MedAire, Inc. to Acquire Assets of Medical Advisory Services Business From Digital Angel Corporation
April 12 2004 - 10:56AM
PR Newswire (US)
MedAire, Inc. to Acquire Assets of Medical Advisory Services
Business From Digital Angel Corporation TEMPE, Ariz., and SO. ST.
PAUL, Minn., April 12 /PRNewswire-FirstCall/ -- MedAire, Inc. , a
provider of fully-integrated health and security solutions
worldwide, and Digital Angel Corporation , an advanced technology
company in the field of rapid and accurate identification, location
tracking, and condition monitoring of high-value assets, today
jointly announced that the two companies have entered into a
definitive agreement for MedAire to purchase certain assets of
Digital Angel's Owings, MD-based Medical Systems unit ("MAS"),
which is expected to be renamed Medical Advisory Systems, Inc. Upon
completion of the transaction,Digital Angel's MAS unit will become
a service of MedAire, Inc., and will relocate its operations to
MedAire's administrative and operational headquarters in Tempe, AZ.
"This acquisition enables MedAire immediately to begin providing
services and products to a new segment of the maritime industry in
a very efficient manner," said MedAire President and CEO Joan
Sullivan Garrett. "With such similar operations, we are ready to
accelerate growth and build shareholder value by bringing together
two remarkably well-matched organizations." Garrett continued,
"While the tremendous synergies between our service organizations
will make the move to MedAire virtually transparent for MAS
clients, we believe they will quickly see the benefits that come
from the strength and vitality of the combined operations." Kevin
McGrath, Chief Executive Officer of Digital Angel, commented, "We
think this is a win-win transaction for both sides. For MedAire,
the MAS assets should become an immediately profitable line of
business, with a client base highly complementary to that of their
other businesses. For Digital Angel, this transaction allows us to
deploy our resources into those businesses where we are best placed
to realize near-term revenue growth and profitability. We are
delighted to have found such a strategically appropriate home for
MAS. We wish the MAS team and clients well." McGrath noted that the
operating assets of MAS, primarily contracts and inventory, will be
sold to MedAire, while the land and building associated with MAS
are under contract to be sold in a separate transaction. The
transactions are expected to close in the second quarter. With an
operating history of over twenty years, MAS has been a global
innovator in telemedicine, providing physician advice to people in
remote environments, and it has been a pioneer and leader in
providing such services to the global commercial shipping industry.
Since 1986, MedAire, Inc. has also pioneered the concept of
providing physician adviceto people in remote environments. MedAire
provides such services to commercial airlines, corporate flight
departments, and business travelers and expatriates of
multi-national corporations. About MedAire, Inc. Established in
1986, MedAire offers fully-integrated health and security solutions
including remote emergency assistance services, evacuations,
training and web-based education programs, specialized resources
such as medical and security kits and a network of western-standard
medical clinicsin Asia. MedAire provides services to international
business travelers and expatriates, commercial airlines throughout
the world, maritime operators, corporate flight departments, as
well as government and military agencies. MedAire, listed under MDE
on the Australian Stock Exchange, can be found on the Internet at
http://www.medaire.com/. Media contact for MedAire: Brant Galloway,
Phone: +1.480.333.3700, e-mail: . About Digital Angel Corporation
Digital Angel Corporation develops and deploys sensor and
communications technologies that enable rapid and accurate
identification, location tracking, and condition monitoring of
high-value assets. Applications for the Company's products include
identification and monitoring of pets, fish and livestock through
its patented implantable microchips; location tracking and message
monitoring of vehicles and aircraft in remote locations through
systems that integrate GPS and geosynchronous satellite
communications; and monitoring of asset conditions suchas
temperature and movement, through advanced miniature sensors.
Digital Angel Corporation is majority-owned by Applied Digital
Solutions, Inc. (NASDAQ:ADSXD). For more information about Digital
Angel, please visit http://www.digitalangelcorp.com/. The
statements in this press release that are not strictly 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 intended to be coveredby the safe
harbors created by these sections. The forward-looking statements
are subject to risks and uncertainties and the actual results that
the Company achieves may differ materially from these
forward-looking statements due to such risks and uncertainties,
including, but not limited to, that recent changes in the Company's
senior management could have an adverse effect on the Company's
financial results that the Company's stockholders will experience
dilution if certain debt owned by the Company is converted into
common stock; the risk of foreclosure on substantially all of the
Company's assets; that the Company's majority stockholder, Applied
Digital Solutions, Inc. is able to completely control the board of
directors and may support actionsthat conflict with the interests
of other stockholders; that the Company's earnings will decline if
it writes off additional goodwill and other intangible assets; that
exercises of the Company's options and warrants outstanding and
available for issuance may adversely affect the market price of the
Company's common stock, the Company's inability to generate income,
the Company's Wireless and Monitoring segment's ability to achieve
profitability, the Company's ability to maintain patent and trade
secret protection, domestic and foreign government regulation, the
Company's sales to government contractors of animal identification
products, dependence on a single production arrangement for its
patented syringe-injectable microchips, dependence on principal
customers, competition in the visual and electronic identification
markets, foreign currency rate fluctuation, dependence on a small
team of senior management and the Company's ability to develop,
integrate, miniaturize and market the Digital AngelTM technology. A
detailed statement of risks and uncertainties is contained in the
Company's reports to the Securities and Exchange Commission,
including in particular the Company's Form 10-K for the fiscal year
ended December 31, 2003. Investors and stockholders are urged to
read this document carefully. The Company can offer no assurances
that any projections, assumptions or forecasts made or discussed in
this release will be met, and investors should understand the risks
of investing solely due to such projections. The Company undertakes
no obligation to revise any forward-looking statements in order to
reflect events or circumstances that may arise after the date of
this press release. For further information, please contact:
investors, Jay F. McKeage, +1-212-691-8087, ; or media, Len Hall,
+1-949-474-4300, ; both of Allen & Caron Inc. for MedAire, Inc.
DATASOURCE: MedAire, Inc.; Digital Angel Corporation CONTACT:
investors, Jay F. McKeage, +1-212-691-8087, ; or media, Len Hall,
+1-949-474-4300, ; both of Allen & Caron Inc. for MedAire, Inc.
Web site: http://www.medaire.com/ Web site:
http://www.digitalangelcorp.com/
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