ST. LOUIS, Dec. 22, 2003 (PRIMEZONE) -- Quality of Life Health Corporation (Pink Sheets:QLHC) entered into a letter of intent with the shareholders of Genesis Companies Inc. to acquire the company for an amount equal to 3.25 times earnings.
Genesis is the parent company of GenCare Pharmacy and serves a major percentage of the residents of the assisted living facilities owned and managed by Leisure Living Companies. GenCare Pharmacy generated $3.5 million in total revenues in 2002.
Leisure Living Companies is a wholly owned subsidiary of QLHC, and the acquisition of Genesis Companies would represent another positive step toward achieving the Company's goal to directly offer a variety of high quality ancillary services to the residents of its assisted living communities.
David Todt, Chief Financial Officer of QLHC, noted that the acquisition of Genesis Companies could bring a 20% increase in consolidated revenues generated from the operations associated with the Companies assisted living operations.
QLHC management are exploring the opportunities to significantly expand the sales of GenCare Pharmacy through national marketing of mail order services by its subsidiary, Value Health Access's PlanB for Health(tm) membership program.
Quality of Life Health Corporation (http://www.qlhc.net) currently operates two subsidiaries: Leisure Living Companies, which owns 11 and manages 13 assisted living facilities, and which is currently in negotiations to acquire additional facilities with operational and marketing synergies, and Value Health Access Corporation (www.vhac.com)
Value Health Access Corporation launched its first health care product, PlanB for Health(tm) (www.PlanBforHealth.com) in September of this year. The PlanB suite of products are an easy-to-use membership program offering affordable access to professional healthcare services. A member can save up to 50% by presenting their membership card at any one of the 600,000 participating providers.
During the first two months of operations, the company has contracted with over 35 independent sales agents and launched its agent recruiting web site www.Agent.planbforhealth.com. The company recently received inquiries from an additional 250 established, independent, professional sales agents interested in the VAHC sales program.
Safe Harbor Statement:
Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company's business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may materially differ from those projected by any forward-looking statements.