________________________
Name of Prospective Assignee







                       PACIFIC MEDICAL LIMITED PARTNERSHIP

              A Limited Partnership Formed Under the Laws of Hawaii


                         CONFIDENTIAL ASSIGNMENT SUMMARY


                           Sale by Lithotripters, Inc.
                                       of
                     6 Units of Limited Partnership Interest



        THIS SUMMARY IS PROVIDED TO THE PROSPECTIVE ASSIGNEE WHOSE NAME
       APPEARS ABOVE SUBJECT TO THE TERMS OF A CONFIDENTIALITY AGREEMENT
       WHICH PROHIBITS DISTRIBUTION OF THIS MEMORANDUM BY SUCH PERSON TO
       ANYONE OTHER THAN PERSONS RETAINED BY HIM OR IT TO PROVIDE ADVICE
                 WITH RESPECT TO THE MATTERS HEREIN ADDRESSED.




                            MEDTECH INVESTMENTS, INC.
                              Exclusive Sales Agent
                                2008 Litho Place
                       Fayetteville, North Carolina 28304
                                 1-800-682-7971

 
<PAGE>

                    The Date of this Summary is July 13, 1998


                  SUMMARY OF ASSIGNMENT OF LIMITED PARTNERSHIP
                INTERESTS OF PACIFIC MEDICAL LIMITED PARTNERSHIP


          Lithotripters,  Inc. ("Litho"), a North Carolina corporation,  and the
          general  partner  of Pacific  Medical  Limited  Partnership,  a Hawaii
          limited  partnership (the  "Partnership"),  hereby offers for sale and
          assignment  on the  terms set forth  herein,  a maximum  of 6 units of
          limited   partnership   interest   (collectively,   the   "Partnership
          Interests")  in the  Partnership  issued  to and held by  Litho.  Each
          Partnership   Interest  represents  a  1%  economic  interest  in  the
          Partnership,  and the Partnership Interests are offered for assignment
          at a price per  Partnership  Interest  of $5,000  in cash  payable  to
          Litho, plus a personal guaranty of 1% of the Partnership's obligations
          under the loan of up to  $1,652,014  from First  Citizens Bank & Trust
          Company (the "Loan") (up to a $16,520.14 principal guaranty obligation
          per 1% Partnership  Interest).  Prospective assignees who meet certain
          requirements may be able to fund all or a portion of their Partnership
          Interest  purchase  price with the  proceeds  of  certain  third-party
          financing.  See "The  Offering - Limited  Partner  Loans"  below.  The
          Partnership   owns  and  operates  a  Lithostar   second   generation
          extracorporeal  shock-wave  lithotripter for the lithotripsy of kidney
          stones housed in a self-propelled mobile coach servicing the island of
          Oahu, Hawaii.

          As the Partnership  Interests being offered are owned by Litho,  Litho
          (not the Partnership)  will receive any proceeds from the sale of such
          Partnership Interests.  Partnership Interests may only be purchased by
          persons meeting certain suitability  standards as provided herein. See
          "Terms of the Offering - Suitability  Standards." An investment in the
          Partnership Interests is a long-term investment and should not be made
          by persons who need liquidity in their investments.

          THE PARTNERSHIP  INTERESTS ARE BEING OFFERED  PURSUANT TO AN EXEMPTION
          FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS
          AMENDED,   AND  APPLICABLE   STATE  SECURITIES  LAWS.  A  REGISTRATION
          STATEMENT  RELATING  TO THESE  SECURITIES  HAS NOT BEEN FILED WITH ANY
          STATE   SECURITIES   AGENCY  OR  WITH  THE   SECURITIES  AND  EXCHANGE
          COMMISSION. ______________

          NEITHER  THE  SECURITIES   AND  EXCHANGE   COMMISSION  NOR  ANY  STATE
          REGULATORY   BODY  HAS  PASSED  UPON  THE  VALUE  OF  THE  PARTNERSHIP
          INTERESTS, MADE ANY RECOMMENDATIONS AS TO THEIR PURCHASE,  APPROVED OR
          DISAPPROVED  THE SALE, OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS
          SUMMARY.   ANY   REPRESENTATION   TO   THE   CONTRARY   IS   UNLAWFUL.
          ______________

 

                                        2
<PAGE>

          THE   PARTNERSHIP   INTERESTS   ARE   SUBJECT   TO   RESTRICTIONS   ON
          TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
          AS PERMITTED  UNDER THE  SECURITIES  ACT OF 1933, AS AMENDED,  AND THE
          APPLICABLE  STATE   SECURITIES  LAWS,   PURSUANT  TO  REGISTRATION  OR
          EXEMPTION THEREFROM.  NO PUBLIC OR OTHER MARKET EXISTS OR WILL DEVELOP
          FOR  THE  PARTNERSHIP   INTERESTS.   PARTNERSHIP   INTERESTS  ARE  NOT
          TRANSFERABLE   WITHOUT  THE   CONSENT  OF  THE  GENERAL   PARTNER  AND
          SATISFACTION OF CERTAIN OTHER CONDITIONS INCLUDING THE AVAILABILITY OF
          AN  EXEMPTION  UNDER  THE  SECURITIES  ACT OF 1933 AND  VARIOUS  STATE
          SECURITIES LAWS.  INVESTORS SHOULD PROCEED ONLY ON THE ASSUMPTION THAT
          THEY  MAY  HAVE TO BEAR  THE  ECONOMIC  RISK OF AN  INVESTMENT  IN THE
          PARTNERSHIP INTERESTS FOR AN INDEFINITE PERIOD OF TIME.
                                                  _______________


            OFFERING MEMORANDUM AND CERTAIN SUPPLEMENTAL INFORMATION

          The sole purpose of this summary (the  "Summary")  is to set forth the
          terms and  conditions of the sale and  assignment  of the  Partnership
          Interests  in the  Partnership  by Litho,  and to provide  information
          concerning the Partnership's  operations since the closing on April 1,
          1996 of the  Partnership's  initial  offering  of limited  partnership
          interests (the "Offering").  The terms of the  Partnership's  Offering
          and a  description  of its business and the risks  associated  with an
          investment  in the  Partnership  are set  forth  in the  Partnership's
          Confidential  Private Placement  Memorandum dated January 8,  1996, as
          amended and as supplemented (the  "Memorandum"),  and are incorporated
          herein  by  reference.  A copy  of  the  Memorandum  accompanies  this
          Summary.  Prospective assignees are also urged to review carefully the
          Partnership's  Agreement of Limited Partnership included as Appendix B
          to the Memorandum (the  "Partnership  Agreement").  Capitalized  terms
          used herein and not  otherwise  defined  shall have the  meanings  set
          forth in the Memorandum.

