SCOTTSDALE, Ariz., Sept. 18 /PRNewswire-FirstCall/ -- MedCom USA, Inc. (BULLETIN BOARD: EMED) following its previous announcement that it has organized and named its new subsidiary, Card Activation Technologies Inc. MedCom USA further announces that MedCom will retain a substantial share of the newly formed company. Card Activation Technologies, Inc. is incorporated in Delaware and will focus on the licensing of the proprietary patented technology of electronic activation of phone, gift and affinity cards detailed in previous releases.

According to Michael Malet, Executive Vice President of MedCom USA, "We view the creation of this company as an extension of the many years of efforts in developing the proprietary technologies of MedCom USA. Even though the business model warrants a separate operating entity to maximize its potential, MedCom USA should also benefit from the nurturing of this strategy in its infancy and utilize its success to continue to build its core business in Healthcare transaction technology."

Mr. Malet restates from previous announcements that "The MedCom Management intends to spin off Card Activation Technology, Inc. into a separately traded company. Under the current plan, shareholders will receive one share in the new entity for each share of MedCom they own on the record date. The record date as well as the exact percentage ownership and other details will be announced in the near future."

The MedCom Renewable card system patent was created by MedCom USA as part of its card building technology endeavors in the 1990's. The patent covers the technology and process for taking a card with a magnetic strip or other data capture mechanism and activating the card by downloading a determined monetary value onto the card for use at a later date for different types of transactions. This process can be utilized for prepaid phone cards, gift cards, and affinity cards. New View Technologies, which was acquired by MedCom USA in December 1996, developed the patent and all patents were assigned by New View Technologies to MedCom.

About MedCom USA, Inc.

MedCom USA, Inc. (BULLETIN BOARD: EMED) provides innovative healthcare and financial transaction solutions for electronically processing HIPAA compliant transactions within the healthcare industry. MedCom USA provides a terminal based service package and a compatible Web Portal add-on for physicians, clinics and hospitals and dentists that include the following services: Real-time transactions including; Patient Eligibility, Referrals, Claims Status and Service Authorizations, 100% Paperless Claims Processing, Patient Easy Pay, Credit/Debit Cards, and Check Guarantee. Visit http://www.medcomusa.com/ for more information. MedCom USA is the licensor for a patented card activation program.

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although MedCom USA, Inc. management believes the expectations reflected in such forward-looking statements are based on reasonable assumptions; it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include industry, competitive and technological changes; risks associated with international operations and foreign currency fluctuations; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and other risks detailed from time to time in MedCom USA, Inc.'s SEC reports, including the company's most recent 10-K and subsequent 10Q-s.

CONTACT: Investors, Kent Barghols, +1-515-276-1180, BARGHOLSB@MSN.COM,
for MedCom USA, Inc.

Web site: http://www.medcomusa.com/