Alegro Health Corp.

Alegro Health Corp.

August 18, 2005 09:00 ET

Alegro Health Corp. Announces Acquisition of Concentra Canadian Operations

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2005) - Alegro Health Corp. (TSX VENTURE:AGO) announced today that it has purchased certain assets and contracts of the Canadian division of Concentra Integrated Services, of Burlington, Massachusetts. This acquisition is expected to contribute approximately $5 million in annualized gross revenues to Alegro, based on current volumes. This transaction increases the scope of Alegro's disability and case management operations in Toronto, and extends Alegro's reach to Kitchener and Thunder Bay in Ontario, and to Fredricton and Halifax in Atlantic Canada.

Alegro will operate these assets as a new business unit, Direct Health Solutions Inc. The primary customers of Direct will be workers' compensation boards, employers and insurance companies.

"We believe that the changes in auto insurance legislation occurring across Canada should significantly increase the opportunities in case management and independent medical assessment services," said Brenda Rasmussen, President and CEO of Alegro. "This acquisition is another building block in our long-term plan to provide a complete roster of complimentary services to our clients."

"We are especially pleased that we have been able to add a substantial revenue stream to the Alegro group of companies with no dilution to shareholders," she added.

Alegro is also pleased to announce that Mr. Gilbert Sharpe has joined its board of directors. Mr. Sharpe, a known expert in health law, was previously the Director of Legal Services for the Ontario Ministry of Health for 20 years. In that capacity, he developed much of Ontario's current health legislation. Mr. Sharpe holds professorships at the University of Toronto and McMaster University and is a partner and head of the Health Law Group at Goodman and Carr LLP in Toronto. Mr. Sharpe's appointment to the board is subject to regulatory approval.


Alegro Health Corp. is a Canadian healthcare service provider listed on the TSX Venture Exchange under the symbol "AGO". For more information, visit us on the Internet at

Certain information included in this press release is forward-looking. This information represents our judgment as of this date and is subject to important risks and uncertainties. Such forward-looking information is not a guarantee of performance. The results or events predicted in these statements may differ materially from actual results or events. Consequently, investors should not place any undue reliance on such forward-looking information.

Factors which could cause results or events to differ from current expectations include, among other things, the ability of Alegro to maintain the contracts acquired in connection with the acquisition, and general industry, economic and market conditions.

For additional information with respect to these and other factors, investors should consult Alegro's ongoing filings found on SEDAR at Unless otherwise required by applicable securities laws, Alegro disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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

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