Company nears 1,000 affiliated physicians and has established five HMO agreements WELLINGTON, Fla., Oct. 11 /PRNewswire-FirstCall/ -- The Quantum Group, Inc. (OTC:QTUM) (BULLETIN BOARD: QTUM) (http://www.qtum.com/) revealed today in a letter to its shareholders from President & CEO Noel J. Guillama, a look into the accomplishments of the Company throughout the summer months, and the subsequent opportunities that now lie ahead during the remainder of 2006 and first quarter of 2007. Mr. Guillama indicated a number of key areas of growth that occurred during the summer months. "Nearly 1,000 providers have chosen to join Renaissance Health Systems since we began our marketing efforts just over a year ago. Through the dedication and determination of our team of Provider Specialists, coupled with a significant increase in name recognition, physicians have been joining Renaissance Health Systems in greater numbers than ever before. We are approaching our target goal of 1,500 physicians by year-end." The Company has also expanded into a total of 18 Florida counties with its Community Health Systems (CHS). The Company expects that the following counties will be operational by January 1, 2007: Broward, Charlotte, Hillsborough, Lake, Lee, Manatee, Martin, Miami-Dade, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Sarasota, Seminole, St. Lucie, and Volusia. Guillama articulated that one of the Company's most notable areas of growth is in regard to the relationships established with different managed care health plans (HMOs). Through continued outreach and increasing industry awareness, Renaissance has attracted the attention of, and subsequently reached operational agreements with five HMOs for its Community Health System networks. These partnerships enable Renaissance to fully capitalize upon its physician-centric model which provides for increased efficiency and effectiveness for RHS physicians and value to payors. As these relationships continue to develop and evolve, Renaissance also fuels the motivation for new physicians to join their local CHS. The fourth key Company development was the launch of the first two strategic service solutions for RHS physicians. Medical billing and collections, as well as an array of insurance products designed exclusively for physicians, now comprise two additional opportunities for the Company. A recent article published in The Journal of Medical Practice Management (Outsourcing: Friend or Foe, by Judy Capko) stated, "Outsourcing has become a major contributor to reducing costs and providing relief for big business, but outsourcing doesn't just apply to large corporations shifting work offshore. It can be a smart move for medical practices. With rising costs and tight controls on reimbursement, physicians need to review expenses and find ways to reduce costs while tapping into an equal or higher level of expertise. Outsourcing offers an attractive solution, and you don't have to go offshore." According to the article, billing and collections is cited as just one of the ways many medical practices are reducing expenses. QMED Billing, Inc., the medical billing and collections entity, helps physicians reduce their expenses related to the billing processes and works to improve and increase the physician's cash flow. The Quantum Agency, Inc. is a multi-faceted insurance company that offers products designed exclusively for the medical professional. Products include malpractice, workers' compensation, life, health and disability. Finally, the Company took great strides to organize the corporate office, support systems and cost control measures to facilitate continued growth and expansion. CURRENT STATUS AND OPPORTUNITIES Through the great progress experienced during the summer months and prior, the Company believes it is well prepared for the current opportunities at hand. Effective November 15th the Company's HMO partners can begin to enroll new patients. This period of "open enrollment" caries through until March 30, 2007 at which time all traditional marketing and enrollment activities by all Medicare HMOs must cease. According to Guillama, Renaissance will begin coordinating the care of these newly enrolled patients with coverages beginning January 1, 2007. Guillama stated, "It is important to note that we expect significant patient enrollment. The 18 counties in which we have Community Health Systems represent over 68% of the total Medicare eligible population in the state of Florida. In 2007, the Company plans to expand into four additional counties which will expand our market penetration into the 22 counties that comprise 78% of the total statewide Medicare eligible population." (Source: Medicare Beneficiaries: 2006. (2006). The Henry J. Kaiser Family Foundation) In addition to the continued expansion efforts on behalf of Renaissance Health Systems, the Company will also be actively expanding its strategic service solutions for its Renaissance physicians beyond the insurance products and medical billing and collections services. The rollouts of additional solutions are currently under investigation, and include hospitalist services, clinical trials, employee leasing, financial management and more. Guillama concluded his correspondence to shareholders with a look ahead towards the upcoming months. "The holiday season traditionally represents a time when most companies 'slow-down' -- this could not be further from the truth for Quantum/Renaissance. From this point forward through April 1st, our staff, partners and resources will be at full-throttle. We have taken a great deal of meticulous planning and execution over the last two years to accommodate this anticipated rapid growth with the evolving Medicare Advantage opportunity, and are eager to implement our strategic systems." The Quantum Group, based in Wellington, Florida, is one of Florida's largest community based healthcare systems. In conjunction with its subsidiary company, Renaissance Health System of Florida, Inc. (RHS) (http://www.rhsfl.com/), Quantum provides administrative and service solutions to the Florida Medicare Advantage managed care industry as well as to the over burdened physicians of Florida. Through our growing number of nearly 1,000 contracted physicians and multiple managed care relationships in the state of Florida, we are strategically positioned to bring increased and highly valued efficiencies to the over $100 billion Florida healthcare industry. According to an article published in the August 22, 2006 edition of the New York Times (By Gina Kolata), "By 2030, predicts Robert W. Fogel, a Nobel laureate at the University of Chicago Graduate School of Business, about 25 percent of the G.D.P. will be spent on health care, making it 'the driving force in the economy,' just as railroads drove the economy at the start of the 20th century." Certain statements contained in this news release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective Company's Securities and Exchange Commission 10-KSB, 10-QSB, S-8 and 8-K filings, that may cause actual results to materially differ from projections. Although the company believes that its expectations are reasonable assumptions within the bounds of its knowledge of its businesses, expectations, representations and operations, there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the company's ability to execute properly its new business model, to raise substantial and immediate additional capital to implement its continuing business model, the ability to attract and retain personnel -- including highly qualified executives, management and operational personnel, ability to negotiate favorable current debt and future capital raises, ability to manage the care of its patients with reasonable medical loss ration, ability to negotiate beneficial managed care agreements with a diversified and expanding provider base, continue to supply the services needed by the HMO clients as well as the growing list of physician clients and the inherent risk associated with a diversified business to achieve positive cash flow. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will, in fact, occur. Media Contact: Danielle Amodio Vice President Corporate Communications The Quantum Group, Inc. 561.798.9800 DATASOURCE: The Quantum Group, Inc. CONTACT: Danielle Amodio, Vice President Corporate Communications of The Quantum Group, Inc., +1-561-798-9800 Web site: http://www.thequantumgroupinc.com/ http://www.rhsfl.com/

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