Meridian Holdings Reports Second Quarter 2004 Financial Results

Meridian Holdings Reports Second Quarter 2004 Financial Results
Second Quarter Results Reflect Favorable Court Decision Booked as 'Judgment
Receivable' 


LOS ANGELES, Aug. 16  /PRNewswire-FirstCall/ -- Anthony C. Dike, Chairman and
CEO of Meridian Holdings, Inc. (OTC:MRDH) (BULLETIN BOARD: MRDH) , announced
today the timely filing of the company's quarterly report to the Securities and
Exchange Commission for the period ended June 30, 2004, on Form 10-QSB.  Full
text of the report may be viewed on the SEC's EDGAR database at
http://www.sec.gov/.

Medical services revenues decreased by 30% from $458,342 for the three months
ended June 30, 2003 to $321,638 for the three months ended June 30, 2004, and
by 27% from $955,033 for the six months ended June 30, 2003 to $700,821 for the
six months ended June 30, 2004.

On January 8, 2004, a default judgment was entered in favor of the company by
the Los Angeles County Superior Court in a case titled Meridian Holdings, Inc.
versus Sirius Technologies of America, a Delaware Corporation, Case No.
BC256860.  The amount of the judgment including damages, court costs and
punitive damages is $30,687,926, with a pre-judgment interest at the annual
rate of 10%.  This amount has been reflected in the balance sheet and the
income statement as a judgment receivable.  Management is pursuing all
collections options regarding this judgment.

Meridian, through its Capnet IPA division, provided managed care services for
approximately 28,000 and 30,000 member months (members per month multiplied by
the months for which services were available) during the six months ended June
30, 2004 and 2003, respectively.  The decrease in member months and medical
services revenue was due to disenrollment of Medi-Cal members following the
ongoing State of California Department of Health Services Medi-Cal membership
redetermination efforts.

Revenue generated by the company's managed care entities under contracts with
HMOs as a percentage of medical services revenue was approximately 99% and 96%,
respectively, during the six months ended June 30, 2004 and 2003. Revenue
generated by the Los Angeles County Community Health Plan ("CHP") contracts was
99% of medical services revenue for the six months ended June 30, 2004 and
2003, respectively.

The Company has recently launched an International Preferred Provider Network
(IPPN) division known as "Meridian Health Systems", which is involved in the
business of facilitating the delivery of international, tertiary healthcare
services provided in the United States to individuals who cannot obtain certain
specialized treatments in their homelands.

"Meridian's IPPN is designed to allow the company to leverage its resources
internationally and we are confident in its potential to enhance the company's
ability to generate additional revenue," said Anthony C. Dike, MD, Chairman &
CEO.

About Meridian Holdings, Inc.

Meridian Holdings, Inc., is a Healthcare Services and Technology Company.
Meridian's network of affiliated companies is designed to encourage maximum
leverage of information technology, operational excellence, industry expertise,
and synergistic business opportunities.  Meridian is committed to building
shareholder value by positioning affiliated companies as independent business
entities in which Meridian shareholders enjoy equity participation. Learn more
about the company and its affiliated entities, including CGI Communications
Services, Inc. and InterCare DX, Inc. (OTC:ICCO) (BULLETIN BOARD: ICCO)  by
visiting Meridian's web site at http://www.meho.com/.

NOTE: Statements in this news release that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and any amendments thereto. Material that is forward-looking
may contain statements about expected future events and/or financial results
that are forward-looking in nature. Editors and investors are cautioned that
such forward-looking statements invoke risk and uncertainties that may cause
the company's results to differ from such forward-looking statements. These
include, but are not limited to, economic, competitive, governmental,
technological and other factors discussed in the statements and/or in the
company's filings with the Securities and Exchange Commission. 

DATASOURCE: Meridian Holdings, Inc.



CONTACT:  Anthony C. Dike, Chairman/CEO of Meridian Holdings, Inc.,

[phone]



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

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