Quture (QUTR) Issues Shareholder Letter and Update

DAYTONA BEACH, FL--(Marketwired - Dec 9, 2013) - Quture International, Inc. (OTCQB: QUTR) ("Quture") today announced that the Chairman & CEO of Quture has released a comprehensive shareholder letter to all known shareholders of the Company. The letter provides an update on Quture business operations and a discussion of its future plans for making the Company a success in the last month of 2013, in 2014 and beyond.

December 9, 2013

Dear Quture/QUTR Shareholders & Supporters:

I am pleased to take this opportunity to share with you the progress of Quture in this past year and the basis for my belief that Quture, trading as QUTR, is well positioned in the healthcare market with our QualOptima product and consulting services bundled with the software. We have completed our vision statement for the Company and for the product, and we believe that our differentiation defined by both is the key to our future success. The market for our product has evolved remarkably in the past two years, consistent with Quture's strategic plan, as performance and outcomes measurement has expanded to the urgent need for clinical analytics. We believe that our Strategy Map will result in the success of commercialization of the QualOptima product in the short- and long-range future of Quture. And we further believe that the Company's laser focus on innovation of customer-centric products and now services are essential to our ultimate success.

Our immediate tasks begin with the staffing plan for Quture, to continue to recruit and employ a distinguished management team and support staff as the Company transitions from product development to sales. We intend to follow the addition of Alejandro Guardiola, CFA, CAIA, to become the Chief Financial Officer, with other key management executives to provide the leadership essential to the transition to an operations company. Quture is working with several well-qualified firms, as well as independently, to recruit and hire experienced executives in implementing product visions in health care and operating successful companies for the rapid growth intended for the Company.

Announced sales of the peer review/performance measurement application and pending negotiations with hospital reference sites for the expanded QualOptima product will be finalized with installations when the support staff is available for installation, training and support. The revenue model for QualOptima is now in final stages, ranging from annual and recurring license fees averaging $250,000 to transaction fees based on rates ranging from $5 to $8 per discharge per patient for 35.1 million inpatient discharges per year. Formulas for hospital size by bed number and facility complexity factors adjust the potential license fee average for small and rural hospitals as well as large hospitals on the other end of the size and complexity spectrum. Revenue goals after successful installation for six (6) months at reference sites are for market penetration for hospitals at 1.5% in the first year, then at 3% per year cumulative growth with high retentions from the 5,724 hospitals in America.

Simultaneously, Quture is in the process of filing patents to protect the intellectual property recommended to the Company by our Associate Medical Director from product development and testing with patients in the perioperative setting. The detailed results of the Clinical Trial at the University of Miami, Miller School of Medicine/Jackson Memorial Hospital will be published immediately following these patent filings. The next application of QualOptima is nearing completion for proctoring, including ongoing discussions for strategic alliances underway and deferred during patent filings. The now completed programming of QualOptima for peer review transitioning to performance measurement to comply with FPPE-OPPE standards will be augmented by the proctoring application, also required for FPPE-OPPE. These combined applications will truly distinguish and differentiate QualOptima in the healthcare market consistent with our product vision. The proctoring application adds medical device and genomics/proteomics companies to potential Quture customers with significant revenue potential for metrics determination and data sales. Quture is excited to be able to publish the detailed clinical results of this Clinical Trial and to be in a position to select initial reference sites for installation of the full QualOptima application. We have worked extensively with InterSystems Corporation, Cambridge, MA, in completion of the QualOptima version 1.0 and look forward to announcements of the results of the Clinical Trial implementing their extraordinary Ensemble Enterprise platform.

Quture continues to work with the next application to be developed for QualOptima proposed by Keith A. Candiotti, MD, for direct perioperative data collection and integration into the second-generation database. This perioperative application would supplement the collection of existing clinical data from vendor agnostic disparate databases. The intellectual property of Quture includes this ultimate product design and vision in the anticipated patent filings. Management is engaged in discussions with funding sources intended to capitalize the next product developments without diluting shareholders if possible. These discussions further anticipate creation of the proposed personalized medicine company. The Company is encouraged that potential funding sources concur that Quture is ahead of the technology wave for clinical outcomes analytics with transformative product data design on the InterSystems platform, especially in combination with our personalized medicine strategies.

Quture announced retaining new auditors for the pending 10-K and 10-Q's filings and filed for an extension of filing deadlines. In addition to changes in the reported basis for software design versus programming code for the year as opposed to previous years, the Company has requested examination of reported debt documentation in the Company's previous merger with Techs Loanstar, as well as several affiliations in that merger. Mr. Guardiola is serving as the primary financial advisor to Quture working with the Company's auditors in all aspects of these filings. Upon completion of these filings, the Company intends for Mr. Guardiola to formally become the Chief Financial Officer, and his duties will include work with legal counsel to be retained in any matters identified in this process.

Quture is completing programming the design of the Company's new website, which will provide unique navigation for both potential customers and investors. We are working with our partners and strategic alliances to deliver extensive information through text and video, as well as strategic links, for more definitive and complete insight into the Company and our QualOptima product. As we become even more aggressive for marketing and sales, the new website better informs potential customers on what the product delivers to meet their urgent needs. The content is focused to inform customers, as well as potential investors, on how QualOptima is strategically different from our competitors and their products and services.

