Meridian Holdings Reports Second Quarter 2004 Financial Results Second Quarter Results Reflect Favorable Court Decision Booked as 'Judgment Receivable' LOS ANGELES, Aug. 16 /PRNewswire-FirstCall/ -- Anthony C. Dike, Chairman and CEO of Meridian Holdings, Inc. (OTC:MRDH) (BULLETIN BOARD: MRDH) , announced today the timely filing of the company's quarterly report to the Securities and Exchange Commission for the period ended June 30, 2004, on Form 10-QSB. Full text of the report may be viewed on the SEC's EDGAR database at http://www.sec.gov/. Medical services revenues decreased by 30% from $458,342 for the three months ended June 30, 2003 to $321,638 for the three months ended June 30, 2004, and by 27% from $955,033 for the six months ended June 30, 2003 to $700,821 for the six months ended June 30, 2004. On January 8, 2004, a default judgment was entered in favor of the company by the Los Angeles County Superior Court in a case titled Meridian Holdings, Inc. versus Sirius Technologies of America, a Delaware Corporation, Case No. BC256860. The amount of the judgment including damages, court costs and punitive damages is $30,687,926, with a pre-judgment interest at the annual rate of 10%. This amount has been reflected in the balance sheet and the income statement as a judgment receivable. Management is pursuing all collections options regarding this judgment. Meridian, through its Capnet IPA division, provided managed care services for approximately 28,000 and 30,000 member months (members per month multiplied by the months for which services were available) during the six months ended June 30, 2004 and 2003, respectively. The decrease in member months and medical services revenue was due to disenrollment of Medi-Cal members following the ongoing State of California Department of Health Services Medi-Cal membership redetermination efforts. Revenue generated by the company's managed care entities under contracts with HMOs as a percentage of medical services revenue was approximately 99% and 96%, respectively, during the six months ended June 30, 2004 and 2003. Revenue generated by the Los Angeles County Community Health Plan ("CHP") contracts was 99% of medical services revenue for the six months ended June 30, 2004 and 2003, respectively. The Company has recently launched an International Preferred Provider Network (IPPN) division known as "Meridian Health Systems", which is involved in the business of facilitating the delivery of international, tertiary healthcare services provided in the United States to individuals who cannot obtain certain specialized treatments in their homelands. "Meridian's IPPN is designed to allow the company to leverage its resources internationally and we are confident in its potential to enhance the company's ability to generate additional revenue," said Anthony C. Dike, MD, Chairman & CEO. About Meridian Holdings, Inc. Meridian Holdings, Inc., is a Healthcare Services and Technology Company. Meridian's network of affiliated companies is designed to encourage maximum leverage of information technology, operational excellence, industry expertise, and synergistic business opportunities. Meridian is committed to building shareholder value by positioning affiliated companies as independent business entities in which Meridian shareholders enjoy equity participation. Learn more about the company and its affiliated entities, including CGI Communications Services, Inc. and InterCare DX, Inc. (OTC:ICCO) (BULLETIN BOARD: ICCO) by visiting Meridian's web site at http://www.meho.com/. NOTE: Statements in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Material that is forward-looking may contain statements about expected future events and/or financial results that are forward-looking in nature. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's results to differ from such forward-looking statements. These include, but are not limited to, economic, competitive, governmental, technological and other factors discussed in the statements and/or in the company's filings with the Securities and Exchange Commission. DATASOURCE: Meridian Holdings, Inc. CONTACT: Anthony C. Dike, Chairman/CEO of Meridian Holdings, Inc., +1-213-627-8878 Web site: http://www.meho.com/

Copyright