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HEALTH IMAGE MEDIA REACHES AGREEMENT IN PRINCIPLE WITH STOCKHOLDERS

 WESTPORT, Conn., May 19 /PRNewswire/ -- The board of directors of Health Image Media, Inc. (NASDAQ: RXRX) announced today that it has reached an agreement in principle with a group of the company's stockholders, including Karamjeet S. Paul, a director of the company and its former president and chief executive officer, in which such stockholders have agreed to sell back to the company the approximately 438,000 shares of the company's common stock owned by them, representing approximately 19 percent of the company's issued and outstanding common stock.
 In consideration for the shares, which will be purchased form a new company to be formed by the stockholders, the company has agreed to pay to the new entity $900,000 in cash and to transfer all of the company's assets relating to the company's magazine, RX REMEDY, subject to all associated liabilities. The board's decision to sell the magazine to the stockholders as partial consideration for the shares is in light of ongoing concerns expressed by the board regarding disappointing operating results and, in particular, lower than anticipated advertising revenues, and a decision to take action to preserve the company's existing cash resources. The proposed transaction is subject to the execution of a definitive purchase agreement and related collateral documents.
 In connection with such sale, the stockholders and the company have agreed to executive mutual releases and Mr. Paul has agreed to withdraw his lawsuits against the company.
 In a related matter, the board also announced that it and its financial advisor are in the process of identifying potential acquisition opportunities for the company. The consummation of any such acquisition by the company will be subject to prior approval by the company's stockholders.
 -0- 5/19/93
 /CONTACT: Courtlandt G. Miller, secretary of Health Image Media, 212-307-7316/
 (RXRX)


CO: Health Image media, Inc. ST: Connecticut IN: PUB SU:

SH-WB -- NY069 -- 0364 05/19/93 14:25 EDT
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Publication:PR Newswire
Date:May 19, 1993
Words:315
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