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."
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