SysteMed, LAGUNA HILLS

Nature of Business: Parent company of America’s Pharmacy Inc., a mail-order prescription drug benefit program.

Employees Total: 250

In Orange County: 20

Stock Listing in The Times: “Systmd” on NASDAQ

Ticker Symbol: “SYSM”

Friday’s Close: $5.38

One-Week Change: Up 88 cents

Analyst Review: “SysteMed is a growing company. They have steadily increased their sales every year, but up until this year, they hadn’t shown a profit. One of the reasons for that is that mail-order prescriptions is a low-profit product. Another reason is that there is a revenue threshold they have to hit. If they do less than $16 million a quarter, they’re going to just break even. But they have turned the corner in terms of profitability. They’ve reached the point where their infrastructure is in place, and their fixed costs are no longer greater than their profit margins. On their balance sheet, they have $7.3 million in long-term debt, and if they could pay that down, it could bring an added 10 cents per share to next year’s bottom line. And they just announced a public stock offering of 2.5 million shares; at today’s prices, that’s worth about $10 million cash to the company.

--Steven C. DeLuca, analyst

Cruttenden & Company, Irvine

REVENUES VS. PROFITS

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 3 Qtrs. 1988 1989 1990 1990 1991 Sales $31.1 $39.0 $60.4 $43.6 $63.2 Profits (Loss) ($5.0) ($1.5) ($5.4) ($2.6) $0.95

Corporate Outlook: “What’s fueling (our) growth and giving us confidence is that health care costs are spiraling, and benefit managers are becoming increasingly interested in exploring ways to reduce expenditures. Our services allow them to provide prescription drug coverage at a reduced rate, so there is a basic demand for our services. We hope to use the proceeds from our pending offering of 2.5 million shares of stock to expand our facilities and enhance our data base management system.”

-J. Roberts Fosberg, president/CEO

3-YEAR SUMMARY AND YEAR-TO-DATE: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 3 Qtrs. 1988 1989 1990 1990 1991 52-Week High $6.63 $6.63 $4.13 $4.13 $5.38 52-Week Low $2.00 $1.75 $1.81 $1.81 $2.56 Book Value Per Share $1.28 $1.15 $1.21 $1.32 $1.27 Net Earnings Per Share ($0.45) ($0.14) ($0.46) ($.22) $0.07 Price-to-Earnings Ratio N/A N/A N/A N/A 55:1 Avg. Return on Investor Equity N/A N/A N/A N/A 6%

NOTE: On Oct. 1, the company changed its name from Newport Pharmaceuticals International Inc. to SysteMed Inc.

For more information call or write, SysteMed Inc.: 140 Columbia Laguna Hills, Calif., 92656. (714) 362-1330

Source: SysteMed Inc.