EXHIBIT 99
FOR IMMEDIATE RELEASE Company Contact:
R. Bruce Dewey
CEO and President
(770) 644-6700
Simione Central Holdings, Inc. Announces the Closing of Bank Financing
Atlanta, GA (July 12, 2000) Simione Central Holdings, Inc. (NASDAQ:SCHI)
announced today that it has closed on a $6 million senior debt revolving line of
credit facility from Wainwright Bank & Trust Company. The loan bears interest at
Wainwright Bank's prime rate, has a one year term, and is guaranteed by Mestek,
Inc. in consideration of the issuance of a warrant by the Company to Mestek to
purchase approximately 105,000 shares of the Company's common stock.
Stephen M. Shea, Chief Financial Officer of the Company, stated, "We are
pleased to have established a new banking relationship with Wainwright Bank. The
closing of this loan facility together with the recent $7 million financing from
John E. Reed should provide Simione Central with the capital resources and
liquidity required for implementing its near-term business plan."
R. Bruce Dewey, Chief Executive Officer of the Company, added, "The Wainwright
loan is an important milestone for Simione Central, and represents the final
piece of our current financing program. While the delays in closing financing
after the MCS merger had slowed our ability to expand marketing and product
development activities important to our success, we are very pleased that sales
of new systems are nonetheless finally breaking. This banking relationship and
the financing provided by John E. Reed give the Company a greatly enhanced
ability to complete product development projects and to undertake an increased
pace of installation and training for customer orders in the backlog. The
increased resources also will enable us to better help our existing customers as
they face the rigors of implementing changes required by the recently released
PPS regulations."
Simione Central provides information systems, process improvement solutions
and consulting services to over 2,500 customers. Simione Central provides
freestanding, hospital-based and multi-office home health care providers
(including certified, private duty, staffing, HME, IV therapy, and hospice)
complete information solutions that address all aspects of home care operations,
especially the improvement of clinical process, operational workflow and
financial management. With offices nationwide, the company is headquartered in
Atlanta, Georgia. With the recently completed merger with MestaMed (MCS),
Simione Central is the most experienced HME management information systems
vendor in the alternate site marketplace. The First Annual MCS/Simione Central
Customer Conference will be held July 23-26 featuring industry experts Ian
Morrison, Cara Bachenheimer, William Dombi, Corrine Parver, Lisa Thomas-Payne,
William Simione, Jr. and Lisa Remington.
Note regarding Private Securities Litigation Reform Act: Statements made in this
press release which are not historical facts, including projections, statements
of plans, objectives, expectations, or future economic performance, are forward
looking statements that involve risks and uncertainties and are subject to the
safe harbor created by the Private Securities Litigation Reform Act of 1995.
Simione Central's future financial performance could differ significantly from
that set forth herein, and from the expectations of management. Important
factors that could cause Simione Central's financial performance to differ
materially from past results and from those expressed in any forward looking
statements include, without limitation, variability in quarterly operating
results, the possible unavailability of capital resources adequate for Simione
Central to fulfill its business objectives, customer concentration, product
acceptance, long sales cycles, long and varying delivery cycles, Simione
Central's dependence on business partners, emerging technological standards,
risks associated with acquisitions, risks associated with the Year 2000 problem
and risk factors detailed from time to time in Simione Central's periodic
reports filed with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of their dates.
