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Modern Medical Modalities Corporation Enters Into Letter Of Intent To Acquire Medical Software To Enhance Its Enterprise-Wide Management Services System

Posted on: Thursday, 22 February 2007, 09:01 CST

Modern Medical Modalities Corporation (OTCBB:MODM) a comprehensive healthcare diagnostic imaging services company (DIS) today announced it has entered into a Letter of Intent with MTI-II Partners, L.P. ("MTI-II) to acquire its Medical Software in exchange for 1 million shares of MODM's common stock based on the closing market price of $0.73 per share as of February 14, 2007. The acquisition will be made in accordance with the terms and conditions of a mutually acceptable Definitive Software Acquisition Agreement between MODM and MTI-II.

MODM believes that the acquisition of MTI-II's Medical Software will help it to further enhance its enterprise-wide Management Services System that covers administrative, clinical, financial, and decision support processes. Some of the key benefits of this acquisition are expected to include: the ability for MODM to provide better outsourced management services to compliment its ownership of clinics, control of MODM's future by making changes as needed and avoiding obsolescence common in the industry, realize significant potential savings by using one flexible Medical Software within an integrated Management Services System versus purchasing multiple systems, and the strengthening of the balance sheet since the acquired software property can be recognized as an asset.

The acquisition of MTI-II's Medical Software will include a collaboration agreement with Attune, Inc ("Attune") to help support and service the Medical Software as MODM builds its own information technology support staff. Attune is an advanced software company that is controlled by Paul W. Harrison, a Director of MODM, which has been working with MODM for approximately the past 9 months to build a customized, enterprise-wide Management Services System for MODM to help improve its productivity and profits, and to help it gain a valuable competitive advantage in the marketplace.

About Modern Medical Modalities Corporation (www.mmmcorp.net):

Modern Medical Modalities Corporation focuses on Diagnostic Imaging Services (DIS), currently operating 3 medical centers in Union New Jersey. DIS services are broken up in two segments: Clinical and Management Services. Clinical Services consist of magnetic resonance imaging, computed axial tomography, positron emission tomography, nuclear medicine, ultrasound, densitometry, digital mammography, general x-ray radiography, and biopsies with gross margins ranging from 20% to 35%. Management Services include procuring equipment, billing and reimbursement services, managed care contracts, referrals, human resources, inventory management, medical record administration / transcriptions and reading services. Management services gross margins range from 45% to 55%.

Note on Forward-Looking Statements:

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Modern Medical Modalities Corporation undertakes no obligation to update publicly any forward-looking statements.

Source: Business Wire

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