SATX, Inc. Announces First Amended Disclosure Statement Approval by Bankruptcy Court.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 31, 2002

SATX, Inc. (OTCBB:SATX), SATX, Inc. First Amended Disclosure Statement Approved by the Bankruptcy Court.

On March 22, 2002 SATX filed a chapter 11 petition for relief under the United States Bankruptcy Code. On October 28, 2002 the Bankruptcy Court signed an order approving SATX's First Amended Disclosure Statement. The hearing date for approval of SATX's Plan of Reorganization was set for November 25, 2002. The deadline for submitting objections to the Plan is November 18, 2002. The deadline for all ballots to be timely submitted is November 18, 2002. The ballots must be received no later than the close of business November 18, 2002 at the following address. Jesse Blanco, P.O. Box 680875 San Antonio, Texas 78268.

If, and only if, the First Amended Plan of Reorganization as proposed by SATX is approved, SATX proposes to enter into the following transactions.

Intelligent Medicine, Inc.

SATX proposes to purchase 100% of all the outstanding and issued capital stock of Intelligent Medicine, Inc. ("IMED").

IMED is a Houston, Texas based company dedicated to becoming the world's leading provider of Medical Informatics Services. Since their original principals founded the Company in 1993, they have firmly believed that Telemedicine is dependent upon systems integration of hardware, software, devices, and communications networking.

IMED's solution is a Telemedicine Service offering combining hardware, software, communications, and management. They deliver turnkey systems and networks combined with their clients' ability to offer clinical diagnosis and treatment through their existing professional service networks. Their systems are an efficiently integrated healthcare suite of robust, proprietary, open architecture, networked systems combined with a complete line of video teleconferencing, still image, voice, data, and digitized medical peripheral devices. This enables their clients to leverage their service facilities to deliver live and/or virtual caregiver to patient, or caregiver-to-caregiver, medical consultations and/or treatment at the point-of-need or in a store and forward environment.

IMED, in partnership with First Genesis, has established relationships with the US Army for medical informatics. The First Genesis software, Global Application Framework, GAF, is currently in process for evaluation as a standard for all military medical informatics. GAF is an architecture that enhances the critical needs of security, transaction processing and data throughput. If the evaluations prove successful, IMED will move quickly to implement this networking software across all applications areas. IMED has recently been involved in the discussions for the development of a USA Bio-Terrorist Health Alert Network. IMED was invited to represent industry on a panel including the DOD, CDC, NLM, Dept. of Commerce, VA and ATA. IMED has recognized expertise in networks and will position GAF as the solution for this Health Alert Network. IMED's marketing focus is in Military Applications, Prison Healthcare and Telemedicine Networking. IMED has become recognized for its leadership and this gives IMED a first mover advantage in these application areas. It has established relationships with the leading TeleHealth research facility for a constant flow of innovative technologies. In addition, they have assisted their clients in implementing telemedicine solutions by partnering with hardware, software, and network providers thereby creating unique designs that are the result of the integration of these technologies.

IMED is managed by an experienced group of professionals. Their senior management team brings many years of complementary medical practice, software, technology, and project experience to bear in designing and implementing telemedicine client solutions. They consistently bring together software engineering staff with internal and external medical professionals and high-quality systems integrators to continue to develop and produce systems and further product integration enhancements for their clients applications.

IMED services encompass designing, implementing, and managing telemedicine and healthcare technology networked solutions. They assess their client's particular tele-healthcare system needs, design and install the required telemedical information systems and network solution, provide systems training, and manage the clients' system-wide solution. Their implementation team complete with medical specialists, telemedically experienced clinical personnel information systems analysts, software and hardware engineers, and telecommunications experts work together with the client to completely provide a turnkey telemedicine service to the client's satisfaction.

IMED has designed and produced the first mobile telemedicine clinic. This mobile telemedicine unit comes in an array of sizes and capabilities suited to their clients' particular mobile needs. The mobile telemedicine unit is capable of the following:

-- Complete Telemedicine over T-1, FT-1, ISDN, Frame Relay, IP addressing, Satellite

-- Complete ECG, EKG, Vital Signs including pulse rate, blood pressure, SpO2 and digital stethoscope

-- Ultrasound system with full range of attachments.

