KCSA
Public Relations
Worldwide News
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Public & Investor Relations, Corporate & Marketing Communications
FOR: MEDIX RESOURCES, INC.
CONTACT: John R. Prufeta, President and CEO
(212) 697-2509
(Fax) (212) 681-9817
[email protected]
KCSA Joseph A. Mansi / Sarah Shepard
CONTACTS: (212) 896-1205 / (212) 896-1236 -(Fax) (212) 697-0910
[email protected] / [email protected]
www.kcsa.com
FOR IMMEDIATE RELEASE
MEDIX RESOURCES, INC. REPORTS SECOND QUARTER RESULTS
NEW YORK, August 10, 2000 -- Medix Resources, Inc. (AMEX: MXR) today announced
the Company's financial results for the second quarter ended June 30, 2000.
Revenues from continuing operations for the second quarter of 2000
totaled $126,000. The Company reported no revenues in 1999. Net loss for the
second quarter was $1,849,000, or $(0.04) per common share, compared with a net
loss of $(604,000), or $(0.03) per common share, for the 1999 second quarter.
The Company's wholly-owned subsidiary, Cymedix Lynx Corporation,
currently provides primarily all of Medix's revenues. Selling, general, and
administrative expenses increased approximately $1,590,000, from $421,000 for
the three months ended June 30, 1999, to $2,011,000 for the three months ended
June 30, 2000, due primarily to increased marketing activities for the
Cymedix.com(R) software products. Interest expense was totally eliminated for
the three months ended June 30, 2000, due to the pay-down of a credit line in
connection with the sale of the Company's staffing business during the first
quarter of this year.
The Company had $3,703,000 in cash as of June 30, 2000, with net
working capital of $3,069,000. During the first six months of 2000, net cash
used in operating activities was $2,055,000 and additional paid in capital of
$5,347,000 was raised from the exercise of options and warrants. Medix may be
able to access up to approximately $3 million through the exercise of
outstanding callable warrants.
(more)
800 Second Avenue Tel 212 682 6300 E-mail [email protected]
New York, NY 10017 Fax 212 697 0910 www.kcsa.com
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MEDIX REPORTS/2
- MedixResources Highlights in 2000: - The Company completed the disposition
of its legacy staffing business and sold the remaining assets for $1
million to focus solely on the healthcare Internet business opportunity.
- Medix moved its equity listing from the OTCBB to the American Stock
Exchange, trading under the stock symbol, MXR.
- Medix signed a financial advisory agreement with UBS-Warburg Dillon Read.
- Medix reached a definitive agreement with ParkStone Medical Information
Systems, Inc. to jointly develop and deploy an integrated solution
combining Cymedix business-to-business Internet healthcare communication
systems with ParkStone's leading hand-held solutions for physicians.
- Medix gained Web-based claims technology through a perpetual license
agreement with ZirMed.com, Inc.
- Medix acquired the assets and assumed liabilities of Automated Design
Concepts, Inc., a Web design and hosting services company.
- Shareholders at the Company's Annual Meeting re-elected , John T. Lane,
Samuel H. Havens, Joan E. Herman, David R. Pfeil and David B. Skinner M.D.,
to join John R. Prufeta as Directors of the Company, and ratified and
approved the Medix 1999 Stock Option Plan.
In announcing the second quarter results, John R. Prufeta, President
and Chief Executive Officer of Medix, said, "During the course of this year and
since our listing on the American Stock Exchange, we have worked hard to build a
company infrastructure that will allow us to deliver the quality of services
that are needed and required by the healthcare industry. We are establishing the
foundation necessary to capture a meaningful share of the healthcare Internet
connectivity sector. It is widely recognized that this sector has a potential to
be a multi-billion dollar and high-margin market opportunity."
Mr. Prufeta added, "Medix has also made significant progress in product
development, pilot-stage deployments, and the formation of strong strategic
alliances. We have added talented executives to our management team and made
major inroads with potential customers."
He concluded, "As I told shareholders at the Company's Annual Meeting
in July, with the infrastructure in place, our immediate goals are to strengthen
our product offerings, obtain long-term financing, expand our distribution
capacity, deploy our regional structure and continue to strengthen our sales
efforts and management team. We look forward to communicating further progress
to shareholders as we reach key milestones in these areas."
<PAGE>
MEDIX REPORTS/3
About Medix Resources, Inc.
Medix Resources, Inc., through it wholly-owned subsidiary, Cymedix Lynx
Corporation, is a developer and provider of a suite of fully secure, patented
Internet based software products, that allow instantaneous communication of high
value added healthcare information among doctor offices, hospitals, health
management organizations and insurance companies. Additional information about
Medix Resources and its products and services can be found by visiting its Web
sites, www.medixresources.com and www.cymedix.com, or by calling (800) 326-8773.
# # #
Information in this press release contains forward-looking statements that
involve risks and uncertainties that might adversely affect the Company's
operating results in the future to a material degree. Such risks and
uncertainties include, without limitation, the ability of the Company to raise
capital to finance the development of its software products, the effectiveness
and the marketability of those products, the ability of the Company to protect
its proprietary information, and the establishment of an efficient corporate
operating structure as the Company grows. These and other risks and
uncertainties are presented in detail in the Company's Form 10-KSB for 1999,
which was filed with the Securities and Exchange Commission on March 30, 2000.
This information is available from the SEC or the Company.
This press release is available on the KCSA Public Relations Worldwide Web site
at www.kcsa.com.
