CareInsite, Inc., the Healthcare E-Commerce Subsidiary of Synetic, Inc., Files a Registration Statement to Offer Shares of Common Stock in an Initial Public Offering.

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--March 26, 1999--Synetic, Inc. (NASDAQ: SNTC), announced that CareInsite, Inc., the Company's healthcare electronic commerce subsidiary, has filed a registration statement with the Securities and Exchange Commission today relating to the initial public offering by CareInsite of shares of its Common Stock. Merrill Lynch & Co. will be a managing underwriter of the offering. The timing and completion of the initial public offering will be dependent on any delay or unanticipated adverse result caused by the litigation involving Merck & Co., Inc. discussed below and prevailing market conditions.

CareInsite is developing and intends to provide an Internet-based healthcare electronic commerce network for interactive use by physicians, payers, suppliers and patients.

Prospectuses with respect to the offering may be obtained, when available, from:

Merrill Lynch & Co.

World Financial Center

North Tower

250 Vesey Street

New York, New York 10281

Attention: Preliminary Prospectus Department

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

As previously announced, on February 18, 1999, Merck & Co., Inc. and Merck-Medco Managed Care, L.L.C. filed a complaint in the Superior Court of New Jersey against Synetic, Synetic Healthcare Communications, Inc. (since renamed CareInsite, Inc.), Martin J. Wygod, Chairman of Synetic and CareInsite, and three officers and/or directors of Synetic and CareInsite, Paul C. Suthern, Roger C. Holstein and Charles A. Mele. The plaintiffs assert that Synetic, CareInsite and the individual defendants are in violation of certain non-competition, non-solicitation and other agreements with Merck and Merck-Medco, and seek to enjoin Synetic, CareInsite and the individual defendants from conducting the Company's healthcare e-commerce business and from soliciting Merck-Medco's customers. The Synetic and Wygod agreements provide an expiration date of May 24, 1999. The other individuals' agreements provide for expiration in December 1999, in the case of Mr. Suthern, March 2000, in the case of Mr. Mele, and September 2002, in the case of Mr. Holstein. A preliminary injunction hearing relating to this litigation was held on March 22, 1999. Following the hearing, the Court took the matter under submission.

The Company believes that Merck's and Merck-Medco's positions in relation to the Company and the individual defendants are without merit, and intends to vigorously defend the litigation. If the Company is unsuccessful in defending this litigation, the Company could be prevented indefinitely from pursuing the development and deployment of its healthcare e-commerce services. Any unanticipated adverse result could have a material adverse effect on Synetic's and CareInsite's business.

Certain statements contained in this press release are forward looking statements that involve risks and uncertainties including, but not limited to, risks and uncertainties associated with the interpretation of the non-competition and other agreements referred to above, risks and uncertainties inherent in the outcome of the litigation referred to above and risks and uncertainties associated with the timing and completion of the initial public offering of the Company's healthcare e-commerce business. These statements are based on the Company's current beliefs. However, actual events or results may be different from those described or implied by such forward looking statements. The Company expressly disclaims any intent or obligation to update these forward looking statements.