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MEDIQ SELLS SUBURBAN MEDICAL SERVICES UNIT; REDUCES SENIOR DEBT

 MEDIQ SELLS SUBURBAN MEDICAL SERVICES UNIT; REDUCES SENIOR DEBT
 PENNSAUKEN, N.J., July 31 /PRNewswire/ -- MEDIQ Incorporated (AMEX: MED) today announced that it completed the sale of Suburban Medical Services, Inc., its institutional pharmacy supply subsidiary, to ASCO Healthcare, Inc. a subsidiary of Genesis Health Ventures, Inc., for $9 million in cash.
 Consistent with MEDIQ's plan of reducing parent company debt, cash proceeds from this sale as well a cash received from the recent refinancing of MEDIQ/PRN Life Support Services, Inc., will be used to further reduce MEDIQ's senior debt, leaving a total of parent company long-term senior debt of approximately $15 million.
 Bernard J. Korman, president and chief executive officer, described the sale of Suburban Medical Services and the MEDIQ/PRN Life Support Services, Inc. debt offering as further significant steps in the implementation of MEDIQ's strategic plan to reshape the company, more narrowly focus its activities, reduce parent company debt and enhance shareholder value.
 On July 6, 1992, MEDIQ/PRN Life Support Services, Inc. completed an offering of $100 million of 11-1/8 percent senior secured notes due 1999. The proceeds were used to repay the acquisition cost of ATI Medical Inc. acquired on May 29, 1992, for $23 million and to refinance MEDIQ/PRN's debt.
 On Jan. 28, 1992, MEDIQ's then wholly owned subsidiary, PCI Services, Inc. (NASDAQ: PCIS), in a public offering, sold 3,306,250 shares of PCI common stock. MEDIQ's 46.5 percent ownership of PCI has a current market value of approximately $34 million.
 On Aug. 15, 1991, MEDIQ and its then majority-owned subsidiary, NutraMax Products, Inc. (NASDAQ: NMPC), in a public offering, sold an aggregate of 2.9 million shares of NutraMax common stock. MEDIQ's ownership of approximately 50 percent of NutraMax has a current market value of approximately $33 million.
 On June 7, 1991, MEDIQ sold Copelco Financial Services Group, Inc. for $66.5 million using the cash proceeds of $62 million to eliminate all short-term debt.
 MEDIQ provides products and services to hospitals, nursing homes, healthcare professionals and consumers. Its businesses include pharmaceutical packaging, manufacturing and marketing of healthcare products, management and ownership of psychiatric units, rental of critical care equipment and diagnostic imaging and testing, as well as maintenance of diagnostic equipment. MEDIQ's common stock (MED), preferred stock (MED.pr) and convertible debentures (MED.C) trade on the American Stock Exchange.
 /delval/
 -0- 7/31/92
 /CONTACT: Michael F. Sandler, senior vp of MEDIQ, 609-665-9300, ext. 6005/
 (MED) CO: MEDIQ Incorporated; Suburban Medical Services, Inc.;
 ASCO Healthcare, Inc.; Genesis Health Ventures, Inc. ST: New Jersey IN: HEA SU: RCN


MK-MP -- PH024 -- 5696 07/31/92 14:47 EDT
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Publication:PR Newswire
Date:Jul 31, 1992
Words:440
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