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MEDIQ COMPLETES ATI ACQUISITION

 MEDIQ COMPLETES ATI ACQUISITION
 PENNSAUKEN, N.J., June 1 /PRNewswire/ -- MEDIQ Incorporated


(AMEX: MED) today announced that its subsidiary, MEDIQ/PRN Life Support Services, Inc., has completed the acquisition of ATI Medical, Inc.
 Shareholders of ATI Medical on May 4, 1992, approved the acquisition of the company, by MEDIQ/PRN in a cash merger for $4 per share for all of ATI's common shares.
 "With this acquisition, MEDIQ now owns and operates the nation's largest company specializing in renting critical health care equipment to hospitals and extended care facilities," said Bernard J. Korman, president and chief executive officer of MEDIQ.
 The combined company, with revenues approaching $100 million, will operate 60 branches in 55 cities, and employ more than 750 people.
 "We anticipate substantial economies, with enhanced cash flow and profit, to result from the combination of the two companies, in addition to improving on the already high level of services and enlarging the variety of equipment we provide," said Korman.
 In a filing with the Securities and Exchange Commission in connection with a proposed $100 million of senior secured notes to be offered by MEDIQ/PRN, and to be underwritten by Dillon Read & Co., Inc., the combined entity on a pro forma basis for the year ended Sept. 30, 1991, showed revenues of $94.9 million and earnings of $3.9 million. For the six months ended March 31, 1992, revenues pro forma amounted to $49.7 million and net income pro forma equaled $2.6 million. Proceeds from the previously announced debt offering will be used to refinance the credit facilities provided by International Nederlander Bank (NMB Bank) and Congress Financial Corporation used to finance the acquisition and to consolidate various other obligations of MEDIQ/PRN.
 MEDIQ/PRN now rents to a client roster of more than 3,500 hospitals nationwide, in addition to the growing long-term care and home health care markets. It provides from over 100 manufacturers more than 350 different types of equipment, including ventilators, respirators, monitors, infusion pumps and other critical care items. MEDIQ/PRN offices operate 24 hours a day, 365 days a year.
 MEDIQ Incorporated, the shares (MED and MED.Pr) and debentures (MED.C) of which are listed on the American Stock Exchange, provides products and services to hospitals, nursing homes, healthcare professionals and consumers through its subsidiaries. Its businesses, among others, also include pharmaceutical packaging, manufacturing and marketing of healthcare products, management and ownership of psychiatric units and diagnostic imaging and testing, as well as maintenance of diagnostic equipment.
 -0- 6/1/92
 /CONTACT: Michael F. Sandler, senior vp-finance of MEDIQ, 609-665-9300, ext. 6005/
 (MED) CO: MEDIQ Incorporated ST: New Jersey IN: HEA SU: TNM


LJ-MP -- PH008 -- 5577 06/01/92 10:14 EDT
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Publication:PR Newswire
Date:Jun 1, 1992
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