March 27, 2001
AMERIPATH AND AMPERSAND MEDICAL FORM STRATEGIC ALLIANCE

AmeriPath to Provide Testing Services, Develop Products, Purchase Innovative Products and Take Equity Position

RIVIERA BEACH, Fla., and CHICAGO, Ill., March 27, 2001 -- In a move that will provide patients, laboratories, pathologists, and other physicians with access to leading edge medical technology, AmeriPath, Inc. (NASDAQ: PATH) and Ampersand Medical Corporation (OTCBB: AMPM) today jointly announced that they have formed a strategic alliance. 

The alliance includes the joint development of new technologies and products.   AmeriPath will receive an undisclosed amount of equity in Ampersand as compensation for this development work. Additionally, AmeriPath will provide laboratory diagnostic services to Ampersand for continued research and development, as well as clinical trials.  Ampersand will pay AmeriPath for these services under favorable terms.

AmeriPath will work with Ampersand to bring to market several of Ampersand's technologies and products, including its InPath In-CellÔ HPV Test.  In-Cell HPV is a new technology for detecting Human Papillomavirus (HPV) through the identification of increased activity of the E6 and E7 oncogenes for HPV, the specific strains of HPV implicated in cervical cancer. 

Another technology is the development of CerviPakÔ, Ampersand's proprietary disposable liquid cell preservation and slide-preparation system that requires no instrumentation. The companies also intend to co-develop several new InPath "cocktails" for the detection of abnormal cells in urologic and other cancers and for endocervical cells in Pap test samples.

"Ampersand and AmeriPath share a common vision," stated James C. New, AmeriPath's Chairman and Chief Executive Officer.  "We will be a major participant in the development of more efficient and robust methodologies to provide superior diagnostic and therapeutic information to physicians and our patients. This agreement is possible because of the expertise and technology we have developed at CAD.  It further validates AmeriPath's emerging role in genomics and proteomics."

"This collaboration represents a true partnership with AmeriPath that will allow each of us to strategically participate in the other's future," said Peter P. Gombrich Ampersand's Chairman and Chief Executive Officer.  "Ampersand will benefit from the scientific expertise, professionalism, and medical skills inherent in the AmeriPath organization, particularly its Center for Advanced Diagnostics (CAD).   AmeriPath will play a vital role in our goal to offer low cost / easy access cancer screening on a global basis.  The upside potential from this relationship is tremendous for both companies."

Ampersand's novel e² Collector, designed to replace the sometimes ineffective and painful cervical spatulas and brushes currently used in Pap testing, is an individual component of Ampersand's In-Path System for cervical cancer screening. AmeriPath will purchase and distribute this superior product, being first to market with this cutting-edge technology.   AmeriPath will also conduct a pilot project using Ampersand's SAMBAÔ System, a telemedicine and image management system at several of its sites.

 "Ampersand's expertise in applying proteomics to the fields of cancer screening and diagnostics is truly exciting," said Dennis M. Smith, Jr., MD, AmeriPath's Senior Vice President and Medical Director.   "Its initial application of proteomics for enhancing Pap testing for the detection of cervical dysplasia and cancer is demonstrating impressive results in early studies. More importantly, we believe the platform they have developed will allow for the rapid development of other protein-based, molecular screening and diagnostic tests.  We are well situated to be a part of this evolving field."

An AmeriPath representative will also serve on Ampersand's Medical Advisory Board, which is chartered with aligning the needs of the global medical community with development of new medical devices and tests.

About AmeriPath, Inc.

 AmeriPath, Inc. is the nation's largest company focused on providing anatomic pathology, cancer diagnostics, genomics and physician and laboratory healthcare information services to physicians, hospitals, managed care organizations and national clinical laboratories.  AmeriPath has operations in 21 states, 42 outpatient laboratories, 224 hospital locations, 64 outpatient surgery centers and is affiliated with 420 board-certified pathologists.   AmeriPath's subspecialty expertise includes Dermatopathology, Surgical Pathology, Oncologic Pathology, Hematopathology, Gastrointestinal Pathology, Breast Pathology, Urologic Pathology, Cytopathology and Immunopathology.

About Ampersand Medical

Ampersand Medical Corporation develops cost effective, laboratory-based and point-of-care screening systems to assist in the early detection of cervical, gastrointestinal and other cancers.  The InPathä System is being developed to provide medical practitioners with a highly accurate, low-cost, point-of-care cervical cancer screening system.  Other products include AIM 2000, an automated system facilitating the analysis of medical samples and SAMBAä Virtual Laboratory software used for medical-image processing, database and multimedia case management, telepathology and teleradiology.

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The statements contained in this press release may include "forward-looking statements" which are based on management's current beliefs and expectations.  Past performance is not necessarily indicative of future results.  In addition, forward-looking statements - which are identified by words such as "may", "should", "believe", "expect", "anticipate", "estimate" and similar expressions - as well as any financial and operating estimates, forecasts and/or projections, are subject to a number of risks and uncertainties, many of which involve factors or circumstances which are beyond the Company's ability to control.  These factors, risks and uncertainties could cause actual results to differ materially from historical results or those expected, estimated or anticipated.  These include factors, risks and uncertainties relating to demand for pathology and related services, pricing, federal and state regulation (and compliance), reimbursement rates, government and third party payments, dependence upon pathologists, key personnel and contracts, completion and integration of acquisitions and affiliations, competitive factors and technology.  The forward looking statements included in this press release are made as of the date hereof, and the Company undertakes no obligation to update or revise any such statements, whether as result of new developments, new information or otherwise.  Further information regarding risks, uncertainties and other factors that could affect the Company's financial or operating results, or which could cause actual results to differ materially from those expected or anticipated, are included in the Company's Form 10-K for the year ended December 31, 1999 and subsequent filings with the SEC.