Streamline Health Solutions (STRM) 8-K Lanvision Systems, Inc. Reports First Quarter 2006 Operating Results and Record First Quarter Revenues

Exhibit 99.1
LANVISION SYSTEMS, INC.
News Release of LanVision Systems, Inc. Dated May 22, 2006

News Release

Visit our web site at:www.lanvision.com

LanVision Systems, Inc.

COMPANY CONTACT:
Paul W. Bridge, Jr.
Chief Financial Officer
(513) 794-7100

FOR IMMEDIATE RELEASE

LANVISION SYSTEMS, INC. REPORTS FIRST QUARTER 2006 OPERATING
RESULTS AND RECORD FIRST QUARTER REVENUES

Cincinnati, Ohio, May 22, 2006 -— LanVision Systems, Inc. (Nasdaq: LANV), which does business under the name Streamline Health, today announced the operating results for the first quarter ended April 30, 2006.

Revenues for the first quarter were $3.8 million, a record first quarter and a 43% increase when compared with $2.7 million reported in the comparable prior period. The improvement was the result of a significant increase in System Sales in the current quarter.

The operating loss for the first quarter was $71 thousand, compared with an operating loss of $254 thousand in the first quarter of last year. The decreased operating loss was a result of the significant increase in System Sales in the current quarter, offset to some extent by the planned increase in operating expenses.

The net loss for the first quarter was $80 thousand, or $0.01 per basic and diluted share, when compared with a net loss of $277 thousand, or $0.03 per basic and diluted share in the first quarter of last year.

J. Brian Patsy, president and chief executive officer, stated, “We are very pleased with our record first quarter performance, which was ahead of our internal operating plan. During our first quarter”, Mr. Patsy continued, “we closed a large transaction through our largest remarketing partner, which had previously been delayed as a result of the uncertainty surrounding the recent consolidation within the healthcare IT marketplace. Our 2006 operating plan calls for modest additional investment in people and technology necessary to take advantage of the market opportunities we see in the health care industry for process

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improvements through the use of our advanced workflow and document management technologies. Although our significant growth in infrastructure as a part of our 2005 operating plan resulted in increased operating expenses during our first quarter of 2006, we believe that this is a strategic investment in our future. The return on this investment has begun with the significant increase in first quarter system sales, including the addition of one major new client and a significant expansion of our system at an existing client, which resulted in the record first quarter revenues.”

Mr. Patsy concluded, “We are very encouraged with the progress the Company has made during the last twelve months in developing a significantly larger pipeline of qualified prospects. We anticipate that we should be able to achieve our 2006 operating plans which call for approximately a 25% increase in annual revenues when compared to our prior fiscal year. Accordingly, our efforts continue to produce positive results, and we believe that our momentum is building for the remainder of the year and beyond. ”

CONFERENCE CALL INFORMATION

The first quarter conference call will be held at 10:00 a.m. Eastern Time, on Tuesday May 23, 2006. The call will feature remarks from J. Brian Patsy, Chief Executive Officer, William A. Geers, Chief Operating Officer and Paul W. Bridge, Jr., Chief Financial Officer.

To access the call via the webcast, go towww.lanvision.com orwww.streamlinehealth.net approximately twenty minutes before the call is scheduled to begin. You will need to register as well as download the necessary audio software. The webcast will also be available on the web site for 30 days.

About LanVision Systems d\b\a Streamline Health

Streamline Health is a leading supplier of workflow and document management tools, applications and services that assist strategic business partners, healthcare organizations, and customers to create and improve operational efficiencies through business process re-engineering and automating demanding document-intensive environments. The company’s workflow-based services offer solutions to inefficient and labor-intensive healthcare business processes throughout the revenue cycle, such as chart coding, abstracting and completion, remote physician order processing, pre-admission registration scanning and signature capture, insurance verification, secondary billing services, explanation of benefits processing and release of information processing. The company’s solutions also address the document workflow needs of the Human Resource and Supply Chain Management departments of the healthcare enterprise. All solutions are available for purchase or through a remote hosting services model that better matches customers’ capital or operating budget needs.

Streamline Health’s solutions create a permanent document-based repository of historical health information that is complementary and can be seamlessly integrated with existing disparate clinical, financial and administrative information systems, providing convenient electronic access to all forms of patient information from any location, including access using a web-browser through the Intranet/Internet. These integrated systems allow providers and

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administrators to link systems with documents, which can dramatically improve the availability of patient information while decreasing direct costs associated with document retrieval, work-in-process, chart processing, document retention, and archiving. For additional information, please visit our website athttp://www.streamlinehealth.net.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

Statements made by LanVision Systems, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. These risks and uncertainties include, but are not limited to, converting pipeline opportunities into signed agreements, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell LanVision products, the ability of the Company to control costs, availability of products produced from third party vendors, the healthcare regulatory environment, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results and other risks detailed from time to time in the LanVision Systems, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

ã 2006 LanVision Systems, Inc., Cincinnati, OH 45242.

