Thursday January 14, 1:37 pm Eastern Time
Company Press Release
Avalon Group Exercises Redemption Option to Recall
Warrants
CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--Jan. 14, 1999--As announced last week, Avalon Group, Inc. has entered
into a Memorandum of Understanding for the planned acquisition of Avalon by Appropriate Health Services.com, Inc. (AHS),
a privately-held corporation based in Sierra Madre, Calif.
A condition of the acquisition is that Avalon will be required to exercise its option to repurchase all outstanding warrants.
Notice has now been sent to all holders of Avalon Group warrants, informing the warrant holders that they will have until
February 15, 1999 to exercise their warrants or the company will repurchase the warrants.
Ron Green, president and chief executive officer of Avalon commented: ''The proposed acquisition of Avalon Group is very
important to our future and the Board of Directors agreed to this prerequisite so that the deal may move forward unhindered. If
the acquisition progresses as planned, Avalon shares will be converted at a ratio of eight Avalon shares for each AHS share,
thereby valuing Avalon's shares at a minimum of 25 cents, excluding other financial considerations such as the assumption of
debt. These valuations are based upon the last known selling prices that both companies offered in their most recent private
placement offerings in 1998. The valuations will also be submitted to a Fairness Hearing in California In February, 1999.''
Avalon Group, Inc. is a company that designs and markets technology solutions for customers in a variety of industries. The
company's first major product, the X-po!™ kiosk, was launched in 1998 as a state-of-the-art, interactive kiosk that is
Internet-ready and uses standard personal computer (PC) architecture.
Appropriate Health Services.com, Inc. is in the business of acquiring health and health care-related businesses.
This release contains forward-looking statements that involve risks and uncertainties and actual results may be materially
different. Investors are encouraged to perform comprehensive due diligence before making investment decisions.
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