Newsletter

January 18, 2001

Volume IV, Issue 4

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

More Great News From MedGrup (OTC BB: CODX)

We had technical problems on Wednesday, and the edition you are reading right now should have gone out Wednesday immediately after the market closed. Our apologies.

Last Friday's news release from our favorite microcap, MedGrup (OTC BB: CODX), sparked a flurry of activity and a dramatic rise in the stock.
It closed at $1.50 on Friday and hit a high of $4.375 shortly after the market opened on Tuesday morning for a nearly 300% gain.

If you have read the section on Trading Strategies under the "Rules for Successful MicroCap Investing" found on our home page, you should have been able to pick up the stock at a reasonable level after the initial surge. If you have not read this section please do so before committing any capital to micro cap stocks. Click Here to go directly there.

Another surge in the stock is imminent as more outstanding news developments came out of the company shortly after the market closed yesterday. The previously announced preferred vendor agreement with the Dallas/Ft Worth hospital consortium has yielded its first two new major contracts with more to follow.

This announcement confirms our belief in MedGrup. They are demonstrating the capability to close new business on a consistent basis, and should have no trouble doubling both their sales and earnings in 2001 as they have done in the previous three years. We are hearing from management that the Parkland Hospital contract is moving forward very rapidly.

These first contracts of 2001 should help the company gain momentum as new business continues coming in the door. It also reinforces our opinion that the stock is worth $4 based on current market conditions and corporate performance. The $4 target price represents a 74% return on invested capital from today's closing level.

Here is the complete text of the press release for your review:

MedGrup Corporation
1824 Woodmoor Drive, Suite 102
Monument, Colorado 80132

FOR IMMEDIATE RELEASE: January 17, 2001

MedGrup Corporation Announces First Coding Agreements under Aforementioned Arrangement with the Dallas-Fort Worth Hospital Council

MONUMENT, COLORADO, January 17, 2001, …MedGrup Corporation (OTC BULLETIN BOARD: CODX) today announced that it has signed two coding agreements under its’ “preferred vendor” agreement with the Dallas-Fort Worth Hospital Council (DFWHC). The DFWHC, located in Irving, Texas, is a hospital consortium, consisting of 83 hospitals that take advantage of the representation and economies provided by the pooling of their respective interests.

The first agreement is with the Huguley Health System, located in Fort Worth. Under this agreement, MedGrup will provide immediate coding services to this 252-bed hospital. The Huguley Health System is MedGrup’s first client that is part of the Adventist Health System, an organization that operates approximately 500 healthcare facilities around the world.

The second agreement is with the Parkland Health and Hospital System, a 1,000-bed hospital located in Dallas, also known as the Dallas County Hospital District. Under this agreement, MedGrup is initially tasked with eliminating a coding backlog, estimated to be a two-month project. During this time, MedGrup and Parkland will discuss the basis for a permanent relationship designed to prevent future backlogs.

MedGrup Corporation, the industry pioneer of off-site coding services, is engaged in the highly specialized business of coding inpatient, outpatient, and emergency room medical charts. MedGrup’s services include both backlog and concurrent coding services. The Company offers health care providers a customized high quality outsourcing alternative to in-house coding of medical records, often resulting in increased revenue for its client hospitals. MedGrup also provides consulting services to health care providers in the business office and medical records departments.

The foregoing may contain statements that plan for or anticipate the future. Forward-looking statements include statements about the future of the medical services industry, statements about our future business plans and strategies, statements about our financial condition and results of operation and most other statements that are not historical in nature. Forward-looking statements are generally identified by the words “anticipate,” “plan,” “believe’” “expect,” “estimate,” and the like. Because forward-looking statements involve future risks and uncertainties, there are factors that could cause actual results to differ materially from those expressed or implied. These factors include general economic and business conditions affecting the medical services industry, financial strength of the public and private healthcare system, government regulation or legislation, the costs and pricing of our services and the level of demand for our services. Investors should not rely on these forward-looking statements.

For Further Information Contact:
MedGrup Corporation
Terry Holmes, President
(719) 481-1500

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