PRESS RELEASE 10/04/99
Monday October 4, 5:06 pm Eastern Time
Company Press Release
SOURCE: National Health & Safety Corporation
National Health Sells POWERx Division; MedSmart
to Bring Financing and E-Commerce Applications
WARMINSTER, Pa., Oct. 4 /PRNewswire/ -- National Health and Safety Corporation (OTC Bulletin Board:
NHLT - news) and MedSmart Healthcare Network, Inc., a private Dallas, Texas corporation, announced
today MedSmart's acquisition of National's POWERx Medical Benefits Network division.
The closing was announced jointly by Jimmy E. Nix, President of MedSmart, and Dr. Dennis Bowers,
President of National.
Under the terms of the sale, NHS will receive an undisclosed amount of cash plus perpetual royalties on
the sale of all POWERx and related products by MedSmart. MedSmart will assume all marketing and
operations costs for the POWERx division, reducing the operating cost of NHS by more than 75%.
MedSmart will also provide substantial expansion capital to develop new markets for POWERx products,
and will develop a national state-of-the-art Internet and e-commerce capability to promote POWERx
products and services both domestically and internationally.
NHS' POWERx division currently owns and operates one of the nation's largest medical provider networks.
Its 700,000+ providers include more than 70% of the nation's hospitals, doctors and surgeons, about 90% of
the nation's pharmacies, and national networks of dentists, home nursing specialists, vision care providers,
hearing care, mental health professionals, chiropractors, radiologists, clinical laboratories, medical
equipment providers, and other health care provider types.
''With MedSmart's financing and new technology, we expect that the POWERx network will finally be
able to reach its potential,'' said Dr. Dennis Bowers, National's President. ''Both National and MedSmart
should do very well as a result,'' he said.
The sale of POWERx to MedSmart has been approved by the Board of Directors of both National and
MedSmart, and also by the Federal Bankruptcy Court, Eastern District of Pennsylvania. National filed for
Chapter 11 reorganization on July 1, 1999. The POWERx asset sale is part of an overall reorganization of
NHS planned for later in the Fall.
Safe Harbor Statement
Investors should carefully consider the preceding information as well as other information contained in
this press release before making an investment in the Common Stock. Information contained in this press
release contains ''forward-looking statements'' which can be identified by the use of forward- looking
terminology such as ''believes,'' ''expects,'' ''may,'' ''should,'' or ''anticipates'' or the negative thereof
or given that the future results covered by such forward-looking statements will be achieved. The
preceding matters constitute cautionary statements identifying important factors with respect to such
forward-looking statements, including certain risks and uncertainties that could cause actual results to vary
materially from the future results covered in such forward-looking statements. Other factors could also
cause actual results to vary materially from the future results covered in such forward-looking statements.
SOURCE: National Health & Safety Corporation |
