The Quantum Group, Inc. Executes Letter of Intent to Acquire Medical Billing and Collections Software Platform

The Quantum Group, Inc. Executes Letter of Intent to Acquire
Medical Billing and Collections Software Platform 


WELLINGTON, Fla., Aug. 4  /PRNewswire-FirstCall/ -- The Quantum Group, Inc.
(OTC:QTUM) (BULLETIN BOARD: QTUM)  today announced that it has executed a
non-binding letter of intent to acquire an Application Service Provider (ASP)
currently in beta testing which provides medical billing and practice
management from a company based in South Florida.  The software package
includes source codes, copyrights, existing relationships and all intellectual
and marketing rights, and further provides HIPAA-compliant electronic medical
billing and financial management for medical practices.

The Company did not release the name or the additional terms of the pending
transaction, and further advised that their team of experts have completed the
first phase of the review process.  Currently, the Company is conducting the
final phase due diligence on the product, which is presently used in various
medical offices in South Florida.  A closing within 30 days is anticipated if
the process continues as expected.

Mr. Noel J. Guillama, President and CEO of The Quantum Group, commented, "For a
while now we have been looking for the right platform to bring to the medical
community a new kind of business process outsourcing, and we feel quite good
about what we have found. We believe that if preliminary indications prove to
be correct, this could be the basis for a proprietary product that we can
license, re-brand for others and provide the entire billing and collection
process for physicians at lower up-front and residual cost.  This would in turn
allow the doctor to avoid investing in new hardware or software updates going
forward and could be a foundation for the highly sought electronic healthcare
record system in the future."

Mr. Guillama warned that though his team is very excited by this prospective
acquisition, there were hurdles to clear, including, but not limited to, the
successful completion of the due diligence, testing and subsequent upgrading,
re-deployment and marketing of the final ASP product. The ASP software is
written in C (sharp) and on a Microsoft.net platform.

An ASP is a third-party that provisions software applications over the
Internet. The physician accesses remote, centralized computer servers that are
hosting the application and is responsible solely for the end-results obtained
through utilization of the application. Quantum, the ASP provider, is
responsible for the initial and daily maintenance of the medical billing and
collections software itself.

The Quantum Group, Inc., is a Wellington, Florida-based healthcare company in
its development stage, providing outsourcing, technology-based solutions,
government compliance, education, policy consulting and venture management to
the healthcare industry. Quantum is currently involved in: outsourcing for
physicians, managed care organizations, healthcare facilities, and physician
associations; developing three patent-pending healthcare solutions identified
as Cybernaptics(SM), Quantum Quotient(SM) (or QX2)(SM) and MDAutomated(SM), all
with the intention to provide new efficiencies to the $1.6 billion U.S.
healthcare system; and providing leading-edge healthcare services to consumers.
 The Quantum Group -- "healthcare solutions for a new generation."(SM)

Certain statements contained in this news release, which are not based on
historical facts, are forward-looking statements as the term is defined in the
Private Securities Litigation Reform Act of 1995, and are subject to
uncertainties and risks in part detailed in the respective company's Securities
and Exchange Commission 10-K, 10-Q, S-8 and 8-K filings, that may cause actual
results to materially differ from projections. Although the company believes
that its expectations are reasonable assumptions within the bounds of its
knowledge of its businesses and operations, there can be no assurance that
actual results will not differ materially from their expectations. Important
factors currently known to management that could cause actual results to differ
materially from those in forward-looking statements include the company's
ability to execute properly its new business model, to raise additional capital
to implement new business model, the ability to attract and retain personnel
and the inherent risk associated with a diversified business to achieve
positive cash flow. In light of these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this report will,
in fact, occur.

   Media Contact:
   Danielle Amodio
   Director of Corporate Communications
   The Quantum Group, Inc.
   561-798-9800


DATASOURCE: The Quantum Group, Inc.



CONTACT:  Danielle Amodio, Director of Corporate Communications, The

Quantum Group, Inc., [phone]



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

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