Analyst Initiates Coverage, Assigns MCAR Strong Speculative Buy, 12 Month Target of $15 to $17.

NEW YORK--(BUSINESS WIRE)--May 13, 1999--

Public Analysis & Review (PAR), the unique professional independent analyst program administered by the non-profit Investors Research Institute, Inc., and distributed by Investrend Research, announces that John M. Dutton, professional analyst qualified in the PAR program, has initiated coverage of MedCare Technologies, Inc. (NASDAQ:MCAR), and has assigned the company a "strong speculative buy" rating, with a 12-month target of $15 to $17.

A summary of the report follows. PAR has posted the full report, including disclaimers which should be read before investing, at http://www.investrend.com/mcarreport.html and http://www.medcareonline.com/gateway/pressframe.htm, and an e-mailed copy may be obtained upon request from [e-mail] .

Date of Report: May 13, 1999
Recommendation: Strong Speculative
Buy Recent Stock Price: $6.00
Target Price: 12 Mos. $15 - $17
12 Mos. Price Range: $11.25 - $4.56
Industry Sector: Health Care Services
Shares Outstanding(1) 10,550,000
Estimated Float: 5,300,000
Avg. Vol. - 30 days: 44,700

(1) Estimated shares outstanding after conversion of all warrants, stock options, options and convertible preferred. As of December 31, 1998 there were 7,831,105 shares issued and outstanding.

MedCare Technologies utilizes behavior modification techniques to successfully treat incontinence ("IC"). Over 25 million people in the United States and over 200 million worldwide suffer from IC. The number is expected to increase significantly as the "baby-boomers" age. Only 1 in 10 IC sufferers in the US seek any form of treatment but the rate is increasing.

Its MedCare program is now contracted in 78 physicians' offices, fully operating in 50 offices, as compared to 25 on December 31. We expect 220 operating sites in 19 months. The Journal of the American Medical Association (JAMA) recently published an article highly favorable to using behavior modification for first time treatment of IC. Compared to drug therapy, behavioral modification has a success rate exceeding 85% while drug therapy only produces success rates in the 60% range. The other treatment alternative is surgery, much more expensive and risky.

The Company recently introduced an internet based health information service called Medcareonline.com which is similar to WebMD.com and MedScape.com. The site is designed to provide consumers with detailed medical information. The web site also provides innovative programs for discussion groups, physicians, and a physician-consumer interactive section. Site revenues will be derived from sponsored areas and events.

Its first revenues of $786,586 were reported for fiscal 1998 reflecting the rollout of the MedCare program after a two-year development period. The Company should be solidly profitable in CY 2000 with EPS exceeding $.40.

In its current pricing program, the Company provides the physician site with a nurse clinician, necessary equipment, and community education for a fixed fee. A new pricing model more advantageous to both the physician and the Company, has been introduced. It should have a significant beneficial effect on both the Company's reported earnings and cash flow.

The stock of MCAR is rated a strong speculative buy. The twelve-month price target is $15 - $17.

John M. Dutton, a member of both the Boston and Los Angeles Security Analyst Societies, has been an analyst and director of research at several firms including Moseley, Hallgarten, Estabrook & Weedon and LH Friend, Weinress, Frankson & Presson. He was president of Corsair Asset Management, an asset management firm, for over 11 years. For seven years, he was Executive Vice President of the international hospital company American Medical International. Mr. Dutton's present work includes development and execution of strategic and financial planning for small cap companies.

Public Analysis & Review (PAR) is a program of the Investors Research Institute, Inc. (IRI), a non-profit membership organization for individual investors and others advocating higher standards of "accessibility", "scrutiny" and "disclosure" for public companies, administered by Investrend Research, div., IRI, Inc. (IRIK), a public company in registration. Anyone may enroll a company for PAR coverage. Annual enrollment fees are $15,000.

Information, opinions or recommendations contained in this report or study are submitted solely for advisory and information purposes. This report or study is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed.

To view the complete report, see: http://www.investrend.com/mcarreport.html http://www.medcareonline.com/gateway/pressframe.htm