EXHIBIT 99.1



FOR IMMEDIATE RELEASE
April 17, 1997        
                              Media Contact:      Eleanor Anderson-Miles 
                                                  510-838-1700 ext. 105
                              Investor Contact:   David Allinson
                                                  510-838-1700 ext. 150


                 HEALTHCARE BENCHMARKING LEADER MECON ANNOUNCES 
          MANAGEMENT CHANGES AND RENEWED FOCUS ON HISTORICAL STRENGTHS


SAN RAMON, CA., April 17 -- MECON, Inc. (NASDAQ: MECN), a leading provider of
benchmarking data and cost management tools for healthcare delivery systems,
announced a series of management changes and corrective measures in response to
the previously announced, preliminary, unaudited results for the fourth quarter
ended March 31, 1997.

     The Company announced a realignment of its senior management team. Les
Schmidt, the Company's President and Chief Executive Officer, has resigned to
pursue other interests. Vasu Devan, Chairman of the Company, will add to his
current position the additional roles of President and Chief Executive Officer,
positions he had held previously. David Allinson has agreed to remain at MECON
in his former capacity as Vice President of Finance and Chief Financial Officer.

     MECON also announced a number of strategic and operational changes intended
to improve the Company's financial performance.  As a first step, the Company
will renew its



strategic emphasis on its historical strengths in benchmarking-based cost 
management solutions and refocus its activities in the core markets served by 
MECON's PEERView, OPTIMIS and value added services.  "While we recognize that 
the additional healthcare market sectors targeted by the Company's recently 
increased investments in product development do represent growth 
opportunities for MECON in the future, our near-term goals are to concentrate 
on the Company's demonstrated leadership position in benchmarking-based cost 
management for health care providers," stated Vasu Devan, CEO of MECON.  

     In addition, the Company has taken action intended to reduce its ongoing 
quarterly operating expense base. As part of this expense reduction effort, 
the Company expects to immediately decrease its workforce by 38 employees and 
incur a charge of approximately $750,000 during the first quarter of fiscal 
1998. "These streamlining actions and the reduction in the Company's overall 
quarterly operating expenses, along with our renewed focus on MECON's 
historical growth markets, have been implemented in an effort to expedite the 
Company's return to profitability and growth," stated Mr. Devan. "While we do 
not anticipate an immediate return to MECON's historical operating results, 
the Company continues to benefit from its strong balance sheet and its 
ongoing base of recurring subscription and license revenue."   The Company 
expects to report audited results for its fiscal year ended March 31, 1997 in 
late May 1997.

     MECON is a leading provider of benchmark-based cost management solutions 
to healthcare decision-makers across the continuum of care.  The Company's 
proprietary data,



family of premium quality easy-to-use software products and services combine 
to produce and sustain optimum performance in healthcare delivery systems.

The foregoing text contains forward-looking statements that involve risks and 
uncertainties.  The actual results of the Company could differ materially 
from those projected in the forward-looking statements as a result of the 
Company's annual audit for the fiscal year ended March 31, 1997, as well as 
the impact of risks detailed from time to time in the Company's filings with 
the Securities and Exchange Commission, including its most recent forms 
10-QSB and 10-KSB. Readers should carefully review the risk factors described 
in these documents.