PMSI...recently entered this arena...brought to my attention by a doctor friend near the time of announcment. PMSI deals primarily with treatment of kidney stones...and now refractive surgery.
I picked up a few "tracking" shares a couple weeks ago.
biz.yahoo.com
Monday August 30, 9:10 am Eastern Time
Company Press Release
Prime Medical Services Inc. Enters Rapidly Growing
Refractive - LASIK - Surgery Business
AUSTIN, Texas--(BW HealthWire)--Aug. 30, 1999--Prime Medical Services Inc. (Nasdaq:PMSI - news; ''Prime'')
announced today that it acquired a 60% interest in two laser (refractive) surgery centers, operated by Barnet-Dulaney Eye
Center (BDEC), effective Sept. 1, 1999.
BDEC will retain the remaining 40% of the centers, located in Phoenix and Tucson, Ariz., and will continue to manage both
centers. Prime paid approximately $8.8 million in cash plus an earnout to be paid at the end of the first year for this acquisition.
Ken Shifrin, Chairman of the Board of Prime, stated, ''Prime entered the lithotripsy field in 1992 and eventually became the
largest operator of lithotripters in the United States. We believe that our entry into the rapidly growing refractive surgery field is
a natural, as there are many similarities between the lithotripsy and laser surgery industries, including the importance of such
factors as: quality of care, physician relationships, measurement of outcomes data, and fleet management of high cost medical
equipment.
''Particularly exciting, the refractive surgery field has seen spectacular procedural growth, due to the enthusiastic reaction from
treated patients. While this is our first acquisition in laser surgery, we are currently evaluating other potential acquisitions. I
believe that we can grow the laser surgery business even faster than we have grown lithotripsy. Our strong financial position,
which includes excellent cash flows, approximately $25 million in cash and an untapped $100 million line of credit, places Prime
in a unique position to build a sound business in the rapidly growing field of vision correction.''
Joseph Jenkins, M.D., President of Prime stated, ''Significantly, we have also entered into a joint venture with the principals of
BDEC, which is one of the premier eye centers in the United States. This joint venture, which is 60% owned by Prime and
40% owned by the principals of BDEC, plans to expand both through additional acquisitions and the development of new laser
centers.
''BDEC is comprised of the following doctors: Ronald W. Barnet, M.D.; David D. Dulaney, M.D.; Scott A. Perkins, M.D.;
and Robert B. Pinkert, O.D. Drs. Barnet and Dulaney are pioneers in the refractive surgery field and the practice has
performed over 19,000 LASIK procedures since 1995. The practice is managed by Mark Rosenberg, who has extensive
experience in marketing, opthamology and laser center management. Mr. Rosenberg will become an officer in the joint venture
and Dr. Barnet and Dr. Dulaney will become members of the Board of Directors for the joint venture.''
Dr. Jenkins added, ''We have significant experience in successfully developing joint ventures with urologists to operate
lithotripters. We will utilize this same philosophy of strong physician relationships in expanding our laser center business.''
Mr. Shifrin also stated, ''Dr. Jenkins and I became so convinced of the benefits of laser eye surgery during the negotiation and
closing of this transaction that we both had the procedure done at BDEC. For the first time in 30 years, neither of us is wearing
glasses. The simplicity of the LASIK procedure and the dramatic improvement in vision within a few hours with very little
discomfort is amazing.''
Mr. Shifrin will be hosting a conference call today at 3:00 p.m. CST to discuss this new line of business (dial 800/937-4597 to
connnect). A recording of the conference call will be available for 48 hours after the conference, dial 800/633-8284 or
619/812-6440, enter reservation number 13047991.
Prime currently operates a fleet of 63 lithotripters and two refractive surgery centers in 34 states. These centers perform
approximately 39,000 lithotripsy and 5,500 LASIK procedures on an annualized basis. Lithotripsy is a cost effective,
non-invasive method for treating kidney stones through the use of extracorporeal shock waves which pulverize kidney stones
and permit them to pass painlessly from the body. LASIK refractive surgery, one of the most advanced forms of laser vision
correction, is designed to improve vision and reduce dependence on glasses and contacts by correcting nearsightedness,
farsightedness and astigmatism.
In addition, Prime offers thermotherapy services to hospitals and surgery centers to treat benign prostatic hyperplasia (BPH).
Thermotherapy uses microwaves to apply heat to the prostate resulting in relief of the symptoms of BPH without damaging
surrounding tissues. Prime also provides installation, upgrade, manufacturing, refurbishment, and repair services for major
medical equipment manufacturers and mobile medical services providers.
Statements in this press release that are not strictly historical, including statements regarding plans, objectives and future
financial performance, are ''forward-looking'' statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although Prime believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that the expectations will prove to be correct. Factors that could cause
actual results to differ materially from Prime's expectations include, among others, the existence of demand for and acceptance
of Prime's services, the availability of appropriate candidates for acquisitions by Prime, regulatory approvals, economic
conditions, the impact of competition and pricing, financing efforts and other factors described from time to time in Prime's
periodic filings with the Securities and Exchange Commission.
For more information, visit Prime's Web site at: www.primemedical.com For investor relations inquiries please call
888/948-1970.
Contact:
Prime Medical Services Inc., Austin
Ken Shifrin or Cheryl Williams, 512/328-2892
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