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NU-MED INC. REPORTS RESULTS

 NU-MED INC. REPORTS RESULTS
 ENCINO, Calif., March 16 /PRNewswire/ -- As a result of a non-


recurring pre-tax restructuring charge of $19 million and continued losses at one acute care hospital operated under lease, Nu-Med Inc. (NASDAQ: NUMS) today reported a net loss of $21,455,000, or $2.37 per share, for the third fiscal quarter ended Jan. 31, 1992. The company had a net loss for the corresponding prior-year period of $3,505,000, or $.40 per share. Net revenues for the current three-month period declined to $31,182,000 from $60,999,000, in the prior-year quarter, because of the sale of three hospitals in the fourth quarter of fiscal year 1991.
 The restructuring charge was related to the planned disposition of acute care hospitals, medical office buildings and related assets, and results from the difference between the book value of these assets and their estimated realizable value.
 The company said it is in active negotiations to settle its lease obligation with the lessor of the acute care hospital which is operating at a loss.
 Because of market conditions and other factors, Nu-Med said it is currently not pursuing the previously announced public offering of stock in its subsidiary PsychGroup Inc. Instead, the company has entered into negotiations with an unrelated party to sell part of this psychiatric subsidiary, although there can be no assurance that any such sale will be consummated.
 The company reported that it continues to experience substantial difficulty in meeting its obligations to its creditors. Additionally, it does not presently have the funds to meet debenture interest obligations totaling approximately $5.3 million due during March 1992, and is in the process of obtaining financing to make the payments within the 30-day grace periods permitted under the applicable indentures. Such financing is subject to execution of an agreement of sale relating to certain psychiatric facilities and certain applicable consents. The announcements added that should the foregoing not occur, the company does not have an alternate source to make the debenture interest payments.
 Interest expense and depreciation and amortization were reduced by an aggregate of nearly 50 percent to $6,740,000 in the current quarter, compared with the same period last year, as a result of the hospital sales and application of the proceeds to repay debt.
 For the nine months ended Jan. 31, 1992, Nu-Med recorded a net loss of $25,294,000, or $2.81 per share vs. a net loss of $5,865,000, or $.68 per share, in the comparable prior-year period. Net revenues for the current nine months decreased to $89,723,000 from $188,035,000, because of the aforementioned hospital sales.
 Nu-Med is a nationwide health care services company primarily engaged in the ownership and operation of psychiatric hospitals and also operates two acute care hospitals and related facilities.
 NU-MED INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Unaudited)
 Three Months Ended, Nine Months Ended
 Jan. 31, Jan. 31,
 1992 1991 1992 1991
 Net revenues $31,182,000 $60,999,000 $89,723,000 $188,035,000
 Costs and
 expenses:
 Operating
 costs $28,283,000 51,799,000 82,475,000 157,140,000
 Depreciation
 and
 amortization 1,688,000 3,737,000 5,012,000 11,105,000
 Interest 5,052,000 8,968,000 15,089,000 26,894,000
 Restructuring
 charge 19,000,000 --- 19,000,000 ---
 Total 54,023,000 64,504,000 121,576,000 195,139,000
 Loss before
 income taxes
 and extra-
 ordinary
 items (22,841,000) (3,505,000) (31,853,000) (7,104,000)
 Benefit from
 income taxes (1,386,000) --- (4,991,000) ---
 Loss before
 extraordinary
 items (21,455,000) (3,505,000) (26,862,000) (7,104,000)
 Extraordinary
 items --- --- 1,568,000 1,239,000
 Net loss ($21,455,000) ($3,505,000) ($25,294,000) ($5,865,000)
 Weighted
 average number
 of common shares
 and common share
 equivalents
 outstanding:
 Primary 9,088,113 8,982,182 9,088,113 8,982,182
 Fully diluted 9,088,113 8,982,182 9,088,113 8,982,182
 Loss per common
 share and common
 share equivalents
 before extraordinary
 items:
 Primary ($2.37) ($0.40) ($2.99) ($0.82)
 Fully diluted ($2.37) ($0.40) ($2.99) ($0.82)
 Net loss per
 common share and
 common share
 equivalents:
 Primary ($2.37) ($0.40) ($2.81) ($0.68)
 Fully diluted ($2.37) ($0.40) ($2.81) ($0.68)
 -0- 3/16/92
 /CONTACT: Kenneth E. Rappoport, vice chairman of Nu-Med Inc., 818-990-2000; or Melvyn S. Rifkind of Melvyn S. Rifkind Inc., 818-783-8323, for Nu-Med/
 (NUMS) CO: Nu-Med Inc. ST: California IN: HEA SU: ERN


JL-KJ -- LA007 -- 8114 03/16/92 08:33 EST
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Date:Mar 16, 1992
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