             IN MAKING AN INVESTMENT DECISION, PROSPECTIVE ASSIGNEES
      MUST RELY ON THEIR OWN EXAMINATION OF THE PARTNERSHIP, ITS BUSINESS
           AND OPERATIONS. PROSPECTIVE ASSIGNEES SHOULD NOTE THAT AN
      INVESTMENT IN THE PARTNERSHIP INTERESTS IS SUBJECT TO CERTAIN RISKS.
                     SEE "RISK FACTORS" IN THE MEMORANDUM.

          Between January 8, 1996 and the closing of the Offering, certain terms
          of the Offering changed as reflected in supplements to the Memorandum,
          copies  of  which  are  herewith  provided  and  should  be  carefully
          reviewed.  In summary,  the First  Supplement dated February 23, 1996,
          provided  the   following   clarifications   and   amendments  to  the
          Memorandum:

          (i) Professional  Liability  Insurance -- Prior to beginning  business
          operations,  the Partnership agreed to acquire professional  liability
          insurance covering
 

                                                         3
<PAGE>

          itself  and its  employees  in an  amount  of  $3,000,000  per  claim,
          $5,000,000  in the  aggregate.  Such  insurance is in effect as of the
          date of this Summary.

          (ii)  Lithostar  Service  Contract -- The Siemens bid of $120,000 per
          year for the  Lithostar  maintenance  contract  was  accepted  by the
          Partnership.  Under the Siemens contract,  most maintenance during the
          first year of operation is covered by a warranty. Service expenditures
          in the  initial  year are  expected  to be  limited  to the  estimated
          $10,000 cost of shock tube  replacements  which are not covered by the
          manufacturer's warranty.

          (iii)  Management Fee -- The Memorandum  disclosed that Litho,  in its
          capacity as the management agent of the  Partnership,  would receive a
          management fee from the Partnership equal to the greater of $8,000 per
          month or 7.5% of Partnership net cash flow per month.  Litho agreed to
          accept a management fee of 7.5% of Partnership net cash flow per month
          with no guaranteed minimum amount.

          (iv) Partnership Books, Billings and Collection -- Except as otherwise
          required by federal rules and regulations regarding government program
          patients,  the Partnership  ordinarily would maintain clinic books and
          records, and provide all billing and collection services.

          (v)  Noncompetition - Litho and its Affiliates agreed that, during the
          life of the  Partnership,  they  would  not own,  operate  or manage a
          competing lithotripsy business on the islands of Hawaii.

          (vi) Service  Area -- The  Partnership's  mobile  service area will be
          limited to the island of Oahu.

          (vii) Extension of Offering  Termination  Date -- The First Supplement
          extended the original offering termination date from February 23, 1996
          to March 16, 1996.

          The Second  Supplement  dated  March 15,  1996  further  extended  the
          offering termination date to April 1, 1996. The Third Supplement dated
          April 1, 1996 closed the Offering effective at 5:00 p.m., Hawaii time,
          April 1, 1996. Subsequent to the closing of the Offering, and pursuant
          to the terms of the Memorandum,  the Partnership  continued to solicit
          subscriptions  for  unsold  Units  until  April  15,  1996.  See  "The
          Partnership - Closing of the Partnership's Offering" below.

          Effective  April 26,  1996, the former shareholders of Litho listed in
          the  Memorandum  sold all of  their  shares  of  Litho  stock to Prime
          Medical Services,  Inc., a Delaware corporation  ("Prime").  Since the
          date of the sale,  Litho's management has undergone certain changes as
          discussed in more detail below. See "The Partnership - Management".

 

                                                         4
<PAGE>

          Following  the  Closing,   the  Partnership  also  negotiated  certain
          modifications  to the terms of the Loan. See "Sources and Applications
          of Funds" below.

                                 THE PARTNERSHIP

          The  Partnership  was organized  and created under the Hawaii  Uniform
          Limited  Partnership  Act, as amended,  on December 14, 1995. Litho is
          the  general   partner  of  the  Partnership  and  is  a  wholly-owned
          subsidiary of Prime.  Litho currently holds a 20% economic interest in
          the  Partnership  in its  capacity  as the  general  partner,  and the
          existing limited  partners,  including Litho,  collectively,  hold the
          remaining  80%  economic  interest  in the  form  of  limited  partner
          interests in the  Partnership.  Litho holds an  aggregate  21% limited
          partner interest in the Partnership, and affiliates of Prime and Litho
          hold an aggregate 4% limited partner interest in the  Partnership.  In
          the event all the Partnership  Interests  hereby offered are assigned,
          Litho will continue to own a 15% limited  partnership  interest in the
          Partnership.  The principal  address of the  Partnership  and Litho is
          2008 Litho Place,  Fayetteville,  North Carolina 28304.  The telephone
          number of the Partnership and Litho is (800) 682-7971.

Closing of the Partnership's Offering

          The  Offering  initially  closed  on April  1,  1996,  with  continued
          solicitation   activity   through   April 15,   1998.  In  total,  the
          Partnership  sold 80  units  of  limited  partnership  interest  to 35
          investors  (including  Litho and its  Affiliates) for $190,750 in cash
          and $1,321,611.20 in guarantees of Partnership  principal  obligations
          under the Loan (up to  $1,652,014).  Because the  Partnership  had not
          received  its  CON as of  the  closing,  the  subscription  funds  and
          guarantees of the Limited Partners  remained in escrow with the Escrow
          Agent in accordance with the terms of the Offering  pending receipt of
          the CON. See  "Regulation - State Issues" and "Terms of the Offering -
          Extended Escrow" in the Memorandum.

