e-MedSoft.com to Acquire Group of Software Companies
Thursday March 11, 3:00 am Eastern Time
Company Press Release
e-MedSoft.com to Acquire
Group of Software
Companies
Upgrades Annual Revenue Projection to $40 Million
Distribution Agreement With Sanga International Terminated
LOS ANGELES--(BUSINESS WIRE)--March 11, 1999--e-MedSoft.com (OTC
BB:MDTK - news), formerly known as MedTech Inc., Thursday announced
that it has entered into two related agreements with Sanga International Inc. under which the company has obtained the rights to acquire a group of software companies operating in the United Kingdom, and under which the company has terminated its distribution agreement with Sanga International relating to the company's core product, the e-MedSoft.com Internet-capable health-care management software.
In a license agreement dated Dec. 2, 1998, the previous owners of the
e-MedSoft.com technology had licensed to Sanga International the rights to market and distribute e-MedSoft.com's Internet-capable health-care management software. By mutual agreement, however, that software license has now been terminated, and e-MedSoft.com will now receive all revenues from the roll out of its Web-based health-care technologies.
Commenting on the termination of the license, John Andrews, chairman
and chief executive officer of e-MedSoft.com, said: ''We entered into the license agreement with Sanga at a time when we were nearing completion of the core e-MedSoft.com product and anxious to get our product to market. Sanga had provided assistance in developing the e-MedSoft.com software and, therefore, Sanga staff had product knowledge.
''Sanga also had sales personnel readily available to begin marketing
e-MedSoft.com. Licensing the marketing and distribution rights to Sanga seemed like a logical step.
''However, it quickly became apparent from the medical community's very positive reaction to e-MedSoft.com that it would be more appropriate for e-MedSoft.com to handle the marketing and distribution internally. With Sanga, e-MedSoft.com was being marketed as one of a number of software solutions covering a diverse range of industry applications.
''Now, the total focus of our sales efforts are on e-MedSoft.com and the medical community, and based on recent announcements, such as the
agreement with HMO American Healthguard, that focus is paying off --
we're signing up new customers at a much faster rate than expected.
''In addition to a more focused and concerted sales effort, termination of this agreement has a major financial benefit. Previously, the financial participation of e-MedSoft.com in revenues generated from the software was limited to a royalty interest.
''Now, we are able to record the full revenue from each contract, and we also believe, due to the substantial gross margin associated with the product, that our profits on each contract will be significantly greater than they would have been under the licensing agreement.''
In another related agreement, Sanga agreed to assign to e-MedSoft.com its rights to acquire a group of software companies. Because of the anticipated performance of these new companies, e-MedSoft.com is now
anticipating annual revenues of approximately $40 million. In exchange for the assignment of rights, e-MedSoft.com agreed to issue to Sanga 3 million shares of e-Medsoft.com's restricted common stock.
Commenting on the acquisition, Andrews stated: ''After careful analysis, and discussions with the management and board of Sanga, it became obvious that the U.K.-based group of software companies fit in better with e-MedSoft.com's business objectives than with those of Sanga.
''This acquisition opportunity is important for two reasons. First, it will immediately provide us with a sales and marketing base in Europe, which we consider to be our second-largest target market after the United States. Second, through existing operations and other corporate synergies, these companies have enabled us to upgrade our yearly earnings estimate to $40 million during our first calendar year in business.''
After significant down payments already made against the acquisition, the acquisition of the U.K.-based software group of companies is subject to a final payment of nearly $2 million, and the company expects to complete all necessary prerequisites and close the acquisition by March 31, 1999. The terms of the acquisition and the names of the companies being acquired were not disclosed.
About e-MedSoft.com
e-MedSoft.com, with its recently acquired medical software product being sold under the trade name e-MedSoft.com, is leading a transition in the medical industry, as it is the first subscription-based health-care management system available for delivery through the Internet. Users of the software are charged a small up-front installation fee, and an ongoing subscription fee based on transaction volume.
The medical software is a complete health-care management system. Through the Internet, its Java-based integrator allows the MedTech software to communicate across diverse platforms and languages in unlimited capacity, allowing for the interlink of doctors, hospitals, clinics, HMOs, insurance companies, financiers and government agencies.
The ease and low cost with which it can be implemented, its Internet
connectivity and its ability to allow for the exchange of information across diverse platforms and systems bode well for its widespread adoption by the medical community.
Statements in this news release that relate to management's expectations or beliefs concerning future plans, expectations, events and performance are ''forward-looking'' within the meaning of the federal securities laws. Actual results or events could differ materially from those anticipated in the forward-looking statements due to a variety of factors, including, without limitation, acceptance by customers of the company's products, changing technology, competition in the health-care market, government regulation of health care, the company's limited operating history, general economic conditions and availability of capital.
Note to Editors: Sun, Java and 100% Pure Java are trademarks of Sun Microsystems Inc. in the United States and other countries. All other
trademarks, tradenames, registered trademarks or registered tradenames
are the property of their respective holders.
+ Today's clarification....
Friday March 12, 3:00 am Eastern Time
Company Press Release
E-MedSoft.com Clarifies
March 11, 1999 News
Release
LOS ANGELES--(BUSINESS WIRE)--March 12, 1999--e-MedSoft.com (OTC:MDTK
- news), formerly known as MedTech Inc., Friday announced a clarification to the news release the company issued on March 11, 1999.
In that clarification, the company confirmed that it continues to own all of the rights, title and interests in its e-MedSoft.com Internet-capable health care management software.
In explanation, John Andrews, chairman and chief executive officer of
e-MedSoft.com, said, ''The announcement, issued yesterday, was meant to inform the public that the company has strengthened its absolute ownership rights to all of its software by terminating the sublicense
agreement with Sanga International Inc.
''Yesterday's announcement, which was received very favorably by the
investing public, may have created some minor confusion which the
company is now clarifying by underscoring that it is the sole and exclusive owner of its state-of-the-art subscription-based health care software.''
About e-MedSoft.com
e-MedSoft.com, with its recently acquired medical software product, being sold under the trade name e-MedSoft.com, is leading a transition in the medical industry, as it is the first subscription-based health care management system available for delivery through the Internet.
Users of the software are charged a small up-front installation fee and an ongoing subscription fee based on transaction volume. The medical software is a complete health care management system. Through the Internet, its Java-based integrator allows the MedTech software to
communicate across diverse platforms and languages in unlimited capacity, allowing for the interlink of doctors, hospitals, clinics, HMOs, insurance companies, financiers and government agencies.
The ease and low cost with which it can be implemented, its Internet
connectivity, and its ability to allow for the exchange of information across diverse platforms and systems bode well for its widespread adoption by the medical community.
Statements in this news release that relate to management's expectations or beliefs concerning future plans, expectations, events and performance are ''forward-looking'' within the meaning of the federal securities laws. Actual results or events could differ materially from those anticipated in the forward-looking statements due to a variety of factors, including, without limitation, acceptance by customers of the company's products, changing technology, competition in the health care market, government regulation
of health care, the company's limited operating history, general economic conditions and availability of capital.
Sun, Java and 100% Pure Java are trademarks of Sun Microsystems Inc. in the United States and other countries. All other trademarks, tradenames, registered trademarks or registered tradenames are the property of their respective holders.
Contact:
Magnum Financial Group LLC, Los Angeles
Michael Manahan, 213/488-0443
msmanahan@magnumfinancial.com
Contact:
Magnum Financial Group LLC, Los Angeles
Michael Manahan, 213/488-0443
msmanahan@magnumfinancial.com |
