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MEDICAL RESOURCE COMPANIES OF AMERICA'S BOARD OKAYS MERGER

 DALLAS, July 29 /PRNewswire/ -- The board of directors of Medical Resource Companies of America (AMEX: MRA) approved yesterday the agreement in principle to acquire Dixie National Corporation and its subsidiary, Dixie National Life Insurance Company. The Dixie National board of directors approved the transaction on July 22.
 Closing will be subject to a definitive purchase agreement, Dixie National shareholders approval and approval of the Mississippi Department of Insurance. If approved, closing should occur before year end.
 The terms of the agreement call for the issuance of one share of Medical Resource Companies common stock for every two of the 6,424,973 outstanding shares of Dixie National. Upon completion of the transaction, Medical Resource assets will increase from approximately $55 million to $111 million. Stockholder equity will increase from approximately $19 million to $31 million.
 "This acquisition is part of our plan to increase stockholder value," said James R. Gilley, president and chief executive officer of Medical Resource. "It will also help us better service the total healthcare market in the future, an important factor in our long range healthcare strategy."
 Dixie, headquartered in Jackson, Miss., has policyholders in 21 states and the District of Columbia, and as of December 31, 1992 had approximately $636 million of insurance in force. The 28-year-old insurer primarily sells life and cancer insurance.
 The revenues of Medical Resource will also significantly increase. Dixie had total revenues of $19,431,311 in the fiscal year ended December 31, 1992. Net income was $1,103,336 ($.17 per share). For the first quarter of 1993, Dixie reported a loss of $445,447, or $.07 per share, on revenues of $5,050,404. The loss was attributed to increased reserves by Dixie.
 Medical Resource Companies of America, headquartered in Addison, Texas, a north Dallas suburb, provides products and services for the aging and handicapped markets and is entering other growth niches, primarily in the healthcare industry. The company owns retirement, assisted living, and eating disorder treatment centers. It manages them for its own portfolio and for non-profit owners. The company also manufactures and markets electric powered scooters to help meet the needs of the mobility impaired and also produces industrial strength children's strollers for theme parks and other tourist attractions.
 -0- 7/29/93
 /CONTACT: Robert L. Griffis of Medical Resource Companies, 214-407-8400/
 (MRA)


CO: Medical Resource Companies of America; Dixie National Corp. ST: Texas, Mississippi IN: HEA SU: TNM

TM -- NY120 -- 7439 07/29/93 16:54 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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