ATLANTA, May 24 /PRNewswire/ -- A.D.A.M. Software, Inc. d/b/a adam.com (Nasdaq: ADAM) today announced results for its fourth quarter and fiscal 1999 year-end. Revenues for the fourth quarter ended March 31, 1999 were $979,000, a 38% decrease from $1,576,000 from the quarter ended March 31, 1998. For the 1999 fourth fiscal quarter, the Company reported a loss of $1,528,000 or $0.34 per share compared to a profit of $44,000 or $0.01 a share for the 1998 fourth fiscal quarter. Included in the Company's 1999 fourth quarter loss is a restructuring charge of $47,000, or $0.01 per share, for severance costs associated with release of direct sales personnel, and additional expense totaling $316,000 from valuation adjustments of capitalized software development costs as a direct result of the Company's change in focus to an Internet health information company. Revenues for the year ended March 31, 1999 (fiscal 1999) were $5,242,000, a decrease of 24% from $6,888,000 for the year ended March 31, 1998 (fiscal 1998). For fiscal 1999, adam.com reported a loss of $2,180,000 or $0.48 per share compared to a profit of $578,000 or $0.12 per share for fiscal 1998 due to the Company's change in focus to an Internet health information company and reduced product revenues in the international, educational and consumer markets. "With the conclusion of fiscal 1999, adam.com has successfully transformed itself into a leading provider of consumer health information online," said adam.com Chairman and CEO Robert S. Cramer, Jr. "The Company has invested heavily in technology and infrastructure to build and operate a high-quality consumer website. The Company has leased office space in San Francisco, California, expanded the senior management team and hired additional staff with the talent and expertise which we believe will allow us to develop leading edge consumer healthcare technologies and operate the adam.com health portal. In less than six months, but reflecting ten years of experience, the Company believes that it has created a world-class consumer health destination at www.adam.com . Further, as a result of having created or acquired significant proprietary clinical and visual content, we believe we are extremely well positioned for the future. The Company's existing product and content license agreement with WebMD is expected to generate significant revenues going forward based upon published reports of WebMD's physician subscription commitments, estimated at 180,000 doctors. Under our contract, adam.com receives a monthly fee from WebMD for each physician subscriber who has the appropriate computer equipment to use a specific adam.com product. Both WebMD and Healtheon are adam.com licensees and business partners. We intend to continue to work closely with them in our partnerships during and after the announced merger. We expect our pending acquisition of drgreene.com to give us a very prominent role in family health on the Internet, important consumer product advertisers and a desirable base of registered users. We believe that adam.com offers sponsors and advertisers the ability to reach an important demographic target and provide innovative offline as well as online marketing opportunities through our software and component products. The Company has, in a very short period of time, established significant distribution for the adam.com website and consumer content. We believe our strategic partnership with Cox Interactive Media will extend the reach of adam.com and provide distribution to millions of national and local web users. We have also formed revenue partnerships for our content to appear on leading portals, Excite and Netscape Netcenter, all with hotlinks back to the adam.com website. Our agreement with CNN Newsource Sales puts the adam.com Internet address in front of millions of television viewers daily while they are watching local and cable television, and provides revenue. Now that the adam.com website is launched, we intend to invest heavily in development and marketing for the consumer health destination. We intend to expand by building additional distribution relationships and to continue to expand and invest in proprietary content assets both by internal development and strategic transactions. We intend to make adam.com the leading consumer health destination on the Internet." About adam.com Based in Atlanta and with major operations in San Francisco, adam.com is the leading provider of health, medical and wellness information online. The company's consumer health Web site - www.adam.com - is a premiere destination for people seeking reliable, informative answers to health questions. The site features elegant imagery, ease of use, and cutting-edge technology that integrates and connects all related information on a searched topic, making it easier for consumers to find answers. adam.com has over 500 gigabytes of text-based clinical information, medical illustration, animation, video and interactive 3D content, which can also be found on many other Web sites that license adam.com content. adam.com partners with industry leaders such as Healtheon/WebMD, Excite, Netscape, Cerner, IDX, QuadraMed, CNN and Pearson Education. Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors which could affect the Company's actual results, performance or developments include general economic conditions, the development of the Internet as a source of health information, pricing actions taken by competitors, the demand for the Company's health information, regulatory changes, and other laws which impact the way in which the Company conducts its business. adam.com is a trademark of adam.com. All other products mentioned are trademarks or registered trademarks of their respective companies. A.D.A.M Software, Inc. Summary Financial Information (in thousands, except per share amounts) Statements of Operations (unaudited) Three Months Twelve Months Ended March 31, Ended March 31, 1999 1998 1999 1998 Net Revenues $979 $1,576 $5,242 $6,888 Cost of revenues: 404 306 1,421 1,178 Gross Profit 575 1,270 3,821 5,710 Gross Profit Margin 59% 81% 73% 83% Operating expenses: Sales and marketing 643 610 2,704 2,778 Product development 962 380 2,074 1,512 General and administration530 363 1,571 1,293 Restructuring Charge 47 --- 47 --- Total operating expenses 2,182 1,353 6,396 5,583 Operating loss (1,607) (83) (2,575) 127 Interest income (expense), net 79 127 395 526 Income (loss) before income taxes (1,528) 44 (2,180) 653 Income tax expense --- --- --- (75) Net income (loss) $(1,528) $ 44 $(2,180) $578 Basic and diluted net income (loss) per common share $(0.34) $0.01 $(0.48) $0.12 Weighted average number of common shares and share equivalents outstanding- diluted 4,437 4,852 4,528 4,959 Summary Balance Sheet Data 3/31/99 3/31/98 Cash and short term investments $6,161 $8,368 Accounts receivable- net 950 1,239 Inventories 292 467 Total current assets 7,567 10,198 Total assets 8,970 11,900 Total liabilities 1,174 1,187 Stockholders' equity 7,796 10,713 Working capital 6,393 9,011 CONTACT: Mike Fisher, Director of Finance/Administration of A.D.A.M. Software, Inc., 770-541-5070, or fax, 770-989-4970, or email, mfisher@adam.com  