ANAHEIM, Calif., June 20, 2005 (PRIMEZONE) -- CFI, Inc. (Pink Sheets:FFLH), announced today that it has acquired Fletcher-Flora, Inc., a leading provider of physician office, group practice, medical clinic, clinical reference laboratory, and large and small hospital laboratory information systems and has also changed its name to "Fletcher-Flora Health Care Systems, Inc." The stockholders of Fletcher-Flora, Inc. now own more than a majority of the outstanding capital stock of the parent company. Prior to the acquisition, CFI, Inc. effected a 1 for 9 reverse split of its outstanding shares of common stock.
Fletcher-Flora, Inc. develops and distributes a full line of proprietary Laboratory Information System (LIS) products dedicated to solving the day-to-day problems of the clinical laboratory. With over 20 years developing LIS systems, it has become a rapidly growing recognized leader in the physician office laboratory and hospital laboratory marketplace, as well as a leader in Electronic Medical Records and Practice Management interfaces. Fletcher-Flora has grown from having 80 systems installed in 1996 to over 1,300 total installed systems at year-end 2004. Of these, over 250 installations are in hospital accounts and the balance in physician office laboratories, group practices and reference laboratories. 2004 unaudited annual revenues were approximately $5,500,000.00 giving effect to the Modulus Data Systems' assets acquisition.
According to Fletcher-Flora's President, Neal Flora, "Fletcher-Flora is a dynamic laboratory software company that has successfully marketed its LabPak(r) product line for nearly a decade. During that time, Fletcher-Flora has become one of the unit placement leaders in the Physicians Office Laboratory (POL) market and hospital laboratory market, and has achieved the number one position ranking in total customer account placements in the POL market for 2004, as researched and ranked in the R.L. Johnson Annual LIS Report(a), a recognized and respected independent LIS expert and information resource. With the completion of this transaction, Fletcher-Flora will have a greater ability to attract new investment and acquisition opportunities for future growth."
Historically, while not directly targeting the hospital laboratory market directly, Fletcher-Flora has achieved the number four ranking in hospital customer placements, according to the same R.L. Johnson LIS report for 2004. To capitalize further on its initial hospital market success and expand and accelerate its presence in the hospital marketplace, effective May 1, 2005, Fletcher-Flora acquired the hospital based laboratory technology and laboratory information system business of Modulus Data Systems, Inc., a recognized and respected name in LIS. Through this acquisition, Fletcher-Flora expects to expand its business and market position as a health care software company equipped to service and be competitive in the overall hospital based marketplace. Bridge financing for the acquisition was provided and aggregated by affiliated Private Equity Groups.
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on CFI's expectations and are subject to a number of risks and uncertainties beyond CFI's control, including but not limited to economic, competitive and other factors affecting CFI's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving CFI, facts and events not known at the time of this release.
These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. CFI undertakes no obligation to update publicly any forward-looking statements.
(a) Laboratory Systems, R.L. Johnson & Assoc., 209 839 8052