Comprehensive Medical Diagnostic Group Buys Diagnostic Health Systems Of New Jersey.

Business Editors/Medical Writers

PRINCETON, N.J.--(BUSINESS WIRE)--March 5, 2001

Comprehensive Medical Diagnostic Group. Inc. (Nasdaq:CMDI) announced today that it closed the purchase of Diagnostic Health Systems, Inc. of Lakewood, New Jersey, the leading provider of mobile and stationary diagnostic measuring and telemedicine services in the State.

Comprehensive, a publicly traded Florida Corporation, with Headquarters in Princeton, NJ, recently announced the signing of a Letter of Intent to acquire Homeward Rehab, Inc. of Cincinnati, Ohio, as it continues to align its family of companies in the health and wellness and healthcare fields. Comprehensive had earlier announced that it was concentrating on ground based telemedicine companies that make use of long distance telecommunications diagnostic capabilities to facilitate rapid diagnostics and treatment facilities that use those services.

"We have been cooperating and sharing facilities and resources with DHS for some time in anticipation of this Closing," said James H. Clingham, Chairman and President of Comprehensive. "In DHS, we have the crown jewel and pacesetter of New Jersey diagnostic companies and the strong backroom operation and technical know-how that will make our growth and consolidation plans come together."

CMDI has now closed the acquisitions of CAT-ECG of Long Island, Cardiovascular Laboratories Inc of Eastern Pennsylvania, Comprehensive Medical of NJ, with its Wellness Shop kiosk based health and wellness program and Leaseonlife.com website, Homeward of Ohio, and DHS under its management control. Revenues for 2001 should exceed $16 million through the combined units.

Fred Brotz, President of DHS, said, "Everyone at DHS is quite pleased to be part of the Comprehensive family. We share the vision that Comprehensive brings to better use telemedicine in our diagnostic work, that there is real strength in geographic consolidation, and through this consolidation we have a good opportunity to bring even better services to our clients."

"The beauty of what we are doing through this combining of services and talents and the growth that will follow, is that we are now able to continue to bring cost effective services in an even more effective manner to patients where they are, without the need of costly transportation to fixed facilities," said Norman Goldhecht, Executive Vice President of DHS. "Said another way, the Patients benefit, the paying agencies, such as private insurance companies and Medicare and Medicaid, benefit by using mobile diagnostics and advanced telemedicine tools by bringing the services to the patients, instead of transporting the patients to the services."

Clingham said that he is particularly pleased to have Brotz and Goldhecht on board. "These gentlemen have built a very nice business, understand the business they are in and are constantly in touch with government agencies, regulatory groups, industry standard groups, and most importantly, patient service organizations, to see what needs to be done to improve their product, a hallmark of the Comprehensive Charter," according to Clingham.

The Company said in a separate announcement that Brotz and Goldhecht will hold similar titles and responsibilities in heading up the Diagnostic Medical Group of Comprehensive and the headquarters and staff for that Group will move to DHS' Lakewood offices.

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.