Advanced Health Settles Contract Dispute
Thursday January 14, 7:58 am Eastern Time
Company Press Release
TARRYTOWN, N.Y.--(BW HealthWire)--Jan. 14, 1999--Advanced Health Corporation (Nasdaq: ADVH - news) announced today that it had settled a lawsuit involving a contract dispute with Synetic, Inc.
The dispute centered on a March 31, 1997 software license agreement that called for the delivery to Synetic of, among other things, Advanced Health software known as Internet Script Writer (ISW) in exchange for a payment of $1 million. The parties had disagreed about whether the ISW software, as delivered, was fully functional and met contract specifications and, consequently, about whether Synetic owed $1 million to Advanced Health.
Under the terms of the settlement agreement between the parties, Synetic has made a one-time cash payment to Advanced Health of $400,000, and Advanced Health has withdrawn its claim against Synetic for $1 million. In addition, Synetic will receive the most recent version of the ISW software from Advanced Health. The parties also agreed to exchange mutual releases and to dismiss the lawsuit with prejudice. Neither party has admitted any liability.
Advanced Health participates in the growing healthcare electronic commerce market. The Company provides leading-edge information technology enabling the electronic management of laboratory and prescription transactions. The Company is seeking to leverage its technology to become a leading provider of Internet-based electronic commerce among physicians and healthcare organizations. Through its professional outsourcing services unit, the Company also provides services to healthcare organizations, including physician practices.
This press release contains forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance and products or service line growth, may be significantly impacted by certain risks and uncertainties, including failure to meet operating objectives, competition and other economic factors. Additional risks and uncertainties are described in the Company's public filings with the Securities and Exchange Commission.
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Contact:
Advanced Health, Tarrytown
Arthur Dague, 914/524-4783
e-mail: adague@advhealth.com
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