

CAGR – compound annual growth rate.

Cloud Computing – delivery of computing as a service rather than a product, whereby shared resources,
software and information are provided to computers and other devices as a utility over a network.

Compression – the encoding of information using fewer bits than the original representation; can be
either lossless (no information lost) or lossy (identifies non-critical information and removes it).

CT - CT scan, a technique used in medical imaging to generate a three-dimensional image of the inside of
an object from a large series of two-dimensional X-ray images taken around a single axis of rotation

DICOM – Digital Imaging and Communications in Medicine; a standard for transmitting information in
medical imaging.

Domain expertise – having expertise in a particular subject or area.

EMR/EHR – Electronic Medical Record/Electronic Health Record; computerized medical records which
allow the storage, retrieval and modification of a patient’s healthcare information.

Enterprise software - software used in an organization as opposed to by an individual.

ESB – Enterprise Services Bus; a software architecture used for designing and implementing the
interaction and communication between mutually interacting software applications in SOA.

HIS – Hospital Information System; comprehensive information systems designed to manage all aspects
of hospitals, including the medical, administrative, financial and legal aspects.

HIT – Healthcare Information Technology; describes the comprehensive management of health

information across computerized systems and its secure exchange between consumers, providers,
government and quality entities, and insurers.

HL7 – Health Level Seven; a standard for exchanging information between medical applications.

IDN – Integrated Delivery Network; a network of healthcare organizations under the umbrella of a larger
entity.

Interoperability – the ability of diverse systems to work together and communicate with one another.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Legacy Systems – an old method, technology, computer system or application program that continues
to be used, typically because it still functions for the users’ needs, even though new technology or more
efficient methods may be available.

Metadata – data providing information about one or more aspects of that data.

Middleware – software that connects otherwise separate applications; can be described as the “glue”
that links applications together.

MRI - Magnetic resonance imaging, a technique used in radiology to visualize detailed internal
structures.

OEM – Original Equipment Manufacturer; refers to original manufacturing company of a product.

Open Architecture – a type of computer architecture or software architecture that allows potential
users to see inside all or part of the architecture without any proprietary constraints and allows the
adding, upgrading and swapping of various components by the end user; may require some type of
licensing agreements between entities sharing the architecture information.

PaaS – Platform as a Service

PACS – Picture Archiving and Communication System; a technology utilized in medical imaging that
provides economical storage of and access to images from multiple modalities.

Platform – includes hardware architecture and software framework on which software is run.

RIS – Radiology Information System; a computerized database used by radiology departments to store,
manipulate and distribute patient radiological data and imagery; a RIS complements a HIS (Hospital
Information System) and is critical to efficient workflow in radiology.

SaaS – Software as a Service

SOA – Services Oriented Architecture; set of principles and methodologies for designing and developing
software in the form of interoperable software.

VNA – Vendor Neutral Archive

Workflow – the full process of how healthcare organizations, physicians and patients work together
from start to finish.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
COMPRESSUS INVESTMENT MEMORANDUM

APPENDICES

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
 Appendix A

Company Biographical Information

Board of Directors:

Tom Campbell, Chairman and Co-Founder: Former head of a notable Washington government affairs
firm representing Fortune 500 clients before Congress and the executive branch of the federal
government and provided expert counsel of various matters such as tax policy, trade, energy,
international affairs and federal land policy; Prior to forming his firm in 1985, Mr. Campbell was an
executive with the Amoco Corporation involved with the domestic production, refining, marketing and
mining divisions of the company.

Stephen Addington, Director, Managing Director & Chief Executive Officer: Has run multiple companies
of different sizes and complexity and has served as a corporate officer and Director for both public and
private companies; has driven multiple capital market activities which include raising in excess of $2.3
Billion of capital over the past 20 years through private equity markets, bank debt and public debt as
well as having significant experience with asset purchases, asset sales, stock sales and merger
transactions and restructuring; holds expertise in the healthcare market through his service on the
Compressus Board of Directors since 2005 and as a 14 year member of the Board of Directors of King’s
Daughters Hospital in Ashland, KY, which has 3,500 employees and services a regional population of
150,000; currently has the position of Vice-Chairman of the Board of King’s Daughters, he has served on
the Executive committee for ten years and is also the Chair of the Personnel and Compensation
committee.

