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Tandem Labs Announces Extensive Evaluation and Pilot Program Underway with Velquest

Salt Lake City, Utah - August 10, 2004 - Tandem Labs, a leading bioanalytical contract research organization and VelQuest Corporation, the innovator of electronic notebooks for paperless laboratory compliance management, announced today that Tandem Labs has initiated an operational evaluation using VelQuest's latest paperless technology.

"SmartLab™ and SmartShell™ will enhance our Part 11 compliance while reducing Tandem Labs' paper-based systems," said Michael VanTyne, Director of Information Systems. "VelQuest's products are key to our strategies for creating automated management information and controls, standardizing many of our operational method processes, and enabling unique products and services for our clients."

Jim Wilfart, General Manager at Tandem Labs, said, "VelQuest's solutions will ensure our ability to provide a more competitively priced service and faster sample turnaround time as our testing data will be automatically captured, stored, and available electronically. We are excited to complete this evaluation with VelQuest which will in turn enable Tandem Labs to fully implement SmartLab™ and SmartShell™ in our Salt Lake City and New Jersey laboratories."

VelQuest's SmartLab™ application is an innovative solution to a fundamental problem - pharmaceutical development and quality control records are frequently paper-based requiring data auditing related activities that can consume up to 70% of valuable human resource in laboratories. VelQuest's patented technology interacts with scientists allowing the real time capture of data from human observations, devices such as balances and pH meters, and PC-controlled instruments. Workflow execution is managed electronically through links to approved SOP's and Test Methods.

"We are very excited Tandem Labs is evaluating SmartLab™ for their entire lab operations," said Tim Petracca, Vice President of VelQuest. "This will benefit Tandem Labs and more importantly their pharmaceutical and biopharmaceutical industry clients."

About Tandem Labs

NWT, Inc. is a Utah corporation operating a division called Tandem Labs with facilities in Salt Lake City, Utah and West Trenton, New Jersey. Since 1992, the focus has been the application of mass spectrometry expertise (LC/MS/MS) in support of new drug development for the pharmaceutical and biopharmaceutical industries. This specialization has resulted in the emergence of Tandem Labs as a leading bioanalytical clinical research organization (CRO). A diverse worldwide client portfolio includes some of the largest pharmaceutical corporations as well as small virtual companies. The Tandem Labs' structure supports large 10,000+ sample studies and small studies of fewer than 100 samples. Tandem Labs' ultimate goal is to build long lasting relationships by continually meeting and exceeding clients' expectations.

About VelQuest Corporation

Founded in January 1999, VelQuest Corporation provides a growing suite of products to help transform regulated industries from labor-intensive, paper-based operations to automated, efficient systems with greater confidence in compliance than ever before possible. The SmartLab™ solution uses VelQuest's electronic Process Management & Compliance (ePMC™) Operating System that is a software platform designed to provide the foundation for compliance-based activities in the life science markets. The software embraces the FDA's "cGMP's for the 21st Century: A Risk Based Approach" initiative and supports the company's SmartLab Applications for a fully compliant electronic laboratory, SmartShell™ 21 CFR Part 11 remediation software, SmartBatch™ electronic Batch Record System, as well as planned product line extensions.

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