Safescript Pharmacies, Inc. Provides Review of Current Operations in Light of Investigation Company Reduces Corporate Overhead by Approximately 25 Percent LONGVIEW, Texas, March 8 /PRNewswire-FirstCall/ -- Safescript Pharmacies, Inc. (BULLETIN BOARD: SAFS) , a wireless based, acute care e-prescription pharmacy system, reported that it has been engaged in discussions with the Securities and Exchange Commission to resolve the past issues raised during the recent investigation. The Company confirmed that it intends to restate its financial statements for 2001 and 2002 to correct the manner in which sales of territories were reported and correct other material errors. Because of the time required to restate its financial statements, the Company will not be able to file its annual report on Form 10-KSB with the Securities and Exchange Commission by the March 29, 2004 deadline. The Company also announced that its Board of Directors has taken the following immediate actions to address the Company's current liquidity needs: -- Delayed construction of new pharmacies until the Company determines that its financial condition will adequately support new facilities. This action will reduce the anticipated need for cash to support the startup of additional operations. Currently, Safescript has 16 company-owned pharmacies in operation; including the recent Monroe, Louisiana location opened February 27, 2004. Additionally, the Company has contracted with 57 doctors to supply them with prescription devices, software installations and DSL connections, which will not take place until funds become available. -- Terminated special legal counsel and financial consultants to the independent committee ofits Board of Directors until additional funds become available, eliminating the duplication of expenses incurred. -- Authorized the disposition of securities received from the sale of territories and other financial assets to generate a source of additional cash for operations. -- Reduced management salaries and administrative personnel, saving approximately $170,000 per month. -- Authorized management to pursue a private placement of debt or equity with qualified investors. If the foregoing steps are not successfully completed or not sufficient to provide adequate funds for continued operations and payment of prior obligations, the Company may consider reorganization under Chapter 11 of the United States Bankruptcy Code. About Safescript Pharmacies, Inc. Safescript Pharmacies, Inc. is a public holding company with four operating subsidiaries, Safe Med Systems, Inc., Safescript Holdings, Inc., Pegasus Pharmacies, Inc. and Advanced Pharmacy Solutions, Inc. Safe Med Systems, Inc. is a medical communications/technology company that provides state-of-the-art, prescription units loaded with patent-pending software and secure, broadband wireless technology. Safescript Holdings, Inc. and Pegasus Pharmacies, Inc. operate the preferred retail pharmacy providers that specialize in filling prescriptions generated by the Safe Med Systems technology. Advanced Pharmacy Solutions, Inc. is a closed specialty pharmacy system that delivers psychotropic drugs to community and mental health centers. For additional information please visit our websites at http://www.safescriptinc.com/. Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Some of the factors that may affect the forward looking statements in this news release are immediate funding needs which if not satisfied could result in potential chapter 11 reorganization in the federal courts, the rate of acceptance of new versions of proprietary software, the availability of personnel to present new software to users and the availability and functionality of competitive systems. Other risk factorsare listed in the most recent Annual Report on Form 10-KSB and Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission. Such forward-looking statements involve risks, uncertainties, which may cause the actual results, performance, or achievement expressed or implied to differ. Contact: Ed Dmytryk Chief Executive Officer Safescript Pharmacies, Inc. 903-295-6800 Yvonne L. Zappulla Managing Director Wall Street Investor Relations Corp. 212-681-4108 DATASOURCE: Safescript Pharmacies, Inc. CONTACT: Ed Dmytryk, Chief Executive Officer of Safescript Pharmacies, Inc., +1-903-295-6800, ; Yvonne L. Zappulla, Managing Director of Wall Street Investor Relations Corp., +1-212-681-4108, or Web site: http://www.safescriptinc.com/

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