Exhibit 99.3

                                  Press Release

                              FOR IMMEDIATE RELEASE

Contact Information:

MedicaLogic Media:
Alexa Venegas
Young & Roehr Group
503.222.0626 ext. 542
avenegas@young-roehr.com


MedicaLogic Investor Relations:
Jeanne Hanson
503.531.7000
investor_relations@medscapeinc.com


            MEDICALOGIC/MEDSCAPE TO SELL HEALTH INFORMATION PORTALS TO
                                      WEBMD

  Sale of Medscape.com and Medscape Health For Consumers Allows the Company
                  to Focus on Digital Health Record Applications

     Hillsboro,  Ore., December 26, 2001 -  MedicaLogic/Medscape,  Inc. (NASDAQ:
MDLI),  a  leading   provider  of  digital  health  records  and  online  health
information,  announced today that it will sell the assets and operations of its
Internet Portals business to WebMD Corporation (NASDAQ:  HLTH). With the sale of
assets,   which   includes   the  sale  of  the   Medscape   brand,   to  WebMD,
MedicaLogic/Medscape,  Inc.'s digital health record business will continue to be
conducted under the MedicaLogic name.

        Under terms of the deal, finalized on December 26, WebMD will pay
MedicaLogic/Medscape, Inc. $10 million in cash effective immediately for the
portals business assets, including the "Medscape" trademark and the two related
health care information portals, Medscape.com (www.medscape.com) and Medscape
Health For Consumers (www.medscapehealth.com).

     From its  headquarters in Hillsboro,  MedicaLogic will continue to focus on
the  development  and deployment of its digital health record  applications  and
services,  which  provide  timely  access to  patient-specific  information  and
decision  support at the point of care. The company's  business model will focus
on perpetual license,  subscription payments and support services for its health
care  applications  and services.  MedicaLogic will be led by its executive team
that includes Mark Leavitt,  MD, Ph.D.,  chairman;  David C. Moffenbeier,  chief
executive  officer;  Donald  Bloodworth;   chief  financial  officer  and  chief
operating officer; and Mark Boulding, executive vice president, legal.

     "We have been investigating various options that will improve the financial
condition of the company,  and that ultimately will make sense for our business,
our customers and our shareholders," said Mark Leavitt,  M.D., PhD., MedicaLogic
chairman. "The sale of the portal business helps us achieve that end, and allows
us to  continue  to focus on our  core  strength  - our  digital  health  record
business."

     Information about MedicaLogic and its products and services can be found at
www.medicalogic.com.

ABOUT MEDICLOGIC

     MedicaLogic (NASDAQ: MDLI) is a leading provider of digital health records.
The core of  MedicaLogic's  product  portfolio is the  industry-leading  Digital
Health Record (DHR).  DHR  applications and services are an integral part of the
practice of medicine and are used every day by physicians  and consumers  across
the country.

     MedicaLogic's DHR enables physicians to access patient  information,  share
data with existing  systems,  communicate among practice members and capture and
store quantifiable data for patient-by-patient or population-based  studies. The
DHR also enables  practice sites to interact with their patients  electronically
to answer questions, schedule appointments and address personal health concerns,
while offering  consumers  private  access to their medical  records and related
disease management  information and services.  More than 15 million patients now
have digital  records  hosted on MedicaLogic  systems.  More  information  about
MedicaLogic's   products   and   services   is   available   on   the   Web   at
www.medicalogic.com.

     The  Company,   headquartered  in  Hillsboro,   Oregon,  currently  employs
approximately 200 people.

     MedicaLogic and Logician are registered trademarks of MedicaLogic/Medscape,
Inc. in the United States. Other product and brand names are trademarks of their
respective owners.

        The statements in this press release regarding our prospects for growth,
increasing revenue, reducing costs, and our plans to achieve profitability are
forward-looking statements based on current information and expectations.
Achievement of those results is subject to a number of risks and uncertainties,
including the risk that our products and services will not be accepted by
physicians; the risk that we may not be able to introduce new products on
schedule or at all; the risk that our costs may not be reduced to the extent
anticipated; and the risk that we may not achieve favorable operating results or
profitability. The reader is cautioned not to place undue reliance on
forward-looking statements, which are not a guarantee of future performance. For
more information concerning these and other possible risks, please refer to our
Form 10-K/A for the year ended December 31, 2001, our Form 10-Q for the quarter
ended September 30, 2001 and other filings with the Securities and Exchange
Commission. These filings can be accessed over the Internet at www.sec.gov.
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