K. John Barr, Director: President of a privately held investment partnership with 15+ years of
management experience with various investment entities; additional expertise includes sales of business
equipment, business management, recruitment and training.

Roger L. Willis, Director: 30+ years of management experience in the risk capital marketplace as well as a
variety of industries including financial, real estate, energy and healthcare; also holds expertise in the
identification, structuring and financing ways to maximize business values; currently the co-managing
member and co-founder of Penn Companies, whose primary focus is in the medical diagnostic field.

John B. Macfarlane, Director, Managing Director & Chief Strategy Officer: 30+ years of corporate
experience ranging from individual sales to managing an integrated marketing and sales organization;
led integrated marketing/sales for IBM; formerly held a role as IBM's Global Distribution Channels
Marketing Executive, responsible for the development and deployment of internal and external
channels of distribution in IBM's $10 billion distribution sector.

Daniel B. Scherder, Director, Managing Director of Capital Strategy & the Government Sector: 35+ years
of corporate and financial experience with both Fortune 500 companies and small businesses; held
numerous management positions at Peabody Energy and Price Waterhouse and Co.

James E. Sierk, Director: distinguished career as a senior executive with companies such as the Xerox
Corporation, AlliedSignal and Iomega; held senior management positions in operations and product
development at Xerox and was responsible for U.S. manufacturing operations and operations in the Far
East and the Americas; while at AlliedSignal, Jim was responsible for the functional leadership of
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materials management, marketing, manufacturing, information technology, centralized business
services, research and technology and quality. Jim was named a Director of Iomega in 1997 and served
as the interim President and Chief Executive Officer in 1998, during which significant improvements
were made to customer service, the supply chain and product quality.

W. Craig Kuhl, Director: retired PricewaterhouseCoopers partner who served health care, utility and
other clients in a variety of industries; experience ranges from complex financial and compliance
advisory services to the ability to manage in the dynamic and changing fields of corporate reorganization
and deregulation; served as the CFO of Pharmasset Ltd., a start- up drug discovery and development
firm, where he negotiated venture capital funding and drug licensing, established the overall financial
functions and prepared the company for a successful IPO; under Craig’s guidance, Pharmasset was
acquired by Gilead for $11 billion.

Management Team:

Stephen Addington, Managing Director & Chief Executive Officer: Has run multiple companies of
different sizes and complexity and has served as a corporate officer and Director for both public and
private companies; has driven multiple capital market activities which include raising in excess of $2.3
Billion of capital over the past 20 years through private equity markets, bank debt and public debt as
well as having significant experience with asset purchases, asset sales, stock sales and merger
transactions and restructuring; holds expertise in the healthcare market through his service on the
Compressus Board of Directors since 2005 and as a 14 year member of the Board of Directors of King’s
Daughters Hospital in Ashland, KY, which has 3,500 employees and services a regional population of
150,000; currently has the position of Vice-Chairman of the Board of King’s Daughters, he has served on
the Executive committee for ten years and is also the Chair of the Personnel and Compensation
committee.

John B. Macfarlane, Managing Director & Chief Strategy Officer: 30+ years of corporate experience
ranging from individual sales to managing an integrated marketing and sales organization; led integrated
marketing/sales for IBM; formerly held a role as IBM's Global Distribution Channels Marketing Executive,
responsible for the development and deployment of internal and external channels of distribution in
IBM's $10 billion distribution sector; responsible for all aspects of Compressus' day-to-day operations
including marketing, sales, customer services, project execution, and product development.

Daniel B. Scherder, Managing Director of Capital Strategy and the Government Sector: 35+ years of
corporate and financial experience both with Fortune 500 companies and small businesses; held
numerous management positions at Peabody Energy and Price Waterhouse and Co.

