Home Access Health Corporation closes latest financing round; expands board of directors; reports on its developmental progress

Business Wire, Dec 18, 1995

HOFFMAN ESTATES, Ill.--(HealthWire)--Dec. 18, 1995--Home Access Health Corporation, a developmental stage company, announced today the successful completion of $5 million in private placement financing. The funds are earmarked for final development of the company's HIV-1 home collection device, onsite inspection by the U.S. Food and Drug Administration (FDA), and preparation for an anticipated commercial launch in 1996.

"Completion of this latest round of financing keeps us squarely on schedule and on plan," stated Tracey T. Powell, chief executive officer, Home Access Health Corporation. "But equally exciting is the caliber of investor and the notice being taken of our company," Powell continued, making reference to the participation of two large investor groups.

One investor group is led by Peer Pedersen and Dean L. Buntrock, who have been instrumental in the development of several start-up companies including WMX Technologies, Inc., Blockbuster Entertainment, Discovery Zone and Boston Chicken, Inc. The other investor group is led by Theodore Ammon who is also chairman of the board and CEO of Big Flower Press Holdings, Inc.

Pedersen has agreed to serve as a member on Home Access' board of directors. He is also founder and managing partner of the law firm Pedersen and Houpt and currently serves on the board of directors for a number of companies, including WMX Technologies Inc., Boston Chicken, Inc., Temple Steel Company, Lehman Brothers Latin America Growth Fund, Inc., and Delray Farms, Inc.

Dean L. Buntrock is chairman of the board and chief executive officer of WMX Technologies, Inc. and is also chairman of Wireless Broadcasting Systems of America (a wireless cable business). He also serves on the boards of First Chicago NBD Corporation, and Boston Chicken, Inc.

Theodore Ammon is also a member of the board of directors of Host Marriott Corporation, Foodbrands America, Inc., Culligan Water Technologies, Inc. and the Samsonite Corporation. He was also a former general partner of Kohlberg Kravis Roberts & Co.

Last June, Home Access filed for pre-market approval for its HIV-1 home collection device with the FDA. Since then, the company has bought the exclusive rights to seek FDA approval and market Omni-SAL(R), a saliva-based specimen collection device produced by Saliva Diagnostic Systems, Inc. (SDS) (NASDAQ:SALV). In September, management hired DraftDirect Worldwide, a leading direct marketing agency to develop its advertising and direct response campaign for its HIV-1 in-home collection device.

Richard A. Quattrocchi, president, Home Access Health Corporation stated, "In all areas of our development, we have consistently tracked according to plan." Quattrocchi added, "During the last twelve months we have wrapped up our clinical trials, provided a strong submission to the FDA for pre-market approval, and we are moving forward with our operational plans for implementing product launch."

Home Access Health Corporation is a privately held company committed to delivering innovative home access telemedicine services. Please contact Kevin Johnson at (708) 781-2504 if you are interested in scheduling an interview with Richard Quattrocchi or Tracey Powell.

Home Access Health Corporation Backgrounder

Home Access was founded in 1992 by Richard A. Quattrocchi and Tracey T. Powell. The company plans to be a leader in marketing telemedicine services to consumers. It was founded on the premise that there is demand for a comprehensive HIV testing and counseling service that is affordable, confidential and accessible by telephone.

About the Market

o The market for home diagnostic kits totaled $775 million in

1992 and is predicted to increase 15 percent annually through 1996

(Packaging, October 1993).

o Market research conducted by Home Access reveals that close to 30

million people would purchase a home collection device if it were

available. This indicates a strong interest in this type of product

and service. Scientific research reaffirms this. Research shows

that 40 percent of people in the U.S. with greater risk factors for

HIV have not been tested, and concluded that confidential testing

conditions could encourage 44 million people to be tested for the

first time.(1)

o John Nesbit, well-known author and futurist noted in his Trend

Letter (3/16/95), "the era of telemedicine is virtually just around

the corner and will become a routine element in healthcare."

o A study by Arthur D. Little, Inc. found that telemedicine could

cut healthcare costs by $36 billion a year.

o As the home test market increases, people simultaneously

feel more confident and knowledgeable about their own health. Home

testing reduces the number of times a patient must visit a doctor's

office or laboratory, thereby reducing the medical costs (December

1994 FDA Consumer).

(1) Abstract submitted at the XI International Conference on AIDS by

the Center for Prevention Studies at the University of

California

About Home Access

o In just three years, the company has successfully managed to