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IPS HEALTH CARE ANNOUNCES SALE OF ITS INTEREST IN TEXAS MRI JV

 IPS HEALTH CARE ANNOUNCES SALE OF ITS INTEREST IN TEXAS MRI JV
 IRVINE, Calif., April 14 /PRNewswire/ -- IPS Health Care Inc. (NASDAQ: IPSI) announced today that it had sold its interest in its 60 percent-owned joint venture, Texas MRI JV (MCI). The proceeds from this sale were used to pay past due federal payroll taxes, interest and penalties of approximately $530,000 in full settlement of the liability and to make a partial payment towards past due lease payments.
 The company has reached agreement with its major equipment financing source to reschedule its lease and loan obligations, reducing its monthly payments and rescheduling the unpaid balance of overdue payments. The company will incur a loss for financial reporting purposes of approximately $445,000 because of the rescheduling. The company is continuing to negotiate with another lender with whom it is in default. There can be no assurance as to the success of this negotiation. The company also announced that it will take a charge against earnings for the quarter ending April 30, 1992 of approximately $600,000 relating to increases in receivable reserves. At March 31, 1992, the company's net receivables after allowing for this additional reserve were approximately $5,100,000.
 The company expects to post an estimated loss of $1,100,000 for the quarter ended April 30, 1992 and an estimated loss of $3,588,000 for the year ended April 30, 1992. Andrew Galligan, the company's chief executive officer, said, "Since November of 1991 the company has experienced declining revenues. These declines were caused in part by a lack of adequate liquidity and in part by a lack of focus resulting from the problems created in trying to deal with a debt of over $500,000 to the Internal Revenue Service for back payroll taxes. Recently, the company's revenues have begun to stabilize as have its collections. We believe that it is realistic to expect that over the next several months both revenues and collections will grow and permit the company to return to profitability and positive cash flow provided we can find sufficient liquidity to fund our growth."
 IPS Health Care Inc. is a medical technical service company which primarily provides mobile and fixed site MRI services to health care providers and their patients.
 -0- 4/14/92
 /CONTACT: Andrew Galligan, CEO of IPS Health Care, 714-251-1300/
 (IPSI) CO: IPS Health Care Inc. ST: California IN: HEA SU: TNM


EH-KJ -- LA033 -- 8435 04/14/92 20:05 EDT
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Publication:PR Newswire
Date:Apr 14, 1992
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