Crescent Communications Inc. (CCES.OB) 10-Q Reflects Ongoing Equity Increase; BLUEGATE Division Sets Sights on Medical Industry Returns from HIPAA Adoption


HOUSTON, Nov. 19, 2002 (PRIMEZONE) -- Crescent Communications Inc. (OTCBB:CCES), a leading value added network (VAN), is adapting its business to meet the Congressional mandate standardizing electronic uniformity of communications in the healthcare industry under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

HIPAA, passed by U.S. Congress, mandates that the entire U.S. health care industry process all health care information, including billing and record storage, through a secure data interchange beginning on April 14, 2003.

"We're excited about the opportunity the changing health care system presents," Crescent President Jeff Olexa says. "Crescent -- with our strength in the technology sector -- is uniquely poised to handle the needs of the medical community."

To meet the Congressional mandate, CCES is expanding its operations and targeting the medical vertical market under the brand name BLUEGATE(tm). The Sept. 30, 2002, Crescent 10-Q filing reported expenses attributable to expansion from the core business into the medical industry.

BLUEGATE is the HIPAA-compliant broadband digital connectivity offering for health care providers nationally. Crescent uses a variety of local and national data networks to create a vast footprint for its high-speed secure data network. The BLUEGATE mission: To support the medical community by providing secure, reliable connectivity driven by knowledge and creativity.

BLUEGATE created and operates the first industry specific virtual private network (ISVPN) deployed to address the specific needs of the medical community for affordable, reliable, rapid and secure connectivity. The network was designed around an MPLS Packet Core using Cisco hardware and IOS for the network foundation. This architecture will offer required flexibility and scalability.

Based in Houston, Crescent Communications provides VANs focused on small-business and enterprise-level market segments. Crescent builds industry-specific, end-to-end solutions for such vertical markets as medical, high-end graphics and printing, legal and financial.

Using several regional and national carriers, Crescent offers wireless, digital subscriber line (DSL) and traditional communication technologies. Crescent delivers virtual private networks (VPNs), application and Web hosting services, as well as managed firewall services from its ATM core fiber backbone network. For more information, visit http://www.crescentb.com.

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