Contact:

Richard W. Pendleton
AnchorMed Corp
1651 Geary Road
Walnut Creek, CA 94597

(925) 930-9981
(925) 930-8270 - fax

rwp@anchormed.com
AnchorMed Strategy

Our strategy is basically a merger / recapitalization
plan which will bring together 8-12 high quality
medical billing companies into one organization.
Individual owners will be able to immediately
take out up to 80% of their company value in cash,
while continuing to manage their operations for 3-5
years (or longer) as part of the larger organization.

The combined company will be controlled and
managed by you and a group of your peers, who
are some of the most successful in the industry.  
Over a period of time, systems and operating
procedures will be standardized to the "best of
breed" methods from among the companies.

As the number two company in our industry has
demonstrated over the last five years, bigger
companies have a definite advantage when they
go after large accounts.   We intend to position
ourselves to gain additional momentum because
of our size.

Valuation

Smaller, privately owned companies are typically
valued at 4-5 times EBITDA (profit), if they are
growing moderately and have a stable base of
business.  Large, publicly-traded companies are
usually valued at 15-25 times EBITDA, when the
same conditions are present.  In many cases, we
will be able to pay based upon a 6 times valuation.

Larger, privately owned companies ($50+ million
in revenue) can get a value of 7-10 times EBITDA
under the right circumstances in which they
become attractive to large institutional investors.
These large investment funds make investments
into companies where they can place tens of
millions of dollars.  These investors are comfortable
with higher valuations and prefer to count on the
existing management to make the venture achieve
further success.

The simplest explanation for this higher valuation
is that over a long period of time, investors have
found larger companies to be much better
investments -- which means that they are worth
more per dollar of revenue and profit - and more
cash to you as part of this investment package.

Larger companies (i.e. $25-200 million) do better
because they can invest more heavily in:

Sales and Marketing
Information Technology
Specialized Management Talent
Improved Operating Facilities
etc.

Larger companies can develop a much stronger
national market presence.

Summary

The plan that we are in the process of orchestrating
will result in more of the high multiple value money
going to the selling owners instead of to financial
middlemen and wealthy investors.

Our strategy will be to rely upon the management
talents and energy of the managing owners to
continue to grow and improve their operations while
adding the resources of a much larger organization.

We Are Looking Forward to Talking with You.