Partnership Operations

          Following the grant of a CON to the  Partnership  in March,  1997, the
          Partnership  notified the Escrow Agent and the  subscription  funds of
          the  Limited  Partners  and the Loan  proceeds  were  released  to the
          Partnership. The Partnership's Lithostar was acquired from Siemens in
          September,  1997 and is covered  by a  manufacturer's  warranty  until
          September 4, 1998 for most repairs and maintenance.  The Partnership's
          Lithostar is housed in a mobile coach  manufactured by AK Associates,
          Inc., an Affiliate of Litho (the "AK Coach"). In Litho's opinion,  the
          AK Coach is better suited for the Partnership's mobile operations than
          the Calumet  Coach  originally  anticipated  to be  purchased  for the
          Lithostar.  The AK Coach is 40' long,  8' wide and 13' 6" high. It is
          equipped with complete HVAC and a humidifying  system. The AK Coach is
          fully wired and includes full lighting  with  emergency  battery power
          lighting.  Four hydraulic stabilizing stands are provided, one at each
          corner of the unit, to level the AK Coach at each treatment  site. The
          AK Coach includes a
 

                                                         5
<PAGE>

          2,000 pound  capacity  patient lift platform and is warranted  against
          certain defects for a period of one year from the date of purchase.

          The  Partnership's  lithotripsy  operations  commenced on September 5,
          1997.  The  Partnership  is now a  party  to  contracts  with  several
          hospitals  for the  provision of  lithotripsy  services in the Service
          Area,  including  Castle Medical  Center and Wahiwa  General  Hospital
          pursuant  to which the  Partnership  is  responsible  for  billing and
          collecting  from private  insurance  payors and the hospitals bill and
          collect from  government  program  payors.  The  contract  with Castle
          Medical  Center  is  presently  being   renegotiated  to  convert  the
          agreement from a services  arrangement to a lease arrangement pursuant
          to which the Partnership  would lease the Lithostar  Mobile System to
          the hospital for a fixed monthly rental fee.

          The  Partnership  also has entered into  agreements  with St.  Francis
          Medical Center and St. Francis-West  pursuant to which the Partnership
          receives  a  portion  of the  per  procedure  treatment  fee  and  the
          hospitals  are   responsible  for  billing  and  collecting  from  all
          insurance  program payors.  The Partnership and Kaiser  Permanente are
          also presently  negotiating a services  agreement and the  Partnership
          has already began lithotripsy  operations at Kaiser under the terms of
          a  letter  of  intent  providing  for per  procedure  payments  to the
          Partnership.

          The contract terms are primarily for one year and renew  automatically
          for successive  periods unless  terminated by either party.  Insurance
          contracts  with the major  payors  covering the Service Area have been
          completed  with a per case  treatment fee payable to the  Partnership.
          The treatment fees vary from insurance  company to insurance  company,
          and the General Partner has agreed on behalf of the Partnership to the
          rates in each contract.

                                   MANAGEMENT

          Since the original date of the Memorandum,  the former shareholders of
          Litho listed in the Memorandum sold all of their shares of Litho stock
          to Prime. Prime is the largest provider of lithotripsy services in the
          United  States  and owns  interests  in  and/or  manages a total of 62
          lithotripters,  of which 55 are  mobile  and  seven  are  fixed  site.
          Prime's  lithotripters  performed  approximately  20% of the estimated
          180,000 lithotripsy  procedures in the United States in 1997. Prime is
          a public  company  listed on  NASDAQ  and is the sole  shareholder  of
          Litho.  Certain  changes have occurred in Litho's  management from the
          description  in the  Memorandum.  See  "The  General  Partner"  in the
          Memorandum.  Dr.  Jenkins  remains a Director and is the President and
          Chief Executive  Officer of Litho. He also serves as Prime's President
          and Chief Executive Officer and is a member of its Board of Directors.
          Other  senior  management  positions  at Litho are  currently  held as
          follows:

         Name                                        Offices Held

         Kenneth S. Shifrin                          Director
         Cheryl L. Williams                          Vice President and Director
         Philip J. Gallina                           Secretary and Treasurer

 

                                                         6
<PAGE>


          The Memorandum  discusses the  credentials  of all current  members of
          Litho's senior  management  team except Mr. Shifrin and Ms.  Williams.
          Mr.  Shifrin is a Director and Chairman of Prime's  Board of Directors
          and is the Chairman and Chief Executive Officer of American Physicians
          Service Group,  Inc.  ("APS") with whom he has held several  positions
          since February 1985.  Ms.  Williams has held financial  positions with
          APS Systems,  Inc. (a  wholly-owned  subsidiary  of APS) and Fairchild
          Aircraft  Corporation  and  presently  also  serves as  Prime's  Chief
          Financial Officer, Vice President-Finance and Secretary.


                               REGULATORY UPDATES

Federal Issues

     Health  facilities, such as the Partnership, which seek  reimbursement  for
     services  covered by Medicare or Medicaid  (collectively,  the  "Government
     Programs")  are subject to federal  regulation.  As noted in the Memorandum
     (See "Regulation - Federal Issues" in the Memorandum),  Congress has passed
     legislation  prohibiting provider self-referral of patients for "designated
     health services," which include inpatient and outpatient  hospital services
     (42 U.S.C.  Section 1395nn (Supp.  1994)) ("Stark II").  Subject to certain
     exceptions,  Stark II provides that if a physician (or a family member of a
     physician) has a financial  relationship with an entity:  (i) the physician
     may not make a  referral  to the entity for the  furnishing  of  designated
     health services  reimbursable under the Government  Programs;  and (ii) the
     entity may not bill Government Programs,  any individual or any third-party
     payor for designated  health  services  furnished  pursuant to a prohibited
     referral.  The  prohibitions  of Stark II only  apply to the  treatment  of
     Government Program patients,  and have no application to services performed
     for non-government program patients.  Entities and physicians committing an
     act in violation of Stark II are  required to refund  amounts  collected in
     violation of the statute and also are subject to civil  monetary  penalties
     and exclusion from the Government Programs.

