AUXILIO Complements Managed Print Services Business with Acquisition of DelphiisTM - an Information Security Company

  AUXILIO Complements Managed Print Services Business with Acquisition of
  DelphiisTM - an Information Security Company

   Services and SaaS Platform Application addresses the Exponential Rise in
   reported Healthcare Security Breaches and HIPAA Compliance Concerns for
                                  Hospitals

         Management to Host Conference Call July 8, 2014 @ 4:30 PM ET

Business Wire

MISSION VIEJO, Calif. -- July 8, 2014

AUXILIO, Inc. (OTCQB:AUXO), the nation’s leading Managed Print Services (MPS)
company for the healthcare industry, announced today that it is acquiring
California-based Delphiis, a pioneer in the information security, risk
management and compliance industry. Delphiis helps organizations manage their
information security through Professional Services, Managed Services and
licensing of their patented SaaS platform risk assessment and management
solution.

AUXILIO is purchasing Delphiis through a combined cash and stock deal valued
at approximately $2.7 million dollars plus additional commitments from and
incentives to retain the existing management team including Mike Gentile,
Founder and Chief Technology Officer (CTO) of Delphiis as AUXILIO’s Executive
Vice President of Innovation and Security.

Joe Flynn, CEO of AUXILIO, stated, “We are excited to add Delphiis to our
existing suite of services focused on helping healthcare customers solve
critical information security issues while saving money. Delphiis’ talented
team of information security professionals will enable us to scale this new
service offering to AUXILIO’s installed customer base while leveraging our
existing field staff. This acquisition helps achieve our broader goals of
driving incremental revenue growth with margin expansion opportunities.”

Mike Gentile, Founder and CTO, of Delphiis stated, “The similarities between
the Delphiis and AUXILIO business models, from both offering solutions that
impact every aspect of an organization, to common decision makers and types of
customers we serve, are extensive. Further, and most importantly, our core
mission is to solve complex security challenges with simple, fast and
collaborative solutions delivered with the highest quality of customer
service. In the realm of print management, AUXILIO has taken this same
approach and in doing so has won the respect and business of an impressive
roster of clients. The similarities in our business models make us very
excited about the opportunity and believe the combination of the two
businesses accelerate customer adoption and provides Delphiis with an
opportunity for national expansion.”

About Healthcare Information Security

While the major transformation of the healthcare industry continues with
implementing the Affordable Care Act (ACA) and the surge in health system
mergers and acquisitions, the industry is also under extreme pressure to
comply with government mandated information security regulations.
Specifically, the industry is focused on the Health Information Portability
and Accountability Act of 1996 (HIPAA) requirement for healthcare entities to
provide notifications of breaches of unsecured Protected Healthcare
Information (PHI). Such information breaches costs the healthcare industry
$5.6 Billion annually, as reported in Healthcare IT News June 2014 from
research by the Ponemon Institute. Further, since 2009, 31.4 million people
have been notified of PHI breaches and the U.S. Department of Health & Human
Services (HHS), Office of Civil Rights (OCR) has levied $25.1 million in fines
to healthcare providers. The OCR also reported that 27% of the PHI breaches
have been paper related with the balance from electronic and other sources. As
the healthcare industry continues to evolve, ensuring information security for
both printed and electronic information will remain a top priority.

CONFERENCE CALL

Management will host a conference call to further discuss the acquisition,
integration and growth strategy.

Date: July 8, 2014
Time: 4:30 p.m. ET
US Dial-in: 1-888-724-9511
International Dial-in: 1-913-312-0935
Conference ID: 9892816
Webcast: http://public.viavid.com/index.php?id=109873

Please dial in at least 10 minutes before the start of the call to ensure
timely participation. A playback of the call will be available until 11:59
p.m. ET on July 22, 2014. To listen, call 1-877-870-5176 within the United
States or 1-858-384-5517 when calling internationally. Please use the replay
pin number 9892816.

About Delphiis

Based in Orange County, California, Delphiis provides simple, fast, and
efficient solutions to help organizations identify and address information
security risks associated with best practices and governmental regulations,
including HIPAA. Delphiis’ services include providing detailed risk assessment
analysis; managed application modules for ongoing compliance assessment;
remediation planning and analytics of risk trends and metrics; and
professional services to develop security programs, monitor security threat
situations and remediate security issues and concerns identified during
incident management processes. Delphiis’ current customer base includes
several prominent university hospitals, as well as some of the nation’s
leading health systems. Delphiis’ historical sources of revenues include
Professional Services, recurring Managed Services and license fees from their
patented SaaS applications.

Mr. Gentile serves on multiple technology advisory boards and is also known
for co-authoring “The CISO Handbook: A Practical Guide to Securing Your
Company” (Auerbach Publications 2005), the definitive guide for Chief
Information Security Officers and used as course material for numerous
advanced education and Master’s programs on security leadership around the
world.

For more information about Delphiis, visit: www.Delphis.com

About AUXILIO, Inc.

AUXILIO is the leading provider of Managed Print Services for the healthcare
industry. A true Management Services company, AUXILIO takes full
responsibility for healthcare customers’ onsite print environment. Hospitals
and health systems benefit from infrastructure and process improvements that
immediately reduce the cost of print/digital systems, provide sustainable
increases in employee productivity and enables hospital staff to better focus
on providing patient care. AUXILIO also provides a wide range of healthcare IT
advisory and professional services using the same focused approach on cost
savings and operational efficiencies as their core managed print services
business.

Founded in 2004, AUXILIO serves a national portfolio of over 100 hospital
campuses and manages in excess of 1.3 billion documents annually from over
59,000 devices supporting more than 250,000 caregivers. AUXILIO’s business
model is vendor neutral, provides full-time, on-site customer service and
technical experts and is exclusive to the healthcare industry.

For more information about AUXILIO, visit http://www.AUXILIOinc.com/.

Forward Looking Statements

This release contains certain forward-looking statements relating to the
business of AUXILIO, Inc. that can be identified by the use of forward-looking
terminology such as “believes,” “expects,” “anticipates,” “may” or similar
expressions. Such forward-looking statements involve known and unknown risks
and uncertainties, including uncertainties relating to product/services
development, long and uncertain sales cycles, the ability to obtain or
maintain patent or other proprietary intellectual property protection, market
acceptance, future capital requirements, competition from other providers, the
ability of our vendors to continue supplying the company with equipment,
parts, supplies and services at comparable terms and prices and other factors
that may cause actual results to be materially different from those described
herein as anticipated, believed, estimated or expected. Certain of these risks
and uncertainties are or will be described in greater detail in our Form 10-K
and Form 10-Q filings with the Securities and Exchange Commission, which are
available at http://www.sec.gov. AUXILIO, Inc. is under no obligation (and
expressly disclaims any such obligation) to update or alter its
forward-looking statements whether as a result of new information, future
events or otherwise.

Contact:

Investor Relations:
MZ North America
Dustin Salem
Senior Vice President
Direct: 949-259-4998
dustin.salem@mzgroup.us
www.MZgroup.us
or
Media Relations:
AUXILIO Inc.
Jim Palmer
Marketing Consultant
Direct: 949-433-6512
jpalmer@auxilioinc.com
www.AUXILIOinc.com
or
Media Relations:
Delphiis
Carrie Mulcahy
Marketing Director
Direct: 949-310-2548
carrie.mulcahy@delphiis.com
www.Delphiis.com
 
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