Medical Industries of America Signs Letter of Intent
to Merge With CyberCare Inc.
Med.E.Commerce Company to Assist MIOA in Taking the Lead in
Race to Connect the Dots in Electronic Medical Management
BOYNTON BEACH, Fla.--(BUSINESS WIRE)--April 8, 1999-- Medical Industries of America Inc. (Nasdaq:MIOA -
news) announced Thursday that it has entered into a formal Letter of Intent to merge with privately held, Atlanta-based
CyberCare Inc. The terms and conditions of the acquisition provide for a non-cash, stock exchange transaction valued at $10
million (shares valued at $1.50 a share) and is subject to further due diligence and board approval. Specifically, Medical
Industries will issue one common voting share of MIOA for each capital share held by CyberCare stockholders.
John Haines, chairman and CEO of CyberCare, noted: ''It is a pleasure to become associated with a group which so clearly
understands the profound impact that the Internet will inevitably play on the healthcare industry. By combining our technological
strength with the client base and proven business acumen of Medical Industries and its anticipated new partners at American
Enterprise Solutions, we are confident that this marriage will result in exciting and industry-shaping dynamics. This is an
enormous market and our technologies should play a major role in improving the quality of healthcare while dramatically
reducing costs.''
Once merged, the combined companies (MIOA, AESI and CyberCare) expect to change the name of the newly formed
company. As such, the combined companies will focus on three primary areas: 1) clinical medicine; 2) technology development
and integration; and 3) information management. The combined companies will serve a broad network of providers including
institutions such as the Mayo Clinic, the Meninger Clinic, USC School of Medicine and the United States Army. On a
proforma consolidated basis, revenue expectations for 2000 and 2001 demonstrate a rapid increase in electronic revenue.
Michael F. Morrell, chairman and CEO of Medical Industries, stated: ''Healthcare spending is expected to double by the year
2007. Currently there are over 30 billion healthcare transactions which represent a trillion dollars in healthcare expenditures -
only 10% of which are processed electronically. We intend to change that. By combining the clinical and informatics
components of med.e.commerce, our combined companies are able to produce and maintain a fully integrated digital
information system. The multi-functional approach to the collection, transfer and storage of data provides our combined
companies with a window of opportunity and a competitive edge over the majority of the e-commerce healthcare industry,
which is predominantly application-driven and narrowly focused. Our envisioned integrated systems approach will reduce
costs, improve consumer knowledge and, in general, enhance overall patient management and satisfaction.''
Concluding, Morrell said: ''When you piggyback this exciting new aspect of our business together with our ancillary services
including pain/sleep management business, rehabilitation business, pharmacy business, and our global air ambulance business,
we are, in effect, connecting the dots of all our businesses into a comprehensive, one-stop-shop with unlimited application and
future growth potential.''
About CyberCare Inc.
Atlanta-based CyberCare Inc. is partly owned by the Georgia Institute of Technology and the Medical College of Georgia,
from which is had acquired proprietary technologies for monitoring chronically ill patients in their homes. CyberCare has
developed intelligent routing technologies for use on the Internet, which are expected to make both clinical e-commerce and
administrative e-commerce much more user-friendly and practical than previously possible.
About Medical Industries of America Inc.
Headquartered in Palm Beach County, Fla., Medical Industries of America Inc. is currently in the business of developing
integrated medical delivery services by providing diversified medical technologies, physical and pain rehabilitation, occupational
and speech therapy, sleep apnea, diagnostic and treatment services, pharmaceutical services and international air ambulance
transport. The company recently announced its intent to merge with American Enterprise Solutions Inc., a Florida corporation
that designs, develops, implements and operates Internet multi-media healthcare networks called ''Community Health
Information Utilities'' (''CHIUs'').
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts
contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not
limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new
products, government-approved processes, the impact of competitive products or pricing, technological changes, the effect of
economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
Contact:
Medical Industries of America Inc., Boynton Beach
Linda Moore, 561/737-2227
or
Continental Capital & Equity Corp., Longwood, Fla.
Dodi B. Zirkle, 407/682-2001
dodi@insidewallstreet.com |
