Subject: Worht looking at for the months to come

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Date: Thu, 12 Jun 97 12:40:13 EST
From: Undervalued Stock@u.washington.edu
To: investwisely@thestock.com
Subject: Worht looking at for the months to come
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A stock that could sky rocket, keep watching this one.

Universal Medical Systems, Inc. (OTC:BB:UMSI) is an emerging medical
device and products company which is rapidly growing by consistently
acquiring leading edge technologies in the medical and healthcare 
fields. The basic operating philosophy of the company is to take a
number of niche companies and operate them using a centralized and
experienced management team. By following a multifaceted strategy, 
which includes acquisitions and strategic alliances, management is
converting the Company into a significant healthcare enterprise. 
Over half of the common shares outstanding are owned by this operating
management team which does not receive large salaries. This puts the
management's interest more inline with the shareholders. (9 million
shares outstanding, 2 million float)

UMSI currently manufactures and distributes a number of devices, which
range in price from $10,000 to over $1 million per device. The company
is expected to reach profitability this year and thus far is followed
by two research analyst firms (Renaissance Research and American Fund
Advisors ) which have given the company a $5-6 near term target (3-4 
months) and an $8-9 mid term target (12-18 months). We anticipate 
several announcements (one of them an FDA review) in the near future
which are expected to generate significant interest from both 
individual and institutional investors.  

Medhealth Imaging Inc., a wholly owned subsidiary of UMSI develops and
markets proprietary spinal injury management systems for the diagnosis 
and rehabilitation of spinal injuries; optical imaging (non x-ray) 
systems used for sensing changes (i.e. tumors) within the human body;
and ultrasound systems used in conjunction with these product lines. 

One of the uses for the optical imaging system which is expected to do
well is in the area of breast examinations. The system utilizes near 
infra-red light technology (transillumination) instead of x-rays to
locate abnormalities within the breast using a simple non-invasive
scan. There are 180,000 new cases of breast cancer in the US each
year of which 44,000 result in death. Only 15% of woman follow the
recommended schedule for breast examinations mostly due to the 
discomfort of current techniques (mammography) which place 25-40 
pounds of pressure on each breast. 80% of all abnormalities are found
by woman upon self examination and by this time have reached an 
average size of 2 centimeters. Images can also be stored digitally
and transmitted anywhere in the world so that a patients entire 
history may be available on one diskette. The worldwide market for
breast examinations is $5.7 Billion with the US market being $2 
Billion. Older equipment is expected to be replaced at a rapid rate
in the coming years with the new non-invasive devices filling a large
portion of this market. 

Another of UMSI's acquisitions is Medical High Technology International
Inc. (wholly owned by UMSI) which designs and manufactures proprietary
radio-therapy CT simulator systems (CT-SIM System) which provide a 
three dimensional view of tumors to assist physicians in planning 
radiation treatment for cancer patients. This machine is FDA approved
and integrates a computerized  topography scanner, radiation therapy 
simulator, and treatment planning system, providing a three dimensional
look at tumors to assist physicians in planning radiation treatment
for cancer patients. Now in one integrated system, therapists can 
localize a tumor with fourth generation CT precision, plan the 
treatment using a 3D planning system, and simulate for beam location
and portal marking. The result is more precise patient treatment and
improved clinical efficiency. 

In 1993 CT simulation was only 10% of the simulation market and will 
be the fastest growing segment in the 90's. This growth is expected 
to top 35% in 1997 when market demand will be at its highest due to
two factors. First, the demand for CT imaging in radiotherapy is 
growing along with the demand for 3D, stereotactic, and conformal
treatments. Second, networking technologies in radiotherapy are on
the rise with the trend toward non-proprietary computer systems 
meaning that data may be shared among systems (i.e. IBM compatible 
computers). The system produced at MHTI's 40,000 square foot facility,
sells for $600,000-$800,000 per unit. Management believes current
worldwide demand is for 50 machines annually, but that demand could
triple in a relatively short period of time. 

In keeping with its position as one of the world's leading producers 
of computer topography systems, the Company introduced an enlarged
gantry (the hole the patient slides through) for its CT-SIM to an 
aperture of 91.5 centimeters, designed especially for radiotherapy 
positioning. These new models are more efficient and do not cause 
the claustrophobic anxieties in patients associated with many earlier
models. MHTI has installed over 30 of its units in hospitals and
oncology clinics worldwide, and plans are to expand this network to 
address a worldwide market estimated to be approximately one billion
dollars.