The Company recently announced formation of its consulting subsidiary, QualVal Solutions, now filed as a Florida limited liability company with controlling interest owned by Quture. By making equity available for strategic experts and especially the QualPRO panel of expert physicians, incentives are available to attract the wide array of experts to consult through QualVal to achieve our goals and support our customers. In the course of marketing and sales, it became clear that customers with whom the Founder has consulted previously in peer review engagements for over 35 years desire continued consultation. Quture will benefit from licensing the QualOptima product in these bundled sales, as well as supplemental revenue from consulting from our distinct advantage as founders of external peer review to transition to performance and outcomes management for compliance in FPPE-OPPE and for value-based purchasing. Consulting services appear also advantageous for new healthcare entities to conform to federal legislation, such as accountable care organizations. The subsidiaries envisioned and information by Quture focus on the total array of potential customers for QualOptima, such as healthcare law firms for qui tam (whistleblower) cases, to proactively examine billing to mitigate against RAC audits for physicians and hospitals, and potentially form strategic consulting alliances and even integrate QualOptima functionality with electronic medical record vendors.

I want to make our strategy clear to investors about why we are positioning these subsidiaries in Quture. The clinical data the QualOptima product collects and analyzes into Quture's clinical knowledge has extraordinary value to the total array of potential customers. While we have explained the value of the product for internal purposes of hospital customers and their physicians, the same information has unique and immense value to patients and to the payers of their health care. Hospitals and their physicians can coordinate personalized care around patients' specific risk factors and outcomes. So the same clinical data can be formatted for a variety of personalized health uses, applied through different products and strategies in the various subsidiaries. HIPPA privacy compliance is essential, but very manageable when done within proscribed guidelines.

We have already emphasized the drivers for hospitals to license the QualOptima product. But two other major forces are converging beyond those: (1) the need for hospitals to market to their patients, potential patients and to the payers for health care in their region and (2) the transition to wellness and well care in a proactive, patient-centered healthcare system where patients and their employers take more responsibility in coordinating and directing their health and care. Quture's longer-term Strategy Map is focused on the market drivers that will evolve from forces such as mobile applications that will transform the medical model. Patients, payers and employer groups will drive healthcare providers to change their delivery model through technology and available clinical information and insight from such technology. Quture envisions its total array of customers to include these patients, health insurers and employer groups for transformative collaboration in optimal health and wellness, as well as their health care in America and, ultimately, internationally.

Hospitals are reported to spend more than $700 billion annually on advertising. However, less than 20% of U.S. hospitals are guided by an active strategy to market their brand, less than one-fifth of hospitals nationwide. "Brand" equity is probably the single most important tool in marketing, and hospitals increasingly need to strengthen their brand. As patients assume more active roles in healthcare decisions and health insurers focus more on results and costs as the value equation for provider selection, brand equity is becoming crucial in the highly competitive healthcare market.

My view is that forces in the health care market continue to converge at the juncture where QualOptima fills a crucial void that has inhibited hospitals and physicians from making clinical data-driven decisions to improve care and reduce costs. The shift from focusing on illness and promoting wellness while payment shifts to fee-for-value and value based purchasing will be extremely favorable to the Quture value proposition.  Quture remains committed to our primary focus to commercialize the QualOptima product. At the same time, Quture is evaluating technologies that could provide us with significant competitive and time-to-market advantages in the personalized health area as well. In order to enter the personalized health market earlier than the data from products timeline of our own technology will allow, we are considering opportunities to acquire assets or companies that provide supplementary clinical information and interdisciplinary products. These companies are both pre-revenue, as well as those that have already entered the market and are generating revenues. In addition, we are also looking at the possibility of purchasing or exclusively licensing personalized performance and outcomes technology that could be productized quickly. In order for us to move forward on either of these options, we would need to gain a significant and sustainable competitive advantage in addition to generating revenues.

In my mind, the way forward for Quture remains clear. We are continuing to develop our unique and proprietary clinical performance and outcomes enhancement technology in QualOptima and to demonstrate corporate value in patented intellectual property, as well as fundamentals with revenue. As we recruit and hire an exceptional management team and staff, we are also continuing to seek channel distribution options to augment our sales and marketing programs. We are exploring opportunities to quickly enter the rapidly emerging personalized health market with products that are based on technologies as compelling as our own. We intend to build on the solid foundation of best of breed technology with our outstanding Application Partner InterSystems and with outstanding physician medical directors. Quture is positioning to take immediate advantage of mobile application technology. We continue to strive to build a sustainable emerging growth company that provides lasting value to our customers and to you, our shareholders.

Sincerely,
Quture International, Inc.
G. Landon Feazell
Chairman & Chief Executive Officer

ABOUT QUTURE INTERNATIONAL, INC. ( www.quture.com )

Quture International, Inc. (QUTR) is the proven and experienced clinical performance and outcomes analytics company for health care in the United States. Ultimately, Quture is a healthcare data company whose QualOptima product strategically captures and integrates clinical information into its DaTA© database format to improve health and care, revenue, wellness and outcomes using its proprietary analytics system. The vision of Quture is to connect all constituents in the global health and health care community to clinical and financial data transformed through analytics to knowledge that empowers data-driven decisions for results-driven success.

Quture's technology for capturing, integrating and aggregating data on the InterSystems Enterprise platform as an Application Partner is unequalled. QualOptima develops a second generation CLINICAL database implementing Quture's core competence of clinical content with evidence-based metrics developed for more than 35 years in hundreds of performance measurement engagements. QualOptima empowers personalized clinical performance enhancement to achieve optimal patient outcomes. Quture's brand is centered on the value proposition of science, trust, transparency and independence. As the free enterprise solution to improving health and healthcare while reducing costs, Quture is positioned to become the leading clinical knowledge company in the world. Quture International is a Nevada corporation trading under the symbol QUTR.

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.