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CURATIVE TECHNOLOGIES TO FOCUS ON WOUND CARE BUSINESS; CORPORATE RESTRUCTURING SIGNIFICANTLY REDUCES R&D EXPENDITURES

 EAST SETAUKET, N.Y., June 20 /PRNewswire/ -- Curative Technologies, Inc. (Nasdaq-NNM: CURE) today announced it will restructure the company to focus on developing and expanding its growing Wound Care business, a move which CTI believes will increase the likelihood of attaining profitability in the future.
 "We believe shifting our focus to healthcare service will maximize shareholder value and increase earnings," said Russell B. Whitman, Chairman, President and CEO. "As such, our primary goal now is to devote the financial and organizational resources necessary to expand our profitable national network of specialty Wound Care programs. We have laid the foundation for this strategy with 54 Wound Care Centers already in place and seven new agreements signed to date in 1994. We will concentrate on opening more centers in attractive markets and exploiting new business opportunities in other areas of wound care."
 In order to insure that sufficient resources are available to pursue this strategy, a restructuring of other activities has been necessitated. This will include a significant reduction in research and development activities and reductions to the company's European development activities.
 CTI's research and development efforts have been focused in three areas: Procuren, CT102 and CT112. Under the revised strategy, each of these programs will continue to be developed. However the discontinuance of new discovery efforts, along with the near-term completion of several programs, will allow research to continue at significantly reduced cost levels. The one-time charges associated with the restructuring, together with the establishment of additional reserves for a receivable associated with CTI's efforts to establish a wound care program in a Comprehensive Outpatient Rehabilitation Facility (CORF), will result in a second quarter charge of approximately $1.9 million.
 At the same time, CTI announced that the company and UltraMed, Inc. have entered into discussions with the U.S. Department of Justice in an effort to resolve the Department of Justice's potential claims against the company and UltraMed. The Department of Justice announced on April 22, 1994 that it had determined to intervene in a "whistler blower" action charging UltraMed and CTI with violating Medicare regulations relating to the billing of lymphedema pumps. CTI believes that neither UltraMed, which was divested by CTI in February 1994, nor CTI has acted in a way which is inconsistent with either the law or industry practice. The company now believes, however, that the Department of Justice action is significantly affecting UltraMed's business. This development, together with recently announced changes in Medicare reimbursement rates, have materially impaired the ability of UltraMed to repay the $4.3 million note due to CTI. In addition, the Department of Justice action may materially impact CTI in the event that UltraMed cannot meet its obligations to the Department of Justice. As a result of the foregoing developments, the company expects to take an appropriate charge to earnings during the second quarter.
 In view of the growth in CTI's Wound Care Business and the reductions in expenses associated with this restructuring, the Company believes it has the resources necessary to implement its revised strategies with an increased likelihood of achieving profitability in the future.
 Curative Technologies, Inc. is a technology-driven healthcare company that has established itself as a leader in wound healing by providing a range of specialty products and services to healthcare providers through a nationwide network of Wound Care Centers(R). The company is also engaged in the research, development, production and marketing of therapeutic products utilizing naturally occurring human growth factors.
 -0- 6/20/94
 /CONTACT: Russell B. Whitman of Curative Technologies, Inc., 516-689-7000; or Rhonda Chiger, 212-696-4455, ext. 207, or Kathryn Comba, 212-696-4455, ext. 206, both of Noonan/Russo Communications, Inc./
 (CURE)


CO: Curative Technologies, Inc.; UltraMed, Inc. ST: New York IN: MTC SU: RCN

TW-LP -- NY016 -- 8052 06/20/94 10:28 EDT
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Date:Jun 20, 1994
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