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MEDICAL PROPERTIES REPORTS RESULTS

 ENCINO, Calif., March 31 /PRNewswire/ -- Medical Properties Inc. (AMEX: MPP) today reported a net loss of $743,000, or $.32 per share, for the fourth quarter ended Dec. 31, 1992, compared to a net loss of $18,937,000, or $8.03 per share, for the comparable prior-year period. The decline in net loss is primarily because of a write-down of $18,000,000 in property value to their estimated realizable value in the fourth quarter ended Dec. 31, 1991. Revenues, primarily from rental properties, were $186,000 for the current fourth quarter, compared with $19,000 for the same period a year ago. The increase is primarily because of the receipt of rental payments from the company's Oregon property and non-receipt of any rental payments for last year's period because of the financial conditions and results of the lessees and that of the guarantor.
 For the year ended Dec. 31, 1992, the net loss was $3,176,000, or $1.35 per share, compared with a net loss of $17,642,000, or $7.48 per share, for the prior year. The decline is primarily because of a write-down of $18,000,000 in 1991 in property value to their estimated realizable value. The net loss of $3,176,000 for 1992, resulted primarily from sharply reduced rental payments received, when compared to previous years. Revenues, primarily from rental properties, were $557,000, for 1992, compared with $4,013,000, for 1991. The decline for 1992 was because of the company receiving only reduced rental payment of $60,000 per month for the nine months ended Dec. 31, 1992, from its Oregon property and no rental payments from its La Mirada, Calif., properties because of the closure of the hospital and bankruptcy of the lessees.
 Recently, the company and its secured debt holder have entered into certain revisions to the loan agreement, since the company was, and also would have been, unable to meet the original scheduled loan payments. As a part of the Lease Termination Agreement and the $4,375,000 note receivable from Nu-Med, Nu-Med made certain principal pre-payments of $185,912, which were used along with company funds available to pay the required quarterly interest payment of approximately $423,000 due July 31, 1992. In addition, Nu-Med made an additional principal pre-payment of $354,845, which was applied to the interest due through Dec. 31, 1992. The required balance of non- payment of interest has been added to the company's debt of approximately $380,489 for a revised total indebtedness of approximately $14,180,489 as of Dec. 31, 1992. In addition, the January 1993 interest of approximately $141,067 will also be added to the loan, since the company did not have sufficient funds for the required interest payment. The payment of $100,000 received from the Nu-Med note on Feb. 1, 1993, was applied as principal loan reduction. Commencing with Feb. 1, 1993, until Sept. 30, 1993, the monthly interest expense (payable monthly) has been reduced to $100,000 from $141,067. The only source of funds for such monthly interest payments are the monthly payments from the Nu-Med lease termination note which equals the monthly required payments ($92,956 principal and interest plus monthly pre-payments of principal of $7,044, for a total of $100,000). Such revised interest payments represent an annual interest rate of approximately 8.4 percent, down from 12 percent. In the event that the company is able to sell some of its assets on or before Sept. 30, 1993, with the prior secured debt holder's consent, and the company is able to make a principal reduction payment of at least $5,000,000 or greater, the interest rate remains at the approximate annual rate of 8.4 percent. If the foregoing has not been accomplished, the annual interest rate would increase to 12 percent effective Oct. 1, 1993. However, the entire loan, totaling approximately $14,321,556, will be due and payable on Dec. 31, 1993. Unless the company is able to sell or lease some of its properties at a level satisfactory to the company's secured debt holder and/or also further revise the loan payments, the company will not be able to meet its debt payment on Dec. 31, 1993, and the company could lose all of its assets.
 Medical Properties is a real estate investment trust engaged in investing in health care related facilities.
 Financial table follows:
 MEDICAL PROPERTIES INC.
 Statement of Earnings (Losses)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (Unaudited)
 Revenues:
 Rental income --
 related
 parties $180,000 $0 $545,000 $3,943,000
 Interest income 6,000 19,000 12,000 70,000
 Total 186,000 19,000 557,000 4,013,000
 Expenses:
 Depreciation and
 amortization 290,000 307,000 1,172,000 1,232,000
 Interest 425,000 423,000 1,685,000 1,679,000
 Advisory fees --
 related party 0 0 0 63,000
 Insurance 78,000 48,000 227,000 185,000
 Other 136,000 178,000 649,000 496,000
 Property valuation
 allowance 0 18,000,000 0 18,000,000
 Total 929,000 18,956,000 3,733,000 21,655,000
 Net income(loss) ($743,000)($18,937,000)($3,176,000)($17,642,000)
 Net income(loss)
 per share ($.32) ($8.03) ($1.35) ($7.48)
 Weighted average
 shares
 outstanding 2,357,900 2,357,900 2,357,900 2,358,104
 -0- 3/31/93
 /CONTACT: William Hartauer, chairman and president of Medical Properties, 818-902-2270; or Melvyn S. Rifkind of Melvyn S. Rifkind Inc., 818-783-8323, for Medical Properties/
 (MPP)


CO: Medical Properties Inc. ST: California IN: HEA SU: ERN

BP-JB -- LA019 -- 9802 03/31/93 14:58 EST
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Date:Mar 31, 1993
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