TABLES FOLLOW

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LANVISION SYSTEMS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED

	Three Months Ended
	April 30,
	2006			2005
Revenues:
Systems sales	$	1,208,662		$	140,804
Services, maintenance and support		1,828,267			1,799,024
Application-hosting services		811,494			757,045
Total revenues		3,848,423			2,696,873
Operating expenses:
Cost of systems sales		626,407			280,187
Cost of services, maintenance and support		838,672			761,364
Cost of application-hosting services		280,230			250,902
Selling, general and administrative		1,414,878			1,056,881
Product research and development		759,679			601,657
Total operating expenses		3,919,866			2,950,991
Operating ( loss )		(71,443	)		(254,118	)
Other income (expense):
Interest income		32,991			17,794
Interest (expense)		(41,426	)		(40,195	)
Net (loss)	$	(79,878	)	$	(276,519	)
Basic net (loss) per common share	$	(0.01	)	$	(0.03	)
Diluted net (loss) per common share	$	(0.01	)	$	(0.03	)
Number of shares used in basic per common share computation		9,168,335			9,087,164
Number of shares used in diluted per common share computation		9,168,335			9,087,164

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LANVISION SYSTEMS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED

	April 30,
	2006			2005
Assets
Current assets:
Cash and cash equivalents	$	3,204,398		$	2,818,347
Accounts receivable, net of allowance for doubtful accounts of $200,000, respectively		1,850,397			2,643,943
Unbilled receivables		2,578,577			1,240,979
Prepaid expenses		516,990			414,559
Deferred tax assets		601,000			309,000
Total current assets		8,751,362			7,426,828
Property and equipment:
Computer equipment		2,196,061			1,627,491
Computer software		1,056,892			865,985
Office furniture, fixtures and equipment		775,957			702,387
Leasehold improvements		522,863			509,767
		4,551,773			3,705,630
Accumulated depreciation and amortization		(2,859,860	)		(2,153,803	)
		1,691,913			1,551,827
Non-current unbilled receivables		728,541			—
Capitalized software development costs, net of accumulated amortization of $4,304,066 and $3,433,229, respectively		2,835,862			2,156,700
Other, including deferred tax assets		1,312,936			701,091
	$	15,320,614		$	11,836,446
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	986,418		$	523,456
Accrued compensation		368,514			342,382
Accrued other expenses		663,509			710,602
Deferred revenues		2,499,873			2,452,096
Current portion of long-term debt		1,000,000			—
Current portion of capitalized leases		86,425			110,745
Total current liabilities		5,604,739			4,139,281
Non-current portion of capitalized leases		124,884			—
Non-current lease incentives		279,454			251,909
Long-term debt		1,000,000			2,000,000
Stockholders’ equity:
Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued		—			—
Common stock, $0.01 par value per share, 25,000,000 shares authorized, 9,173,708 and 9,093,535 shares issued, respectively		91,737			90,935
Capital in excess of par value		35,130,256			35,012,491
Accumulated (deficit)		(26,910,456	)		(29,658,170	)
Total stockholders’ equity		8,311,537			5,445,256
	$	15,320,614		$	11,836,446

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LANVISION SYSTEMS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED

	Three Months
	2006			2005
Operating activities:
Net earnings (Loss)	$	(79,878	)	$	(276,519	)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		463,910			357,675
Share-based compensation expense		22,967			—
Cash provided by (used for) assets and liabilities:
Accounts, contract and installment receivables		(42,566	)		(578,712	)
Other assets		(150,259	)		(37,443	)
Accounts payable and accrued expenses		(920,796	)		(364,350	)
Deferred revenues		(117,311	)		220,654
Net cash (used for) operating activities		(823,933	)		(678,695	)
Investing activities:
Purchases of property and equipment		(182,175	)		(470,889	)
Capitalization of software development costs		(399,999	)		(300,000	)
Other		(20,150	)		134,614
Net cash (used for) investing activities		(602,324	)		(636,275	)
Financing activities:
Payment of capitalized leases		(20,693	)		(57,376	)
Exercise of stock options and stock purchase plan		17,129			9,620
Net cash (used for) financing activities		(3,564	)		(47,756	)
Increase (Decrease) in cash and cash equivalents		(1,429,821	)		(1,362,726	)
Cash and cash equivalents at beginning of year		4,634,219			4,181,073
Cash and cash equivalents at end of year	$	3,204,398		$	2,818,347
Supplemental cash flow disclosures:
Interest paid	$	41,425		$	40,598
Income taxes paid (refund)	$	38,300		$	(4,882	)
Leasehold improvements (included in property and equipment) paid for by the landlord as a lease inducement	$	—		$	326,000

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