Press Release - Medicus Systems Corporation


Contact:   Ralph Keiser
           Medicus Systems Corporation
           (512) 261-7715


   MEDICUS SYSTEMS CORPORATION ANNOUNCES STOCK 
    REPURCHASE FROM FOUNDER AND BOARD CHANGES


EVANSTON, Ill., January 3, 1997 -- Medicus Systems 
Corporation (NASDAQ:MECS), a leading provider of 
healthcare decision support systems and related services, 
today announced that its Board of Directors has approved 
the repurchase of one million shares of Common Stock and 
500 shares of Voting Preferred Stock from its founder, 
Richard C. Jelinek, Ph.D.  Dr. Jelinek also will step down 
as Chairman of the Company, but will remain a director.  
In addition, John P. Kunz, formerly the President and CEO 
of Dun and Bradstreet Business Information Services, has 
joined the Board of Directors.

   The repurchase will be subject to final approval of the 
Company's shareholders at the Annual Meeting of Stockholders 
in March as well as a fairness opinion regarding the 
transaction to be issued by the investment banking firm of 
Punk, Ziegel and Knoell, which has been retained as 
independent financial advisors for the Board of Directors.  
The repurchased stock, including approximately 15.6% of the 
outstanding common shares and 100% of the authorized Voting 
Preferred, will be retired.  The Company will pay 
Dr. Jelinek an aggregate purchase price of $4,500,000 in 
cash, $2,000,000 in two year notes, and 400,000 warrants to 
purchase common stock exercisable at $8.00 per share. The 
Company expects the action to have a positive impact on 
future earnings per share.  This transaction will allow the 
Company to continue with its newly-revised strategic plans 
and to eliminate Dr. Jelinek's "super vote."

   Commenting on the repurchase decision, Medicus President 
and CEO Patrick C. Sommers said, "The Board of Directors and 
I felt that this decision was in the best interest of 
Medicus going forward and was essential in order to grow the 
Company as we have planned.  Dr. Jelinek has made 
significant contributions to Medicus since founding the 
Company over 27 years ago, but his interests have changed 
over the past several years as have Medicus' focus and 
future direction.  Richard is very much in favor of this 
decision, which will allow him to continue to participate 
at the Board level while at the same time provide him with 
the option of pursuing other interests."

   Sommers stated further, "I am very excited about the 
positive impact these changes will have on Medicus' future 
- the execution of our core strategy will continue as 
planned and we are positioned to increase the value of 
the Company for our investors, shareholders and employees. 
The appointment of Mr. Kunz to Medicus' Board will be of 
significant value given his 25 years of experience at the 
Dun and Bradstreet Corporation, and I feel his experience 
in the information management business will be invaluable 
as Medicus pursues new opportunities in that area.  Since 
completing his tenure at D&B, Mr. Kunz has been active for 
the past seven years as a consultant to senior management 
teams in the U.S. and internationally on acquisitions, 
marketing, profit and growth strategies and strategic 
planning.  Mr. Kunz has played an active role in the 
formulation of business and marketing strategy while 
serving on and advising a number of company boards, 
including Dun and Bradstreet International, American 
Credit Indemnity Company, Intervest, Advance-Peterholm 
Group, Ltd. and Automated Communications, Inc."

   "Safe Harbor" Statement under the Private Securities 
Litigation Reform Act of 1995:  Statements contained in 
this release that are not based on historical facts are 
forward-looking statements subject to uncertainties and 
risks including, but not limited to:  product and service 
demand and acceptance; economic conditions; the impact of 
competition and pricing; capacity and supply constraints 
or difficulties; results of financing efforts; and other 
risks detailed in the Company's Securities and Exchange 
Commission filings.

   Medicus Systems Corporation provides its customers 
with software and services to capture, structure and 
analyze information, enabling them to measure and manage 
organizational performance to optimize outcomes.  For 
further information about Medicus Systems Corporation, 
contact Ralph Keiser at (512) 261-7715.