          As discussed  in the  Memorandum,  on October 19,  1995,  the House of
          Representatives  passed H.R. 2425, titled "An Act to amend Title XVIII
          of the  Social  Security  Act to  preserve  and  reform  the  Medicare
          program." Section 15202 of that act attempted to revise the definition
          of "designated  health  services"  subject to Stark II prohibitions to
          exclude  inpatient  and  outpatient  hospital  services.  However,  on
          December 6, 1995 H.R. 2425 (which was ultimately incorporated into the
          Seven Year Budget  Reconciliation Act of 1995 (H.R. 2491)), was vetoed
          by President Clinton resulting in no substantive changes to Stark II.

          Currently,  the Government  Programs only reimburse for lithotripsy if
          the  service is  provided  through a  hospital.  Accordingly,  in most
          cases,  lithotripsy  services provided by the Partnership are provided
          "under  arrangements"  with hospitals,  whereby the treatment services
          are billed by the contracting hospitals in their names and under their
          Government Program provider numbers.

 

                                                         7
<PAGE>

          Many key terms in Stark II are not adequately  defined and the statute
          is silent regarding its application to health care providers,  such as
          the Partnership,  contracting "under  arrangements" with hospitals for
          the provision of outpatient services such as lithotripsy. In the past,
          Litho has  interpreted  Stark II consistent  with the informal view of
          the General  Counsel for the United  States  Department  of Health and
          Human  Services,  and concluded  that the statute did not apply to the
          Partnership's method of conducting  business.  Based upon a reasonable
          interpretation  of Stark II, by  referring  a  patient  to a  hospital
          furnishing the outpatient  lithotripsy  services "under  arrangements"
          with the Partnership,  a physician  investor in the Partnership is not
          making a referral to an entity (the hospital) in which he or she has a
          financial relationship.

          On January 9, 1998, the Health Care Financing Administration ("HCFA"),
          the federal agency responsible for administering the Medicare program,
          published proposed regulations designed to clarify certain ambiguities
          and  define  certain  terms  of  Stark  II  (the  "Proposed  Stark  II
          Regulations").   The  Proposed   Stark  II   Regulations   and  HCFA's
          accompanying  commentary apply the physician referral  prohibitions of
          Stark II to the Partnership's  present practice of contracting  "under
          arrangements"  with  hospitals for treatment and billing of Government
          Program patients. Under this interpretation, physician Limited Partner
          referrals of  Government  Program  patients to  contracting  hospitals
          would be prohibited.

          At the present  time the  regulations  are only  proposed and HCFA has
          solicited  public  comments on the  regulations.  Litho cannot predict
          when final  regulations  will be issued or the  substance of the final
          regulations,  but the interpretive provisions of the Proposed Stark II
          Regulations may be viewed as HCFA's interim enforcement position until
          final regulations are issued.  Litho will continue to work through the
          American   Lithotripsy   Association  to  encourage  the  adoption  of
          legislation  supportive of  urologists'  ability to lawfully  maintain
          ownership interests in ventures that provide  lithotripsy  services to
          all of their patients.  Additionally, Litho will continue to carefully
          review  the  Proposed  Stark  II  Regulations  and  accompanying  HCFA
          commentary,  and explore other  alternative  plans of operations  that
          would allow the Partnership to operate in compliance with Stark II and
          its final regulations.

          In the event  Litho is unable to devise a plan  pursuant  to which the
          Partnership  may  operate  in  compliance  with Stark II and its final
          regulations, Litho is obligated under the Partnership Agreement either
          (i) to purchase (or cause the sale of ) the  Partnership  Interests of
          all the Limited  Partners at their  Capital  Account  values,  or (ii)
          dissolve  and   liquidate  the   Partnership.   See  "Summary  of  the
          Partnership   Agreement  -  Optional   Purchase  of  Limited   Partner
          Interests"  in the  Memorandum.  Furthermore,  as noted above,  HCFA's
          adoption of the current  Proposed  Stark II  Regulations as final will
          mean that the  Partnership and its physician  Limited  Partners are in
          violation of Stark II. In such instance,  the  Partnership  and/or the
          physician  Limited  Partners  may be  required  to refund any  amounts
          collected  from  Government  Program  patients  in  violation  of  the
          statute,  and may be subject to potential civil monetary penalties and
          possible exclusion from the Government Programs.


 

                                                         8
<PAGE>

          In any event,  prospective  assignees should consider that whenever an
          additional  offering  of  ownership  interests  is made  available  to
          persons with the potential to refer patients for services,  there is a
          possibility that HCFA may question whether the ownership interests are
          being  provided in exchange for potential  referrals by the new owners
          or for a legitimate business reason.  Remuneration,  which can include
          the provision of an ownership interest in a facility to which a person
          would refer  patients for services,  may constitute a violation of the
          federal fraud and abuse statute  (Section 1128B of the Social Security
          Act).  Whether  the  offering of  ownership  interests  to  additional
          investors who may refer patients to the Partnership might constitute a
          violation of this  legislation  must be  determined in each case based
          upon the specific facts involved.  The various  mechanisms in place to
          avoid providing a financial  benefit to prospective  purchasers of the
          Partnership Interests for any referrals of patients, and the existence
          in Litho's view of valid  business  reasons to assign the  Partnership
          Interests  unrelated to the  prospective  assignee's  ability to refer
          patients,  form the basis of Litho's position that this offering is in
          compliance  with  legal  requirements;  however,  HCFA  has  not  been
          requested  to  review  this  offering  (or  offerings  of this type to
          additional  investors)  to  determine  whether it agrees with  Litho's
          position  in  this  regard.   Thus,   federal  and  state   regulatory
          authorities  may  interpret  this  offering  as a means  to  illegally
          influence the referral  patterns of the  prospective  assignees of the
          Partnership   Interests.   Because   there  is  no   legal   precedent
          interpreting  circumstances similar to these facts, it is not possible
          to predict with certainty how this issue may be resolved if litigated.

