Acadia National Health Systems, Inc. Terminates Acquisition Agreement.

LEWISTON, Maine--(BW HealthWire)--Dec. 15, l998--Acadia National Health Systems, Inc announces the termination of its acquisition discussions with Medical Financial Services ("MFS") in Bangor, Maine. At the request of MFS' owner, Steven I. Weisberger, the offer to sell to Acadia was withdrawn for personal reasons. Acadia's management and board conducted appropriate due diligence, considered the specific circumstances, and believe it is in the best interest of the company to terminate acquisition plans with MFS immediately.

Paul W. Chute, Chairman and Chief Executive Officer believes this decision will not offset Acadia's growth given the continued success of its sales efforts. "We continue to work on other strategic relationships that are shaping and developing our visionary objective," concluded Mr. Chute.

Mr. Chute states, "A strong team of leaders is a prerequisite for responsible growth." Mr. Chute is pleased to report that Acadia has recently taken steps to assemble an experienced and accomplished senior management team. This is headed by the appointment of John F. Raden as President and Chief Operating Officer. Mr. Raden comes to Acadia following two years as Chief Operating Officer of Medical Financial Services. Prior to that he served as Executive Vice President of Chinet Corporation. During his tenure, Mr. Raden directed the restructuring of his division of Chinet, which resulted in a substantial increase in profitability. Mr. Raden completed a number of national and international mergers and acquisitions for Van Leer, the Chinet parent company. Mr. Chute reports, "He will be responsible for the day-to-day operations and strategic development under a long-term agreement with Acadia."