American Medical Alert Corp. Updates the Status of the City of New York Contract.Business Editors & Medical/Health Writers OCEANSIDE, N.Y.--(BUSINESS WIRE)--Aug. 14, 2000 As previously disclosed, American Medical Alert Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMAC AMAC Adults Molested As Children AMAC Assistance to Mine-Affected Communities AMAC Aircraft Monitor And Control AMAC Approximate Message Authentication Code AMAC American Military Arms Corporation AMAC Asset Management Assistance Center ), in accordance with the rules of the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Procurement Policy Board, last November protested to the Agency Chief Contracting Officer A US military officer or civilian employee who has a valid appointment as a contracting officer under the provisions of the Federal Acquisition Regulation. The individual has the authority to enter into and administer contracts and determinations as well as findings about such contracts. of the City of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. Administration, (HRA HRA Health Reimbursement Arrangement HRA Health Risk Assessment HRA Housing and Redevelopment Authority HRA Human Resources Administration HRA Health Reimbursement Account HRA Housing Revenue Account ) the proposed award of the Agency's personal emergency response services contract to another vendor. Recently, the Agency's Chief Contracting Officer advised the Company that the award had not yet been made. It was further stated that this protest had not persuaded the Agency to not award the contract to the other vendor. The Company, believing in the merit of its protest and appeal this determination in accordance with the procurement rules relating to the contract to the Commissioner of HRA. On August 9, 2000, the Company received notification from the Commissioner of HRA that the appeal of the determination of the Agency's Chief Contracting Officer was denied. The Company continues to believe in the merit of its protest and is evaluating all possible options in connection with this most recent notification. As of August 11, 2000, the contract had not been awarded. During the years ended December 31, 1998 and 1999, revenues from this contract represented 47% and 41% respectively. Currently, this contract represents 36% of total revenues and would be lost if HRA were to award the contract to another vendor. At this time, no determination can be made on how a transition to another vendor would be accomplished, and in what time frame the transition would be made. It could be expected that these revenues would continue on a diminishing scale until all equipment is recovered. Howard M. Siegel, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "The Company believes it has reliably and efficiently served the City of New York as the vendor of record under the Agency's personal emergency response services contract. We are examining other remedies that may be available to the Company. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the Company has experienced success in growing its customer base outside the contract with the City of New York through a variety of dynamic marketing efforts, which have continued to contribute to increasing recurring monthly revenues. In the first two quarters of fiscal year 2000, the Company has doubled its net new subscriber growth, independent of the City of New York contract, in comparison to fiscal year 1999. Strong strategic alliances with health care providers, our aggressive provider conversion programs and new business initiatives should continue to expand the use of services while opening new marketing opportunities for personal monitoring." AMAC is a leading provider of medical response and 24-hour on-call-monitoring services to assist the health care community in providing at-risk patients with instant access to assistance from trained caring professionals. The company is vertically integrated with involvement in all phases of service delivery including product design and development, manufacturing and testing, field service and 24-hour monitoring. Through a diversified marketing and referral network, AMAC markets its products to over 500 hospitals, home care providers, physicians, ambulance companies, medical equipment suppliers, state social services agencies, health maintenance organizations, and directly to consumers. This press release contains information that may constitute forward-looking statements made pursuant to safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company's actual results could differ materially from such forward-looking statements. Unless otherwise required by applicable securities law, the Company assumes no obligation to update any such forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward looking statements. |
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