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MEDICAL PROPERTIES REPORTS RESULTS FOR THE FIRST QUARTER OF 1993

 ENCINO, Calif., May 13 /PRNewswire/ -- Medical Properties Inc. (AMEX: MPP) today reported a net loss of $598,000, or $.25 per share, for the first quarter ended March 31, 1993 compared to a net loss of $945,000, or $.40 per share, for the comparable prior year period. Revenues for the first quarter ended March 31, 1993 were $284,000, which was from rental and interest income as compared to $8,000 from interest income for the comparable prior year period. The reduction in loss and increase in revenue is because of the receipt of the Oregon rent and interest income from the payment of the lease termination note.
 The April rent of $60,000 from the lessee of the company's Oregon property, a Nu-Med Inc. subsidiary, was not paid on a timely basis. The monthly rent of $60,000 is due on the first day of each month. As of May 13, 1993, the May rent has not been paid. The operation of the lessee is experiencing deteriorating cash flow results and it is anticipated that future monthly rent payments will not be paid on a timely basis. If such monthly rent is more than 60 days outstanding, the company will be unable to continue its operations.
 The monthly lease termination payment of $100,000 for the month of April was not received. A Nu-Med subsidiary did not receive the April mortgage payment of $100,000 from a sold hospital, which makes the monthly lease termination payment to Medical Properties. The primary reason is because of an unrelated freezing of the hospital's bank accounts by Federal authorities. Medical Properties uses such monthly payment of $100,000 to pay the monthly interest payment required by the revised loan agreement. Medical Properties has no other funds available to pay the monthly interest payment. Therefore, a financial default exists and the secured debt holder may commence foreclosure proceedings and Medical Properties could lose all of its assets.
 Medical Properties is a real estate investment trust engaged in investing in income producing health care related facilities.
 MEDICAL PROPERTIES INC.
 Statement of Earnings (Losses)
 (Unaudited)
 Three Months Ended March 31,
 1993 1992
 Revenues:
 Rental income - related parties $189,000 ---
 Interest income 95,000 8,000
 Total 284,000 8,000
 Expenses:
 Depreciation and amortization 290,000 303,000
 Interest 341,000 418,000
 Insurance 50,000 50,000
 Other 201,000 182,000
 Total 882,000 953,000
 Net income (loss) ($598,000) ($945,000)
 Net income (loss) per share ($0.25) ($0.40)
 Weighted average shares
 outstanding 2,357,900 2,357,900
 -0- 5/13/93
 /CONTACT: William Hartauer, president of Medical Properties, 818-902-2270; or Melvyn S. Rifkin of Melvyn S. Rifkind Inc., 818-783-8323/
 (MPP)


CO: Medical Properties Inc. ST: California IN: HEA SU: ERN

MS -- LA028 -- 8148 05/13/93 13:23 EDT
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Publication:PR Newswire
Date:May 13, 1993
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