Sagemark Companies Enters Medical Imaging Field; Company Enters Into Letter of Intent to Develop PET Imaging Centers.

Business Editors & Health/Medical Writers

NEW YORK--(BUSINESS WIRE)--April 5, 2001

The Sagemark Companies Ltd. (OTC BB: SKCO) (the "Company" or "Sagemark") announced today that it has entered into a binding letter of intent (the "Letter of Intent") regarding the proposed acquisition of Premier P.E.T. Imaging International, Inc. ("Premier") and Premier Cyclotron International Corp. ("PCI"), subject to, among other conditions, due diligence and the approval of the transaction contemplated by the Letter of Intent by the Boards of Directors of the respective parties to the transaction. There can be no assurance, however, that the acquisition will be consummated or if so, on what terms.

Positron emission tomography ("PET") is a new advanced early detection diagnostic imaging procedure for cancer, heart disease and neurological disorders. Edward D. Bright, Chairman of the Board of Sagemark stated "I believe that the Company has made a wise choice in electing to enter the PET imaging field. PET is a revolutionary medical diagnostic imaging technology that allows physicians to pinpoint and accurately diagnose life threatening diseases obviating unnecessary invasive surgery or therapies by detecting anomalies at the very earliest stages."

Premier was formed to own and operate outpatient diagnostic imaging centers (the "PET Centers") throughout the United States utilizing positron emission tomography scanning equipment ("PET Scanning Equipment"). PCI was formed to own and operate equipment which manufactures fluoro deoxyglucose ("FDG") and other radioisotopes utilized in the diagnostic imaging procedures performed by the PET Scanning Equipment. Neither Premier nor PCI have, as yet, commenced operations.

The Letter of Intent contemplates that the Company will enter into a Stock Purchase Agreement pursuant to which it will purchase all of the outstanding shares of the capital stock of Premier and PCI in exchange for shares of the common stock of Sagemark. The Company's President and Chief Executive Officer is a stockholder of Premier and PCI. On and subject to the Closing Date under the Stock Purchase Agreement, Sagemark will issue 6,000 shares of its common stock to the stockholders of Premier and PCI. In addition, such stockholders will also be entitled to receive additional shares of the common stock of the Company on an "earn-out" basis on terms provided for in the Letter of Intent. Further, Sagemark has agreed to provide $1,000,000 of working capital to Premier for the purpose establishing and operating the PET Centers. To the extent required, Sagemark will guarantee Premier's obligations under any lease or purchase agreement relating to the acquisition of the PET Scanning Equipment.

Stephen A. Schulman, M.D. is and will continue to serve as the Chairman of the Board and Chief Executive Officer of each of Premier and PCI. Dr. Schulman is eminently qualified for this position having served as the Director of Radiology for the Westside Regional Hospital in Plantation, Florida for eighteen years and prior to that as the Associate Director of Radiology for Miriam Hospital, a Brown University Teaching Hospital in Providence, Rhode Island for seven years. Dr. Schulman's experience and expertise in radiology led him to establish and serve as Chief Executive Officer of International Magnetic Imaging, Inc., ("IMI") a national owner-operator of fourteen magnetic resonance diagnostic imaging centers previously acquired and then subsequently sold by the Company. Dr. Schulman is also the founder and Chief Executive Officer of Premier Health Services, Inc., a company engaged in the ownership and operation of seven diagnostic imaging centers primarily offering magnetic resonance imaging services.

Dr. Schulman expressed his enthusiasm about this new venture by stating, "PET scanning is a revolutionary medical diagnostic imaging technology that allows physicians to pinpoint and accurately diagnose life threatening cancers as well as a variety of brain disorders, including Alzheimer's Disease and a variety of seizure disorders including epilepsy. I believe that PET scanning will revolutionize medical diagnostics within the next few years."

PET's biological diagnostic imaging technology provides physicians with information about the body's chemistry, cell function and exact location of various major life threatening diseases - information that is not available through CAT scan (CT), magnetic resonance imaging (MRI), X-Ray, blood tests or physical examination. Unlike a CT or an MRI, which look at anatomy or body structure, PET studies body function. For example, by using a PET scan a physician can determine if a patient has active cancer thus providing the physician with valuable and timely information required to determine various treatments without invasive procedures.

The PET scan can actually show how well human organ systems are functioning - not just how they look. PET provides physicians with important early detection information about such diseases and is the most accurate non-invasive procedure currently available to determine whether or not a tumor is malignant or benign. Through early and accurate detection, PET eliminates unnecessary surgeries and medical procedures thereby reducing patient pain and suffering and significantly increases the chances for effective treatment and recovery due to such early detection.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to, technical risks associated with new technology development, government regulatory approvals and access to working capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the U.S. Securities & Exchange Commission. The Company undertakes no obligation to update any of the forward-looking statements contained in its press releases.