Many strategic moves which UMSI has planned have already been set
in place, including a marketing agreement with STC Corporation of 
South Korea and a joint venture with JIC Holdings of China. Additional
progress relating to these two ventures is expected to continue. Two
major acquisitions have already taken place last year and more are
expected to transpire as this year proceeds. Some of the contributing
factors that should aid in establishing the anticipated future share
prices are as follows:

… Initial profitability in 1997.
… An expected listing on NASDAQ - given UMSI's asset and equity base.
… Announcement of joint ventures and/or strategic partnering, including
  others in China
… Initial significant orders obtained through the STC agreement.
… Financing- equity infusions and bank lines.
… Additional acquisitions.
… Large orders in the Medical High Technology ("MHTI") division.

Additional information about UMSI may be found at their website:

http://www.lihomes.com/umsi    Also by calling 

Fred Josephs at  516-739-0348       or Email:    aqrj97a@prodigy.com

The following is an edited transcript of a recent phone interview with 
Mike Baker, President and CEO of Universal Medical Systems 
(OTC:BB:UMSI). Free to redistribute or repost on Friday 03/21/97

Kostech: Letís discuss Universalís optical imaging systems, please 
describe the systems and their core competencies.

Mike Baker:

We believe our optical imaging systems provide a new generation medical
system for early cancer detection. Our system incorporates the 
impressive advancements by NASA in image enhancement and magnification
segmentation. Since the system uses digital technology, an image can 
be transmitted to any location in the world.

The initial application is for the early detection of breast cancer, 
other applications will involve prostate, ovary and testicular cancers.
Since the system uses harmless near-infrared light, it can be used in
a screening modality for pregnant women with dense breasts and for 
women of all ages. Both the system cost and procedure cost are low, 
and therefore available for wide usage.

In addition,  our optical imaging systems address the changing needs 
of the medical community. Since the focus is on better healthcare at 
lower cost, there needs to be major improvements in effective medical
systems. Our optical imaging system is effective, patient friendly, 
low cost, and non-invasive. Most of todayís medical systems have 
inherent limitations, including the use of radiation, high cost, and 
limited applications. For example, an MRI or Cat Scan are both 
effective diagnostic systems, but they are not used for screening due 
to their relatively high cost in both equipment and facility, along 
with the high procedure cost.

Kostech: What is the schedule for clinical trials?

Clinical trials are planned to begin mid-year at three or more 
locations. Protocols are being written to ensure compliance with 
FDA requirements for these clinical studies. Plans are to install 
other systems for demonstration purposes at various other locations
as soon as practical. 

Kostech: Please explain the difference between near-infrared and laser.

Mike Baker:

The laser system currently in clinical trials by another company is 
designed for screening of breast cancer, with a primary focus on 
reducing the number of biopsies performed after a tumor has already 
been detected by other modalities. The equipment cost is estimated to
be approximately $300,000 and the procedure cost similar to that of 
a mammogram. Therefore, the system cost is relatively high, and with 
limited application. Our optical imaging system is being developed for
many applications in screening for the early detection of cancer, and 
therefore, is not limited to a single application. In addition, the 
system cost is targeted to be less than $100,000 and the procedure 
cost less than $25.00. Since our system utilizes harmless infrared
light, there is no need for any additional facility expense, such as
the special shielding requirements of many other modalities.

Kostech: What are your plans for company growth?

Mike Baker:

Our growth plans include further acquisitions, joint ventures, and 
strategic partnerships. We plan to conclude at least two more 
acquisitions by July 1. Both companies have products which will
expand our penetration into markets served by our current companies. 

Since we are in a global market, we plan to establish joint ventures
throughout the world. In January of this year, we announced the 
establishment of joint ventures in China and other countries in the
Far East. We also concluded a marketing agreement with a large Korean
company to market all of our products in the Far East.

Kostech: Are you currently able to supply this increased demand?

Mike Baker:

We do not believe we are production limited, in that we can increase
the output of our current facilities, and continue to rely on 
subcontracting much of our requirements. For requirements outside the
US, we will take advantage of the joint venture companyís production 
capabilities to fill the need in their market area.

Kostech: And how will this growth be funded?

Mike Baker:

Our growth will be funded through a combination of internal sales, 
private placements, and a secondary public offering. We are expanding
our network of firms supporting our stock to help create increased 
awareness of our company.

Kostech: How many shares do you anticipate offering and will you be 
increasing the total outstanding. 

Mike Baker:

There are no current plans to increase the number of authorized shares
of the company. The requirements for issuance of shares for 
acquisitions, or for private/public offerings are well within the 
current capitalization structure.

Kostech: When will earnings be announced and which quarter do you 
anticipate profitability occurring?