Tom Hohman, Chief Financial Officer: 24+ years of experience in finance, accounting and business
operations, with proven leadership in developing and managing all finance and accounting functions.
Mr. Hohman was the founding CFO of the Public Company Accounting Oversight Board (PCAOB), a $175
million organization that grew from 35 employees to over 550 employees over his five year tenure. He
developed the finance and operating infrastructure to handle the organization’s rapid growth and put in
place sound financial systems and internal controls. He worked closely with the PCAOB Chairman, the
Board and the SEC to manage the company’s ongoing operations. Prior to this position, Mr. Hohman
served in Chief Financial Officer positions with a number of fast paced technology companies, ranging
from start-up to $100 million in revenue.
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Laszlo Gasztonyi, Chief Operating Officer: 25+ years of technical managerial experience in Healthcare IT,
Aerospace & Wireless Telecommunications; former general manager of the Boeing-Autometric Visual
Computing Group, which was formed after the acquisition of Autometric, Inc. by the Boeing Company in
August 2000; responsible for product strategy, development and delivery of Compressus' products and
also supports pre-commercial development and investigation of advanced technology for inclusion in
future products.

Kevin Hall, MD, Chief Medical Officer: focus will be on on further developing and broadly disseminating
the Compressus message to the worldwide healthcare community. Kevin will be a key member of the
Compressus sales team and will work closely with specific customer opportunities in both the private
and federal sectors. Kevin brings over 30 years of practice, provider and executive healthcare
experience to Compressus in both the private and federal sectors. In addition to being a practicing
surgeon, Kevin’s experience includes consultation with large private healthcare organizations,
Department of Defense Healthcare, and the Veterans Administration in areas such as the provider and
payer objectives to improve healthcare. Kevin has extensive experience in providing vision, guidance and
implementation on strategy, product development, marketing, program oversight and clinical activities
in healthcare. Kevin received a BS in Biology from South Florida and his Doctorate in Medicine from the
Uniformed Services University in Bethesda, MD.

John Shedletsky, PhD, Executive VP of Engineering and Development: 30+ years of experience with a
specific focus on numerous facets of IBM Software and Software development. With his PhD in
Electrical Engineering and Computer Science from Stanford University, Dr. Shedletsky joined IBM’s
Research and Development Division and from there moved upward through many roles helping to
reshape IBM’s software strategy. His successful contributions include leading IBM to adopt a technical
strategy based on open software standards, leading the design team for the first release of AIX, the
operating system still in use on IBM Power Servers, managing the development and shipment of new-
direction software products, including WebSphere Commerce. Dr. Shedletsky’s most recent role as VP of
Competitive Software focused on comparing IBM software to competitive software and helping the IBM
sales teams win in the field. Dr. Shedletsky has been working with the Compressus team since early
2013 as our IBM Executive Sponsor where his leadership has been invaluable and joins the Compressus
team with a clear understanding of what we are delivering to the market.

Gregg Cohen, PhD, Senior Vice-President of MEDxConnect Product Line Management: responsible for
the planning, marketing and functionality of the MEDxConnect solution with the objective of maximizing
revenues, growth, market share and profit margins. In addition, Gregg will lead in the translation of sales
and marketing objectives into development requirements. Gregg has held the positions of Chief Medical
Officer, Chief Technology Officer and Senior Architect for multiple Healthcare vendors including Picker
International, Inc., Abrio Healthcare Solutions, Vital Images, Xtria Healthcare, and Sterling Diagnostic
Imaging/AGFA. Prior to joining Compressus, Gregg has been operating WylFyr Informatics, a healthcare
informatics consultancy and been active in the medical imaging community through membership on
DICOM workgroups, IHE initiatives, and various demonstration and test projects such as the annual
DICOM Connectathon sponsored by RSNA and IHE. Gregg is a proven leader in all department solutions
and holds a Ph.D., Radiation Biology (Medical Imaging), a Masters in Radiation Biology (Molecular), and
a B.S. with a Major in Biochemistry and Minor in Biomedical Engineering from the University of Iowa.

