The Internet has become a primary source of information for physicians and is growing relative to traditional information sources, such as conferences, meetings and offline journals. According to Manhattan Research, approximately 97% of physicians are Internet users and physician satisfaction with online sources of clinical information is nearly equal to traditional offline sources. According to the Accreditation Council for Continuing Medical Education, the Internet has become an efficient way to educate physicians and to promote adherence to clinical guidelines, crucial steps towards reducing the variance in treatment patterns and raising the quality of care.

The U.S. market for advertising, broadly defined, is made up of multiple, well-established channels, principally consisting of print, television and radio media. Total advertising expenditure for 2004 was estimated by eMarketer in February 2005 to have been approximately $264 billion, an increase of 7.6% compared to 2003, and is projected by eMarketer to increase 5.4% in 2005.

Internet advertising continues to grow rapidly and, as a result, online spending is growing faster than offline spending. According to a February 2005 report by eMarketer, total online advertising spending was about $9.5 billion in 2004, is projected to grow approximately 20% in 2005 to $11.5 billon, and is expected to reach approximately $17.6 billion in 2008. It is believed this market growth is driven by several factors, including consumers shifting their buying and media preferences to online and the benefits of online advertising relative to traditional media, which includes interactivity, rapid and measurable user feedback and the ability to target consumers more efficiently.

According to a 2005 Jupiter Research study, online spending for healthcare related advertising is projected to grow an average of 19.7% annually through 2009. It is believed that the two primary sources for this spending are pharmaceutical companies and consumer products companies whose goods or services relate to health, wellness, diet, fitness, lifestyle, safety and prevention.

The Company’s consumer portals provide its users with health and wellness related information, tools and applications in a variety of content formats. These content offerings include access to high quality health and wellness news articles and features, which are written, edited and published by the Company’s 90-person in-house staff, which includes professional writers, editors, designers and board-certified physicians. The Company offers searchable access to the full contents of its Web sites, including licensed content and referenced-based content.

Original content from the Company’s portal for professionals includes daily medical news, commentary, conference coverage, expert columns and CME activities. The Company regularly produces in-depth interviews with medical experts and newsmakers, and provides alerts on critical clinical issues, including pharmaceutical recalls and product advisories. The portal also provides access to wire service stories and other news-related content, and the Company’s CME programs include original programs and online multimedia adaptations of live events.

The Company provides proprietary health and benefit management services through private online portals that it hosts for employer and health plan sponsors. The Company’s private portals provide a personalized user experience by integrating individual user data, including personal health information, and plan-specific data from its employer or health plan client, with much of the content, decision-support technology and personal communication services the Company makes available through its public portals. The Company typically integrates its applications into the client’s web site or intranet and provide secure access for employees and plan members. The Company also offers a software platform that allows it to integrate third party applications and data.

In addition to its online presence, the Company also has a publishing segment that provides complementary offline health content to its user community. The Company’s publications increase awareness of its brand with consumers, physicians and healthcare professionals. These publications include The Little Blue Book, a physician directory, and the Company’s Magazine, a consumer publication launched in early 2005 that it distributes free of charge to physician office waiting rooms.

Cost of operations increased to $51,879 for the year ended December 31, 2004, from $46,552 for the year ended December 31, 2003.

Sales and marketing expense increased to $48,701 for the year ended December 31, 2004, from $47,369 for the year ended December 31, 2003, which represents an increase of $1,332.

General and administrative expense increased to $21,277 for the year ended December 31, 2004, from $19,010 for the year ended December 31, 2003.

Depreciation and amortization expense increased to $5,620 for the year ended December 31, 2004, from $4,463 for the year ended December 31, 2003.