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ACCESS HEALTH ANNOUNCES FUNDING PLAN FOR EXPANDED PRODUCT AND MARKET DEVELOPMENT PROGRAM

 SACRAMENTO, Calif., June 29 /PRNewswire/ -- Access Health Marketing (NASDAQ: ACCS) today announced an expanded product and market development program for its personal health management products for the managed care market. In order to fund this program, the company has signed a letter of intent and is in negotiation with a group of investors to form a new entity to enter into a development agreement with Access Health.
 Under the development agreement, Access Health would receive funding for product development and enhancement, sales and market introduction activities, and expansion of the company's teleservices call center capacity and capabilities. The agreement will enable Access Health to offset those development expenses covered under the agreement, including expenses incurred in the current quarter. In return, Access Health will pay royalties on products developed under the agreement and issue warrants for Access Health common stock to investors in this new entity. Access Health will have an option, exercisable in the future, to acquire the new entity. The transaction is subject to a definitive agreement which is expected to be completed in the next few weeks.
 Kenneth B. Plumlee, Access Health president and chief executive officer, said the new funding will allow Access Health to more aggressively capitalize on the opportunities it sees in the managed care market. "The positive reaction to our new products for the employer and managed care markets gives us a clear signal that the time is right for us to aggressively move forward and position the company for what we believe will be a significant market opportunity," Plumlee said.
 As part of this plan, the company has also announced the establishment of two new teleservices call centers located in Chicago and Phoenix. The accelerated timing of the company's planned development of new call centers is in addition to ongoing expansion of Access Health's existing call center in Sacramento. The Chicago call center is being established as part of Access Health's existing operations there and has recently been put in operation. The Phoenix site should be on line this fall.
 "The investments made in our third and fourth fiscal quarters in new call centers will position us well to bring on new business in 1994," Plumlee added.
 The investor group is lead by MDS Health Ventures Inc., a Canadian venture capital corporation specializing in health care investments.
 Access Health's personal health management programs, Personal Health Advisor(TM) and Access Care Management System(TM), help managed care organizations, self-insured employers and hospitals manage consumer demand for health care services. Its telephone-based programs feature health information, prevention and care management services, which are designed to improve patient access, ensure the cost-effective delivery of care and promote member satisfaction by providing consumers with information they need to make better health care decisions and avoid unnecessary or inappropriate care.
 -0- 6/29/93
 /CONTACT: John E. Gebhart III of Access Health Marketing, 916-851-4000; or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for Access Health Marketing/
 (ACCS)


CO: Access Health Marketing; MDS Health Ventures Inc. ST: California IN: HEA SU:

MF-JL -- LA009 -- 6571 06/29/93 09:04 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
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