infologix, inc. nasdaq: iflg june 2008

InfoLogix, Inc.NASDAQ: IFLG

June 2008

© 2008 InfoLogix, Inc. Confidential materials.

Forward Looking Statements

This presentation contains certain forward-looking statements within the

meaning of the federal securities laws. We make forward-looking statements which

represent our expectations or beliefs about future events and financial performance.

Forward-looking statements are identifiable by words such as "believe," "anticipate,"

"expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any

statements that refer to expectations, projections or other characterizations of future

events or circumstances are forward-looking statements. Forward-looking statements are

subject to known and unknown risks and uncertainties, including those described in the

filings of InfoLogix, Inc. with the Securities and Exchange Commission.

In addition, actual results could differ materially from those suggested by the

forward-looking statements, and therefore you should not place undue reliance on the

forward-looking statements. We do not make any commitment to revise or update any

forward-looking statements to reflect events or circumstances occurring or existing after

the date of any forward-looking statement is made.

2© 2008 InfoLogix, Inc. Confidential materials.

Investment Highlights

National provider of mobile information technology solutions, that delivers location and asset management tracking of workforce and inventory at the point of POC and POA.

Solutions include consulting, software, managed services, devices and infrastructure

– Demonstrated return on investment (ROI) for corporate & hospital organizations

Extensive customer base in healthcare and enterprise

– 1,400 hospitals

– 800 enterprise installations

Proprietary software and intellectual property, RFID patent portfolio

2007 revenue of $78.8 million, up 27% from $62.1 million in 2006

2008 guidance: $100 million in revenue, or 27%+ growth, and profitability


About InfoLogix

We enable customers to deploy mobile enterprise solutions to improve productivity and reduce costs through real-time data collection

Total solution, from infrastructure through business process re -engineering

Design, implement and manage sector-leading mobility and wireless solutions

Short sales cycle and implementation period

Primarily focused on healthcare with secondary focus on retail, distribution and logistics

Proprietary software applications and RFID patent portfolio

National company with a national sales force


Competitive Positioning

5

Deeper offering of complementary services

Higher blended margin target of 30% to 40%

CiscoVerizonCingular

RFID-BarcodeHandheldCare Station

Customer Care Help DeskProvisioning

Mobile and RFID Applications eLearningDelta, Aware and AMTSystems IP

Streamline workflowsBusiness process re-engineeringHIA, Delta and Aware50%-60% Margin50%-60% Margin

75% Margin75% Margin

50%-60% Margin50%-60% Margin

35% Margin35% Margin

20%-25% Margin20%-25% Margin


Revenue Outlook – Product/Service Mix

InfoLogix Revenue Mix (Target)

Distributor Hardware10% Software / Services

40%

Infologix Mobile50%

Revenue Growth

REVENUE MIX BY SERVICE LINE

Software/Services

InfoLogix Mobile

Distributor Hardware

2006 Actual

15%

18%

45%

37%

2007 Actual

27%

33%

47%

20%

Forward Target

30-40%

40%

50%

10%

6 Confidential Copyright InfoLogix, Inc. 2008

Our Approach to Engagements

Positioned as single-source provider of enterprise mobility solutions

– From handheld devices to business process and workflow re-engineering

Presence at the customer is an opportunity to upsell additional solutions

“Small engagements lead to big engagements” Engagements start at approximately $300k,

below radar of industry giants but above capability of local firms

Recurring revenue opportunities – Proprietary software

– Managed Services

© 2008 InfoLogix, Inc. Confidential materials. 7

Consulting Services

Customized solutions for unique client needs focused on delivering concrete results

– Project assessment, planning and design

– Implementation

– Training

75 full-time consultants, 500 successful engagements– Certified Healthcare Practitioners - RNs, pharmacists, nurse practitioners, lab

technicians, radiologists, revenue cycle management

– Experienced project managers and engineers

Focused on faster ROI through successful, efficient HIS implementation– Improve process efficiencies

– Improve profitability

– Increase cash flow

50% - 60% gross margin


Product Offerings

Proprietary RFID, mobility and OnDemand software applications– HealthTrax RFID Asset Tracking Software