                        SOURCES AND APPLICATIONS OF FUNDS

          The  following  table sets forth the  sources of the  available  funds
          after the  closing of the  Offering  in April 1, 1996 and their use by
          the  Partnership  through  the  date  of  start-up  of  operations  in
          September 1997:


Sources of Funds
Limited Partners Contribution (1)        190,750                        (11.29%)
General Partner Contribution (1)          47,688                        ( 2.82%)
Loan (2)                               1,451,816                        (85.89%)
         TOTAL SOURCES                $1,690,254                       (100.00%)
Application of Funds
Lithostar (2)                            850,000                        (50.29%)
Coach (2)                                290,373                        (17.18%)
Hawaii Use Tax (2)                        46,224                        ( 2.73%)
Shipping (2)                              15,219                       (   .90%)
Organizational and Start-up Costs(3)      40,000                       (  2.37%)
Syndication Costs (4)                     31,610                        ( 1.87%)
Working Capital and Reserve (5)          416,828                        (24.66%)

         TOTAL APPLICATIONS           $1,690,254                       (100.00%)


 
                                                         9
<PAGE>

Notes to Sources and Applications of Funds Table

          (1) Represents the actual cash proceeds from the Partnership's initial
          Offering.

          (2) The  Partnership  used the Loan proceeds to acquire the Lithostar
          ($850,000),  the AK Coach (including federal excise  taxes)($290,373),
          to pay the actual  Hawaii  use tax on the AK Coach and the  Lithostar
          ($46,224)  and to ship  the AK  Coach  and the  Lithostar  to  Hawaii
          ($15,219).  The purchase prices listed for the Lithostar and AK Coach
          differ from the prices listed for the equipment in the Memorandum. The
          differences in the prices reflects  discounts on the Lithostar and AK
          Coach negotiated by Litho and made available to the  Partnership.  The
          Partnership  has since  made a draw of  $24,525  against  the  working
          capital line provided by the Bank. See Note 5 below.

          (3) This amount includes the (i) legal and accounting costs associated
          with organizing the Partnership,  preparing the Partnership Agreement,
          the Management  Agreement and other ancillary  Partnership  documents,
          (ii) management  fees paid to Litho prior to the  commencement  of the
          Partnership's operations and (iii) all out-of-pocket expenses incurred
          by the General Partner and its Affiliates  associated with the initial
          start-up of the Partnership's operations.

          (4) Includes commissions paid to the Sales Agent, reimbursement to the
          Sales Agent for out-of- pocket expenses  incurred in selling the Units
          in the Offering and legal and  accounting  costs  associated  with the
          preparation of the Memorandum.

          (5) The  Partnership  has  extended  the term of the  credit  line and
          interest only payment  period under the Loan until August 25, 1998, at
          which  time  payments  will be due in  accordance  with  the 42  month
          schedule  outlined  in the  Memorandum.  See  "Proposed  Activities  -
          Funding for Partnership  Activities - General" in the Memorandum.  The
          Partnership  to date has borrowed  $24,525 of the  $250,000  available
          limit under the working  capital  credit line and has made a principal
          prepayment  of  $100,000  on April  16,  1998.  As of the date of this
          Summary, the Loan balance is approximately $1,125,490.





            [The remainder of this page is intentionally left blank.]








 
                                                        10
<PAGE>

                     FINANCIAL CONDITION OF THE PARTNERSHIP

          Set forth below are the  Partnership's  internally  prepared,  accrual
          based  (i) Income  Statement for the year ended  December 31, 1997 and
          for the five-month period ended May 31, 1998 and (ii) Balance Sheet as
          of December 31, 1997 and as of May 31, 1998.

                       PACIFIC MEDICAL LIMITED PARTNERSHIP
                         STATEMENT OF INCOME (UNAUDITED)

<TABLE>
<S>                                                <C>            <C>                    <C>            <C>    
                                                         Year Ended                      Five-Month Period Ended
                                                      December 31, 1997                       May 31, 1998
                                                                   Percentage of                        Percentage of
                                                      Amount       Total Revenue           Amount       Total Revenue
Operating Revenue                                   $308,025                 100         $546,795                 100

Salaries and Benefits                                 51,672                16.8           57,305                10.5
Mobile Unit Expense                                    2,916                  .9           45,087                 8.2
Travel and Entertainment                              44,770                14.5           14,434                 2.6
Legal and Professional Fees                           10,013                 3.3            6,051                 1.1
Management Overhead Allocation(1)                     15,503                 5.0           36,548                 6.7
Depreciation and Amortization                        135,944                44.1          105,494                19.3
Other Administrative Expenses                         20,834                 6.8           16,252                 3.0
      Total                                         $281,652                91.4         $281,171                51.4
Net Operating Income                               $  26,373                 8.6         $265,624                48.7
Other Income                                           2,846                  .9           12,558                 2.3
Other Income, Net                                   (29,956)                 9.7        ($29,914)                 5.5
Net Income                                        ($  3,583)                 1.2         $235,710                43.1

</TABLE>

     (1) The amount shown represents the management fees paid to  Lithotripters,
Inc. as management agent for the Partnership.
 

                                                        11
<PAGE>

                       PACIFIC MEDICAL LIMITED PARTNERSHIP
                                  BALANCE SHEET


                                              As of 12/31/97       As of 5/31/98
Cash                                                 $25,938             $72,241
Accounts Receivable                                  308,025             518,380
Prepaid Items                                          3,745               3,437
Property/Equipment (Net)                           1,077,320             975,159
Organizational Costs (Net)                            36,666              33,332
                                                                               
    Total Assets                                  $1,451,694          $1,602,549
Accounts Payable                                      12,224               3,284
Accrued Liabilities                                   20,964              81,943
Long Term Debt*                                    1,201,341           1,125,490
Due to Affiliates                                      4,121               2,877
Retained Earnings                                    (3,583)             (3,583)
Net Income                                                 0             235,710
Partnership Capital**                                216,627             206,828
Partners' Distributions***                                 0            (50,000)
    Total Liabilities and Partner's Capital       $1,451,694          $1,602,549


          * See note 5 in Sources and Applications of Funds Above.

          ** The amount of  Partnership  Capital  shown is the amount of initial
          Partner  Capital  Contributions  less the  syndication  costs  for the
          Offering, plus interest earned thereon.

          *** Although the Partnership made a cash  distribution to its Partners
          at the end of the first  quarter of 1998,  no  assurance  can be given
          that  distributions  in the  same  or any  amount  will be made in the
          future.  See "Summary of the Partnership  Agreement - Profits,  Losses
          and Distributions" in the Memorandum.



