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EXPANSION-RELATED COSTS WILL IMPACT SYSTEMED THIRD QUARTER; SOLID 1993 ANTICIPATED

 EXPANSION-RELATED COSTS WILL IMPACT SYSTEMED THIRD QUARTER;
 SOLID 1993 ANTICIPATED
 LAGUNA HILLS, Calif., Oct. 14 /PRNewswire/ -- J. Roberts Fosberg, president and chief executive officer of SysteMed Inc. (NASDAQ: SYSM) today reported that costs associated with relocation of the company's mail service pharmacy subsidiary, America's Pharmacy Inc. (API), into new, larger facilities will have an adverse impact on third quarter earnings.
 Preliminary third quarter results indicate that the company will report net income of between $250,000 to $300,000, or earnings per share of approximately $0.01, on consolidated revenues of nearly $30 million.
 "The third quarter numbers do not reflect any change in either company fundamentals or my expectation for a solid 1993," Fosberg said.
 "While the costs of API's relocation to its new Des Moines, Iowa, facility has temporarily affected earnings, the tripling of its order-filling capacity and the addition of new state-of-the-art dispensing equipment and software systems will enable API to achieve the long-term growth we seek," he explained.
 "Nearly four months after our June 30 acquisition of Insurx, I am more confident than ever that SysteMed now has the ability to offer health care benefit providers with a high quality, sole source for their prescription drug needs. This has greatly enhanced our competitive edge. The Insurx resources have already produced new contracts which will positively impact future results.
 "The operating synergies and cross selling opportunities between API and Insurx are continuing to develop; I am optimistic for continued growth over the next 12 months," Fosberg concluded.
 SysteMed Inc. is a national provider of prescription drug benefit programs to corporations, insurers and other sponsors.
 The company's mail service pharmacy subsidiary, America's Pharmacy Inc., serves more than 650 corporations, insurers and other benefit sponsors with more than 1 million employees and retirees throughout the United States.
 SysteMed's subsidiary Insurx, a national provider of retail pharmacy network-based prescription managed care benefits systems, manages $200 million in claims on behalf of more than 2.5 million insureds nationally.
 -0- 10/14/92
 /CONTACT: Judith Archbold, VP/general counsel of SysteMed, 714-362-1330; or John H. Shaw or William F. Coffin of the Financial Relations Board, 818-783-2400, for SysteMed/
 (SYSM) CO: SysteMed Inc. ST: California IN: HEA SU: ERP


KJ-JB -- LA010 -- 9700 10/14/92 09:03 EDT
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Publication:PR Newswire
Date:Oct 14, 1992
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