PR Newswire - Pennsylvania

		InfoLogix logo. (PRNewsFoto/InfoLogix, Inc.) HATBORO, PA UNITED STATES

	    HATBORO, Pa. Nov. 20 /PRNewswire-FirstCall/ -- InfoLogix, Inc. (Nasdaq:
IFLG), a leading technology provider of enterprise mobility solutions for
the healthcare and commercial industries, today announced that the Company,
including its subsidiaries, have completed a restructuring transaction with
its senior lender, Hercules Technology Growth Capital, Inc. ("Hercules"),
pursuant to which a portion of the Company's outstanding debt with Hercules
Technology I, LLC, a wholly-owned subsidiary of Hercules ("HTI"), was
converted into equity in the Company, the remaining outstanding debt with
Hercules was otherwise restructured, the Company issued warrants to
purchase equity in the Company to HTI, and certain other debt and earnout
obligations with other parties were restructured. The restructuring
resulted in the cancellation of $5 million in indebtedness and provides for
up to $5 million in additional availability under a revolving credit
facility with Hercules.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20090618/NE35135LOGO )

    Under the terms of the restructuring, HTI exchanged $5 million in
existing indebtedness for 67,294,751 shares of the Company's common stock.
Additionally, the Company issued to HTI at closing a warrant to purchase
16,823,688 shares of the Company's common stock at an exercise price of
$0.0743 per share. The warrant has a five year term and is immediately
exercisable at such time when the Company amends its certificate of
incorporation to increase the number of authorized shares of common stock
or implements a reverse stock split that results in the Company having a
sufficient amount of authorized shares to issue the warrant shares. The
Company has agreed to register these shares with the Securities and
Exchange Commission for resale.

    The remainder of the Company's indebtedness with Hercules was
restructured to include two term loans aggregating $10.5 million and a
revolving credit facility of $12 million, of which $7 million is
outstanding at closing. The revolving credit facility expires on May 1,
2011, but may be extended at the Company's option for six months if there
is no existing event of default. Any advances under the revolving credit
facility bear interest initially at 12.0% per annum until the term loans,
as described below, are repaid in full, when the interest rate on
outstanding advances will be prime plus 4%. Borrowings under the revolving
credit facility are based on eligible accounts receivables, including an
overadvance provision of up to $500,000, which will be due 28 days after
the overadvance is drawn. Overadvances bear interest at 15% per annum.

    The term loans are comprised of a $5.5 million term loan due on
November 1, 2013 ("Term Loan A") and a $5 million convertible term loan due
on November 1, 2014 ("Term Loan B"). Amortization on Term Loan A begins on
December 1, 2010. Term Loan B may be converted into shares of the Company's
common stock at a price of $0.0743 per share at Hercules' option, or
automatically if the 90-day value weighted adjusted price of the common
stock exceeds five times the conversion price. The Company, however, has
the right to pay a portion of the conversion amount in cash plus applicable
fees, interest and other charges instead of shares of common stock if an
automatic conversion occurs under certain circumstances.

    Term Loan A bears interest at (i) 12% per annum for the first year,
(ii) 18% per annum for the next year, and (iii) 15% thereafter. All
interest on Term Loan A is payable in cash monthly commencing December 1,
2009. Term Loan B bears interest at (i) 14.5% per annum for the first year,
(ii) 20.5% per annum for the next year, and (iii) 17.5% thereafter. 2.5% of
the interest on Term Loan B will be "paid in kind" compounded monthly.
Hercules has the option to turn the PIK interest into cash interest or
additional shares of common stock if certain predefined metrics are
maintained. The balance of the interest on Term Loan B is payable in cash
monthly commencing December 1, 2009. In the event the term loans are
prepaid, a prepayment charge on the principal prepaid of 5% if prepaid
during the first 12 months, 3% if prepaid during the next 12 months and 1%
thereafter will be due, provided that, if the term loans are prepaid in the
first 12 months and there is no event of default, Hercules will waive the
prepayment charge on both term loans. The Company has agreed to register
for resale with the Securities and Exchange Commission the shares issuable
upon conversion of Term Loan B and accreted Term Loan B interest.

    The Company was assessed a transaction fee of $450,000 in connection
with the Restructuring, which is payable in 12 equal monthly installments
beginning in May 2010. The obligations of the Company under the Loan
Agreement are secured by all of the personal property of the Company and
its subsidiaries, including all of the equity interests of the Company and
its subsidiaries in their respective subsidiaries.

    NASDAQ Compliance Status

    On August 19, 2009, NASDAQ notified the Company that it did not comply
with the minimum $2.5 million stockholders' equity requirement for
continued listing on The NASDAQ Capital Market, as set forth in Listing
Rule 5550(b). On October 30, 2009, the Company received notice that the
NASDAQ Listing Qualifications Staff had granted the Company's request for
an extension to regain compliance with this listing rule by no later than
November 20, 2009. Additionally, on October 30, 2009, NASDAQ granted the
Company's request for a financial viability exception to NASDAQ's
stockholder approval requirements for the restructuring. On November 10,
2009, the Company issued a press release and provided notice to its
stockholders announcing that NASDAQ had granted the Company's request for a
financial viability exception.

    Based upon the consummation of the restructuring discussed above, the
Company believes that as of the date of this press release it has regained
compliance with the $2.5 million stockholders' equity requirement for
continued listing on The NASDAQ Capital Market. The Company is awaiting
NASDAQ's formal determination with respect to its compliance status. In
addition, NASDAQ will continue to monitor the Company's ongoing compliance
with the minimum stockholders' equity requirement and, if at the time of
its next periodic report the Company does not evidence compliance with that
requirement, it may be subject to delisting from NASDAQ.

    There can be no assurance that the Company will continue to meet the
minimum stockholders' equity requirement. If the Company does not, the
Company may request a hearing before the NASDAQ Listing Qualifications
Panel. Such request would stay any delisting determination by the NASDAQ
Listing Qualifications Staff and the Company's securities would remain
listed on NASDAQ pending a formal determination by the Panel.

    About InfoLogix, Inc.

    InfoLogix is a leading provider of enterprise mobility solutions for
the healthcare and commercial industries. InfoLogix uses the industry's
most advanced technologies to increase the efficiency, accuracy, and
transparency of complex business and clinical processes. With 19 issued
patents, InfoLogix provides mobile managed solutions, on-demand software
applications, mobile infrastructure products, and strategic consulting
services to over 2,000 clients in North America including Kraft Foods,
Merck and Company, General Electric, Kaiser Permanente, MultiCare Health
System and Stanford School of Medicine. InfoLogix is a publicly-traded
company (Nasdaq: IFLG). For more information visit http://www.infologix.com.

    Safe Harbor

    InfoLogix makes forward-looking statements, including those relating to
debt restructuring and continued listing on Nasdaq, in this press release
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 the
risks described in our Annual Report on Form 10-K for the period ended
December 31, 2008, our Quarterly Report on Form 10-Q for the period ended
June 30, 2009 and other filings we make 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.

    Contact: John A. Roberts, Chief Financial Officer, 215-604-0691 x1102