 

                                                        12
<PAGE>

                                  THE OFFERING

The Partnership Interests and Purchase Price

          Litho is hereby offering for sale and assignment Partnership Interests
          which  in  the  aggregate  represent  a 6%  economic  interest  in the
          Partnership.  Each  Partnership  Interest  represents  a  1%  economic
          interest in the Partnership.  The price for each Partnership  Interest
          is  $5,000 in cash  payable  at  assignment,  plus the  assumption  of
          Litho's   guaranty   of  the   Partnership's   principal   obligations
          attributable  to  the  purchased   Partnership   Interests  (up  to  a
          $16,520.14 principal guaranty obligation per 1% Partnership Interest).
          The Guaranty is included in the assignment materials accompanying this
          Summary (the "Assignment Packet"). Litho has arranged for financing of
          the Partnership  Interests'  purchase price with First Citizens Bank &
          Trust Company,  Fayetteville,  North Carolina (the "Bank"). Therefore,
          in lieu of paying the purchase  price in cash,  prospective  assignees
          may  execute  and  deliver to the Sales  Agent upon  delivery of their
          Assignment  Packets,  a  Limited  Partner  Note,  a Loan and  Security
          Agreement,   Security   Agreement  and  two  Uniform  Commercial  Code
          Financing Statements ("UCC-1's") (collectively, the "Loan Documents").
          See  "The  Offering-  Limited  Partner  Loans"  and the  forms of the
          Limited  Partner  Note,  the Loan and Security  Agreement and Security
          Agreement  attached  to the Bank  Commitment  as  Exhibits A, B and C,
          respectively,  which is attached hereto as Appendix A, and the UCC-l's
          attached as a part of the Assignment  Packet.  The cash portion of the
          purchase  price for the  Partnership  Interests  has been  arbitrarily
          determined by Litho and is not necessarily  indicative of their value.
          No assurance can be given that the Partnership Interests,  if and when
          transferable,  could be sold for the price set forth herein or for any
          amount. For each 1% Partnership Interest it owns, Litho paid $2,230 in
          cash and  delivered  a guaranty of 1% of the Loan  obligations.  Litho
          purchased  its  Partnership  Interests  on the same terms as the other
          Limited  Partners  except  that  the cash  purchase  price it paid was
          reduced  by $270 per 1%  limited  partnership  unit  because  no sales
          commission  was payable on purchases by Litho or its Affiliates in the
          Offering.

          The cash purchase price,  the Guaranties and, if applicable,  the Loan
          Documents  of the  prospective  assignees  will be held in an interest
          bearing escrow account with the Bank, until either the application for
          assignment  is accepted by Litho and  approved by the Bank,  Litho (or
          the Bank, in the case of a prospective assignee seeking to finance all
          or a  portion  of his  or its  Partnership  Interest  purchase  price)
          rejects the application or this assignment offering is terminated.
    
          A prospective assignee who pays his or its purchase price with a check
          upon submission of his or its Assignment  Packet, and whose assignment
          materials  are received  and accepted by Litho,  will become a Limited
          Partner in the  Partnership.  Acceptance of the assignment by Litho is
          conditioned on (i) the  satisfaction of the suitability  standards for
          an  investor  in the  Partnership  as set  forth  below  and  (ii) the
          prospective  assignee's  Guaranty  being  approved  by the Bank.  Upon
          admission as a Limited Partner, the prospective  assignee's cash funds
          (plus  interest)  will  be  released  from  escrow  to  Litho  and the
          Guaranties  will be released to the Bank.  If a  prospective  assignee
          finances  his or its  purchase  price with the  proceeds  of a Limited
          Partner  Note,  Litho's  decision  to sell and assign the  Partnership
          Interest to such prospective assignee will be further conditioned upon
 

                                                        13
<PAGE>

          the Bank's approval of the  prospective  assignee's Loan Documents and
          the  funding  of the loan  contemplated  thereby.  If the  prospective
          assignee is acceptable to Litho,  after receipt of the Bank's approval
          of his or its Loan Documents,  Litho will inform the Escrow Agent that
          it will assign the Partnership  Interest to the  prospective  assignee
          and the Escrow Agent will  release the Loan  Documents to the Bank and
          the Bank will pay the proceeds from the Limited Partner Loan to Litho.
          The  prospective  assignee  will  then  be  assigned  the  Partnership
          Interest and become a Limited  Partner in the  Partnership at the time
          the Bank  releases the proceeds of his or its Limited  Partner Loan to
          Litho.  In the event an  application  is not accepted,  all cash funds
          (without interest),  the Guaranty and Loan Documents,  if any, held in
          escrow  will  be  returned  to  the  rejected  applicant.   Notice  of
          acceptance of the assignment  materials and admission of a prospective
          assignee as a Limited  Partner in the  Partnership  will be  furnished
          promptly after the Assignment Closing (as defined below).

          Applications for the sale and assignment of Partnership Interests will
          be taken by MedTech  Investments,  Inc., a North Carolina  corporation
          and an Affiliate of Litho and the Partnership (the "Sales Agent"). The
          Sales  Agent has  entered  into a Sales  Agency  Agreement  with Litho
          pursuant to which the Sales Agent has agreed to act as exclusive agent
          for the assignment of the Partnership Interests. The assignment period
          will  commence  on the date  hereof and will  terminate  at 5:00 p.m.,
          Honolulu, Hawaii time on August 24, 1998 (or earlier in the discretion
          of  Litho),  unless  extended  at  the  discretion  of  Litho  for  an
          additional period not to exceed 180 days (the "Assignment Closing").

