PediaMed Acquires Assets of Propst Pharmaceuticals

Florence, KY - July 1, 2002 - PediaMed Pharmaceuticals, Inc. (www.pediamedpharma.com) announced today that it had purchased substantially all the assets of Propst Pharmaceuticals of Huntsville, Alabama. In addition to the purchase of assets, PediaMed will hire 38 of the Propst field sales people. PediaMed Pharmaceuticals is focused on providing prescription and OTC products for children. Tom Jennings, Interim President of PediaMed said, "The addition of the Propst Pharmaceuticals products and employees is a significant event in the development of the Company. Propst has a very strong presence in the southern part of the United States and with the combined distribution of representatives and products, PediaMed will gain national recognition in the pharmaceutical industry."

Propst Pharmaceuticals, located in Huntsville, Alabama manufactured, marketed and distributed a number of prescription allergy, cough and cold formulations. Among these are the Endal and Accuhist lines. Each of these is a combination product that conveniently allows the physician to prescribe potent therapeutic regimens in a single oral liquid or chewable tablet. Vintage (Propst’s parent company) will continue to manufacture the products for PediaMed in an exclusive agreement.

Roger Griggs, Chairman of the Board of Directors for PediaMed said, "Three-quarters of all medications currently in distribution do not have FDA approved labeling for children or adolescents. Only 5 of the top 80 drugs most frequently used in neonates and children are labeled for pediatric use. We founded PediaMed with the objective to discover, develop and distribute products that will help satisfy the significant unmet medical needs of kids. The eight new products that we will market with the acquisition will help meet that objective."