-- Communicates through direct connect to services, or through RF, Cellular and or Satellite communication protocolsComes complete with Wheel chair lift, 2 roof (interior) mounted pan, tilt, zoom cameras with 12 x zoom, On-board generator supplies power or external weather proofed connections for AC, and communication links available on the exterior of the vehicle.

The following is a list of top management of the Company, including each manager's resume and area of responsibility or oversight.

-- Dr. R. J. Bono - Chairman and CEO. Dr. Bono's experience

includes a 29 year private Dental Practice and entrepreneurial

activities resulting in the successful establishment of

investment groups for 18 start-up companies. During the course

of spearheading efforts toward development of capital,

business organization, corporate planning and new market

analysis he has gained a wealth of business knowledge. In

particular, he has over ten years of experience in

telecommunications.

-- Joe Chirco - President. An accomplished systems, sales, and

business management professional with over twenty five years

experience generating revenues and profits in the highly

competitive telecommunications and telemedicine industry. Mr.

Chirco is recognized as a leader in delivering innovative

telemedicine solutions. In two years the IMED has progressed

from a "member of the pack" to a recognized leader in the

telemedicine market. His experience includes start-up and

turnaround situations, international market development, major

account management and new business development. Mr. Chirco

graduated in 1968 with a BSEE from Rutgers College of

Engineering, in 1972 with an MS Degree in Management Sciences

and Operations Research from Stevens Institute of Technology

and in 1979 a MBA Degree in Executive Sales Management from

Columbia University.

-- Dr. Paul K. Keller, Ph. D. - Vice President of R&D /

Engineering. Dr. Keller is a recognized creative scientist. He

has completed specialized training and graduated from the

following: Chemistry, University of Oklahoma; Nuclear Energy,

LSU; Environmental Law, University of Washington; Nuclear

Physics, MIT; Certified Telemedicine System Integrator for

NEC, V-Tel and CLI. Dr. Keller has been an educator in the

fields of physics, chemistry, nuclear science, and

engineering. He was the Director of Special Projects for the

United States Atomic Energy Commission and a technology

advisor to Presidents Carter and Reagan. He currently also

serves as President of Paul Keller and Executive Assistant to

the Governor of Louisiana for State technology programs. Dr.

Keller developed the State Telecommunication and Telemedicine

plan.

The board of directors consists of Dr. R. J. Bono, Chairman, Joe Chirco, President and Director, Paul Keller, Vice President and Director, Maurice Stone Vice President and Director, Wyntress Ware, Director, Theodis Ware, Director, Dr. David DiLoretto, Director, Eddie Austin, Legal Counsel and Director, and Dr. Darshan Wadhwa, Chief Financial Officer and Director.

First Genesis, Inc.

SATX proposes to purchase 100% of all the outstanding and issued capital stock of First Genesis, Inc., 100% of all the outstanding and issued capital stock of First Genesis Professional Services, Inc., a Texas wholly owned subsidiary which has a licensing agreement with another company called ATRADE Investment Technologies, Inc.

First Genesis, Inc. is a Texas corporation that has authorized and issued 1000 shares of common stock with a one-dollar par value. The members of the board of directors are Ron Watty, Pascal Watty, Harold Woolfolk and Maurice Stone. For the past four years the company has been involved in the Information Technology Consulting business primarily in the Energy and Financial Industry. The company has developed an intellectual property called Global Application Framework, or GAF(R), which is a technology used in the health "Informatics" industry for managing patients' medical records. The health Informatics business has developed into First Genesis' primary business focus. First Genesis, Inc. is a holding company with one wholly owned subsidiary named First Genesis Professional Services, Inc., a Texas corporation. First Genesis Professional Services, Inc. holds a license resale agreement from ATRADE Investment Technologies, Inc. for technical analysis software called Gr8Alert. It is a trading application for technical analysis of the stock market. First Genesis Professional Services, Inc. owns the intellectual property known as GAF(R) or Global Application Framework that is used by First Genesis, Inc. in the health Informatics business.