Jim Way, Vice-President of Operations: Mr. Way is responsible for solutions deployment, infrastructure
standard practices, and professional services at Compressus. His main objective is to develop the right
customer solutions with strong customer support and client relations. Before joining Compressus, Mr.

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Way had worked in the healthcare industry for over 30 years in operations, technology services and
project management. He has extensive Fortune 500 executive management experience as VP,
Operations at Siemens and has been a CIO for several large healthcare providers. Mr. Way offers a
unique combination of P&L, information technology, sales, operations and project management
experience in the healthcare industry. He has a solid background in startups, client relationship
management, process improvements and revenue growth. Aside from providing definitive analysis,
reports and recommendations for executive decision-making, Mr. Way’s accomplishments include a
strong background in the management of bringing large IT projects to successful completion. He has
structured and orchestrated several complex multi-site transactions. Mr. Way has developed and
implemented successful corporate goals and objectives which have turned around poorly performing
products, teams, business units and divisions—he makes sound organizations even better. Mr. Way
earned his MBA in Business Administration from Lebanon Valley College. Earlier, he received his BS in
Marketing with a minor in Economics from Indiana University of Pennsylvania.

Albert Hernandez, Vice President of Engineering: 20+ years of technical managerial experience in
Healthcare IT, Aerospace & Wireless Telecommunications; formerly the Software Development Manager
and Chief Architect of Boeing's Visual Computing Group's mobile and advanced product development
division with expertise in the design and management of technical software; responsible for bringing
Compressus products to market as specified by the product managers and leads the transformation of
Compressus' products from concept to reality by specifying software architectures, ensuring standards
compliance, and designing for maximum software reuse, scalability and performance.

Board of Advisors:
John Anastos, DO: Chairman of the Department of Radiology at Advocate Lutheran General Hospital,
Park Ridge, Illinois; also serves as President of Advanced Radiology Consultants and Advanced Radiology
Professional and consultant to Advocate Health Care and other organizations in the assessment of new
and emerging technologies in medical imaging.

Kenneth J. Barr Sr., Corporate and Financial Advisor: 30+ years in various engineering and management
positions with Standard Oil; named Executive Vice President of Amoco Production Company in 1979;
became President of Amoco Minerals Company in 1980 and President and CEO of Cyprus Minerals
Company (spun off from Amoco) in 1985 and Chairman and CEO in 1990 until his retirement in 1991.

Ronald G. Evens, Chairman of Compressus Medical Advisory Board: 40+ years in the Medical field;
former Head of the Department of Radiology at Washington University School of Medicine, Director of
the Mallinckrodt Institute of Radiology, and Radiologist-in-Chief at Barnes and Children's Hospitals;
president of 3 hospitals, including Barnes-Jewish Hospital in St. Louis, Missouri and currently Professor
of Medical Economics at Olin School of Business and Professor of Radiology at Washington University
School of Medicine.

Donald L. Fierce, Government Affairs Advisor: founder of Fierce & Associates, which in 1998 was
renamed Fierce & Isakowitz and is today Fierce, Isakowitz & Blalock; served at the Republican National
Committee in the position of Director of Strategic Planning and Congressional Affairs and was the chief
liaison to Republican members of the House and Senate as well as providing strategic planning for
gubernatorial and congressional races; worked directly with the Republican leadership to coordinate
legislative and communication strategy; has consulted on numerous congressional, senatorial and
presidential campaigns throughout his illustrious career.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Stephen H. Hochschuler, M.D.: leading spine expert and practicing spinal surgeon; co-founder of the
Texas Back Institute and Chairman of the Board of TBI Holdings, Inc; Founding Board Member and past
president of the International Society for the Advancement of Spine Surgery; Chairman of Scientific
Advisory Board at Alphatec Spine, Inc; member of Board of Directors and Advisory Boards of several
spinal technology companies; manager for two venture funds (Medical Venture Fund, Ltd. and Medical
Focus Fund, Ltd.).