• Patient and equipment location tracking

• Procedure tracking

• Patient Security

– Customer Care Portal

• Real-time access to service information maintained by our professional staff

• Allows us to competitively manage our implementations

– Commercial RFID and Software Solutions

• Vehicle tracking and fleet management

• Warehousing logistics / inventory management

• Mobile point of sale systems

– 75% gross margins

Infrastructure– Mobile Care Stations

– Mobile point of activity devices

– Wireless networking solutions


10

Real Time Tracking and Location System

11

It’s NOT about the RFID TAG, It’s about the Data

Dashboard – RFID Data Analytics Trending

Empowers customers full visibility into mobile solution deployment

Web-based, centralized reporting center

Data Analytics - Customer Portal

Self Service Support Visibility

Asset Tracking

Get Service

Role Based Access

Site, Region, Corporate

Summary Dashboards

Standard Reports

Custom Reports

Trends

7x24x365

Dedicated Hosting

Intellectual Property

19 patents issued for:– RFID technology that manages proper medication delivery and administration

– Wearable computers

Patent applications pending for:– Medication delivery and administration

– Power solution for mobile workstations

– System and method for live interactive distance learning

– Mobile wireless computer systems

Potential to monetize these assets through partnerships and licenses with companies developing these technologies


Sales and Marketing

Direct sales force doubled to 45 reps in 2007– 6 – 9 months for new reps to ramp to productivity

– Focused mostly on higher margin professional and managed services

– Investment in sales force expansion compressed margins in 2007 but will fuel growth in 2008 and beyond

Sales force leverages complementary HIS and ERP software and solutions from leading technology partners

– Partners include Eclipsys, Meditech, Oracle and Motorola

Numerous synergistic channel relationships– Preferential pricing, new referrals for generating referrals from existing

customers

– These relationships are leveraged primarily for hardware and device sales


Recent Acquisitions

DDMS Holdings (April 9, 2007)– Acquired patents related to ePedigree solutions for managing and delivering

drugs through RFID technology

– Five U.S. patents, one U.S. patent application, four foreign patents and five pending foreign patent applications

– Purchase price: $0.2 million cash, 400,000 common shares

AMTSystems, Inc. (May 10, 2007)– Develops software applications for mobile computing that enable materials

management, patient charge capture and patient identification

– Purchase price: $0.1 million cash, 138,160 common shares, $0.5 million payable in 72 monthly installments plus interest

Healthcare Informatics Associates, Inc. (September 30, 2007)– Healthcare management and clinical systems consulting company

– Purchase price: $4.6 million cash, 755,478 common shares, $3.5 million convertible note, earn-out $2.0 million and $2.5 million over two years

– 2006 revenue of $10.7 million with net income of $2.9 million


Recent Acquisitions

Delta Health Systems, Inc. (May 2, 2008)– Focus is strategic cost management consulting: improving hospital resource

management and financial results without compromising quality

– Strong relationship with hospital CEOs and CFOs - Over 300 customer engagements

– MRS-Web analytics software: a proprietary measuring and monitoring tool

– Purchase price: $1.5 million cash, $1.0 million earn-out over two years

Aware Interweave, Inc. (May 19, 2008)– SAP Software Partner with SAP Certified Products

– A+ SAP and Microsoft development team

– Business Focused on three (3) primary product and solution sets – (1)Mobility and Mobile Line of Business, (2)Enterprise Portal Solutions and Strategies and (3) Asset/Supply Chain RFID and Barcode Solutions – with emphasis on SAP backed enterprises.

– Five (5) Mobile Software products featuring the Executive Co-Pilot™ Series of solutions

– Purchase price: $1.2 million cash, 500,000 common stock


Market Dynamics

Explosive growth for Enterprise Mobility Solutions– Analysts project EMS as a $21 billion market by end of 2008 --

according to Venture Development (VDC) research.

– Rapid adoption within industries such as healthcare, manufacturing - distribution and retail to streamline data sharing and communication.

