American Risk Management Receives Name and Symbol Change; Company Completes Acquisitions in Medical Diagnostics Field.

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 2, 2000

ARMM announced today that its Board of Directors approved the change of the Company's name to Comprehensive Medical Diagnostic Group Inc. The company will trade under the symbol "CMDI" and will conduct its business using the trade name Comprehensive Medical Group.

James H. Clingham, recently named President and Chairman of the Board of the company stated that "with the change in name being approved, we now have officially commenced activity in our focused market." In early June, the Company announced a major move in its business direction away from manufacturing and manufacturing investment into the health care field. The Company had shed its last non-medical business in anticipation of this move.

The Company further announced the closing on the acquisitions of Comprehensive Medical Group, CAT-ECG and Cardiovascular Laboratories Inc., and will be announcing shortly additional acquisitions to round out the first phase of roll-ups of diagnostic testing and disease management companies.

The emphasis for the combined array of companies will be to cross market existing services which include web based trantelephonic event monitoring, pacemaker checking, 12 lead EKG; halter monitoring; echocardiography and bone density testing of semi and ambulatory patients by way of mobile diagnostic services. In addition the company provides higher end vascular and cardio services provided through the Cardio Labs unit located at community based hospitals. After completion of the phase one roll-up, the combined companies will service over 300 long-term care facilities and institutions; hundreds of medical offices, and more than a dozen in-hospital laboratories. The combined revenues for the phase one roll-up are expected to exceed $12,500,000 with EBITDA of $2,700,000.

Clingham, who has a strong background in corporate management particularly in the telecommunications field, joined CMDI through its acquisition of Comprehensive Medical Group. He has been actively involved in the communications field with prior assignments with GE, RCA and the Sarnoff Corporation, of Princeton, N.J., a participant in the Grand Alliance, which established the Digital Television Standard for the United States.

"We not only have assembled a great array of income producing service providers in the diagnostic and telemedicine field, we have acquired with the companies a wonderful group of professionals and relationships with hospitals, health service organizations, and nursing homes throughout the Northeast," said Clingham. "Our mission now is to fill in the pieces with additional acquisitions in the diagnostic field, merge the cultures and capabilities and bring more and better services to the customer base we are serving, while increasing revenues."

Clingham summarized great satisfaction with the nature and structure of the transactions, stating, "We are especially pleased that the sellers of the various companies who are our partners had confidence in our strategy, that they where willing in large part to accept stock in the Company with all the required restrictions, in order to become part of an exciting team."

The Company feels that the Telemedicine Industry is one of the fastest growing and most underserved business segments in the United States. A complete corporate profile for CMDI may be found at http://www.SmallcapNewswire.com.

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter new markets. The forward-looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for health, wellness and telemedicine services. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward-looking statements, other important factors that could result in those differences include (a) general economic conditions in the health, wellness and telemedicine markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Quarterly Report on Form 10Q for the period ended March 31, 2000; and (d) other factors that generally affect the business of health, wellness and telemedicine companies. We assume no obligation to update those forward-looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward-looking statements.