Alegro Health Corp.
TSX VENTURE : AGO

Alegro Health Corp.

August 29, 2007 13:27 ET

Alegro Announces 51% Increase in Q2 Net Income, Following Improved Q1 Results

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) - Alegro Health Corp. (TSX VENTURE:AGO), a provider of medical, surgical and disability management services reported its fiscal 2007 second quarter results (April 1, 2007 to June 30th, 2007). Revenue increased 12.8% from $2,932,426 to $3,308,053, net income increased by 51% from $165,278 to $249,605. Revenue and net income for Q1 2007 were up 2% and 68% respectively.

A continued focus on development of the Company's core business activities has driven revenue and income increases in 2007, primarily due to growth in the medical assessment caseload at Alegro's Work Able Centres subsidiary and increased prostate cancer treatment volume at the Company's Don Mills Surgical Unit.

Additionally, the Company's overhead control programs are paying dividends as reflected in the Q1 and Q2 net income increases from 2006 to 2007.

"While management is pleased with the Q1 and Q2 results, attributed to both increased revenues and overhead controls, it is evident that dramatic and sustainable growth can only be achieved through an aggressive acquisition and diversification program", said Brenda Rasmussen, President and CEO. "To that end we are in the process of evaluating a number of potential acquisitions and joint ventures, the first of which may be entered into as early as Q3 of 2007".

"Although the changing Canadian healthcare landscape offers a number of potential opportunities, Alegro is focusing its due diligence on candidates demonstrating strong positive cash flow and a synergistic fit with the Company's existing business activities", Ms. Rasmussen added. "We are finding our strategic alliance with GHIS particularly valuable in this regard". (press release of July 16, 2007 "Alegro Concludes Significant Strategic Alliance with GHIS")



Financial results

Three Months ended Six Months ended
June 30 June 30

2007 2006 2007 2006
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Revenue $ 3,308,053 $ 2,932,047 $ 6,835,818 $ 6,388,699
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Direct Costs $ 2,527,644 $ 2,387,426 $ 5,327,806 $ 5,357,636

General and
Administrative $ 287,537 $ 214,804 $ 546,089 $ 397,042
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EBITDA $ 492,872 $ 329,817 $ 961,923 $ 634,021
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Net Income (Loss) $ 249,605 $ 165,278 $ 514,250 $ 316,078
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Earnings (Loss)
per Share $ 0.01 $ 0.01 $ 0.02 $ 0.01
Weighted Average
Shares Outstanding 25,274,762 25,274,762 25,274,762 25,274,762


About Alegro Health Corp.

Alegro Health Corp. is a Canadian healthcare service provider. The company is listed on the TSX Venture Exchange under the symbol "AGO". (www.alegrohealth.com).

ALEGRO cannot guarantee that any forward looking statements contained in this news release will materialize. Nor is it possible for ALEGRO to commit itself to updating information about risks and other factors pertaining to its business that might appear in this or any other disclosure documents.

The TSX Venture Exchange does not accept responsibility for the adequacy of this news release.

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