– Initiatives which leverage mobile computing solutions are viewed as strategic

– PCI Security and Department of Transportation compliance

Hospital Information Systems (HIS) market growing due to HIPAA and cost pressures

– Analysts project growth of HIS from $52 billion today to $61 billion by 2009 -- according to Health Industry Insights research

RFID is positioned for rapid adoption– Analysts project growth of RFID from $2 billion today to $25

billion by 2015 -- according to Gartner research


Selected Clients


Hospital Market Overview

5,800 hospitals in the U.S. with 965,000 beds Increasing regulatory requirements from HHS, FDA, CMS and the

Joint Commission– HIPAA compliance

– FDA barcode regulation – requires barcodes on prescription drugs / biologicals

– Joint Commission - #1 goal for 2008: improve accuracy of patient identification

Medication errors result in 1.5 million injuries, 12,000 deaths and extra medical costs of $3.5 billion per year

Existing customers are likely to implement higher margin software and consulting services from InfoLogix

– 60,000 mobile workstations sold to customers over the last 4+ years, platform for recurring revenue

– Customers are approximately 20% penetrated

No hospital is fully automated – approximately 20% on average


Wireless Asset Patient Tracking for Healthcare

● Patient location tracking helps ensure the hospital experience is optimized and accurate. Increase patient satisfaction with stronger sense of hospital coordination and communication.

● Equipment position tracking allows personnel to locate an item and its current status. Increase staff satisfaction because personnel can easily find equipment they need for their jobs.

● Procedure tracking means that patients and hospital personnel are protected by delivering accurate services. Patients guaranteed accurate medical treatment as the entire stay is tracked and recorded. Potentially dangerous situations are alerted to personnel for corrective action.

● Emergency Department work processes are optimized. Track when a patient arrives, who has seen the patient, when the patient was seen and where the patient is relative to the care plan. Reduce patients leaving without being seen and increase patient throughput.

● Operating Room processes are streamlined. When Operating Room billing is averaging $1 per second, operational efficiencies have significant revenue implications.

● Maternity wards, where the threat of infant abduction adds to the already considerable anxiety of new parents, benefit from RFID-based security. Match mother to child.


Healthcare CIO IT Spending


Reading Hospital Case Study & Solutions

Wireless mobility for medication management applications– Focused on improving clinical outcomes

RFID durable assets monitoring and management solution– Reduces administrative and capital costs

Help to define workflow and proper device use– Makes operations more efficient

Installed, configured, and trained staff on mobile medical care stations, wireless and barcode scanning technology

– Provides turn-key solutions

Implemented e-Learning and LMS for application support– Educates staff for effective implementation

21

Breadth of Services Delivered InfoLogix Technology Wireless Infrastructure e-Learning Solution


PDA Application HIPAA Education Application Recurring Revenue Support Contract

Case Study – Dollar Rent a Car

InfoLogix Solution Architected wireless and mobile returns solution for 148

locations

Project management of rollout

Installed, configured, and trained staff on mobile devices, wireless and barcode scanning

Providing back end support services for 148 sites

Outsource Technical Staff

22

Breadth of Services Delivered Wireless Mobile Technology

e-Learning ASP Solution

Project Management


Application Development

Installation Services

Recurring Revenue Help Desk, Maintenance, Support Services

Case Study – Dollar Rent a Car


Design – Deploy - Support

24 Confidential Copyright InfoLogix, Inc. 200824 Confidential Copyright InfoLogix, Inc. 2007

2002 2009

2003 2004 2005 2006 2007 2008

2002 - 2003Projects 2003 - 2004

Projects 2004 - 2005Projects

2006 - 2007Projects 2007 - 2008

Projects 2008 - 2009Projects

Upgraded Support& Maintenancefor wireless devices

Won the RFP Bid for theWireless Network Nation wide

Managed Services, KIOSK, RFID fuel, PODS, App development, EDS replacement

Managed Services,Software Update,KIOSK, Shuttle Bus, RFID FuelGate Replacement

Won the managed Service contract

Roll-out of theWireless solutionNation wide. Won Counter device project

2005Revenue

2002Revenue

2006Revenue

2007Revenue

2008Potential Revenue

InfoLogix’s firstcustomer. WirelessReturns Project

$2 Million$2 Million

$2 Million$3 Million $3 Million

$15 Million$50 - $70Million

2004Revenue

2003Revenue

2005 - 2006Projects

Financial Overview


26 Confidential Copyright

InfoLogix, Inc. 2008

Selected Financial Data

• Steady revenue growth quarter to quarter.

