SOURCE: Prevention Insurance Company

July 06, 2006 12:44 ET

Prevention Insurance Company Has Signed a Letter of Intent to Acquire a National Group of Diagnostic Imaging Centers

LAS VEGAS, NV -- (MARKET WIRE) -- July 6, 2006 -- Prevention Insurance (OTCBB: PVNC) is pleased to announce that the company has signed an LOI to acquire a national group of diagnostic imaging centers. Prevention believes this will provide a nationwide platform to build a larger company and intends to pursue additional strategic acquisitions within this industry.

Pending approval from the Board of Directors of both companies and if financing is completed, the transaction will close within 90 days. The transaction will produce revenues in excess of $20 million with a projected income of $3.3 million in EBITDA. Banking sources familiar with this sector have suggested that comparable public companies are trading in the 4 to 4.5 times EBITDA range. The centers utilize MRI and Cardiac CT Technology. These are the main diagnostic tools used by physicians to diagnose and treat cancer, heart disease and numerous other medical conditions.

Scott Goldsmith, the President and CEO of Prevention Insurance, commented that, "We believe that with an aging population that diagnostic imaging centers will continue to be a high growth, high profit industry for the foreseeable future. We have elected to pursue an acquisition strategy and build shareholder value through acquisitions in the MRI and PET areas."

About Prevention Insurance:

Prevention Insurance is a public insurance holding company whose strategic focus is to acquire companies in the diagnostic imaging center industries. Prevention Insurance was founded in 1999.

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