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                                                                 EXHIBIT 99.1



                                                          [HEALTHSTREAM LOGO]

PRESS RELEASE

                                             CONTACT:
                                             Arthur Newman
    For Immediate Release:                   Chief Financial Officer
                                             (615) 301-3178
                                             ir@healthstream.com

                                             MEDIA:
                                             Mollie Elizabeth Condra
                                             Communications & Investor Relations
                                             HealthStream
                                             (615) 301-3237
                                             mollie.condra@healthstream.com


HEALTHSTREAM ACQUIRES DATA MANAGEMENT & RESEARCH, INC.; REVISES GUIDANCE

NASHVILLE, TENN. -(BUSINESSWIRE)--MARCH 29, 2005--HealthStream, Inc. (NASDAQ:
HSTM) announced today that it has acquired Data Management & Research, Inc.
(DMR). DMR is a Nashville area company, exclusively focused on offering
healthcare organizations a wide range of quality and satisfaction surveys, data
analyses of survey results, and other research-based measurement tools.

"The executive leadership at each of our 29 health system customers relies on
our analyses to help direct their decisions and investments with regard to human
capital development," said Mel Thompson, DMR founder and CEO. DMR's series of
Quality Check(R) surveys covers a wide range of organizational development
issues, including questions about learning opportunities, communication, and the
clarity of organizational goals.

"DMR has earned a solid reputation among the nation's healthcare organizations
for delivering decision-critical data analyses and results to hospital and
health system executives," stated HealthStream founder and CEO, Robert A. Frist,
Jr. "Many of the nation's leading hospitals and health systems are represented
in DMR's customer list, including Ascension Health, BayCare Health System,
Community Health Systems, LifePoint Hospitals, Triad Hospitals, and HCA."

"DMR equips healthcare organizations with data-driven roadmaps for
organizational and workforce development," said Mr. Frist. "Using these maps,
HealthStream's educational programs can lead healthcare organizations on the
path of organizational development. HealthStream's learning solutions are
designed to support healthcare organizations in becoming safer, more effective
organizations by training and developing their staff."

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"With DMR, HealthStream is positioned to become a more valuable strategic
partner in helping healthcare organizations recruit, retain, and develop their
workforce," said Mr. Frist.

TERMS OF THE TRANSACTION
HealthStream has purchased all of the shares of DMR for approximately $10.6
million, consisting of approximately $9.1 million of cash consideration and
479,234 shares of HealthStream common stock. A portion of the consideration is
subject to escrow.

For the year ended December 31, 2004, DMR's revenue was $5.2 million. For the
period of April 1, 2005 through December 31, 2005, DMR's revenue and net income
are expected to be in the range of $4.0 to $4.25 million and $750,000 to
$900,000, respectively. The 2005 earnings projections incorporate additional
expense in sales, marketing, and product development as well as added capital
expenditures, which collectively are intended to enable us to develop new
products, enhance their technology, and introduce their product offering to
HealthStream's customers.

UPDATED 2005 GUIDANCE
Our previously communicated revenue guidance for 2005 was $23-24 million, an
increase of 15-20% over the 2004 results. With the inclusion of DMR, our
guidance for 2005 is now $27-28 million or 35-40% growth over 2004 results. Our
previous earnings guidance for 2005 indicated break-even in the first quarter,
which we reiterate. For the second quarter, we now expect to have a modest net
loss primarily due to the cost associated with our annual eLearning Summit.
During the third quarter of 2005, we will adopt a new accounting rule which will
require us to expense the fair value of stock options. We have not yet completed
our analysis of the impact on our operational results for 2005, and,
accordingly, our guidance does not reflect the impact of the expensing of stock
options. Excluding the impact of this charge, net income for the second half of
2005 is now projected to improve over previous guidance as a result of the
accretive impact of the DMR operations.

Our post-closing cash, investments and related interest receivable is
approximately $7.7 million. We expect that our capital expenditures for the full
year 2005 will increase to $3.5 million, which is up $500,000 from previous
guidance due to planned investments in the DMR operations.

ABOUT HEALTHSTREAM
HealthStream (NASDAQ: HSTM) is a leading provider of learning solutions for the
healthcare industry. Over 1.1 million contracted healthcare professionals have
selected the Internet-based HealthStream Learning Center(TM), HealthStream's
learning platform. The Company's learning products and services are used by
healthcare organizations to meet the full range of their training needs, while,
concurrently, supporting business

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objectives. Once subscribed to the HealthStream Learning Center(TM), customers
benefit from increased compliance, reduced risks, and improved learning
effectiveness. In addition, HealthStream has pioneered a new collaboration with
some of the top medical device and pharmaceutical companies to assist in their
product launches and education initiatives within the Company's nationwide
network of hospital customers. (www.healthstream.com)

This press release includes certain forward-looking statements (statements other
than solely with respect to historical fact) that involve risks and
uncertainties regarding HealthStream. These statements are based upon
management's beliefs, as well as assumptions made by and data currently
available to management. 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. These forward-looking statements are subject to
the ability of the Company to integrate the operations of DMR successfully and
the other risks and uncertainties set forth in the Company's Annual Report on
Form 10-K and other filings with the SEC. Investors are cautioned that such
results or events predicted in these statements may differ materially from
actual future events or results. Such forward-looking information should not be
regarded as a representation or warranty by the Company that such projections
will be realized. Many of the factors that will determine the Company's future
results are beyond the ability of the Company to control or predict. Readers
should not place undue reliance on forward-looking statements, which reflect
management's views only as of the date hereof. The Company undertakes no
obligation to update or revise any such forward-looking statements.


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