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UNITED MEDICORP REPORTS 1991 RESULTS -- FEE INCOME INCREASES 106 PERCENT

UNITED MEDICORP REPORTS 1991 RESULTS -- FEE INCOME INCREASES 106 PERCENT
 DALLAS, April 1 /PRNewswire/ -- United Medicorp, Inc. (NASDAQ: UMCI) today reported that for the year ended Dec. 31, 1991, fee income increased by 106 percent to $1,809,911, from $879,557 in 1990, due to growth in the company's basic insurance claims management and colection business and in backlog collection services. Total expenses in 1991 decreased by 16 percent to $7,291,679, from $8,695,710 in 1990, due to lower selling, general and adminstrative costs, and reduced professional fees. The company reported a net loss for 1991 of $3,838,963, or $.30 per share, compared to $7,631,713, or $.75 per share in 1990. Adjusting for a non-recurring write down of system development costs, the company's net loss from operations in 1991 was $3,337,714, or $.26 per share, a 56 percent reduction in loss.
 According to Eugene W. Aune, United Medicorp's president and chief executive officer, "UMC completed a number of challenging tasks during 1991. Development of the company's systems was substantially completed, and the company both grew revenues and reduced expenses. As we enter 1992, with continued tight control on our costs, UMC is well positioned to deliver improved claims processing and collection services to our customers, and improved operating results to our stockholders."
 For the fourth quarter of 1991, UMC reported a loss of $1,338,785, or 10 cents per share, on revenues of $378,953. Comparable figures for the fourth quarter of 1990 include a net loss of $1,802,143, or $.14 per share, on revenues of $599,054. Fee income for the fourth quarter of 1991 decreased by 48 percent compared to the fourth quarter of 1990 due primarily to the discontinuance of UMC's advance funding service, which had not been generating satisfactory returns. Total expenses were reduced by 28 percent, to $1,717,738, due to aggressive cost cutting measures implemented in the third quarter.
 The fourth quarter 1991 results include a non-recurring charge of $501,249 to write down capitalized system development costs to their estimated net realizable value. Adjusted for this non-recurring write down, UMC's net loss from operations during the fourth quarter was $837,536, representing an improvement of $964,607, or 53 percent, from the fourth quarter a year ago.
 United Medicorp provides third party healthcare claims processing, management, collection, and accounting services for hospitals and clinics throughout the United States.
 UNITED MEDICORP, INC.
 CONSOLIDATED STATEMENT OF REVENUES AND EXPENSES
 Three Months Ended Three Months Ended
 December 31, December 31,
 1991 1990
 REVENUES:
 Fee income $ 356,790 $ 526,540
 Interest income 22,163 72,514
 Proceeds from software
 license agreement -- --
 Total revenues 378,953 599,054
 EXPENSES:
 Salaries and benefits 523,828 1,136,607
 Selling, general and
 administrative 284,166 735,481
 Professional fees 78,775 141,586
 System development fees 0 24,584
 Office and equipment rental 46,722 86,341
 Depreciation and amortization 195,633 192,668
 Interest and other 87,365 83,930
 Write down of system dev.
 costs 501,249 0
 Total expenses 1,717,738 2,401,197
 NET LOSS ($1,338,785) ($1,802,143)
 NET LOSS PER SHARE ($0.10) ($0.14)
 WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING 12,784,999 12,736,029
 12 Months Ended 12 Months Ended
 December 31, December 31,
 1991 1990
 REVENUES:
 Fee income $1,809,911 $ 879,557
 Interest income 90,704 184,440
 Proceeds from software
 license agreement 1,552,101 --
 Total revenues 3,452,716 1,063,997
 EXPENSES:
 Salaries and benefits 3,335,148 3,829,724
 Selling, general and
 administrative 1,754,738 2,380,982
 Professional fees 253,056 605,924
 System development fees 0 622,577
 Office and equipment rental 337,502 308,557
 Depreciation and amortization 790,879 631,554
 Interest and other 319,107 316,392
 Write down of system dev.
 costs 501,249 0
 Total expenses 7,291,679 8,695,710
 NET LOSS ($3,838,963) ($7,631,713)
 NET LOSS PER SHARE ($0.30) ($0.75)
 WEIGHTED AVERAGE
 COMMON SHARES OUTSTANDING 12,758,035 10,133,851
 -0- 4/1/92
 /CONTACT: Pete Seaman, chief financial officer of United Medicorp, 214-360-5262/
 (UMCI) CO: United Medicorp, Inc. ST: Texas IN: HEA SU: ERN


KD -- NY100 -- 4090 04/01/92 17:18 EST
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Date:Apr 1, 1992
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