EXHIBIT 99.2
CONTACTS: NEWS MEDIA
David Fluhrer
212-760-3138
david_fluhrer@mail.medscape.com
INVESTORS
Greg Mann
415-678-3370
greg.mann@medicalogic.com
FOR IMMEDIATE RELEASE
MEDICALOGIC/MEDSCAPE MERGER CREATES A NEW COMPANY
COMBINING ONLINE HEALTH RECORDS
WITH AUTHORITATIVE INFORMATION AT THE POINT OF CARE
NEW MANAGEMENT TEAM FOCUSING ON REVENUES FROM ONLINE HEALTH RECORD LICENSING AND
SUBSCRIPTIONS, ADVERTISING SALES AND SPONSORSHIPS, AND E-COMMERCE TRANSACTIONS
HILLSBORO, OR, MAY 22, 2000 - A new and different company, known initially as
MedicaLogic/Medscape, Inc. (NASDAQ: MDLI), emerged from the eHealthcare industry
today with the stated mission of delivering "health information that matters -
saving time, costs, and even lives" - by combining online health records and
authoritative medical information at the point of patient care.
The new company is setting itself apart from eHealthcare competitors by focusing
on the clinical "front end" of the healthcare system. MedicaLogic/Medscape also
plans to extend its lead in the market by offering its products and services on
an expanded variety of platforms including handheld and wireless devices - and
by enabling physicians to create Online Health Records without changing their
current behavior through the company's offering of integrated Web-based medical
transcription services.
Creation of the new company was announced following the closing of the merger
between MedicaLogic, Inc. and Medscape, Inc., as well as the May 11 acquisition
of Total eMed, Inc. by MedicaLogic. MedicaLogic/Medscape's new top management
team, also announced today, is led by Chairman of the Board and MedicaLogic
founder Mark Leavitt, MD, PhD. Reporting to him are an Office of the Chief
Executive composed of Co-Chief Executives David C. Moffenbeier and Richard D.
Rehm, MD; as well as Executive Vice President and Editor-in-Chief George D.
Lundberg, MD, and Vice Chairman Paul T. Sheils.
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"As a result of diligent work by everyone at the three companies, our merger
transactions are now complete, and we are prepared to move forward rapidly
together as a seamlessly integrated company," Dr. Leavitt said. "We now have an
exceptionally talented and experienced team, a powerful array of products and
services, diverse revenue streams, and a sound balance sheet. Our focus on the
physician's work, the patient's needs, and informing their joint decision-making
at the point of care is intense and unmatched within the industry. We deliver
health information that truly matters."
The management team, Dr. Leavitt said, will now focus tightly on development and
marketing of offerings that both support the mission and bring profitability to
the company. Initial concentration will be on these four revenue streams:
- Sales of licenses, subscriptions, and support for Logician(R)
Enterprise online health recorDS systems to integrated healthcare
delivery networks;
- Subscription revenues from Logician Enterprise and sales of the
company's Web-based services and products, including Logician
Internet, a Web-based chart creation application, to individual
physicians;
- Sales of advertising and sponsorships for the MedicaLogic/Medscape
health information sites and other venues primarily to the
pharmaceutical industry; and
- Participation in clinical e-commerce transactions, such as delivery of
laboratory results and transmission of electronic prescriptions.
MedicaLogic/Medscape has more than 1,100 employees working from the Hillsboro,
OR, headquarters and from major operational centers in San Francisco, New York,
Nashville and Houston. As of March 31, more than 12,000 clinicians were
maintaining charts for over 9 million patients using the Online Health Records
products of MedicaLogic/Medscape. The company's two primary health information
sites, medscape.com and CBSHealthWatch, had a combined registered worldwide
membership of more than 2.2 million, with over 350,000 physicians, a million
allied health professionals and 800,000 consumers.
