HEALTH WATCH HOLDINGS, INC. AND SUBSIDIARIES

(HEALTH WATCH, INC., RESPONSE ABILITY SYSTEMS, INC., ORGANIZATION FOR ENHANCED CAPABILITIES, INC., EMERGENCY RESPONSE SYSTEMS, INC. AND PIONEER MEDICAL SYSTEMS CORP.)

NOTICE OF PRIVACY PRACTICES

THIS NOTICE DESCRIBES HOW MEDICAL INFORMATION ABOUT YOU MAY BE USED AND DISCLOSED AND HOW YOU CAN GET ACCESS TO THIS INFORMATION. PLEASE REVIEW IT CAREFULLY.

The following is the privacy statement for Health Watch Holdings, Inc., and its subsidiaries Health Watch, Inc., Response Ability Systems, Inc., Organization for Enhanced Capabilities, Inc., Emergency Response Systems, Inc., and Pioneer Medical Systems Corp.

Who is entitled to a copy of this privacy statement? If you are using a Health Watch or a Response Ability Personal Response System ("PRS") monitored by Health Watch Holdings, Inc. and subsidiaries, located in Boca Raton, Fl., you are entitled to know what we do with your health information. It makes no difference how you acquired the PRS. If you have any complaints as to the security of your information, or if you believe that your privacy rights have been violated, you may telephone us at 800-777-9807, extension 1082, or send an email to Thomas Schuck, Privacy Officer, tschuck@health-watch.com.

Health Watch Holdings, Inc. and its subsidiaries, shall not, in any manner, retaliate against anyone who files a complaint for a violation of the security of their information.

Uses and Disclosures:

The Manufacturing Process

The PRS arrives at the subscriber's residence with only a unique identifying serial number stored on a microprocessor chip. No actual information about you or your medical records is stored in the system or in the microprocessor chip.

The Telecommunications and Accounting Process

The purpose of the microprocessor chip is to transmit a unique serial number associated with the PRS installed in your home to our Central Monitoring Station. Upon receipt of your unique identifying serial number in the event of your activation of the system, our Central Monitoring Station software matches it with the records in our database.

Our Central Monitoring Station has two sets of database files, one maintained for the dispatching of emergency services in response to your activation of the PRS, and one for accounting purposes. The records maintained for emergency dispatch and for accounting purposes are stored in separate databases; accordingly, your emergency database records cannot be viewed by an unauthorized person. The accounting records do not contain any medical information about you.

The Dispatch Process

When you activate your Health Watch, In Touch or Response Ability PRS, the Central Monitoring Station software matches the unique identifying serial number transmitted by your PRS to its internal database. We collect and store no other information about you other than what is necessary to provide to Emergency Medical Services personnel that are dispatched to assist you. This information may include special instructions that you have given us to provide to Emergency Medical Services personnel. This information may include physical disabilities, medications, or history of illness that you have given us to provide to Emergency Medical Services personnel. We do not share or release any of this information except to Emergency Medical Services personnel, and then only in the dispatch process.

We also maintain a history of the dispatch of Emergency Medical Services. This is the only information that we maintain that you have not provided to us. Each time your system is activated, our software records the date and time, comments that you made about your situation to our Central Monitoring Station operator, and the time we dispatched Emergency Medical Services. We do not maintain any history of the medical services actually provided to you by Emergency Medical Services personnel.

In addition to the above, our subsidiaries, Organization for Enhanced Capabilities, Inc., located in Fall River, MA and Pioneer Medical Systems Corp., located in Woburn, MA, maintain within their respective management information systems software certain medical data that is used solely in the Medicaid subscriber eligibility approval process, and is not distributed or utilized for any other purpose. This information includes your Doctor's name and address, Medicaid account information, and a condensed list of your current medical conditions. This information is similar to the notes maintained by Emergency Medical Services personnel, but is used only in the Medicaid subscriber eligibility approval process. If you believe this applies to you, you are entitled to a complete detail of this information by writing or calling our offices.

Use by Health Care Providers

We have several business partners and associates who assist us in the providing of service to you. These may be hospitals, homecare agencies or visiting nurse associations. The only information that we receive from these business partners and associates is the medical information needed during the dispatch of Emergency Medical Services. The only information that we provide to these business partners and associates is the fact that Emergency Medical Services were dispatched to your residence and certain accounting information. We provide them no information pertaining to medical records.

Individual Rights

The subscriber is reminded that the only information stored in our Central Monitoring Station software is that which the subscriber has provided. Health Watch Holdings, Inc. and its subsidiaries do not collect any medical history information from any source other than the subscriber.

If the subscriber wishes to update or amend the information stored in the Central Monitoring Station software, s/he may do so by calling their service representative.

Covered Entities Duties

Any entity covered by the Standards for Privacy of Individually Identifiable Health Information is required by federal statute to maintain the privacy of its subscribers' health information, and that entity's privacy statement must be available to its subscribers.

The covered entity must abide by the terms of the privacy notice currently in effect.

Health Watch Holdings, Inc. will post this privacy statement on it web site (www.health-watch.com) with its effective date. If this statement is revised, such revised statement will be posted with an effective date.

Complaints regarding any service provided to the Company's PRS subscribers must be received at the corporate office either via email or in writing. Any complaints must be specific, and not general in nature. A company official will acknowledge the receipt of every complaint within 5 business days after receipt, and will endeavor to resolve the matter within a reasonable time thereafter. Complaints should be addressed to Privacy Officer, Health Watch, Inc., 535 Route 38, Suite 500, Cherry Hill, NJ 08002.