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Quest Diagnostics and MedPlus Form Strategic, Equity Based Alliance to Expand Physician Access To Electronic Patient Records



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 physician’s 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 Company’s 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 Company’s Web site at

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:

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.

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