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MEDGROUP ANNOUNCES ACQUISITION OF MEDIDEA'S HYPODERMIC NEEDLE POINT PROTECTION SYSTEM

 ENCINO, Calif., June 30 /PRNewswire/ -- Medgroup Inc. (NASDAQ: MDGP) announces that it has entered into a 90-day option agreement with Medidea Inc., to acquire Medidea's patented hypodermic needle point protection system. The cost of the option was 10,000 shares of Medgroup common stock. The system meets all of the criteria established for one-hand operated needle protections systems that automatically encloses the needle point after an injection. The needle point protection system can be used by any health care worker qualified to give injections without any further training. The system will be marketed to the health care industry at prices that are competitive with non-safety hypodermic syringes now being sold. Medgroup will be the exclusive worldwide distributor of the needle point protection system. The system is 100 percent effective in the prevention of the accidental transmission of AIDS, Hepatitis and other viruses. The needle point is never exposed after use.
 The terms of the license agreement call for the issuance of an additional 90,000 shares of Medgroup's common stock to Medidea within 90 days. Medidea will receive a 5 percent royalty based on gross sales of the needle point protection system. The product is designed to be used on all sizes of needles and syringes including the 1-mil pre-filled syringe used by diabetics worldwide. This acquisition enhances Medgroup's relationship with System Safe-T Development and Marketing Ltd. System Safe-T Development and Marketing Ltd. arranged the license through the company's investment banker Coubert Dennis Ltd.
 -0- 6/30/93
 /CONTACT: Robert McGuire of Medgroup, 818-783-6035; or John Matrisciano, M.D. of Medidea, 818-888-0828/
 (MDGP)


CO: Medgroup Inc.; Medidea Inc. ST: California IN: MTC SU:

LM-MF -- LA037 -- 7437 06/30/93 19:06 EDT
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Publication:PR Newswire
Date:Jun 30, 1993
Words:282
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