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QUAL-MED ANNOUNCES LETTER OF INTENT TO ACQUIRE COMPLETE HEALTH

 QUAL-MED ANNOUNCES LETTER OF INTENT TO ACQUIRE COMPLETE HEALTH
 PUEBLO, Colo., March 16 /PRNewswire/ -- Qual-Med Inc. (NASDAQ: QLMD) and Complete Health Services Inc. today announced the execution of a letter of intent for Qual-Med Inc. to acquire Complete Health Services Inc. and Complete Health Partners Inc. (together, "Complete Health"), companies that specialize in managed health care services in the Southeastern United States. Complete health is headquartered in Birmingham, Ala. According to Dr. Malik M. Hasan, Qual-Med's chairman, president and chief executive officer, Qual-Med intends to purchase all of Complete Health's stock for $48.75 million in cash and $16.25 million aggregate principal amount of 7.5 percent notes, convertible into Qual- Med common shares.
 The transaction is subject to, among other things, execution of definitive agreements, receipt of all necessary consents and approvals from governmental authorities and others in connection with the acquisition, approval of the definitive agreements by the boards of directors of each of Qual-Med and Complete Health, receipt of necessary financing by Qual-Med and requisite approval of Complete Health's stockholders.
 "The purchase of Complete Health represents an excellent expansion opportunity for Qual-Med. Complete Health's large market share in Alabama and its growing presence throughout the Southeast will allow Qual-Med to become a national managed care company," Hasan said. "We believe that Qual-Med's highly successful medical cost management techniques coupled with Complete Health's product diversification will result in increased revenue and market share for our company," Hasan added.
 Complete Health's operations include the largest health maintenance organization (HMO) in Alabama with 124,000 members, the second largest preferred provider organization in Alabama with 146,000 members and approximately a 50 percent interest in the second largest HMO in Louisiana with 52,000 members. Complete Health has operations in Alabama, Tennessee, Arkansas, Georgia, Florida, Mississippi and Louisiana.
 Qual-Med owns HMO's operating in the six western states of California, Colorado, Idaho, New Mexico, Oregon and Washington. Qual- Med reported $283.4 million in revenue with a net income of $18.1 million and 222,000 HMO members for year ended Dec. 31, 1991.
 -0- 3/16/92
 /CONTACT: Malik Hasan, M.D., president, chairman and CEO, or Keith Hovland, executive VP, finance and administration, both of Qual-Med, 719-542-0500/
 (QLMD) CO: Qual-Med Inc.; Complete Health Services Inc.; Complete Health
 Partners Inc. ST: Colorado, Alabama IN: HEA SU: TNM


DM-EH -- LA015 -- 8113 03/16/92 08:32 EST
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Publication:PR Newswire
Date:Mar 16, 1992
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