PharmChem Announces Offer to Purchase Medscreen, Ltd.


HALTOM CITY, Texas, Feb. 14, 2002 (PRIMEZONE) -- PharmChem Inc. (Nasdaq:PCHM) today announced it has executed a non-binding letter of intent whereby 100% of the share capital of its London-based wholly owned subsidiary, Medscreen, Ltd., would be acquired in a cash transaction for approximately $9 million. The proposed transaction is subject to certain conditions, including due diligence, regulatory approvals and execution of a definitive agreement. Should the transaction proceed, it is expected to close in March 2002.

Medscreen was acquired by the Company in 1992. Since 1995, Medsceen has successfully marketed to its clients a variety of services related to drug testing in addition to traditional laboratory processing.

PharmChem is a leader in the field of providing services to clients seeking to detect and deter the use of illegal drugs. PharmChem operates certified forensic drug testing laboratories in Haltom City, Texas and London, England.



            

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