Thursday March 19, 8:49 am Eastern Time
Company Press Release
Medix Resources' Cymedix Lynx Corporation Submits
Software Theft Demand Letter Against Andrx Corporation and
Cybear, Inc.
DENVER--(BW HealthWire)--March 19, 1998--Medix Resources, Inc. (NASDAQ: MDIX - news)
today announced that its wholly owned subsidiary Cymedix Lynx Corporation (Cymedix) has
submitted formal demand to Andrx Corporation (Andrx) (NASDAQ: ADRX - news) for treble
damages in the amount of $396.6 million, representing treble damages on the projected income for
the first five years of $132.2 million, suffered by Cymedix as a direct and proximate result of
alleged activities conducted by Andrx, Cybear, Inc. and individuals employed by Andrx.
The demand alleges theft and unlawful appropriation of Cymedix' computer medical software for
remote online healthcare providers and Cymedix' Internet medical communications technology,
commonly referred to as Lynx, for which a preliminary patent application was filed on October 15,
1996 and a final patent application was filed in the United States Patent and Trademark Office on
October 14, 1997.
In addition, the letter provides formal notification that Cymedix intends to file a claim under
Florida's Racketeer Influenced and Corrupt Organization Act (RICO) against Andrx, Cybear and
certain individuals employed by Andrx regarding computer-related crimes. The letter also provides
formal notice that Cymedix further intends to file additional claims of conversion; patent
infringement; federal and state claims of unfair, unconscionable and deceptive trade practices;
misappropriation of trade secrets; violation of Florida's Uniform Trade Secrets Act; and breach of
fiduciary duty.
The company cannot foresee how this matter will proceed, how long it will take to resolve, or how
the ultimate impact of this matter will affect the financial condition of the company. The Lynx
program represents a substantial investment by the company and is expected to be an important
source of future income.
Medix Resources, Inc. is a healthcare services company with two synergistic lines of business. The
company provides skilled nursing, therapy, rehabilitation and other medical personnel for flexible
staffing in home care, and in a broad spectrum of healthcare and educational facilities. Through its
wholly owned subsidiary, Cymedix Lynx Corporation, the company also offers Lynx, a secure,
patent-pending medical communications product that makes use of the Internet to facilitate more
cost-efficient patient care.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The
statements contained in this release which are not historical facts contain forward-looking
information with respect to plans, projections and/or future performance of the Company, the
occurrence of which involve certain risks and uncertainties detailed in the Company's filings with
the Securities and Exchange Commission. Reference is made to the Quarterly Report on form
10-QSB filed with the SEC on November 14, 1997.
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