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PRIME MEDICAL'S ACQUISITION OF TENNESSEE LITHOTRIPTERS MOVES TOWARDS COMPLETION; COMPANY REPORTS QUARTERLY RESULTS

 AUSTIN, Texas, Aug. 16 /PRNewswire/ -- Prime Medical Services, Inc. (NASDAQ: PMSI) announced today that the registration statement relating to the acquisition of three Tennessee partnerships operating four lithotripters was declared effective by the Securities and Exchange Commission. Consummation of the transaction, which is tax-free and has been previously approved by the management committee of the Tennessee partnerships, is subject to approval by the shareholders of Prime and the equity owners of the lithotripters. The meetings for voting on this transaction have been scheduled for Oct. 18, 1993.
 The four lithotripters owned by the Tennessee partnerships include a stationery lithotripter in Nashville, Tenn., and three mobile lithotripters serving approximately 24 hospitals located in Kentucky, Tennessee, Alabama and Arkansas. In 1992, these operations generated combined revenues of approximately $4.4 million and combined recurring operating income of approximately $2.6 million.
 Prime also announced its quarterly results. For the six months ended June 30, 1993, revenue totaled $9.2 million, compared with $8.3 million for the same period in 1992. Net income increased to $832,000, or $0.09 per share, from $630,000, or $0.07 per share. The increase in revenues and net income for the six month period in 1993 was due primarily to the lithotripter operations in Alabama, which Prime entered into as of April 1, 1993.
 Revenues for the second quarter totaled $4.3 million, compared with $5.0 million for the same period a year ago. Net income for the quarter was $428,000, or $0.04 per share, vs. $513,000, or $0.05 per share. Although net income declined from the same period a year ago, it was consistent with the net income for the first quarter of 1993. The decline in second quarter revenues and net income was due primarily to the sale of one diagnostic imaging center effective March 31, 1993 and to declines in revenue at Prime's other diagnostic imaging centers.
 Jackie C. Majors, Prime's president said, "The imaging business industry-wide has been unexpectedly soft over the last several months, possibly due to concerns abut healthcare costs and the forthcoming healthcare reform proposals from the Clinton Administration. However, it appears that our imaging business has stabilized and we believe will show gradual improvement.
 In July, Michael Madler rejoined Prime as chief operating officer. Madler was previously chief operating officer at American Health Services Corporation, which operates 33 imaging centers. Prior to leaving Prime in 1991, Madler had been responsible for managing Prime's successful imaging operations. "We are delighted to have Mike back on board with us," said Majors adding that, "his contribution has already resulted in our being able to re-establish a relationship with a former client, a large managed care company."
 "We are extremely pleased with the contribution that our existing Alabama lithotripsy operations have made to revenues and earnings, and are excited about our prospects in this business," said Majors. "Given the ongoing efforts to control healthcare costs, we believe that our strategy of focusing on non-invasive medical applications that minimize patient expense will become increasingly important. In addition, as federal and state healthcare regulations regarding physician ownership of healthcare facilities become more restrictive, we believe that there will be other attractive acquisition opportunities in this business and that Prime is well-positioned to take advantage of them as they arise."
 Prime is actively pursuing other opportunities in the highly fragmented lithotripsy business. In May 1993, Prime entered into a letter of intent to acquire a majority ownership interest in three mobile lithotripters based in Pennsylvania, West Virginia and Indiana. These lithotripters, which have been in operation for approximately four years, generate total annual revenues of approximately $5 million. This acquisition is expected to close in late October. Upon completion of all of these acquisitions, Prime would operate a total of eight lithotripters in 11 states.
 Prime Medical provides non-medical management services for lithotripsy, diagnostic imaging and cardiac rehabilitation centers. Prime maintains its headquarters in Austin, Texas.
 PRIME MEDICAL SERVICES, INC.
 Selected Financial Data
 (In thousands, except per share)
 FOR THE THREE FOR THE SIX
 MONTHS ENDED MONTHS ENDED
 JUNE 30, JUNE 30,
 1993 1992 1993 1992
 Revenues $4,320 $5,013 $9,233 $8,338
 Net Income $ 428 $ 512 $ 832 $ 630
 Net Income per share (Fully
 Diluted) $ .04 $ .05 $ .09 $ .07
 Weighted Average Shares Used in
 Computation 10,102 9,618 10,044 9,464
 -0- 8/16/93
 /CONTACT: Jackie Majors, president, 601-969-9193, or Cheryl McLeod, vice president of finance, 512-328-2892, both of Prime Medical Services, Inc./
 (PMSI)


CO: Prime Medical Services, Inc. ST: Texas IN: HEA SU: ERN

PS -- NY045 -- 2988 08/16/93 10:32 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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