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ProMedCo Management Company
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<PAGE>
FOR IMMEDIATE RELEASE
Contact: H. Wayne Posey
President and Chief Executive Officer
or
Robert D. Smith
Senior Vice President and Chief Financial Officer
817-335-5035
PROMEDCO IN CONTINUING DISCUSSIONS TO FINALIZE
GOLDMAN SACHS TRANSACTION
FORT WORTH, Texas (April 10, 2000) -- ProMedCo Management Company
(Nasdaq/NM:PMCO) today announced a further adjournment, to Monday, April 17,
2000, of its special meeting to obtain shareholder approval of the previously
announced issuance of $55 million of the Company's Series A Convertible
Preferred Stock to affiliates of Goldman Sachs & Co. As a result of what the
Company believes are unfavorable market conditions for financing throughout the
healthcare services sector, the Company to date has obtained commitment letters
for $25 million of the $65 million of senior debt financing contemplated by its
securities purchase agreement with Goldman Sachs. The purpose of this second
adjournment is to provide the opportunity for continuing discussions between the
parties in light of this development.
The Company believes that the combined $80 million of additional debt
and equity financing available if the transaction is closed at this time will be
sufficient to implement its currently planned expansion program at least through
the end of 2001. The Company would continue to seek additional financing to fund
its continuing growth strategy thereafter. ProMedCo is currently in discussions
with Goldman Sachs seeking its waiver of the debt-financing condition of the
agreement.
This press release contains "forward-looking statements" which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements are based on current
expectations and may be significantly impacted by certain risks and
uncertainties described herein and in the Company's Annual Report on Form 10-K
filed with the Securities and Exchange Commission for the year ended December
31, 1998. There can be no assurance that statements made in this press release
relating to future events will be achieved.
ProMedCo, headquartered in Fort Worth, Texas, is a medical services
company that coordinates and manages the delivery of a wide variety of
healthcare services in non-urban communities. ProMedCo believes that these
non-urban communities, which have fewer healthcare providers and lower HMO
penetration than urban areas, offer an opportunity for the Company to capture a
substantial portion of local healthcare revenues. By affiliating with leading
medical groups, the Company establishes a platform from which it can consolidate
the delivery of local healthcare services. ProMedCo then expands this platform
by adding ancillary services, physicians and mid-level providers, thus
increasing its share of local healthcare revenues.
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