The following is a list of top management of the Company, including each manager's resume and area of responsibility or oversight:

-- Ronald Watty, President / CEO. Ronald S. Watty brings over 15

years of entrepreneurial and creative experience in

information technology, consulting, sales, business

development, product management, and product development. He

has extensive experience in operations management, product and

service marketing, and new market development. Mr. Watty's

background allows him to have a clear vision for the emerging

technology industry, which will lead and direct the goals and

objectives of FIRST GENESIS. Mr. Watty earned his B.S. in

Computer Engineering from the University of Houston and

certifications in Finance, Marketing, and Data Management. He

joined American Express as a Sr. software developer in 1989.

There he designed and developed a travel management system

(i.e., TripPower, CardPower, and PurchasePower) for American

Express corporate clients. This system helps manage corporate

travel managers who were handling up 20M in travel volume. In

1994, Mr. Watty join Virtual Shopping as Product Development

Manager. He design and developed one of the first Video

Conferencing call management system and received training in

Project Management, Product Management, and Marketing and

Sales. In 1995, Mr. Watty formed his own company, First

Genesis Medical Group, where he managed and developed new

markets for rehabilitation services for the Home Health Care

and Rehabilitation Industry. The company was later changed

into First Genesis, Inc. and spun out its technology group

First Genesis Professional Services, Inc. As President of the

corporation, Mr. Watty perform consulting services on several

major projects for Berger & Co. as a Sr. Consultant. In

addition, Mr. Watty designed, developed, and managed data

warehousing products (TotalVision) for the financial market

for Bisys, Inc.

-- Pascal Watty, VP Operations. Mr. Watty is one of the founders

of the Company and is responsible for the direction of the

day-to-day operations of the Company. Mr. Watty received his

baccalaureate degree in Political Science from The University

of Texas at Austin in 1993. He has extensive experience in

business, including over 5 years in sales and marketing,

product development, and senior management. As Vice President,

Mr. Watty is First Genesis' accountable executive for the

administration of all policies and procedures relating to

full-time, part-time, and contractor labor. This

responsibility includes developing and implementing a

Continuous Quality Improvement program to ensure continued

organizational quality. Today, he also acts as a principal in

First Genesis Holdings, LLC, an investment holding company.

The members of the First Genesis Professional Services, Inc. board of directors are Ron Watty, Pascal Watty, Harold Woolfolk and Maurice Stone.

Iceberg Oil and Gas, Inc.

SATX proposes to form a wholly owned Delaware subsidiary, Iceberg Oil and Gas, Inc. The Company will purchase certain oil and natural gas platforms with existing proved reserves. The Company will target acquisitions from owners that are currently in a distressed situation. The Company, where possible, will acquire developed properties, aggressively manage and exploit all properties, and use technological expertise to develop reserves.

The President will be Garry McHenry and the Secretary & Treasurer will be Celso B. Suarez, Jr.

High Yield Financial, Inc.

SATX proposes to form a wholly owned Delaware subsidiary, High Yield Financial, Inc. The Company will be in the business of purchasing high yield, low grade defunct credit risks of mortgages, more commonly known as "non performing bond pools." The Company will buy the bond pools at an average approximate price of between 33 to 65 cents on the dollar, but at times may pay prices from lower than 33 cents and/or higher than 65 cents, depending on the pool that is purchased. The Company intends to buy the pools, repackage the performing bonds and sell them. The Company will take the non-performing bonds and sell the assets that were used to securitize each bond.

The President will be Garry McHenry, and the Secretary & Treasurer will be Celso B. Suarez, Jr.

Effective as of October 6, 2002, SATX, Inc. (the "Company") as a result of the recent merger of several of the Partners of Grassi & Co., CPA's P.C. into Marcum & Kliegman, LLP, dismissed Grassi & Co., CPA's P.C. and engaged Marcum & Kliegman, LLP as its independent accountant. The decision to change accountants was approved by the Board of Directors of the Company.

Any statements released by SATX, Inc. that are forward-looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risks and uncertainties that may affect SATX's business prospects and performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. It is further noted that data referenced in this release may represent partial data, such as sales results, which are subject to supplementation, by other disclosures by the Company. Potential risks and uncertainties may include economic, competitive, governmental, technological, or other factors discussed in SATX's filings with the Securities and Exchange Commission on forms 10-K, 10Q, and 8-K.