XyoMed business model based on strategic partnerships, has many competitive advantages:

• XyoMed Inc. and CyberMedix Medical Systems, LLC have entered into an agreement to collaborate on the delivery of medical services to the growing homecare industry. CyberMedix will license XyoMed's Internet ASP based Electronic Health Record (EHR) -This collaboration will combine "Point of Care" connectivity of intelligent medical devices and EHR at the homecare location to hospitals, clinics, and physicians. This remote location data management capability essentially will become virtual hospital rooms for specialty patients. This paradigm shift, provides for moving qualified patients to the home environment, opening critically needed hospital beds while saving Medicare billions of dollars, by providing quality patient care to the patient in the comfort of their own home at a much lower cost. Additionally XyoMed will license CyberMedix Beside Alarms and Asset Tracking systems adding to its product portfolio for the hospital world-wide.

• XyoMed entered in partnership with Computer System Integration (CSI), a Software development company that will continue to significantly lower the cost in providing engineering resources with extensive experience in development of Hospital Information Systems (HIS). In addition, CSI has provided approximately a million dollar Software IP of a Hospital Information System, successfully deployed at a major hospital site overseas that currently holds one million patient records which has been in use for past six Years. XyoMed is leveraging the HIS IP in developing an updated version of the product, called eGenesis. The products will remain the sole property of XyoMed Inc.

• XyoMed Inc. has formed a Medical Advisory Board comprised of doctors and EHR implementation strategists from different hospitals, who are contributing to the design of the Company's medical products, with competitive advantage from an end user point of view.

• National Institue of Health - NIH pre-approved XyoMed RHET Technology for a Million dollar grant to run pilot program on Remote Health Evaluation and Treatment. Application is currently under review.

• XyoMed will collaborate with Channel partners for vast and rapid deployment of the products. The revenue generated from the sales will fund further sales expansion, as the channel partners will be commissioned based. XyoMed anticipates that future partnerships arising from ongoing discussions will enable a leaner, more effective sales force.