CyberCare Sells Air Ambulance Division.Business Editors/Health & Medical Writers BOYNTON BEACH Boynton Beach, city (1990 pop. 46,194), Palm Beach co., SE Fla., on the Atlantic coast; inc. 1920. A major suburban area, it is also a beach resort and vegetable-shipping point. , Fla.--(BUSINESS WIRE)--Oct. 25, 2001 CyberCare, Inc. (Nasdaq:CYBR CYBR Copy Byte Right ) announced today that it recently regained possession of the air ambulance air ambulance Emergency medicine A helicopter or, less commonly, a fixed wing aircraft, used to evacuate a person who requires immediate medical attention that cannot be provided at his/her current location business it had previously sold in September 2000 from the buyer in that transaction following the buyer's uncured default of its payment obligations. Simultaneously, CyberCare disposed of the air ambulance business in a transaction in which all the stock of one operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. and certain of the assets of the other two operating subsidiaries were sold to Global Air Response, Inc., a privately-held Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. , for $5 million. Global Air Response, an entity unrelated to CyberCare or the air ambulance subsidiaries, delivered a $5 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. as consideration for the purchase, which earns interest of 6 percent annually, matures in 10 years, and which may be converted by the holder into a 20 percent non-voting equity interest in Global Air Response, subject to reduction based on debt service payments and further subject to dilution in the event Global Air Response issues additional securities. Except for the funding of certain accounts payable incurred prior to closing, and certain aircraft payments, CyberCare will have no further obligation to fund the operations of the air ambulance business. CyberCare had infused the business with $1.7 million during 2001 to assist the former owner. As part of the purchase, Global Air Response has entered into lease agreements for the use of the air ambulance division's fleet of aircraft for a term of 30 months, under which Global Air Response will have the right to purchase such aircraft and CyberCare will retain the right to sell the aircraft to third parties, subject to Global Air Response's right. CyberCare is actively searching for a buyer for the aircraft. This transaction will enable CyberCare to divest itself of its interests in the air ambulance business and continue to focus on its technology business. About CyberCare, Inc. CyberCare, Inc. is a network-based telehealth solutions company improving the delivery of care through its Internet-based technology Refers to the communications infrastructure of the Internet, which is based on the IP protocol. IP is part of the TCP/IP protocol suite. It may also refer to voice over IP (VoIP), which uses the Internet to make telephone calls. See VoIP, IP and TCP/IP. . CyberCare creates a live, interactive community that incorporates all members of the care team in the healthcare delivery process, resulting in cost reduction and improvement in the quality of patient care. Utilizing patented technology for remote monitoring (protocol) remote monitoring - (RMON) A network management protocol that allows network information to be gathered at a single computer. Whereas SNMP gathers network data from a single type of Management Information Base (MIB), RMON 1 defines nine additional MIBs that provide a and real-time interactive communications between chronically ill patients and their providers, CyberCare's Electronic HouseCall(R) System allows for effective and efficient data collection, case management and personal interaction. Headquartered in Boynton Beach, Fla., CyberCare also has physical, occupational and speech therapy businesses and an institutional pharmacy business. Visit CyberCare's Web site at http://www.cybercare.net. 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. Statement under 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: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, product acceptance and effectiveness, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. |
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