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Tuesday January 19, 3:24 pm Eastern Time
Company Press Release
Medical Industries of America Signs Letter of Intent to Merge With American Enterprise Solutions Inc.
The Merger With AESI Will Transform MIOA Into a Healthcare Internet Company
BOYNTON BEACH, Fla.--(BW HealthWire)--Jan. 19, 1999-- Medical Industries of America Inc. (Nasdaq:MIOA - news) and American Enterprise Solutions Inc. (AESI) Tuesday jointly announced that the companies have entered into a formal Letter of Intent to merge and will, upon completion of the merger, change its name.
Michael Morrell, chief executive officer of MIOA said: ''The merger with AESI will catapult the new combined company into the healthcare Internet business allowing MIOA to utilize the benefits of advanced Internet technologies to improve the quality of healthcare services while increasing profitability. The significant success that the Internet will provide to our healthcare companies and communities will finally start to reduce the unnecessary costs in the healthcare system and provide opportunities for additional profit centers that the Internet can bring. The merger will allow for the use of the Internet along with our new proprietary technologies to re-empower the patients and doctors in the management of their healthcare.''
AESI is a Florida corporation that designs, develops, implements and operates Internet multi-media healthcare networks called ''Community Health Information Utilities (''CHIUs'').'' These Internet base utilities allow for the electronic connecting of all healthcare-trading partners. These include doctors, hospitals, consumers, patients, employers, government agencies, managed care companies, insurance companies and all other providers and organizations. AESI also develops, manages and owns community healthcare delivery systems called ''Community Health Enterprises (CHEs).'' The CHEs are healthcare enterprises that create a single source delivery system by incorporating and integrating all healthcare delivery services into a single-source delivery system. At the core of each enterprise is a CHUI.
The CHUI provides, over the Internet, clinical pathways and quality assurance applications and systems to maximize the flow of patient data and increase the ability of the physician, hospital, ancillary service and diagnostic center to service the patient. ''The integration of the entire healthcare delivery system, through the use of the company's technologies, creates substantial reductions in healthcare costs and provides improved profits over existing healthcare models,'' said Charles (''Chuck'') Broes, chief executive officer of AESI. Broes is a recognized healthcare visionary and believes that the development of the CHUI utilizing the Internet will be the formula for success by the healthcare industry in the 21st Century. Dr. Benedict Maniscalco, a leading cardiologist and one of the founders of AESI as well as its chairman and visionary of the community healthcare enterprise model, is quoted as saying ''until you re-empower the patient and physician, you can not deliver quality healthcare at the appropriate cost with measurable and meaningful outcomes.''
The terms and conditions of the merger provide that MIOA and AESI shall be of equal value as of the time of closing. As a result, the shareholders of AESI will receive shares of common stock in MIOA equal to the number of shares of common stock held by the MIOA shareholders. The parties anticipate that, at the time of closing, the relative value of the MIOA shares will be $2.50 and that the merger will be subject to final negotiation, evaluation, execution of the merger agreement and shareholder and SEC approvals.
Initially, the merger will create revenues in excess of $100 million for the combined companies with unlimited growth potential. Michael Morrell will continue to serve MIOA as its chairman and CEO until the completion of the merger, whereupon he will serve as chairman of the combined companies. Dr. Maniscalco will serve the combined companies as its vice chairman and Chuck Broes will become the CEO of the combined companies.
Medical Industries of America Inc. operates medical ancillary services businesses and is expanding the delivery of diversified medical technologies, products and services. The company provides diagnostic and therapeutic healthcare services to the surgical and medical community through its mobile cardiac catheterization services and pain rehabilitation and sleep disorder centers. The company also owns and operates an international air ambulance service and a pharmaceutical distribution business.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
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Contact:
Medical Industries of America Inc., Boynton Beach
Linda Moore, 561/737-2227
or
Continental Capital & Equity Corp.
Dodi B. Zirkle, 407/682-2001
dodi@insidewallstreet.com
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More Quotes and News: Medical Industries of America Inc (Nasdaq:MIOA - news)
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