Safescript Pharmacies, Inc. Files to Reorganize Under Chapter 11 Bankruptcy Protection LONGVIEW, Texas, March 22 /PRNewswire-FirstCall/ -- Safescript Pharmacies, Inc. (OTC Pink Sheets: SAFS) announced that its board of directors filed a petition late Friday, March 19, 2004 in the Federal Bankruptcy Court for protection under Chapter 11 of the United States Bankruptcy Code on behalf of Safescript Pharmacies, Inc. The Company's onerous debt structure, created by its previous management, coupled with numerous judgments and pending legal action against the Company, jeopardized the much-needed funding negotiations, thereby prompting the board's decision. Plans for reorganization are currently under development and it is Safescript management's intention to position the Company to emerge from bankruptcy as quickly as possible. Plans will include retaining the ten pharmacies that are either currently generating or will soon generate positive cash flow. The ten pharmacies that will represent the core of Safescript's operations are located in Longview, TX; Texarkana, TX; Alexandria, LA; Baton Rouge, LA; Bossier City, LA; two location in Shreveport, LA; and two locations in New Orleans, LA. Corporate overhead will continue to be streamlined and the sales effort will be integrated into the field operations for better and more efficient communication. "We expect this reorganization to provide Safescript with a fresh start. We expect to emerge a leaner and more efficient organization," commented Ed Dmytryk, Safescript's recently appointed CEO. "We intend to expeditiously create a reorganization plan that will provide a solid foundation to grow this unique business model, attract additional working capital and regain value for our shareholders." 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. operatethe 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 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 factors are 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 DATASOURCE: Safescript Pharmacies, Inc. CONTACT: Ed Dmytryk, Chief Executive Officer of Safescript Pharmacies, Inc., +1-903-295-6800, or Web site: http://www.safescriptinc.com/

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