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Microcap & Penny Stocks : Universal Medical Sytems (UMSI) -- Ignore unavailable to you. Want to Upgrade?

To: JPS who wrote (1273)	3/12/1998 10:31:00 AM
From: HG	Read Replies (1) \| Respond to of 1672

JPS and All, Umsi not dead yet. But might as well be, PR News Wire: 1 for 25 reverse split and small financing pkg. Annc: 10 AM this morning. Regards, HG

To: JPS who wrote (1273)	3/12/1998 10:33:00 AM
From: FreedomForAll	Read Replies (2) \| Respond to of 1672

Universal Medical Announces Proposed Financing & Board Actions CLEARWATER, Fla., March 12 /PRNewswire/ -- Universal Medical Systems, Inc. (OTC Bulletin Board: UMSI - news; UMSI) today announced that the Company has received a proposal from Global Emerging Markets Group (GEM), a New York based investment banking firm, to raise up to $1.0 million for the Company, subject to certain terms including (a) the Company completing a one for twenty-five reverse split of its stock, (b) two current secured debenture holders subordinating their secured position to GEM, and (c) specific use of proceeds to complete the installation of CT Sim systems in Taiwan. The CT Sim system is a product of Medical High Technology International, Inc. (MHTI), a wholly owned subsidiary of the Company. Mike Baker, Chairman & CEO of UMSI stated, ''The completion of the three CT Sim installations in Taiwan are contingent upon the Company's success in raising capital to complete the necessary software development for the systems. When this is accomplished, sales of the new advanced CT Sim can resume.'' Due to the delay in software development for the CT Sim, MHTI and M.D. Anderson Cancer Center have mutually agreed to the cancellation of an earlier order. The Company is in discussions with a Taiwanese group for an investment in MHTI, subsequent to completion of the current installations in Taiwan. Baker also reported that Select Capital Advisors, Inc. has not yet completed its previously announced funding program for the Company. Four hundred thousand dollars was funded in October 1997, but the balance of funding is based upon purchase order and letter of credit financing. Baker stated that such purchase order and letter of credit financing should be facilitated with completion of the installations in Taiwan. Due to the Company's cash flow position, it incurred delay in rent payment on the facility used by MHTI, causing the landlord to pursue an eviction. MHTI does not have current access to the building until such time as arrangements can be made with the landlord for re-entry to the premises. Baker commented: ''Discussions with the landlord are underway; however, the landlord wants the two secured debenture holders to participate in any agreement which allows MHTI to make use of the premises. While the landlord has been very cooperative to this point, the two debenture holders have not yet agreed to participate in the arrangement.'' The Company also announced that it has been delayed issuing its audited financial statements for the 1997 fiscal year because the Company believes the significant subsequent events experienced after the fiscal year end require disclosure in its audited financial statements. The Board of Directors of the Company has taken the following actions: (a) Approved a one for twenty-five reverse split of its common stock, with an effective date yet to be determined, in order to comply with the conditions required by the GEM financing proposal, (b) Authorized the subordination of the secured position of the two debenture holders, (c) Authorized converting the debentures to shares of common stock subsequent to the reverse split, if requested by the debenture holders, and (d) Voted not to proceed with the proposed IPI / UNILOG acquisition. Baker stated: ''The Company will continue to pursue its other options to generate working capital, to restructure the management and Board of Directors, and to take any other appropriate actions in the best interest of its shareholders and employees.'' Universal Medical Systems, Inc. is a public company, trading on the OTC Bulletin Board, trading symbol ''UMSI.'' SOURCE: Universal Medical Systems, Inc.