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MICRO BIO-MEDICS SIGNS LETTER OF INTENT TO ACQUIRE CLARK SURGICAL; REDUCES EXERCISE PRICE OF WARRANTS

 PELHAM MANOR, N.Y., Aug. 20 /PRNewswire/ -- Micro Bio-Medics, Inc. (NASDAQ: MBMI), a leading supplier of physician, hospital and sports medicine supplies, has signed a letter of intent to acquire the assets and customer accounts of Clark Surgical Corp., a major distributor of physician, hospital and veterinary supplies in the New York Metropolitan Area and Southern Florida, Bruce J. Haber, president of Micro-Biomedics, (MBMI) announced today. The terms, which will be all cash, are expected to be in the range of $15 to $20 million.
 Based in Syosset, N.Y., Clark's revenues in 1992 were $48 million. If this transaction had been consummated at the beginning of MBMI's 1992 fiscal year, the acquisition would not have had any material effect on MBMI's 1992 earnings before giving effect to economies of scale. The closing of the transaction is subject to due diligence and the obtaining of substantial additional equity financing, and working capital of at least $15 million. As of the date hereof, the company has not arranged for such funding. For these reasons, no assurances can be given that this transaction will be consummated.
 Mr. Haber said, "This acquisition, if concluded, would substantially increase our share of the physician and hospital supply market in the New York Metropolitan area and, when combined with internal growth, should double our annual revenue run rate to over $120 million from $61 million previously reported for the fiscal year ended Nov. 30, 1992. In addition, the further strengthening of our primary New York Metropolitan Area market allows for accelerated expansion into new geographic regions. The recent acquisition of Harrisburg Healthcare serving Harrisburg, Pa., Baltimore and Philadelphia positions Micro Bio-Medics for the first time in these important metropolitan areas."
 The company also reported that the board of directors has permanently reduced the exercise price of the company's 1,381,146 outstanding Series 1 warrants to $6 from $8. The warrants expire on June 18, 1995 and are redeemable, upon 30 days notice, at $.05 per warrant if the price of the common stock closes at $11 per share or more for 30 consecutive days. At such time as MBMI's board of directors deems the transaction to acquire the assets of Clark Surgical Corp. to be probable, of which no assurances can be given, MBMI would notify Series 1 warrant holders that its prospectus is no longer current and that Series 1 warrants cannot be exercised until MBMI has filed, and the Securities and Exchange Commission has declared effective, a Post-Effective Amendment to its Form S-2 registration statement.
 -0- 8/20/93
 /CONTACT: Bruce J. Haber, president of Micro Bio-Medics, Inc., 914-738-8400 ext. 704/
 (MBMI)


CO: Micro Bio-Medics, Inc.; Clark Surgical Corp. ST: New York, Florida IN: MTC SU: TNM

TS-OS -- NY050 -- 4768 08/20/93 16:48 EDT
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Publication:PR Newswire
Date:Aug 20, 1993
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