WebMD Announces Acquisition of eMedicine.com, Inc.

Jan 24, 2006

WebMD Health Corp., a provider of health information services to consumers and physicians, has announced that it has completed the acquisition of eMedicine.com, Inc., an online publisher of medical reference information for physicians and other healthcare professionals. The purchase price was $25.5 million.

With coverage of approximately 6,000 topics, eMedicine.com provides physicians and healthcare professionals clinical information relevant to the diagnosis and treatment of a broad range of medical conditions. The acquisition of eMedicine.com is intended to enhance WebMD's ability to deliver diversified promotional and educational programs on behalf of pharmaceutical and biotechnology companies, which the company reports spend more than $8 billion annually for promotional and educational programs for physicians and healthcare professionals.

The company expects to realize the full benefits of the acquisition after the integration of sales, technology and editorial infrastructure is completed in the latter part of 2006. For 2005, eMedicine.com estimated revenues were approximately $6 million with a break even net income. WebMD believes that eMedicine.com will have a small positive contribution to earnings before interest, taxes, depreciation, amortization and other non-cash charges for 2006 as a result of eMedicine.com's anticipated level of profitability, offset by integration related expenses expected to be incurred during the first half of 2006.

(www.webmd.net; www.emedicine.com)