General Richard L. Lawson, Retired USAF, National Security Advisor: achieved a four star rank, received
22 military awards and decorations, and served in the White House as the Military Assistant to President
Gerald R. Ford.

David B. Lewis, Technology and Corporate Advisor: 25+ years of experience in leadership roles with PwC
Consulting, Price Waterhouse and IBM; has expertise in advising technology-sector clients seeking venture capital,
merger partners or acquisition candidates as well as planning and launching new business units and leading them
through rapid start-up and growth phases and building and maintaining highly profitable client relationships.

David J. Moeller, M.D. M.S., Medical Advisor - Diplomat of the American Board of Radiology with
subspecialty certification in Neuroradiology, former president of Greater Houston Imaging, PA and
Imaging Center of Greater Houston, LLC and former medical director of The CAT Scan Centre, NWDC
Imaging and Green Oaks Imaging; currently provides Radiological services to Memorial Hermann
Medical Centers in The Woodlands and Humble, TX.

Randall G. Pence, Esquire, Government Affairs Advisor: President of Capitol Hill Advocates, Inc. is a
registered lobbyist with 25 years of full-time, professional experience on Capitol Hill in Washington, DC,
both as a senior-level staff member for two U.S. Senators and as the legislative, regulatory and political
representative of business clients with issues before the U.S. Federal Government.

Thomas W. Pomeroy, Business Advisor: 30+ years of accomplishments in diverse, customer driven
industries, with primary focus in the fields of Online Information and Services, and Publishing with his
specialties being market definition, strategic services development and communications; Founder and
Chief Executive Officer of SoftBook Press, a pioneering e-publishing company incorporated in 1996
which was acquired by Gemstar-TV Guide International in January, 2000; also established Digital
Delivery Strategies, a strategic consultancy, in 2000.

General Joseph Ralston, Retired ASAF, National Security Advisor: completed a distinguished Air Force
career with a final assignment as Commander, U.S. European. Command and Supreme Allied
Commander: Europe, NATO in 2003; served as Vice Chairman of the Joint Chiefs of Staff (1996-2000),
the nation's second highest-ranking military officer and chaired the Joint Requirements Oversight
Council (JROC), which validated the requirements for nearly every program of the Department of
Defense.

Steven C. Roberts, Government Affairs and Business Advisor: President and Principal of The Roberts
Companies, which has created and managed over sixty companies within the past thirty years in areas of
business including television and radio property development/management and a Sprint digital
affiliated network covering six states in the Midwest; has developed the largest private cellular and
broadcast tower real estate portfolio in the US; has created and operates real estate projects in
residential, retail, hospitality, office and the entertainment industry; serves on numerous boards in the
banking, manufacturing, telecommunications, education and political sectors.

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COMPRESSUS INC. – PROPRIETARY AND CONFIDENTIAL 9-19-14
Robert L. Smith, Financial and Corporate Advisor – 50+ years in all aspects of SEC Compliance, Due
Diligence, Securities Sales Management, and Tax Planning. MBA in Organization Theory, UC Berkeley. Phi
Beta Kappa.

H. Burton Spangler, M.D., Medical Advisor: been involved with Radiology for 35+ years, is board certified
in Diagnostic Radiology by the American Board of Radiology and has been fellowship trained in
neuroradiology, MRI, Vascular Doppler and Coronary CT Angiography.

Rear Admiral John C. Weaver, Retired USN, National Security Advisor: retired from a distinguished
career in the United States Navy as Commander, Space and Naval Warfare Systems Command to
become Corporate Executive Vice President of Hughes Electronics Corporation and President and Chief
Operating Officer of Hughes Aircraft Company; former Chairman and Chief Executive Officer of Raytheon
International and current advisor to Raytheon, Los Alamos National Laboratory, Boeing Corporation and
senior officials of the United States Department of Defense.

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 Appendix B

Competitive Matrix

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 Appendix C

Industry Comparative for Publicly Traded Companies

Source: Chart Data, May 2012

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