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Exhibit 99.1
PRESS RELEASE
NQCI TERMINATES MERGER AGREEMENT
AND LICENSE AGREEMENT
BEVERLY HILLS, CA - (BUSINESS WIRE) - January 3, 2007--National
Quality Care,
Inc. (OTCBB:NQCI) ("NQCI") announced today that effective as of
December 29,
2006, it has terminated certain agreements and transactions with
Xcorporeal,
Inc., including a Merger Agreement and a License Agreement, each
dated as of
September 1, 2006. In addition, NQCI has terminated all of the
transactions and
other documents and agreements between NQCI and Xcorporeal that are
referenced
in or contemplated by the Merger Agreement or the License
Agreement. NQCI stated
in its termination notice to Xcorporeal that NQCI had exercised its
termination
rights with respect to such agreements, documents and transactions
on the basis
of Xcorporeal's continuing, uncured and uncurable breaches of the
Merger
Agreement and its fraudulent and other wrongful conduct related to
the Merger
Agreement, the License Agreement and certain related matters.
NQCI further announced that it has filed a lawsuit against Victor
Gura, a former
director and employee of NQCI, alleging that Dr. Gura breached his
employment
agreement with NQCI and engaged in certain other wrongful acts.
NQCI has named
Xcorporeal as an additional defendant in this lawsuit. NQCI is
seeking
injunctive relief, compensatory damages, attorneys' fees, punitive
damages and
other relief from both Dr. Gura and Xcorporeal. Xcorporeal has
previously filed
a demand for arbitration alleging that NQCI has effected an
anticipatory breach
of the License Agreement. NQCI contends that the License Agreement
is null and
void and inte
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