Prism Medical Announces Transaction With MedCare Products Inc.

Significantly increases product line and U.S. customer base

Toronto, Ontario - Prism Medical Ltd., (“Prism Medical” or “the Company”), a leading provider of durable medical equipment and related services to the mobility challenged, recently announced that it has acquired the manufacturing assets of Medcare Products Inc. (MedCare). As part of the transaction, Prism has entered into a 10-year agreement to exclusively supply all products Medcare sells in the moving and handling industry. All amounts are in U.S. dollars.

Medcare is a manufacturer and supplier of floor lifts, ceiling lifts, car extractors, slings and transfer aids for the U.S. market. Medcare’s operations are based out of Burnsville, Minnesota, U.S., outside of Minneapolis- St. Paul. Medcare sells these products to the long-term care industry throughout the United States and to a growing list of acute care facilities in the U.S.

“This is an important transaction for us as it meets a number of key strategic objectives and builds shareholder value,” said Stuart Meldrum, CEO of Prism Medical. “Prism’s product offering will expand with the acquisition of the Medcare product ranges, which we hope to market in other world geographies. In addition, we will be able to leverage Medcare’s strong base of dealer business in the long-term care sector and continue to build our hospital group customer base in new geographies with the inclusion of several world-renowned hospital groups.”

The manufacturing assets, which are composed of tools, dies, patents, trademarks, production processes, designs, approximately $2M of inventory and the supply contract were purchased for $10M in cash, with a holdback of $1.25M pending Medcare meeting specified conditions related to the acquired inventory and other matters.

Prism has also invested $450,000 to acquire 49% of Medcare which remains a sales and service company focused on expanding its customer base in the U.S. long term and acute care markets.