General Motors and Medscape Form E-Business Health Care Alliance; Partnership Provides Physicians With Technology to Improve the Quality Of Patient Care

    DETROIT and NEW YORK, Jan. 25 General Motors Corporation
and Medscape announced today an e-business health
care alliance that will use Medscape's computer-based technologies to
facilitate improvement in the quality of patient care by reducing medical
errors while lowering health care costs.  GM and Medscape will cooperate on a
three-year program to encourage U.S. physicians to use hand-held computer
devices for prescribing drugs and accessing digital health care records (DHR).
    DHRs provide physicians up-to-the-minute medical information, including
online reference material, patient records, insurance and billing data.
Medscape's DHR system, Logician, is the most widely used office-based DHR
application in the nation with more than 11,000 clinician users.  Over
16 million patient records -- nearly 6% of all Americans -- are housed on
Medscape's systems.  These electronic systems reduce medical errors associated
with illegible handwriting, improve patient safety by identifying drug
interactions and eliminate duplication of services.  It's estimated that
900 million prescriptions -- 30 percent of all orders written each year --
have to be rechecked, due to confusion over doctor's handwriting or insurance
rules.  One Harvard study found that prescription-drug errors decline by 55%
when doctors use electronic prescribing systems.
    GM will sponsor Medscape's distribution of its hand-held units to
approximately 5,000 physicians who treat GM enrollees across the country.
Medscape's prescription software, Medscape Mobile, offers physicians
downloadable pharmaceutical reference tools for Palm OS hand-held devices and
the ability to write prescriptions.  The devices are capable of alerting
physicians to drug - drug interactions and can prompt doctors to consider
medically equivalent, lower cost and/or generic drug alternatives.  They also
make it easier for physicians to comply with a health plan's formulary
requirements.
    "The adoption of this leading-edge technology can improve the quality of
health care and supplements General Motors' numerous e-business initiatives
that are directed at enhancing the lives of our employees and their families,"
said Kathleen S. Barclay, vice president of GM's Global Human Resources.
    "Providing doctors with information at their fingertips helps our
employees and retirees to receive appropriate care, for example, the right
prescription drug at the right dose, whether that's at the hospital bedside or
in the doctor's office," said Jim Cubbin, GM executive director, Health Care
Initiatives.  "GM believes the digital health record will revolutionize the
U.S. health care system, much like ATMs have revolutionized the banking
industry.  With the critical mass of 1.2 million GM health plan members,
Medscape will have a great opportunity to implement programs and obtain data
to further adapt this technology and expand it throughout the U.S. health care
system."
    "This is a significant alliance for Medscape, GM and the health care
industry," said Mark Leavitt, MD, chairman, Medscape.  "This association with
GM reinforces our belief that the digital health record will play an
increasingly important role in the safe and cost-efficient delivery of health
care. This program will provide irrefutable evidence on reductions in medical
and prescription errors as well as cost-efficiencies.  This alliance will not
only benefit GM and its plan members, but ultimately all of us who use health
care services."
    As the largest private purchaser of health care in the U.S., GM is the
ideal partner for Medscape because GM generates a high volume of health
claims, allowing effective evaluation of the technology.  This alliance helps
GM address several health care challenges, such as overuse, under use and
misuse of medical services, inappropriate prescription drug prescribing
practices, and other quality concerns and escalating cost drivers.  Data
collected from the pilot program will be aggregated to not include patient
names and other personal information that could identify individuals.
    "Medscape has been selected by GM for this point-of-care technology
project because they are one of the few suppliers of both hand-held
prescribing and DHR applications," said Cubbin.
    In addition to its DHR products, Medscape is well known among US
physicians due to its two Internet sites.  Medscape.com, its professional
medical website, is also the largest provider of physician continuing medical
education on the Internet and CBS Healthwatch.com, is the leading
physician-recommended health care website for consumers.  GM will have the
opportunity to provide access to CBS Healthwatch.com through its Intranet.
    As part of the strategic alliance, GM will receive warrants for 5 million
shares of Medscape stock.  GM and Medscape will also share in the savings from
prescription drug claims realized directly from physician usage of Medscape
Mobile.  This arrangement will serve to strengthen the strategic alignment of
the two companies and solidify their business relationship.  It also firmly
demonstrates GM's commitment to improve the quality of health care for its
plan members while reducing its health care costs.  Further details of this
agreement are not being disclosed.

    General Motors
    General Motors , the world's largest vehicle manufacturer,
designs, builds and markets cars and trucks worldwide.  It employs about
388,000 people globally.  GM is investing aggressively in high technology and
e-business within its global automotive operations and through such
initiatives as e-GM, GM BuyPower, OnStar and its Hughes Electronics Corp.
subsidiary.

    Medscape
    Medscape(R) is a clinical information company.  It is
dedicated to improving health care through the development of Internet portals
and Digital Health Record (DHR) applications that provide an array of relevant
and trusted health care information to individual, small group and network
health care providers, the pharmaceutical industry, and consumers.
    The merger of MedicaLogic, Inc. and Medscape, Inc., and MedicaLogic,
Inc.'s acquisition of Total eMed, Inc., a privately held company, in May 2000
formed MedicaLogic/Medscape, Inc., d/b/a Medscape.  The company employs
approximately 1,000 people and is headquartered in Hillsboro, Oregon.

    Medscape, MedicaLogic, and Logician are registered trademarks of
MedicaLogic/Medscape, Inc. in the United States.  Other product and brand
names are trademarks of their respective owners.

    The statements in this press release regarding Medscape's prospects for
continued growth, use of capital, and our plans to introduce new products are
forward-looking statements based on current information and expectations.
Achievement of those results is subject to a number of risks and
uncertainties, including the risk that our products and services will not be
accepted by physicians, patients and other healthcare stakeholders; the risk
that we may not be able to introduce new products on schedule or at all; and
the risk that we may not achieve favorable operating results or profitability.
The reader is cautioned not to place undue reliance on forward-looking
statements, which are not a guarantee of future performance.  For more
information concerning these and other possible risks, please refer to our
Form 10-K filed on March 14, 2000, our Form 10-Q filed on October 27, 2000,
our Form S-4/A filed on April 4, 2000 and other filings with the Securities
and Exchange Commission.  These filings can be accessed over the Internet at
http://www.sec.gov.