Dr. Leavitt noted these strong competitive advantages and synergies within the
new company:
- For physicians, an array of devices and applications to create Online
Health Records in ways that fit their personal preferences and
workflow, including the use of dictation with Web-based transcription;
- For healthcare providers, ranging from small physician practices to
large integrated delivery networks, a spectrum of Web service
offerings, including creation of Websites, provision of trusted
content, and delivery of applications for physicians and patients;
- For consumers, health information that is authoritative and timely,
newly enhanced by a direct connection with their physicians, including
the ability to access their physician- generated medical records and
communicate with their doctors' offices to ask questions, schedule
appointments and request prescription refills;
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- The ability to help reduce medical errors and improve the quality of
healthcare, as was demonstrated by the company's response to recent
FDA alerts and recalls of several drugs, in which news was translated
into action within an hour, allowing doctors to identify and contact
affected patients immediately;
- Vast online marketing reach, to introduce healthcare professionals and
consumers to its newly expanded array of offerings; and
- The opportunity to invite medscape.com's current strong base of
pharmaceutical advertisers and sponsors to support Online Health
Record products that would deliver content specific to a
practitioner's specialty or a patient's health interest.
MedicaLogic/Medscape, Dr. Leavitt said, also plans to execute on existing
strategic partnerships, including the CBS relationship forged with Medscape last
July that included $150 million in advertising and promotion on CBS media
properties, and exposure on CBS News through the exchange of editorial content
with CBSHealthWatch. Other major partnerships are with National Data
Corporation, America Online, Women.com, CVS.com, PlanetRx, Dell Computer
Corporation and Lernout & Hauspie.
ABOUT MEDICALOGIC/MEDSCAPE, INC.
MedicaLogic/Medscape, Inc. (NASDAQ: MDLI), providing health information that
matters, brings the Internet to the point of care with eHealthcare products and
services for physicians and their patients.
MedicaLogic/Medscape offers Logician(R) software, the leading Online Health
Record for integrated delivery networks nationwide, and Logician Internet, the
Web-based version used by physicians without the need for a significant
computing infrastructure. As of March 31, 2000, over 12,000 clinicians were
maintaining over 9 million electronic patient records through MedicaLogic
products. For current information, please visit www.medicalogic.com.
The company also operates three primary healthcare Web sites, including
medscape.com, www.medscape.com, and CBSHealthWatch, http://cbs.healthwatch.com,
the leading providers of authoritative health and medical information to
professionals and consumers since 1995, and 98point6, www.98point6.com, offering
consumer access to online health records and related services. As of March 31,
2000, medscape.com and CBSHealthWatch had more than 2.2 million registered
members worldwide, including over 350,000 registered as physicians, a million as
allied health professionals and more than 800,000 as consumers.
MEDICALOGIC AND LOGICIAN ARE REGISTERED TRADEMARKS OF MEDICALOGIC/MEDSCAPE, INC.
IN THE UNITED STATES. THE ONLINE HEALTH RECORD COMPANY, 98POINT6 AND OTHER
MEDICALOGIC/MEDSCAPE LOGOS, PRODUCT NAMES, AND SERVICE NAMES ARE ALSO TRADEMARKS
OF MEDICALOGIC/MEDSCAPE, INC., WHICH MAY BE REGISTERED IN OTHER COUNTRIES. OTHER
PRODUCT AND BRAND NAMES ARE TRADEMARKS OF THEIR RESPECTIVE OWNERS. CBS AND THE
CBS EYE DEVICE ARE REGISTERED TRADEMARKS OF CBS BROADCASTING INC.
THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE "SAFE
HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THE
FORWARD-LOOKING STATEMENTS ARE BASED ON MEDICALOGIC/MEDSCAPE'S CURRENT
EXPECTATIONS OR BELIEFS AS WELL AS ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE
EVENTS, AND ARE SUBJECT TO FACTORS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING
STATEMENTS. THE READER IS CAUTIONED NOT TO PUT UNDUE RELIANCE ON FORWARD-
LOOKING STATEMENTS, WHICH ARE NOT A GUARANTEE OF FUTURE PERFORMANCE AND ARE
SUBJECT TO A NUMBER OF UNCERTAINTIES AND OTHER FACTORS, MANY OUTSIDE
MEDICALOGIC/MEDSCAPE, INC.'S CONTROL. FURTHER INFORMATION ON POTENTIAL FACTORS
THAT COULD AFFECT THE COMPANY'S FINANCIAL RESULTS IS INCLUDED IN THE COMPANY'S
FILINGS WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
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