Market Electronic Housecall Systems in Asia; Shanghai Industrial Invests $24.5 Million in CYBeR-CARE Business Editors/Health & Medical Writers BOYNTON BEACH, Fla.--(BUSINESS WIRE)--Feb. 18, 2000--CYBeR-CARE (Nasdaq:CYBR) and a publicly traded subsidiary of Shanghai Industrial Holdings Limited (Hong Kong Main Board: 363) have signed a binding agreement to form a joint venture to market and sell CYBeR-CARE's Electronic Housecall System (EHC), a patented Internet-based technology that enables health care providers to remotely monitor the health of individuals, in major parts of Asia, excluding Japan and Taiwan. SIIC Medical Science and Technology Limited, (Hong Kong Growth Enterprise Market: 8018), a publicly owned subsidiary of Shanghai Industrial, will arrange to manufacture the systems for the joint venture, and the joint venture will purchase approximately 60,000 units of the company's Electronic Housecall Systems over the next four years for distribution throughout the Asian territory. A minimum of 30,000 units are planned for sale in the greater China region with the exception of Taiwan. It is estimated that the joint venture will produce revenue of $500 million during this four year period with $300 million going to the joint venture from equipment sales and over $200 million to CYBeR-CARE from network and licensing fees. CYBeR-CARE said that in an unrelated transaction, Shanghai Industrial will buy 1.5 million new shares of CYBeR-CARE at $16.30 per share, totaling $24.5 million. The price is based on the past 30-day average price of CYBeR-CARE stock. CYBeR-CARE, in turn, will purchase 7.7 million new shares of Shanghai Industrial based on its stock 30-day average price. All shares will be locked up for a minimum of 6 months. Under the agreement, CYBeR-CARE will license SIIC Medical to manufacture the EHC systems for delivery to joint venture customers in Asia, as well as manufacture the system, if needed, for CYBeR-CARE sales in other markets. CYBeR-CARE will receive a royalty payment for each system sold and will receive all the revenue from the recurring network fees associated with the EHC system. CYBeR-CARE will be responsible for establishing the network facilities within Asia to support remote patient monitoring. Michael Morrell, CEO of CYBeR-CARE said, "I am pleased that we were able to quickly move from our previously announced letter of intent to this binding agreement to market, sell and manufacture our Electronic Housecall System in Asia. The agreement shows the commitment of the two companies to work together to enhance health care delivery systems worldwide with our revolutionary new Internet services." Mr. Cai Lai Xing, the Chairman of Shanghai Industrial said, "CYBeR-CARE's dedication to providing diversified medical technologies, including Internet-based technology, for the delivery of integrated medical delivery services matches the rising demand in the medical services market. We are bullish on the future prospect of CYBeR-CARE, Inc." Mr. Zhuo Fu Min, the Chairman of SIIC Medical said, "The Company is delighted to work with CYBeR-CARE. The cooperation is recognized as an important step for the company towards applications of advanced medical sciences. With people becoming more health-concerned and demanding more medical information, distribution and interactive diagnostics and monitoring through the web will become a new trend for modern family health services online, and SIIC Medical is confident about the prospects of this business." According to John Haines, a Senior Vice President of CYBeR-CARE, and CEO of the technology division, "We will complete the Definitive Agreement by the end of March and will move quickly to establish the support and network infrastructure for the territory. SIIC Medical will bring a wealth of local market expertise and resources to the joint venture." CYBeR-CARE is a technology-assisted disease management company with four business units. The company offers the Electronic Housecall System and operates physical, occupational and speech therapy centers, an e-pharmacy and one of the world's largest air ambulance transport services. Shanghai Industrial Holdings Limited, a conglomerate with interests in numerous companies, is a component of the Hang Seng Index on the Main Board of the Hong Kong Exchange and owns a majority interest in SIIC Medical, which primarily focuses on the modernization and the scientific application of Chinese medicine worldwide. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
CYBeR-CARE and Shanghai Medical Sign Joint Venture Pact to
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