Mar 30, 2011

HealthStream Announces Amendment of its Line of Credit to Increase and Extend its Availability

NASHVILLE, Tenn.--(BUSINESS WIRE)-- HealthStream, Inc. (NASDAQ: HSTM), a leading provider of learning and research solutions for the healthcare industry, announced today that it has signed an amendment to its line of credit with SunTrust Bank, increasing the availability under the line from $15.0 million to $20.0 million and extending its availability to July 2012.

In addition to the increased availability and extension to July 2012, the updated line of credit eliminates the current minimum interest rate floor of three percent. The interest rate is now equal to LIBOR plus a margin determined in accordance with a pricing grid, which rate may or may not be below the previous minimum of three percent. Other terms and conditions as well as the financial tests and covenants that the Company is required to meet under the line of credit remain unchanged from those specified under the previous arrangement.

Commenting on the increased line of credit Robert A. Frist, Jr., chief executive officer, HealthStream said, "The amendment increases available capital for growth initiatives of the Company."

As of December 31, 2010, HealthStream had cash balances of approximately $23.6 million and as of March 30, 2011, had no balances outstanding under its $20 million line of credit.

About HealthStream

HealthStream (NASDAQ: HSTM) is a leading provider of learning and research solutions for the healthcare industry, transforming insight into action to deliver outcomes-based results for healthcare organizations. Through HealthStream's learning solutions—which have been contracted by approximately 2.45 million hospital-based healthcare professionals—healthcare organizations create safer environments for patients, increase clinical competencies of their workforces, and facilitate the rapid transfer of the latest knowledge and technologies. Through our research products, executives from healthcare organizations gain valuable insight about patients' experiences, workforce challenges, physician relations, and community perceptions of their services. Based in Nashville, Tennessee, HealthStream has an additional office in Baltimore, Maryland. For more information about HealthStream's learning and research solutions, visit www.healthstream.com or call us at 800-933-9293.

This press release contains forward-looking statements that involve risks and uncertainties regarding HealthStream. Investors are cautioned that such results or events predicted in these statements may differ materially from actual future events or results. This information has been, or in the future may be, included in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

HealthStream, Inc.
Mollie Condra, Ph.D.
AVP, Communications, Research, & Investor Relations
615-301-3237
Mollie.condra@healthstream.com

Source: HealthStream, Inc.

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