3M Health Information Systems Division announced today that the U.S. Department of Defense (DoD) Military Health System, one of the nation's largest health care providers, has awarded a multimillion dollar contract to 3M for ongoing licensing and maintenance of a comprehensive suite of 3M coding, compliance and data analysis software. The 3M software will be used by more than 2,000 health care personnel at over 500 military hospitals and clinics worldwide. The license agreement supports the global implementation of the DoD Military Health System's Coding Compliance and Editor (CCE) Project, which uses 3M software and consulting services to establish enterprisewide procedures for accurate patient coding, correct billing, compliance reporting and data management.

The software license was awarded in conjunction with a DoD deployment contract, announced in October 2004, for the worldwide installation and training of the CCE Project software. Both awards follow a 2002 DoD contract to 3M for a multisite demonstration of the software, which successfully passed an initial performance period in July 2004. In rolling out 3M software and services to DoD Military Health System facilities worldwide, 3M will team with Planned Systems International, a Columbia, Md.-based company and with Park City Solutions of Midway, Utah.

3M is providing the DoD Military Health System with data analysis and reporting tools for coding, grouping and editing; reimbursement calculations; patient data abstracting; care management evaluation; and medical necessity review. As part of the overall implementation, 3M also is providing process improvement and training services for Military Health System coding operations. The CCE project supports DoD goals to improve the accuracy of clinical information, promote correct billing, reduce the risk for noncompliance, trend clinical performance and improve revenue generation. The project is part of the DoD Resource Information Technology Program Office's TRICARE Patient Accounting System.

3M products comprising the DoD Coding Compliance and Editor project include the 3M Coding and Reimbursement System, 3M Physician Coding and Reimbursement System, 3M Coding Reference Software, 3M All Patient Refined DRG Software, 3M Audit Expert Inpatient Software, as well as 3M Health Record Management Software and the 3M Care Management System.

The contract covers all DoD Military Health System entities whose mission is to provide health care services to patients on land, at sea or in the air. The Military Health System provides health care services and support to 9.1 million beneficiaries, including members of the Armed Forces, their family members and others entitled to DoD health care, from worldwide theater of operations to the continental United States.

About 3M Health Information Systems

3M Health Information Systems, part of the 3M Health Care family, is a leading provider of advanced software tools and services that help health care organizations capture, classify and manage accurate health care data. Built on a foundation of more than 20 years of clinical, financial and administrative expertise, 3M Health Information Systems products help ensure the quality of data, which drives an organization's ability to manage revenue, comply with regulations, improve quality of patient care and manage resources effectively. 3M Health Care, the largest of 3M's seven major businesses, serves medical, dental, pharmaceutical and personal care markets. More information about 3M Health Information Systems is available at www.3Mhis.com and by calling 800-367-2447.

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Price Houns AssociatesMollie Houns, 952-920-6951or3M Public Relations and Corporate CommunicationsJohn R. Cornwell, 651-733-7698