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ONGARD SYSTEMS SIGNS LETTER OF INTENT FOR POSSIBLE ACQUISITION

 DENVER, Sept. 22 /PRNewswire/ -- ONGARD SYSTEMS (NASDAQ: OGSI) and Pharmetics Inc. announced today that they have signed a letter of intent relating to the possible acquisition of Pharmetics Inc. by ONGARD SYSTEMS through a wholly owned subsidiary of ONGARD, ONGARD Pharmetics Inc.
 The transaction, if completed, would result in the issuance of ONGARD common stock to the shareholders of Pharmetics. A definitive merger agreement relating to the acquisition has not yet been signed. Completion of the transaction is subject to shareholder approval and other conditions.
 The letter of intent describes consideration of one share of ONGARD common stock for every 12 shares of Pharmetics common stock and 80,000 shares of ONGARD common stock for all Pharmetics preferred stock. The number of ONGARD shares to be issued to Pharmetics shareholders is subject to revision under certain circumstances.
 ONGARD SYSTEMS Inc. is a manufacturer of medical infection control products including a proprietary medical waste mailback system and a custom line of sterilization packaging products. Earlier this year, ONGARD SYSTEMS announced that it had signed a five-year Supply Distribution and Licensing Agreement with Sherwood Medical, a subsidiary of American Home Products.
 Pharmetics Inc. designs and manufacturers sterilization apparatus and washing and drying equipment which it sells to pharmaceutical and medical device manufacturers, hospitals, clinics, universities and laboratories for the purpose of sterilization and medical waste treatment.
 The combination of ONGARD SYSTEMS and Pharmetics would create a comprehensive infection control company capable of offering a complete sterilization equipment and supplies product line. Worldwide markets for sterilization supply and infection control products exceed $900 million per annum.
 "We believe that the infection control markets represent significant growth opportunities for ONGARD. The opportunity to acquire the talents and high quality manufacturing capabilities contained in Pharmetics was quickly realized, and the deal has moved ahead quite rapidly," according to Mark Weiss, chief executive officer of ONGARD.
 ONGARD Pharmetics Inc. would continue to manufacture sterilization equipment on Long Island, N.Y. Certain administrative and management functions would be integrated into ONGARD's existing operations in Denver.
 -0- 9/22/93
 /CONTACT: Mark E. Weiss, CEO of ONGARD SYSTEMS, 303-293-2090; or Ted Shlisky, CEO of Pharmetics Inc., 516-231-8989/
 (OGSI)


CO: ONGARD SYSTEMS; Pharmetics Inc. ST: Colorado IN: MTC SU: TNM

LM-LS -- LA026 -- 4903 09/22/93 17:22 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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