ACCUMED ANNOUNCES COMPLETION OF SALE OF MICROBIOLOGY BUSINESS
CHICAGO, February 2, 1999 - AccuMed International, Inc. (Nasdaq: ACMI) today announced that the Company has completed the sale of its
Microbiology Business to TREK Diagnostics Systems, a new entity formed by Key Equity Capital and Mr. Michael D. Burke, a former AccuMed executive. The purchase price for the Business was $15,250,000 in cash (subject to post-closing adjustment) and the assumption of certain liabilities.
Paul F. Lavallee, Chairman, President and CEO said, "With the close of the sale, our Company was able to repay its outstanding long-term
indebtedness, its 12% Convertible Promissory Notes and its short-term
credit revolver. This enables us to move forward with a minimal debt
burden and slightly less than $6,000,000 in cash to meet the operating needs of our cytology-related business and to review other strategic alternatives as a means of increasing shareholder value."
Michael D. Burke, President of TREK Diagnostics, said, "We are excited to have completed the acquisition of the Microbiology Business, and look forward to operating a business dedicated to bringing value and quality to the microbiology market. Teaming with Key Equity Capital will provide the Microbiology Business with the resources necessary to advance existing products and develop new products in support of the Microbiology Business' customers."
AccuMed International Inc., headquartered in Chicago, is an emerging
leader in integrated, technology-driven systems that accommodate the
Cytology laboratory's need to maintain quality while achieving a more
cost-effective operation. The company manufactures and markets a line of proprietary instruments and integrated automated cytopathology systems.
Except for the historical information contained herein, the matters
discussed in this news release are deemed "forward-looking statements" under federal securities laws that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements depending on a number of factors, including, among other things, the ability to maintain long-term relationships with corporate partners, the ability to bring products to market through the regulatory approval process, uncertainty of future profitability, financing requirements, and other factors detailed in AccuMed's filing with the Securities and Exchange Commission.
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Visit AccuMed's web site at accumed.com
For investor information, contact Paul F. Lavallee
Telephone: (312) 397-7455
FAX: (312) 642-3101
e-mail: ir@accumed.com |