• 2% Revenue growth in Q1 2008 compared to Q4 2007.

• 81% Revenue growth in Q1 2008 compared to Q1 2007.

• Sequential Gross Profit growth per quarter throughout 2007.

• Q1 2008 gross profit 26.1%

Revenue growth

-

5,000

10,000

15,000

20,000

25,000

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Do

lla

rs (

$K

)

Profit Margin Trend

20%

22%

24%

26%

28%

Q1 200

6

Q2 200

6

Q3 200

6

Q4 200

6

Q1 200

7

Q2 200

7

Q3 200

7

Q4 200

7

Q1 200

8

Gro

ss P

M %

27 Confidential Copyright

InfoLogix, Inc. 2008

Selected Financial Data

Selling expenses remained constant at approximately $3.35m; expect increases resulting from increasing revenue and commission expenses

G&A expenses are expected to remain constant throughout 2008 at approximately $3.6 m; now able to reap operating leverage

Selling Expense

-

1,000

2,000

3,000

4,000

Q1 200

6

Q2 200

6

Q3 200

6

Q4 200

6

Q1 200

7

Q2 200

7

Q3 200

7

Q4 200

7

Q1 200

8

Do

lla

rs (

$K

)

G&A Expense

-

1,000

2,000

3,000

4,000

Q1 200

6

Q2 20

06

Q3 200

6

Q4 200

6

Q1 200

7

Q2 200

7

Q3 200

7

Q4 200

7

Q1 20

08

Do

llar

s ($

K)

Strong Financial Position

Completed $25 million senior debt financing with Hercules Technology Growth Capital (announced 05.05.08)

Retires existing debt and expands available credit facility

New $10.0 million working capital line of credit which increases to

New facility with favorable terms and greater liquidity


Working Capital 5.87Current Ratio 1.24 Debt / Equity 1.17

10.751.68 1.23

Growth Strategy

Focus on organic growth– Leverage expanded sales force to sell higher margin software and services to existing

and new customers

– Continue expansion of sales force to reach more opportunities in a wide open market

Broaden our product suite and sales offerings through acquisition, strategic partnerships and internal development

Expand our geographic presence and sales coverage to global markets– Europe, Asia and other emerging centers of healthcare and commercial activity

Expand our solutions to ancillary healthcare markets– Home health care/hospice, nursing/assisted living and psychiatric facilities

Expand managed service offerings

Leverage wealth of captured mobility and RFID data to provide intelligent consulting solutions


Executive Management Team

David T. Gulian – President & Chief Executive Officer Mr. Gulian co-founded the company in 2001. Prior to joining InfoLogix, he was co-founder and president of Prologix, a provider of mobility systems and wireless platforms formed in 1996. Prologix merged with Datavision in 1999. From 1994 to 1996, he was director of wireless solutions for RF Mobility Solutions.

Eric N. Rubino – Chief Operating Officer Mr. Rubino was previously Chief Operating Officer at SAP America, Inc. As their 80th employee, Mr. Rubino held several positions within SAP America including Senior VP, General Counsel and Vice President, General Counsel. Mr. Rubino was also the Chief Operating Officer at Neoware, which was acquired by Hewlett Packard, before joining InfoLogix Inc. He is a member of the American Bar Association.

John A. Roberts – Chief Financial Officer Mr. Roberts joined as CFO in September 2006. His prior experience includes CFO of Clarient, Inc., a provider of diagnostic laboratory services. From 2003 to 2006, he was Chief Financial Officer of Daou Systems, Inc. Mr. Roberts also held positions of corporate development officer for MEDecision, Inc. and CFO for HealthOnline.


Contact Us

INFOLOGIX

David Gulian, CEO

101 East County Line Road

Hatboro, PA 19040

215-604-0691

[email protected]

INVESTOR RELATIONS

Thomas P. Walsh

Alliance Advisors

212-398-3487

[email protected]

© 2008 InfoLogix, Inc.

infologix, inc. nasdaq: iflg june 2008

Documents

confidential materials

mobile enterprise solutions

filings of infologix

software solutions vehicle

rfid tag

big engagements engagements

mobile solution deployment

real time tracking