Authentidate Holding Corp. Reports Record First Quarter Revenues

Authentidate Holding Corp. Reports Record First Quarter Revenues

Strength in Telehealth Sales, VA Rollout, Drive 96% Increase in Revenues and
Improved Operating Results

BERKELEY HEIGHTS, N.J., Nov. 14, 2013 (GLOBE NEWSWIRE) -- Authentidate Holding
Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and
telehealth products and services for healthcare organizations, today announced
financial results for the three-month period ended September 30, 2013.

Selected highlights for the fiscal first quarter include:

  *Increased revenues approximately 96% to a record $1.8 million compared to
    $0.9 million for the prior year quarter. This was a 25% sequential
    increase compared to the fiscal fourth quarter of 2013. Year-over-year and
    sequential revenue increases from current operations were primarily due to
    growth from telehealth products and services.
  *Improved operating margins and reduced operating loss and net loss for the
    quarter compared to the prior year period.
  *Started enrolling patients for our Department of Veterans Affairs (VA)
    telehealth pilot program for Human Immunodeficiency Virus (HIV) patients
    and announced new customers for our telehealth and referral management

Following the end of the quarter the company announced its strong support for
the VA's commitment to telehealth solutions. The VA has continued to expand
its focus on using technology for in-home telehealth as demonstrated by its
recently released 2014-2020 Draft Strategic Plan, as well as its requested
appropriation of $460 million for telehealth for the 2014 fiscal year, an
increase of $19 million over the prior year. The company also announced the
completion of a private placement transaction from which it received
approximately $2.4 million in net proceeds.

Ben Benjamin, Chief Executive Officer of Authentidate, stated, "This was a
strong start to our fiscal 2014 year, with record revenues and a continued,
steady narrowing of operating and net losses. The acceleration of our growth
rate reflects the results of our efforts to deploy our state-of-the-art
telehealth platform with the VA, as well as other customers. We have seen a
healthy uptick in patient activation, and continue to experience increased
demand as healthcare organizations look to improve efficiency and access to
care. The simultaneous improvement in our operating and net loss compared to
the prior year period demonstrates the value of our business model, which
benefits from a relatively fixed cost base. We believe that the strong quarter
demonstrates that we are well on our way to realizing our financial objectives
for the year, and believe the trends relative to revenue growth and improved
operating efficiency are sustainable. We also believe that our recent private
placement transaction will position us to more aggressively grow revenues,
establish a greater presence in the marketplace and respond to new product
orders and opportunities as they arise."

First Quarter Fiscal 2014 Financial Results

Revenues for the quarter ended September 30, 2013 increased approximately 96%
to $1.8 million compared to $0.9 million for the prior year period and
increased approximately 25% sequentially from $1.4 million for the fourth
quarter of fiscal 2013. These increases were due primarily to increased
revenues from telehealth products and services.

Operating loss for the quarter ended September 30, 2013 was $1.8 million
compared to $2.0 million for the prior year period. This decrease reflects the
increase in revenues which offset increases in selling and investor relations
expenses. Net loss for the quarter was $1.9 million, or $0.09 per share,
compared to $2.5 million, or $0.11 per share, for the prior year period. The
decrease in net loss for the period is due primarily to higher revenues and a
decrease in the non-cash amortization of the debt discount which offset the
increase in expenses for the quarter.

Balance Sheet

As of September 30, 2013 cash, cash equivalents and marketable securities were
$2.5 million and the company had working capital of $3.2 million.

Mr. Benjamin concluded, "In addition to our relationship with the VA, we also
maintained our strategy of delivering our hospital discharge and referral
management solutions to customers to help them lower costs and increase
efficiencies as they confront ongoing regulatory reforms and industry trends
focused on cutting costs while improving patient outcomes. We have a number of
RFPs (request for proposals) in the pipeline and believe that as our customers
are successful in their bidding processes we will be well positioned to
capitalize on these trends as well. The strategic goals of healthcare reform
initiatives, including those within the Affordable Care Act, are very much
in-line with our offerings, and we believe that these efforts will only drive
increased demand for Authentidate's solutions."

Conference Call Details

Management will host a conference call on Thursday, November 14, 2013, at 4:30
p.m. ET, to discuss the latest corporate developments and results. The dial-in
number for callers in the U.S. is 877-407-8293 and the dial in number for
international callers is 201-689-8349.

