NUMED FILES FOR VOLUNTARY CHAPTER 11 PROTECTION
Company Continues Businesses While Seeking Bankruptcy Court Protection
Company Has Entered Into Letter of Intent Concerning Possible Sale of Principal
Businesses
Clearwater, FL, November 2, 2000 -- NuMED Home Health Care, Inc., a Nevada
corporation ("NuMED" or the "Company") today announced that it and its eight
wholly owned subsidiaries (collectively, the "Companies") filed voluntary
Petitions for relief under Chapter 11 of the United States Bankruptcy Code, on
November 1, 2000. The filings were made in the U.S. Bankruptcy Court for the
Middle District of Florida, located in Tampa. NuMED and its subsidiaries are
continuing operations as debtors in possession while they seek approval of a
plan or plans of reorganization.
"Due to our ongoing liquidity problems, we have found it necessary to seek
the protection of filing for Chapter 11 status while we explore various
restructuring opportunities and strategic alternatives, including a serious
pursuit of a possible sale of the businesses of the Companies," said Susan J.
Carmichael, chief executive officer and president. In this regard the Company
also announced that it has signed a letter of intent to pursue a sale of
substantially all of the assets of the Companies or the stock of its
subsidiaries [to a local investor] and to secure debtor-in-possession financing
from such investor pending the negotiation and consummation of the possible
sale, all of which would be subject to bankruptcy court approval.
"Chapter 11 should progress behind the scenes in the corporate offices and
will allow our home health services and contract staffing activities to continue
uninterrupted in the manner expected by those patients and health care providers
who utilize our services. We appreciate the support of our employees, vendors,
clients and the public as we work through this challenging time," Carmichael
added.
The Company's subsidiaries include Whole Person Home Health Care of
Florida, Inc., a Florida Corporation, d/b/a Total Professional Health Care;
Silver Moves, Inc., a Florida corporation, d/b/a Florida Nursing Services;
Countryside Health Services, Inc., a Florida corporation; Whole Person Home
Health Care, Inc., a Pennsylvania corporation; Pennsylvania Medical Concepts,
Inc., a Pennsylvania corporation; Whole Person Home Health Care of Ohio, Inc.,
an Ohio corporation; Parke Home Health Care, Inc., an Ohio corporation; and
NuMED Rehabilitation, Inc., a Florida corporation.
Additionally, the Company announced that two of its directors, Richard
Osborne and Michael Gorman, have resigned from the board, effective as of
October 25, 2000.
NuMED is in the business of providing health care management services to
home health care providers, primarily through the operation of its subsidiaries.
The subsidiaries are in the business of providing home health care related
services to private patients, commercially insured patients and Medicare and
Medicaid patients located in the vicinity of the respective offices of the
subsidiaries. In addition, the subsidiaries provide temporary staffing of
nursing personnel and contract staffing
<PAGE>
of physical, occupational, language and speech therapists to health care
facilities in Florida, Ohio and Pennsylvania.
Forward Looking Statements
This release may contain forward-looking statements, which reflect the
current views of the Company with respect to certain events that could have an
effect on the Company's future financial performance. These statements include
the words "expects", "believe", and similar expressions. Any such
forward-looking statements are subject to various risks and uncertainties that
could cause actual results to differ materially from historical results or those
currently anticipated.
These risks and uncertainties include, but are not limited to competitive
factors, customer relations, the integration of operations resulting from
acquisitions, the risk of obsolescence of the Company's products, relationships
with suppliers, the risk of adverse regulatory action affecting the Company's
business or the business of the Company's customers, changes in the
international business climate, product introduction and market acceptance,
general economic conditions, seasonality, changes in industry practices, the
outcome of litigation to which the Company is a party, and other uncertainties
All forward-looking statements included in this document are based on
information available to the Company on the date hereof, and the Company assumes
no obligation to update any such forward-looking statement.