Mike Baker:

1996 could be considered a year of restructuring our company, 1997 the 
year of internal growth and launching of our acquisition programs, and
1998 as the beginning of profitable growth. The companies we acquired 
last year were not yet profitable, but have great potential. We 
furnished considerable working capital to complete certain development
programs, and to launch a world wide marketing program. The current 
acquisition candidates are already profitable, and therefore, they 
will incrementally increase both our profits and asset base. With the
planned acquisitions and our current business, we believe we will
exceed $20 million in sales for fiscal 1998. Our five year plan 
reflects sales in excess of $100 million excluding license and royalty 
fees from our joint ventures.



To obtain a graph of this security, click on "subscriber services"
on our homepage ( http://www.kostech.com ). After entering using 
your email address click on "Quotes and Graphs". Enter the symbol
and press return. For OTC:BB stocks you will need to input BB: before
the symbol (example BB:UMSI) When the quote is returned, scroll down
and click on the stock symbol which is now in color. You should now 
have news headlines and graph selections available. We have found
that the Daily Chart is the most useful for analysis.

04-25-97

Universal Medical Systems, Inc. (OTC: BB:UMSI) announced it has
initiated a major new sales program for its C.T. Simulator.

According to the Company, the response has been very enthusiastic. UMSI
has already received an order for its new C.T. Simulator, which sells
for over $500,000.  The purchaser is M.D. Anderson Cancer Center,
Orlando.

The C.T. Simulator incorporates both maximum aperture design and faster
image display.  These are both important features, in that, the patient
can now be scanned in the same position as is required for the radiation
therapy treatment.  These features permit the physician to more
accurately plan the radiation therapy treatment. Also, the large
aperture is designed to accommodate all patients, thereby increasing the
utilization and effectiveness of the system.  The new software permits
improved image access, making the system more physician and patient
friendly.  No other system has these features.

The delivery is scheduled by the end of August. The system design
greatly improves the Company's competitive picture in the world market
with this leading edge technology.  Plans are to expand both the
domestic and international sales to take full advantage of the
radiotherapy and diagnostic markets.

Management's goal is to sell in excess of $12,000,000 of these systems
during the next 18 months.


CONTACT:  Myron A. Baker, Universal Medical Systems, 813-535-2022


05-14-97

The following is a review of recent significant events at Universal
Medical Systems Inc. (OTC:BB:UMSI)

1.  The company has filed its Form 10 to become a 12G reporting
company.

2.  An agreement is being completed for the generation of a major
capital infusion, primarily for acquisition purposes.

3.  A Letter of Intent has been signed between UMSI and Nova
Therapeutic, Inc. whereby UMSI has acquired rights to manufacture &
market internationally a new radiotherapy system called the Cobalt
Scalpel.  UMSI's latest press release describes this event.

4.  The Joint Venture company in China established last January, with
Mianyang Electronics, has launched its sales programs.  The initial 4
ultrasound systems have been received by UMSI for upgrading with color
and other features.  These ultrasound systems, produced both in China
and in the U.S., are expected to generate considerable sales in the near
future.  Last year, Mianyang Electronics sold approximately 10,000 of
the older generation ultrasound systems in their market, and therefore,
a large distribution network exists for the new generation systems
produced  by the UMSI/Mianyang joint venture.

5.  The second joint venture company, which was also established this
past January, is introducing UMSI's CT Simulator, Vsim, and Cobalt Knife
radiation therapy systems at a major oncology trade show in Beijing,
China in early June.  Each system sells for approximately $2.0 million,
and presentations have already been made to major hospitals.

6.  The new vascular system,  the UMSI "System 2000 PVR", is being
Introduced at a trade show in early June in Boston, Mass.  In addition,
an upgrade program for existing systems has been launched.  UMSI plans
to book a minimum of $.35 million in new systems sales and upgrades over
the next 60-90 days.

7.  Negotiations are now being completed for the acquisition of a
company with products that will expand UMSI's business in existing niche
markets.  This company has sales in excess of $5.0 million, and has two
new systems with exciting potential.  Also, almost all of UMSI's sales
have been in the domestic market, and therefore, a major opportunity
exists in bringing their products to the Far East markets through UMSI's
joint venture companies.

 8.  UMSI has introduced the new generation CT Simulator to the world
market. This system, used in radiotherapy imaging for treatment
planning, has features not found in any other systems.  Important new
features include a large aperture to accommodate all patients, better
image resolution through the addition of more detectors, and fast
reconstruction time for image acquisition.

9.    Dr. A.V. Lakshminarayanan, better known in the industry as "Dr.
Lak", has joined the company as Chief Scientist.  Dr. Lak is recognized
as one of the true experts in imaging technology.  His experience as a
scientist and professor, a pioneer in CT and MRI technology, as well as
other imaging technologies, provides UMSI with outstanding technical and
scientific leadership.

Contact: Fred Josephs at 516-739-0348 or Email: aqrj97a@prodigy.com
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