Limited Partner Loans

          The purchase  price for the  Partnership  Interests is payable in cash
          with  the  prospective  assignee's  cash  funds or the  proceeds  of a
          Limited  Partner Note.  Financing  under the Limited  Partner Note was
          arranged by Litho with the Bank as  provided  in the Bank  Commitment,
          attached hereto as Appendix A.  If the prospective  assignee wishes to
          finance  the  purchase  price of his or its  Partnership  Interest  as
          provided  herein,  he or she must  deliver  to the  Sales  Agent  upon
          submission of his or its Assignment Packet an executed Limited Partner
          Note and Note Addendum, the form of which are attached as Exhibit A to
          the Bank Commitment,  a Loan and Security Agreement, the form of which
          is attached as Exhibit B to the Bank Commitment, a Security Agreement,
          the form of which is attached as Exhibit C to the Bank  Commitment and
          two UCC-1's,  the form of which are attached to the Assignment Packet.
          The  Limited  Partner  Note is  repayable  in 12  installments  in the
          respective amounts set forth in the Bank Commitment.  The installments
          are payable on each January 15th,  April 15th, June 15th and September
          15th  commencing  on  September  15,  1998,  with  a  13th  and  final
          installment  in an amount equal to the principal  balance then owed on
          the Limited Partner Note and all accrued,  unpaid interest thereon due
          and payable on  September  15,  2001.  Interest  accrues at the Bank's
          "Prime  Rate."  The  Prime  Rate  refers  to  that  rate  of  interest
          established by the Bank and identified as such in literature published
          and circulated within the Bank's offices. Such term is used as a means
          of identifying a rate of interest index and not as a representation by
          the Bank that such rate is  necessarily  the lowest or most  favorable
          rate of  interest  offered  to  borrowers  of the  Bank  generally.  A
          prospective  assignee  shall have no claim or right of action based on
          such  premise.  See the form of the Limited  Partner Note  attached as
          Exhibit A to the Bank Commitment.
 

                                                        14
<PAGE>

          The   Limited   Partner   Note  will  be  secured  by  the  cash  flow
          distributions of the prospective  assignee's  Partnership  Interest as
          provided in the Loan and Security Agreement and the Security Agreement
          and as  evidenced by the UCC-1s.  By  executing  the Loan and Security
          Agreement,  the prospective  assignee  requests the Bank to extend the
          Bank  Commitment  to him or it if he or it is  approved  for a Limited
          Partner Loan. The Loan and Security  Agreement also authorizes (i) the
          Bank to pay the proceeds of the Limited Partner Note directly to Litho
          and Litho to acknowledge  receipt thereof and (ii) the  Partnership to
          remit  funds  directly to the Bank out of the  prospective  assignee's
          share of any distributions  represented by the prospective  assignee's
          percentage  Partnership  Interest to fund installment  payments due on
          the prospective  assignee's  Limited Partner Note. See the form of the
          Loan  and  Security  Agreement  attached  as  Exhibit B  to  the  Bank
          Commitment which is attached hereto as Appendix A.

          If the prospective  assignee is approved by the Bank and is acceptable
          to Litho, the Escrow Agent will release the Loan Documents to the Bank
          and the Bank will pay the  proceeds  of the  Limited  Partner  Note to
          Litho. The prospective  assignee will have substantial  exposure under
          the  Limited   Partner   Note.   Regardless  of  the  success  of  the
          Partnership,  the prospective  assignee will remain liable to the Bank
          under his or its Limited Partner Note according to its terms. The Bank
          can accelerate the entire principal amount of the Limited Partner Note
          in the event the Bank in good faith  believes  the  prospect of timely
          payment or performance by the prospective  assignee is impaired or the
          Bank otherwise in good faith deems itself or its  collateral  insecure
          and  upon  certain  other  events,  including,  but  not  limited  to,
          nonpayment of any  installment.  The Bank may also request  additional
          collateral   in  the  event  it  deems  the   Limited   Partner   Note
          insufficiently secured.
 
          THE PROSPECTIVE  ASSIGNEE  SHOULD REVIEW  CAREFULLY ALL THE PROVISIONS
          CONTAINED IN THE BANK  COMMITMENT AND THE TERMS OF THE LIMITED PARTNER
          NOTE AND LOAN  AND  SECURITY  AGREEMENT  WITH HIS OR ITS  COUNSEL  AND
          FINANCIAL  ADVISORS.  LITHO  DOES  NOT  ENDORSE  OR  RECOMMEND  TO THE
          PROSPECTIVE ASSIGNEES THE DESIRABILITY OF OBTAINING FINANCING FROM THE
          BANK NOR DOES  THE  SUMMARY  OF THE  LOAN  DOCUMENTS  PROVIDED  HEREIN
          CONSTITUTE LEGAL ADVICE.

          A Limited  Partner's  liability under a Limited Partner Note continues
          regardless of whether the Limited Partner remains a limited partner in
          the Partnership. A Limited Partner's liability under a Limited Partner
          Note is  directly  with the Bank.  As a  consequence,  such  liability
          cannot be avoided by claims,  defenses or set-offs the Limited Partner
          may  have  against  the  Partnership  or  Litho.  In  addition  to the
          suitability  requirements  discussed below and in the Memorandum,  the
          prospective  assignee must be approved by the Bank for purposes of its
          delivery of the Limited Partner Note. The Bank has established its own
          criteria  for  approving  the   creditworthiness  of  the  prospective
          assignee  and  has  not  established   objective  minimum  suitability
          standards.  Instead,  the Bank is  empowered  to accept or reject  the
          prospective  assignee. To enable the Bank and Litho to make credit and
          investor  decisions,   respectively,  the  prospective  assignee  must
          complete  and  deliver  to Litho  (i) in  the case of  individuals,  a
          Purchaser  Financial  Statement in the form included in the Assignment
          Packet accompanying this Summary, or a substitute  financial statement
          containing the same information as provided therein, and pages one and
          two of the  prospective  assignee's most recently filed Form 1040 U.S.
          Individual  Income Tax Return,  and (ii) in the case of entities,  one
          copy of the prospective
 

                                                        15
<PAGE>

          assignee s  unaudited  balance sheet and income statement for the past
          two years, and the prospective assignee's federal income tax return.

Offering Exemption

          The  Partnership  Interests  are  being  offered  and will be sold and
          assigned  in  reliance  on (i) the  exemption  from  the  registration
          requirements  of the Securities  Act of 1933 provided by  Section 4(1)
          thereof, and (ii) the exemption from registration  provided by Section
          485-6(9)  of the  Hawaii  Revised  Statutes,  1968,  as  amended.  The
          suitability  standards set forth below have been  established in order
          to comply with the terms of these offering exemptions.

