TETERBORO, NEW JERSEY, and CINCINNATI, OHIO, June 20,
2000
Under the terms of the agreement, Quest Diagnostics and MedPlus will jointly market
ChartMaxx and E.Maxx patient record systems. The ChartMaxx and E.Maxx systems support the
creation and management of an electronic patient record, by bringing together in one
patient-centric view information from various sources, including the physicians
records and laboratory and hospital data. The systems help support the delivery of
improved patient care, improved quality and completeness of medical records, efficiency of
intragroup administrative and consultative correspondence, improved customer service,
reduction in cost and expedited patient billing. The systems also have high-level security
features, which ensure the confidentiality of patient information.
Under the agreement, Quest Diagnostics invested $2 million in MedPlus common stock and
also agreed to invest an additional $8 million, pending approval by MedPlus
shareholders on July 25, which would bring Quest Diagnostics ownership to
approximately 18% of MedPlus outstanding shares. As part of the agreement, Quest
Diagnostics also received a warrant, which expires in December 2001, to acquire an
additional 12% interest in MedPlus at a 10% premium over the per-share price of the
initial common stock investment. The common shares and warrant currently represent a
potential 30% equity interest in MedPlus.
Effective immediately, Kenneth W. Freeman, Chairman and Chief Executive Officer of
Quest Diagnostics, joins the MedPlus Board of Directors.
"As we expand our electronic connectivity solutions and provide valuable medical
information to our customers, MedPlus will play an important role," said Mr. Freeman.
"By offering our laboratory testing results with the ChartMaxx and E.Maxx medical
record systems, we will enhance the value of our overall service offering to hospital
clients and physicians affiliated with those hospitals."
Richard Mahoney, president of MedPlus commented, "We believe Quest
Diagnostics investment decision validates our unique and proven ability to aggregate
clinical and administrative data from multiple sources creating a secure, web-based
digital patient record that can be easily accessed by physicians and patients. We
anticipate that our strategic partnership with Quest Diagnostics will help propel us
toward our goal of becoming the leading provider in the multi-billion dollar physician
connectivity and electronic patient record marketplace."
About MedPlus
MedPlus is a leading provider of Internet-enabled clinical information management
systems that enable healthcare organizations to implement electronic patient record
systems. The Companys ChartMaxx and E.Maxx systems can interface with any installed
legacy system to provide better care for patients, greater productivity for physicians and
cost savings for hospitals. The Company has over 30 electronic patient record sites and
over 100 record imaging sites at hospitals and clinical laboratories in the United States
and Canada. For more information, visit the Companys Web site at http://www.medplus.com.
MedPlus notes that many of the statements made herein are
forward-looking statements. As such, factors may occur which could cause actual events to
differ materially from those anticipated in these statements. Certain of these risks and
uncertainties are listed in the MedPlus, Inc. 2000 Form 10-KSB and subsequent filings.
About Quest Diagnostics
Quest Diagnostics is the nation's leading provider of diagnostic testing, information
and services with annualized revenues of more than $3 billion. The testing performed on
human specimens helps doctors diagnose, treat and monitor disease; enables employers to
detect workplace drug abuse; and supports pharmaceutical and biotechnology companies in
clinical trials of new therapeutics worldwide. Quest Informatics analyzes laboratory and
other medical data to help health care providers improve the care of patients. Additional
company information can be found on the Internet at: www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking statements involve
risks and uncertainties that could cause the outcome to be materially different. Certain
of these risks and uncertainties are listed in the Quest Diagnostics Incorporated 1999
Form 10-K and subsequent filings.