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Exhibit 99.3
CYPRESS FINANCIAL SERVICES, INC. CLOSES A $7,500,000 PRIVATE PLACEMENT AND
ANNNOUNCES AGREEMENTS TO ACQUIRE A GROUP OF HEALTHCARE REVENUE MANAGEMENT
COMPANIES
Cypress, California - May 31, 2000 - Cypress Financial Services, Inc. (OTC
BB:CYFS) (the "Company") announced today the sale of 15,000,000 shares of its
common stock to FBR Financial Fund II, L.P. ("Fund II") representing 64% of the
outstanding common stock of the Company on a fully diluted basis, for
$7,500,000. In connection with the transaction, the Company also announces the
resignations of four of the five members of the Board of Directors. The new
board will consist of two representatives from Fund II, one representative from
Pacific Life Insurance Company, with the remaining directors to be named at a
later date. The Company has filed to change its name and will, upon the
effectiveness of such filing, operate as RevCare, Inc ("RevCare"). The Company
also announces the signing of a definitive agreement with a group of companies
which will result in (i) the acquisition of all of the outstanding stock of
Orange County Professional Services, Inc. and its affiliated companies ("CPS"),
and (ii) the acquisition of the net assets of Insource Medical Solutions, Inc.,
RBA, Inc, and Hospital Employee Labor Pool ("HELP"), subject to the completion
of due diligence.
"We believe that the combination of these companies provides the Company with
the knowledge, experience and capacity to offer a comprehensive suite of
services required by healthcare providers to productively and efficiently manage
their revenue cycle. We plan to immediately focus on expanding the application
of technology to our service processes," said Manny Occiano, who takes over as
President and Chief Executive Officer of the Company.
"The Company's ability to attract such high-caliber investors reinforces our
plan of creating a dominant accounts receivable management firm in the western
region," said John Hindman, outgoing Chief Executive Officer and Director. "We
believe the acquisitions will create a distinct competitive advantage as well as
a dominant position in several important segments of the accounts receivable
management industry."
FBR Financial Fund II, L.P. is a private equity fund whose primary investment
objective is to provide strategic, medium-term private equity capital to growing
financial services companies. Fund II's institutional investors include major
banks, insurance companies and financial services firms. Fund II currently has
10 portfolio companies in stages ranging from venture capital to buyout. Current
areas of investment interest include finance technology, outsourcing and
business services related to the financial services industry. The fund is an
independently operated affiliate of Friedman, Billings, Ramsey Group, (NYSE:FBR)
an institutional brokerage, research and investment banking firm.
The combined group of companies provides various revenue cycle management
services to healthcare providers which include, among other things, billing,
collections, reimbursement consulting and auditing, and outsourcing. These
services are provided through facilities located in Southern California, Las
Vegas, and Hawaii. "I am excited to have our group join RevCare to create a
company that will have the financial resources, professionalism, and capability
to meet the growing demand for a full service receivable management provider in
the healthcare industry. This combination of companies will provide a solid
foundation on which to build the dominant service provider in the western region
of the United States," said Russ Mohrmann, who remains President of CPS and will
direct the healthcare services division of RevCare.
Cypress Financial Services, Inc., headquartered in Cypress, California for the
past 22 years, provides accounts receivable management services to various
healthcare providers, banks, and credit card issuers, as well as commercial and
retail firms.
Statements made in this press release, other than historical financial results,
are forward-looking statements as defined by the Private Securities Litigation
Reform Act of 1995. These statements express the current beliefs and
expectations of management regarding future results and performance, but are
subject to a number of known and unknown risks that could cause actual results
to differ materially from those projected or implied in forward-looking
statements.
