H-Quotient Announces Major Software Sale and Listing Change

Business Wire, June 21, 2004

VIENNA, Va. -- H-Quotient, Inc., (HQNT), and Healthnostics, Inc. (HNST) have entered into a letter of intent for the sale of its PhysicianQuotient and LabQuotient medical software products to Healthnostics, Inc., (HNST) for 8 million shares of a new series of convertible preferred stock with a conversion ratio into common stock to be determined prior to closing. This transaction is subject to certain customary conditions, including execution of definitive agreements, and is expected to close on or about July 1, 2004.

On May 11, 2004, the Company sent the following statement to the Berlin Exchange: "Our company was placed on the Berlin Exchange by a broker without our authorization. This was apparently done to circumvent the U.S. short selling rules. As a result, please immediately delist our company from the Berlin Exchange." The Exchange did not comply. Further, on June 18, 2004, the Company informed the NASD that it would not contest eligibility for listing on the OTCBB and had decided to be listed solely on the Pink Sheets. The OTCBB (Bulletin Board) does not provide short seller volume, and such a listing allows listings on foreign exchanges such as the Berlin Exchange that are suspected of being used by short sellers to circumvent U.S. rules, including recently enacted NASD rules, against naked shorting. The Company's symbol is HQNT, and quotations are listed as usual, and are now also listed on the Company's website at: http://www.hquotient.com

Financial statements, which will report record earnings, will be released on or before June 24, 2004.

This announcement may contain, in addition to historical information, certain forward-looking statements that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.

For more information visit the H-Quotient web site at www.hquotient.com.