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The SCOOTER Store Statement Regarding Amended Filing From the Government

San Antonio, Texas, July 15, 2005—Today Department of Justice attorneys amended their original counterclaim in the Medicare reimbursement lawsuit filed by The SCOOTER Store against the Department of Health and Human Services. The SCOOTER Store President Mike Pfister stated the following in response:

"The government's original counterclaim admitted that reimbursement requests filed by The SCOOTER Store included all legally-required paperwork and physician certifications. The government failed to make any argument supporting the claim that The SCOOTER Store ever violated the False Claims Act. We filed a motion to dismiss the original counterclaim, which is pending."

"Given the weakness of the original counterclaim, it is no surprise that the government would request the opportunity to amend. In the interest of judicial efficiency and in the spirit of cooperation, The SCOOTER Store consented to the government's request."

"We remain confident in our business practices and look forward to having our day in court. The SCOOTER Store has complied with the law, provided equipment in accordance with physician orders, and tried to navigate the confusing set of demands being issued by government contractors. Meanwhile, the Center for Medicare and Medicaid Services continues to withhold payment for thousands of previously denied claims submitted in compliance with physicians' orders."

"The SCOOTER Store is proud of the services it provides to Medicare beneficiaries and the fact that power mobility not only helps beneficiaries live a safer, healthier, better life, but also saves Medicare, and therefore taxpayers, billions of dollars per year."

Background

The SCOOTER Store is the nation's largest supplier of power mobility equipment. The SCOOTER Store has worked with over 92,000 different physicians and has provided power mobility products to over 205,000 disabled seniors. The company has over 70 locations in 42 states and provides in home service calls to over 6,000 beneficiaries per month. The SCOOTER Store's commitment to ethical and legal business practices resulted in recent third-party accreditation from the Accreditation Commission for Health Care, Inc.

In November 2003, The SCOOTER Store filed two suits in federal court to seek payment of denied Medicare claims for power wheelchairs provided to Medicare beneficiaries. The SCOOTER Store had suspended these suits until January of 2005. In March, the government responded by filing a counterclaim against The SCOOTER Store. The counterclaim was so frivolous and without merit that The SCOOTER Store immediately filed for a summary dismissal of the counterclaim. The government has amended the counterclaim. The SCOOTER Store believes that the government's new counterclaim will be equally frivolous and without merit.

About The SCOOTER Store

Since 1991, The SCOOTER Store has helped provide freedom and independence to more than 350,000 people with limited mobility. The SCOOTER Store offers a full line of durable medical equipment, including power wheelchairs and scooters, lifts, ramps and accessories in all 48 contiguous states plus Puerto Rico. The SCOOTER Store has worked with more than 110,000 physicians, providing expertise and quality service to their patients, and is accredited by the Accreditation Commission for Health Care.

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