Acquisition of Medi Guard Inc.

MANITOBA, Canada--(BUSINESS WIRE)--Dec. 1, 1997--National Healthcare Manufacturing Corp. (NHMC) announced that it has signed a definitive agreement to purchase 100 percent of privately held Medi Guard Inc. of Oakville, Ontario.

Medi Guard, as a result of rapid recent growth, is Canada's leading manufacturer of cellulose-based disposable protective products for medical use. These products include examination gowns, drapes, table paper, bibs, towels and aprons. The company also produces a line of single-use products for airline in-flight services. In 1995, Medi Guard revenues were $770,000, which increased to $2.8 million in 1996, with similar growth projected for 1997. Completion of this acquisition is subject to VSE approval.

Mac Shashaver, president and CEO of NHMC, stated: "The acquisition of Medi Guard and the inclusion of their products in our procedure trays and custom kits enhances NHMC's vertical integration strategy. Also, NHMC's existing distribution channels in Canada, Europe and the United States will further assist in rapid growth of Medi Guard product sales."

First-Quarter Revenues

NHMC announced sales of $1,845,743 for the first quarter ending Sept. 30, 1997, representing a 176-percent increase over the comparable period last year.

Appointment of Officers and Directors

Also pursuant to Friday's annual general meeting held in Manitoba, MB NHMC has included the following senior management as new officers in the corporation:

-- Jack Tapper, B.A., B.Comm. (Hons), C.A., vice president, chief financial officer and director.

-- Nancy Clark, RN, MBA, vice president of operations. Clark has 25 years experience in the health care industry, both as a nursing instructor and in material management/purchasing with various health care institutions.

-- Patrick Patterson, general manager of the NHMC Winnipeg Manufacturing facility.

NHMC owns and operates the world's first and only automated robotic production facility capable of assembling and packaging various kits and trays for medical and surgical procedures. Use of this proprietary technology enables NHMC to produce these medical devices efficiently, cost effectively, quickly and accurately, thus providing an edge over its competition who currently use manual labor.

Through its wholly owned subsidiaries, NHMC manufactures and distributes personal care and anti-microbial products to health care and home care institutions. NHMC also, through its United States subsidiary, National Healthcare Logistics, provides state-of-the-art supply chain management to integrated hospital systems.

CONTACT: National Healthcare Manufacturing Corp., Manitoba

Alex P. Tsakumis, 800/883-8841 or 604/689-8581

INDUSTRY KEYWORD: MEDICINE