SOURCE: Prevention Insurance

October 11, 2006 14:00 ET

Prevention Insurance Company Receives Extension Until October 31 to Finalize the Terms of the Previously Announced LOI

LAS VEGAS, NV -- (MARKET WIRE) -- October 11, 2006 -- Prevention Insurance (OTCBB: PVNC) is pleased to announce that the company has received an extension until October 31, 2006 to finalize the terms of the LOI announced in July 2006 regarding the purchase of a national group of 18 diagnostic imaging centers. Presently, the $10,000,000 in financing for this acquisition is being negotiated with Hedge Funds and a California Trust Fund. Mr. Goldsmith believes that the financing commitment will close within the terms of the extension. The Board of Directors for both companies have agreed to all of the terms and conditions.

Scott Goldsmith, the President and CEO of Prevention Insurance, commented, "This is a new beginning for both companies. Now that we have identified the necessary financial partners, the potential for both organic growth and acquisitions in the free standing MRI and PET Imaging business for PVNC is very promising. With an aging population utilization will increase substantially in the coming years. Since 2000 the diagnostic business is estimated at 5% of the $100 billion in healthcare spending."

About Prevention Insurance:

Prevention Insurance founded in 1999 is a public insurance holding company whose strategic focus is to acquire companies in the diagnostic imaging center industries and to build a competitive international imaging business.

Safe Harbor Statement:

Forward-looking statements and comments in this news release are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements regarding potential future plans and objectives of Prevention Insurance are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond Prevention Insurance's control. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially depending on many factors, including those described above. Prevention Insurance cautions that historical results are not necessarily indicative of the company's future performance.

Contact Information

  • Contact:
    Prevention Insurance
    Scott Goldsmith
    (702) 732-2758
    Email Contact