The Quantum Group, Inc. Completes Consolidation of Renaissance Health Systems, Inc.; Continues to Build New Integrated Delivery Systems and Expects Deployment by Year-End WELLINGTON, Fla., Aug. 9 /PRNewswire-FirstCall/ -- The Quantum Group, Inc. (OTC:QTUM) (BULLETIN BOARD: QTUM) today disclosed that as previously announced and expected, it has completed the acquisition and consolidation of 100% of the interest of Renaissance Health Systems, Inc. (RHS). RHS was established in 2002 by the principal shareholders of The Quantum Group, Inc. to develop a new healthcare delivery model, which specializes in managed care Percentage of Premium (POP) contracting with Health Maintenance Organization outsourcing for the federal Medicare Advantage. Noel J. Guillama, founder and principal shareholder of both The Quantum Group and Renaissance Health Systems, Inc., commented, "The consolidation of RHS into The Quantum Group represents the completion of round four of our full integration of products and services. Our strategic plan includes that by year-end we will be providing a large selection of products and services to the entire healthcare industry -- from managed network services to health maintenance organizations to billing and practice management and healthcare technology services to physicians, HMOs and patients." The RHS strategy is to create a new type of healthcare delivery system built on the extensive experience of our management team. The Company expects to create a new model for healthcare called the Community Health System(SM). In 2004 total health spending in the U.S. will account for over 15 percent of the nation's gross domestic product (GDP). The Department of Health and Human Services (HHS) announced that healthcare spending shot up 9.3 percent in 2002 -- the largest increase in 11 years -- to a total of $1.55 trillion. HHS further estimates that healthcare expenditures will reach $2 trillion by 2008, which represents an increase for each person from $5,440 to $7,100 in the United States alone. Projections put health spending at 17.7 percent of GDP by 2008. According to President George W. Bush's proposed 2005 Federal Budget, Medicare Advantage (formerly Medicare + Choice) growth is projected to increase nearly 100% over the next 4 years. In addition, actual "per member per month" (PMPM) payments to Managed Care Organizations (MCO) are expected to be increased by a record 10.6 percent nationwide. In Palm Beach County Florida where the Company is based, federal funding to Medicare HMO's is increasing about 16 percent. HMOs will receive $734.51 per member monthly from the federal government, up from $633.86 per member per month. The Quantum Group, Inc., is a Wellington, Florida-based healthcare company in its development stage providing outsourcing, technology-based solutions, government compliance, education, policy consulting and venture management to the healthcare industry. Quantum is currently involved in: outsourcing for physicians, managed care organizations, healthcare facilities, and physician associations; developing three patent-pending healthcare solutions identified as Cybernaptics(SM), Quantum Quotient(SM) (or QX2)(SM) and MDAutomatedSM, all with the intention to provide new efficiencies to the $1.6 billion U.S. healthcare system; and providing leading edge healthcare services to consumers. The Quantum Group -- "healthcare solutions for a new generation."(SM) Certain statements contained in this news release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to uncertainties and risks in part detailed in the respective company's Securities and Exchange Commission 10-K, 10-Q, S-8 and 8-K filings, that may cause actual results to materially differ from projections. Although the company believes that its expectations are reasonable assumptions within the bounds of its knowledge of its businesses and operations, there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the company's ability to execute properly its new business model, to raise additional capital to implement new business model, the ability to attract and retain personnel and the inherent risk associated with a diversified business to achieve positive cash flow. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this report will, in fact, occur. Media Contact: Danielle Amodio Director of Corporate Communications The Quantum Group, Inc. http://www.thequantumgroupinc.com/ 561-798-9800 DATASOURCE: The Quantum Group, Inc. CONTACT: Danielle Amodio, Director of Corporate Communications, The Quantum Group, Inc., +1-561-798-9800 Web site: http://www.thequantumgroupinc.com/

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