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MEDICAL TECHNOLOGY OUTLINES PLANS TO GROW VANGARD LABS

 MEDICAL TECHNOLOGY OUTLINES PLANS TO GROW VANGARD LABS
 CLEARWATER, Fla., June 4 /PRNewswire/ -- Medical Technology Systems, Inc. (NASDAQ-NMS: MSYS) management believes that by effectively leveraging its core business, it could double revenues and expand margins over the next two years at its new Vangard Labs, Inc. subsidiary. In turn, says Todd E. Siegel, MSYS vice president and chief operating officer, this could help MSYS core business grow even faster.
 On Monday, MSYS closed on the previously announced Vangard acquisition from Owens & Minor, Inc. (NYSE: OMI). The exact terms of the sale were not disclosed, but the consideration approximates $2.6 million in cash. The agreement was originally estimated at $3 million. Vangard, with annual revenues running at approximately $6 million, packages generic pharmaceuticals in individual unit doses for the hospital market.
 MSYS manufactures automated equipment that enables pharmacists to package a 30-day prescription supply of tablets or capsules in customized, blister pack punch cards significantly faster than prior methods. The cards are more efficient and economical for nursing homes and hospitals to administer and monitor patient medication. MSYS reported net sales increased 37 percent to $4.8 million for the nine months ended Dec. 31, 1992.
 Management plans to install MSYS advanced, proprietary blister card packaging technology and equipment at Vangard so it can offer pre-filled medication cards and other products and enter new markets.
 MSYS believes it can convert 15-20 percent of its current customers' annual volume of approximately 28 million unfilled cards to pre-filled standard and customized cards supplied by Vangard. This would double Vangard's annual volume to 288 million units of solid oral medication, with a consequent effect on revenues. The increased sales volume should enable Vangard to increase margins through improved purchasing terms and operating efficiencies.
 MSYS currently estimates that Vangard will begin significantly contributing to MSYS profitability in the second quarter of fiscal 1993 ending Sept. 30, 1992. MSYS' goal is to increase Vangard's pre-tax profits to average more than 20 percent of revenues for fiscal 1993.
 MSYS intends to implement two other strategies to increase Vangard's market penetration, sales and profitability. Since Vangard is no longer owned by a wholesale drug distributor, it will be easier for Vangard to open more accounts with large national and regional distributors that compete with Owens & Minor. In addition, Vangard will be able to expand into new business areas of the hospital and institutional marketplace.
 Meanwhile, as Vangard's business grows, it will open up new markets and avenues of distribution for MSYS core business, enabling MSYS to sell more packaging equipment, blister cards, labels and other products to hospitals and the nursing homes they service.
 Based on discussions at convention and sales conferences with MSYS' long-standing industry contacts, Siegel said pharmacists and drug wholesalers are eager to find a steady supply of pre-filled medication cards.
 "We made business operations more efficient for pharmacists when we developed the only automated equipment that enabled them to blister pack prescriptions themselves in their own, customized cards," he explained. "With Vangard, we are positioned to take another giant leap forward, making business more efficient and profitable for customers in the hospital and institutional marketplace, by pre-packaging prescription medications for them, using either standard or their own, customized medication cards."
 Customizing medication cards with the pharmacy's or institution's logo and other identifying information is important because it increases continuity, security and control for the nursing and hospital staffs that distribute filled prescription medication cards to patients.
 -0- 6/4/92
 /CONTACT: Harold B. Siegel, president & CEO of Medical Technology Systems, 800-334-6663 or 813-576-6311, or Gary Fishman and Bob Bogard of the Hudson Stone Group, 212-226-8550, for Medical Technology Systems/
 (MSYS OMI) CO: Medical Technology Systems ST: Florida IN: MTC SU:


TS-AH -- NY009 -- 6854 06/04/92 07:57 EDT
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Date:Jun 4, 1992
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