SOURCE: Sleep Holdings, Inc.

January 16, 2008 09:00 ET

Sleep Holdings, Inc. Expands and Relocates Huntsville Sleep Center Location

Huntsville Patient Capacity Doubles

DALLAS, TX--(Marketwire - January 16, 2008) - Sleep Holdings Inc., (PINKSHEETS: SLHJ) a leading provider of sleep diagnostics and sleep related therapy equipment, is pleased to announce the relocation and expansion of its Huntsville, Texas sleep center location. The expansion doubles its capacity to 4 beds, which will better meet the growing needs of the community for quality sleep medicine.

Roy Mers, Chief Executive Officer of Sleep Holdings, stated, "The completed relocation and expansion to 3,600 square feet provides us a platform to deliver both state of the art sleep diagnostics and comprehensive sleep therapy to the citizens of Huntsville and its surrounding areas. Our Huntsville team will strive to deliver the highest quality sleep diagnostic services and treat their patients with the highest level of hospitality and comfort while at our sleep centers."

In September 2007, Sleep Holdings acquired the Huntsville, Texas location from REM Sleep Diagnostics, which is a fully integrated center providing sleep diagnostics and therapy products for over four years in the Huntsville community, which is located approximately 50 miles from Houston, Texas.

Center Director John Childers RRT, RPSGT, who owned and operated the Huntsville facility since 2001 added, "The referring doctor's staff and patients are amazed with the quality and overall appearance of the new facility and amenities which include private baths, flat screen TVs and queen size beds. The Spa environment concept has been well received by everyone. Our patients are eager to come back the second night to complete the diagnostic study process."

About Sleep Holdings, Inc.

SLEEP HOLDINGS, INC. is a leading sleep diagnostics and therapy provider which offers a complete range of patient services. The Company's goal is to provide the highest standard sleep studies, medical directorship, patient and doctor education, and most importantly comprehensive sleep therapy solutions to assist patients with an overall improved quality of life

The Company intends to grow its revenues by (i) acquiring small independent sleep centers and corporate owned diagnostic centers, (ii) opening new freestanding sleep centers, (iii) opening new hospital-based sleep centers under our management in conjunction with hospital partners, (iv) provide management services and technical support for sleep disorder centers and (v) increase the Company's internal sales and rental volumes of sleep related therapy equipment and products.

Sleep Holdings, Inc. is actively seeking prospective sellers of sleep diagnostic centers in various markets within the United States and is developing relationships necessary to acquired and fully develop sleep diagnostic and therapy centers.

This news release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks and uncertainties.

Sleep Holdings, Inc. is a registered trademark. Other product or service names mentioned herein are the trademarks of their respective owners.

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