Exhibit 99.2
IMMEDIATE (July 24, 1997)
Xxxxxxx X. Xxxxxxx Xxxxx X. Xxxxxxxxx
Senior Vice President-Finance Chief Financial Officer
MEDIQ Incorporated Universal Hospital Services, Inc.
(000) 000-0000 (000) 000-0000
MEDIQ AND UNIVERSAL HOSPITAL SERVICES EXTEND
MERGER AGREEMENT
PENNSAUKEN, NJ/BLOOMINGTON, MN -- MEDIQ Incorporated (MED:AMEX)
("MEDIQ") and Universal Hospital Services, Inc. (NASDAQ:UHOS) ("UHS"), who in
February had entered into an agreement under which UHS would be acquired by
MEDIQ at a price of $17.50 per UHS share, today announced that they had
extended -- from August 30, 1997 to October 31, 1997 -- the date after which
either party could terminate this agreement. This amendment was entered into in
order to provide additional time to resolve or defend against certain concerns
that have been raised by the staff of the Federal Trade Commission to the
merger. In addition, the companies also amended the agreement to include a
termination right under which either party may terminate the agreement within
five business days if a federal district court issues a preliminary injunction
preventing the transaction. On April 10, 1997, the FTC had requested additional
information regarding the proposed transaction. The parties believe that earlier
this month they substantially complied with this information request.
Xxxxxx X. Xxxxxxx, President and Chief Executive Officer of MEDIQ,
said, "The merger is procompetitive and in the best interests of our customers.
This merger will enable us to provide a broader inventory of the kinds of
equipment our customers demand, and to deliver it more quickly on a more
efficient and cost-effective basis. With increasing competition in the medical
equipment market and in healthcare generally, our customers have become more and
more demanding and they are constantly evaluating their other options to renting
products from us. This transaction will help us to continue to meet those
demands and increase the range of services we are able to provide. Because we
believe the transaction fully complies with federal antitrust laws, both
companies will vigorously oppose any attempt by the government to block the
merger."
Xxxxxx Xxxxxx, President and Chief Executive Officer of UHS, said,
"MEDIQ and UHS are disappointed that the government review has gone so slowly,
although we are continuing to work with the staff of the FTC. We continue to
believe that the transaction best serves the interests of the Company's
shareholders and that the combined company will be well positioned to capitalize
on opportunities in today's ever changing healthcare environment."
