New Clinical Tests by UK's National Health Service Support PAPNET Test as Primary Screening Tool for Cervical Cancer PAPNET-R- More Effective, More Efficient.

DUBLIN, Ohio--(BUSINESS WIRE)--May 15, 1998--NetMed, Inc. (AMEX: NMD), a developer and marketer of medical and health-related technologies, announced today that preliminary clinical data released by the UK's National Health Service (NHS) suggests that primary PAPNET(R) screening can improve the detection of cervical abnormalities in women and do so in a more cost-effective manner than manual methods. The clinical findings were reported by the NHS at the 13th International Congress of Cytology held recently in Tokyo. The PAPNET test is a screening device for Pap smears that uses computer technology to extend the sensitivity of the manual Pap smear.

NHS researchers compared standard microscopic screening of Pap smears to PAPNET testing in a primary, as opposed to a rescreening, mode. They found, after reviewing more than 12,000 cervical smears by both methods, that under normal, laboratory conditions, a cytologist using the PAPNET test was able to screen smears approximately two and a half times more rapidly than by use of manual methods. In addition to being speedier, the PAPNET test proved to be more accurate than manual screening in detecting "true" negative smears.

David Richards, president and CEO of NetMed said, "It is already well documented that PAPNET-assisted screening can detect significantly more abnormal cervical smears than is possible with manual rescreening. This independent study, sponsored by the U.K.'s leading authority on healthcare, provides further evidence of the efficacy and cost effectiveness of the PAPNET technology as a primary screening device. We believe that women in the U.S. will benefit from the increased efficiency and accuracy of the PAPNET test once it is approved as a primary screener of conventional Pap smears and liquid-based slides." At present, the PAPNET system is approved by the FDA only as a supplemental test in the rescreening of Pap smears deemed as negative, or normal, by manual screening. Outside the U.S., especially in Europe, the PAPNET system has been used as a primary screening tool.

Richards noted that NetMed's partner and licensor of the PAPNET technology, NSI, planned to apply for FDA approval for primary screening in the US later this year. "The results in the U.K., as well as in Europe, encourage us to believe that the U.S. clinical trials will provide similar results showing PAPNET as an accurate and cost-effective primary screening tool."

NetMed, Inc., is engaged in the business of acquiring, developing, and marketing medical and health-related technologies, including the PAPNET test, which it markets in Ohio and other states under an exclusive license, and an oxygen concentration device which the company is developing for the home healthcare market.

Statements which are not historical facts, including statements about the Company's confidence and strategies, its expectations about new and existing products, technologies and opportunities, market growth, demand for and acceptance of new and existing products (including the PAPNET(R) Testing System) and returns on investments are forward looking statements that involve risks and uncertainties. These include, but are not limited to, the Company's current reliance on a single product marketed under license from NSI, the corresponding dependence on NSI's patents and proprietary technology, government regulation, continuing losses from operations and negative operating cash flow, limited marketing and sales history, the impact of third-party reimbursement decisions and other risks detailed in the company's most recent Annual Report on Form 10-K and other Securities and Exchange Commission filings.

CONTACT: NETMED, INC.

Martin Skala, VP

Bill Gordon, Media Contact

Porter, LeVay & Rose, Inc.

212/564-4700

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Ken Leachman

Vice President, Finance

614/793-9356