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To: John F. Poteraske who wrote (860)9/8/1999 10:23:00 PM
From: Nikole Wollerstein  Read Replies (1) | Respond to of 897
 
ALABASAS, Calif.--(BUSINESS WIRE)--Sept. 8, 1999--Creative Computer Applications Inc. (CCA)(AMEX:CAP - news),
a provider of Clinical Information Systems for hospital, and clinic-based laboratories, pharmacies, and radiology imaging centers,
Wednesday announced that it has formed a new wholly owned subsidiary, Xymed.com, that is being developed as an Application
Service Provider (ASP) and a provider of data center outsourcing services.

Xymed.com will offer CCA's Clinical Information Systems products to clients via private dedicated wide area networks and over
the Internet. As an ASP, Xymed.com will provide software-based services to clients on a fee-for-service basis, which will
eliminate a good portion of the hardware costs for servers and related equipment.

Clients will make no capital outlays for servers or software, but will instead pay a monthly fee for the services. In addition,
Xymed.com's staff at the Company's data center will perform the operational information technology functions normally
associated with an installation.

Over one year ago, CCA released a browser-enabled version of its Clinical Information Systems products and announced the
release of the CCA Web-Server(TM) that provides browser access to the Company's CyberLAB II© Laboratory Information
Systems and is currently in use in several client sites.

Clients have employed this technology to provide low-cost access to literally thousands of physicians and other caregivers any
time any where, thus providing important clinical information on an instantaneous basis. This capability leads to improved patient
care and reduces costs associated with treatment.

Steven M. Besbeck, President and CEO, stated: ``The formation of Xymed.com as an ASP is a logical evolution of our web
strategy and is in response to inquiries by existing clients that want to reduce their information technology expenses while
extending their clinical information to a broader constituency. We intend to begin offering services as early as January 2000 after
the completion of our beta test.

``Xymed.com was formed to solely focus on providing application services and outsourcing and may be independently
capitalized in order to pursue its business strategy.'

This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are inherently subject to uncertainties and other factors, which could
cause actual results to differ materially from the forward-looking statement. Creative Computer Applications Inc. refers interested
persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of certain additional
uncertainties and factors which may affect forward-looking statements.

Contact:

Creative Computer Applications Inc., Calabasas
Steven M. Besbeck, 818/880-6700, ext. 252