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AMSERV INC. ANNOUNCES DIVESTITURE

 AMSERV INC. ANNOUNCES DIVESTITURE
 RENO, Nev., April 1 /PRNewswire/ -- AMSERV INC. (NASDAQ: AMSR)


announced the sale of substantially all of the assets of the company's medical products subsidiary to MERX Inc., a newly formed venture led by M&I Ventures Corp. of Milwaukee. MERX will continue to operate the medical products and diagnostic services business as a free standing entity.
 The assets, excluding cash and cash equivalents, were sold for $4,175,000 and terms of the sale included $3,282,000 in cash, a $450,000 unsecured two year promissory note payable quarterly with interest, and the assumption of $443,000 of AMSERV Medical Products Inc.'s liabilities. The company expects a pre-tax gain of over $2,000,000 with after-tax proceeds of approximately $2,500,000.
 The company believes that the sale is significant in that it allows management to concentrate its time and energy, as well as AMSERV's substantial financial resources, on the rapid development of its core business -- home care and temporary nursing services. It is anticipated that the company will possibly operate at a loss for the next several quarters because of the existing level of general and administrative expenses and the amortization of intangible assets related to past acquisitions. "The current organizational structure is needed to support the company's expansion program," said Gene Mora, AMSERV's chief executive officer. "We expect that following this transition period and the implementation of our plans for acquisitions and start-up offices, that the company's sales and profits will exceed our performance in both categories prior to the sale of our medical products business." The company is planning to open offices in the Chicago area and in Phoenix.
 AMSERV Inc. is a national health care services company that provides temporary nursing personnel to health care facilities and to individuals in their homes through its AMSERV Nurses' Group of companies which has 11 offices in eight states.
 -0- 4/1/92
 /CONTACT: Gail Letcher of Amserv Inc., 702-348-1000/ CO: Amserv, Inc. ST: Nevada IN: HEA SU:


DG-RM -- SJ001 -- 3754 04/01/92 09:16 EST
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Publication:PR Newswire
Date:Apr 1, 1992
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