EXHIBIT 99
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For: Avatex Corporation
Contact: Grady E. Schleier
Senior Vice President and Chief Financial Officer
(214) 365-7450
AVATEX RESPONDS TO EDGEWATER PARTNERS
TENDER OFFER ON 6.75% NOTES
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Dallas, Texas -- January 12, 2001 -- Avatex Corporation (OTCBB: AVAT)
today announced its response to an unsolicited tender offer made by Edgewater
Partners LP to purchase 6.75% Notes due December 7, 2002 (the "Notes") issued by
Avatex's wholly-owned subsidiary, Avatex Funding, Inc. The Notes are also
guaranteed by Avatex Corporation. Edgewater Partners did not inform Avatex of
the tender offer, and Avatex only became aware of the offer from a broker in
January 2001.
Avatex is not taking a position on the adequacy of the offer to
noteholders. Avatex observes that the offer states only that the price of the
offer is 40% of the principal amount of the Notes. Avatex is not aware of any
other terms or conditions of the Edgewater Partners offer. Avatex further
observes that it does not appear that Edgewater Partners made any efforts to
disseminate its offer beyond sending it to the Depository Trust Company.
Avatex also is not taking a position on whether the tender offer is
being made in accordance with United States federal securities laws, including
the applicable rules and regulations issued by the Securities and Exchange
Commission.
As it has previously disclosed in its periodic filings with the
Commission, Avatex has purchased Notes in the open market since April 2000 at an
average price of approximately 60% of the principal amount of the Notes.
Avatex is a holding company that, along with its subsidiaries, owns
interests in other corporations and partnerships. Through Phar-Mor, Inc., its
43% owned subsidiary, Avatex is involved in operating a chain of retail discount
drug stores devoted to the sale of prescription and over-the-counter drugs,
health and beauty aids and other general merchandise.
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