Suitability Standards

          An investment in the  Partnership  involves a high degree of financial
          risk and is suitable only for persons of substantial  financial  means
          who have no need for  liquidity  in, and who can bear the loss of, the
          entire  Partnership  Interest  investment.  See "Risk  Factors" in the
          Memorandum.  Each  assignee  must  also be at least  21 years  old and
          otherwise  duly  qualified  to acquire  and hold  limited  partnership
          interests.  Litho  reserves  the right to  refuse  to sell and  assign
          Partnership Interests to any prospective assignee, subject to federal,
          Hawaii and other applicable state securities laws.

          Each  prospective  assignee  must  make an  independent  judgment,  in
          consultation  with  his or its  own  counsel,  accountant,  investment
          advisor  or  business  advisor,  as to whether  an  investment  in the
          Partnership  Interests is  advisable.  The fact that such person meets
          Litho's or the Bank's suitability  standards should in no way be taken
          as an indication  that an investment in the  Partnership  Interests is
          advisable.

          It is anticipated that suitability  standards  comparable to those set
          forth  above will be imposed by the  Partnership  in  connection  with
          resales,  if any, of the  Partnership  Interests.  Transferability  of
          Partnership  Interests  is  severely  restricted  by  the  Partnership
          Agreement  and  the   Assignment   Agreement.   See  "Summary  of  the
          Partnership Agreement" in the Memorandum.

Special Transferee Agreement

          Because the  Partnership  Agreement does not contemplate the ownership
          of  limited  partnership  interests  by  a  closely-held  entity,  the
          assignment of a Partnership  Interest to a prospective entity assignee
          is further  conditioned  upon the  execution  of a Special  Transferee
          Agreement.  The  Special  Transferee  Agreement  provides  for certain
          options  and  calls  upon the  occurrence  of the  dissolution  of the
          entity,  a change in control or ownership and other events as provided
          therein  with respect to the  Partnership  Interest to be held by such
          entity.
 
                                        16
<PAGE>

How to Apply

          Prospective  assignees who meet the  qualifications  for investment in
          the  Partnership  as set  forth in this  Summary,  may  apply  for the
          purchase  and  assignment  of a  Partnership  Interest  by  doing  the
          following:

          a.  Executing the  Assignment  Agreement and Power of Attorney and the
          Counterpart  Signature Page to the Partnership Agreement (the forms of
          which  are  included  in  the  Assignment  Packet   accompanying  this
          Summary);

          b.  Completing,  dating and signing the Guaranty (the form of which is
          included in the Assignment Packet accompanying this Summary);

          c. Completing,  dating and signing the  Questionnaire and Statement of
          Assignee  (the  form of which is  included  in the  Assignment  Packet
          accompanying this Summary);

          d. Having any Purchaser  Representative who has acted on behalf of the
          prospective  assignee in connection  with the purchase and  assignment
          complete, date and sign the Purchaser Representative  Questionnaire (a
          copy of which is available upon request to Litho);

          e.  Either  (i) in the case of  individuals,  completing,  dating  and
          signing the Purchaser Financial Statement (in the form included in the
          Assignment Packet),  or in lieu thereof,  substituting the prospective
          assignee's own personal executed financial statement,  as long as such
          substitute  statement  contains  the same  information  as in the form
          provided,  and  attaching  to the  Purchaser  Financial  Statement  or
          substitute  statement,  as the case may be,  pages  one and two of the
          assignee's  most recently filed Form 1040 U.S.  Individual  Income Tax
          Return,  or (ii) in the case of entities,  attaching  one copy each of
          the  prospective   assignee's   unaudited  balance  sheet  and  income
          statement  for the  past two  years,  and the  prospective  assignee's
          income tax return;

          f.  If the  prospective  assignee  is  financing  his or its  purchase
          pursuant to the Limited  Partner Loan,  by completing  and signing (on
          the front and the back),  but not dating,  a Limited  Partner Note and
          signing the form of Note Addendum  attached thereto (the form of which
          Limited  Partner Note (including the Note Addendum) is included in the
          Assignment   Packet  and  is   attached  as  Exhibit  A  to  the  Bank
          Commitment);

          g.  If the  prospective  assignee  is  financing  his or its  purchase
          pursuant to the Limited  Partner Loan, by completing  and signing (but
          not  dating)  the Loan and  Security  Agreement  (the form of which is
          included in the Assignment  Packet and is attached as Exhibit B to the
          Bank Commitment);

          h.  If the  prospective  assignee  is  financing  his or its  purchase
          pursuant to the Limited  Partner Loan, by completing  and signing (but
          not dating) the Security Agreement (the form
 

                                                        17
<PAGE>

          of which is  included  in the  Assignment  Packet and is  attached  as
          Exhibit C to the Bank Commitment);

          i.  If the  prospective  assignee  is  financing  his or its  purchase
          pursuant to the Limited  Partner Loan,  by completing  and signing two
          copies of the UCC-1 (the form of which is included  in the  Assignment
          Packet);

          j. In the case of an entity assignee, dating and executing the Special
          Transferee Assignee Agreement included in the Assignment Packet; and

          k.  Delivering  or mailing all of the  foregoing to the Sales Agent at
          2008 Litho Place, Fayetteville, North Carolina 28304. If a prospective
          assignee wishes to pay for his or its Partnership Interest in cash, he
          or she should  delete  steps (f),  (g),  (h) and (i) above and instead
          enclose a check in the  amount of $5,000 per 1%  Partnership  Interest
          payable to "First-Citizens  as Escrow Agent for Lithotripters,  Inc. -
          Pacific Medical".

          All   information   provided  by  prospective   assignees,   including
          information  in the  Questionnaire  and  Statement of Assignee and any
          purchaser  financial  information,  will be kept  confidential and not
          disclosed  except  to  Litho,  the  Partnership,  the Bank  and  their
          respective  counsel and Affiliates  and, if required,  to governmental
          and regulatory  authorities.  If a prospective  assignee would like to
          request  additional  information  concerning the Partnership  prior to
          making a decision to acquire a Partnership  Interest,  please  contact
          either the Sales Agent (Jim Brady,  (800)  423-1055) or Litho  (Joseph
          Jenkins, M.D., (800) 682-7971).

                                                        18