Participants may also access a live webcast of the conference call listed on
Authentidate's Investor Events Page at URL:

A dial-in replay of the call will be available through November 21, 2013. To
access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415
internationally, and then enter the conference ID #13572642.After that, a
link to replay the webcast of the conference call will be listed on
Authentidate's Investor Events Page at

About Authentidate Holding Corp.

Authentidate Holding Corp. is a provider of secure web-based software
applications and telehealth products and services that enable healthcare
organizations to coordinate care for patients and enhance related
administrative and clinical workflows. Authentidate's products and services
enable healthcare organizations to increase revenues, reduce costs and enhance
patient care by eliminating paper and manual work steps from clinical and
administrative processes. Authentidate's telehealth solutions combine patient
vital signs monitoring with a web application that streamlines patient care
management.Delivered as Software as a Service (SaaS), customers only require
an Internet connection and web browser to access our web-based applications
thereby utilizing previous investments in systems and technology. The
company's healthcare customers and users include leading homecare companies,
health systems, physician groups and governmental entities. These
organizations utilize the company's products and services to coordinate care
for patients outside of acute-care.

For more information, visit the company's website

This press release contains forward-looking statements within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the Securities
Act of 1934. When used in this release, the words "believe," "anticipate,"
"think," "intend," "plan," "will be," "expect," and similar expressions
identify such forward-looking statements. Such statements regarding future
events and/or the future financial performance of the company are subject to
certain risks and uncertainties, which could cause actual events or the actual
future results of the company to differ materially from any forward-looking
statement. Such risks and uncertainties include, among other things, the
availability of any needed financing, the company's ability to implement its
business plan for various applications of its technologies, the impact of
competition, the management of growth, and the other risks and uncertainties
that may be detailed from time to time in the company's reports filed with the
Securities and Exchange Commission. In light of the significant risks and
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such statements should not be regarded as a representation by the
company or any other person that the objectives and plans of the company will
be achieved.

Authentidate and Inscrybe are registered trademarks of Authentidate Holding
Corp. All other trade names are the property of their respective owners.

Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheet Data
                                                     September 30, 
                                                     2013          June 30,
( in thousands, except per share data )               (Unaudited)   2013
Current assets                                                     
Cash and cash equivalents                             $2,293      $3,505
Restricted cash                                       256          256
Marketable securities                                 210          210
Accounts receivable, net                             630          566
Inventory                                             3,273        3,959
Prepaid expenses and other current assets            667          688
Total current assets                                 7,329        9,184
Property and equipment, net                          654          733
Other assets                                                       
Licenses, net                                         2,026        2,082
Other assets                                          1,173        1,194
Total assets                                         $11,182     $13,193
Liabilities and Shareholders'Equity                               
Current liabilities                                                
Accounts payable, accrued expenses and other          $3,214      $3,459
Senior secured notes, net of unamortized discount     819          724
Deferred revenue                                      117          150
Total current liabilities                            4,150        4,333
Long-term deferred revenue                            178          184
Total liabilities                                     4,328        4,517
Commitments and contingencies                                     
Shareholders' equity                                              
Preferred stock, $.10 par value; 5,000 shares
authorized, Series B, 28 shares and Series D, 665     69           69
shares issued and outstanding on September 30, 2013
and June 30, 2013, respectively
Common stock, $.001 par value; 100,000 shares
authorized, 35,360 and 35,339issued and outstanding  35           35
onSeptember 30, 2013 andJune 30, 2013,
Additional paid-in capital                           197,561      197,409
Accumulated deficit                                  (190,811)    (188,837)
Total shareholders' equity                           6,854        8,676
Total liabilities and shareholders' equity           $11,182     $13,193

Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statement of Operations and Comprehensive Operations
                                            Three Months Ended
                                            September 30,
(in thousands, except per share data)        2013             2012
Hosted software services                     $639           $667
Telehealth products and services             1,166           254
Total revenues                               1,805           921
Operating expenses                                           
Cost of revenues                             1,295           700
Selling, general and administrative          1,862           1,736
Product development                          241             248
Depreciation and amortization                186             204
Total operating expenses                     3,584           2,888
Operating loss                               (1,779)         (1,967)
Other (expense) income, net                  (95)            (548)
Net loss                                     (1,874)         (2,515)
Basic and diluted loss per common share      $(0.09)        $(0.11)
Comprehensive operations                                     
Net loss                                     $(1,874)       $(2,515)
Comprehensive loss                           $(1,874)       $(2,515)

CONTACT: Investor Contacts:
         Peter Seltzberg, Hayden IR,  or (646) 415-8972
         Brett Maas, Hayden IR,  or (646) 536-7331

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