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INSTITUTE FOR LABORATORY MEDICINE SELLS FLORIDA LABORATORY ASSURING COMPLIANCE WITH STARK AMENDMENT

 INSTITUTE FOR LABORATORY MEDICINE SELLS FLORIDA LABORATORY
 ASSURING COMPLIANCE WITH STARK AMENDMENT
 MIAMI, Jan. 3 /PRNewswire/ -- Institute for Laboratory Medicine, Inc. (NASDAQ: LABS) announced today that it had entered into an agreement selling substantially all of the assets of its Florida laboratory to Cardinal Testing Labs, a subsidiary of REN Corporation - USA (NASDAQ: RENL) for $6 million in cash and the assumption of certain liabilities. Under the terms of the agreement, ILM retains its accounts receivable and is responsible for its accounts payable. Pursuant to the agreement, ILM is restricted from making distributions to shareholders. While the sale gives REN immediate control of the Florida facility, the sale is subject to the subsequent approval by ILM's shareholders. Under ILM's Articles of Incorporation, 80 percent of its voting shares must approve the transaction. Management and affiliates control 65 percent of the company's voting shares.
 ILM's management stated that the sale of the Florida laboratory is intended to help the company accomplish its goal of becoming a national independent clinical laboratory company and at the same time eliminate compliance issues for ILM under the recently effective Stark Amendment. The sale will provide funds for future acquisitions, although there is no assurance that any acquisition will be consummated. The acquisitions that the company is currently considering do not have Stark compliance issues as they are not owned by referring physicians. The company intends only to consider future acquisition candidates which do not have Stark implications.
 As a result of the elimination of the Stark issue for ILM, the company intends as soon as it deems it appropriate to close out its investment in approximately $97 million of treasury securities which it acquired subject to repurchase agreements.
 ILM announced on Nov. 26, 1991 that it had signed a definitive purchase and sale agreement to acquire a clinical laboratory in the New York metropolitan area. The company indicated that the laboratory to be acquired and annual revenues of approximately $10 million and is a state-of-the-art facility with available capacity to substantially increase revenues. This acquisition is subject to various conditions including obtaining financing and completion of satisfactory due diligence by ILM which is currently being conducted. ILM management is proceeding in order to complete this acquisition on a timely basis.
 On Dec. 11, 1991, ILM management announced that it had obtained a standstill agreement through Dec. 31, 1991 from the largest shareholder of a publicly traded company in order to enable ILM to determine whether to make an offer for the company. This company, also in the New York metropolitan area, operates a laboratory with revenues of approximately $15 to $18 million. Although the standstill agreement has expired and no offer has been made, ILM is continuing discussions with this company.
 In addition to these two potential acquisitions, ILM has entered into preliminary discussions with several clinical laboratories in New York and California.
 -0- 1/3/92
 /CONTACT: Edward Silverman of Silverman, Heller Associates, 212-682-9222, for Institute for Laboratory Medicine/
 (LABS RENL) CO: Institute for Laboratory Medicine, Inc.; REN Corporation - USA ST: Florida IN: MTC SU:


TS-OS -- NY015 -- 6422 01/03/92 10:06 EST
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Publication:PR Newswire
Date:Jan 3, 1992
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