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MEDGROUP ANNOUNCES ACQUISITIONS

 ENCINO, Calif., July 26 /PRNewswire/ -- Medgroup Inc. (NASDAQ: MDGP) announces that it has entered into a 90-day option agreement with Port O2 Gen to acquire Port O2 Gen's patented portable medical oxygen generating product. The cost of the option was 10,000 shares of Medgroup common stock. The Port O2 Gen unit is battery powered and carried by the oxygen user in a belt pack weighing less than one pound. It produces medical grade oxygen and replaces the push-cart oxygen bottles now in use. Anticipated cost to the user is 25 percent of the cost of liquid oxygen now used for therapeutic purposes. There are approximately 2,500,000 therapeutic oxygen users in the United States and 3,000,000 users in Europe. Medgroup will be the exclusive worldwide distributor of the Port O2 Gen system.
 The terms of the option agreement call for the issuance of an additional 90,000 shares of Medgroup's common stock to Port O2 Gen within 90 days. Port O2 Gen will receive a 5 percent royalty based on gross sales of the portable oxygen generating system.
 Further, Medgroup has purchased 100 percent of the Limited Partner interests in its Mission Physical Rehabilitation Center for 100,000 shares of Medgroup common stock. The shares were issued pursuant to rule 144 and are subject to a two-year holding period.
 -0- 7/26/93
 /CONTACT: Robert McGuire, chairman of Medgroup, 818-783-6035; or Robert Martin of Port O2 Gen, 805-498-7515/
 (MDGP)


CO: Medgroup Inc.; Port O2 Gen ST: California IN: MTC SU: TNM

LM-LS -- LA021 -- 5744 07/26/93 13:55 EDT
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Publication:PR Newswire
Date:Jul 26, 1993
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