AMS Homecare Inc.
OTC Bulletin Board : AHCKF

AMS Homecare Inc.

October 26, 2006 17:05 ET

AMS Homecare Reports Increase in Q2 Revenues

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - AMS Homecare Inc. (OTCBB:AHCKF) is pleased to announce sales for the reporting period ended August 31, 2006 consisted of scooters, power chairs, scooter accessories, daily living aids, cushions, disposables, and IER monitoring services. Sales of scooters and scooter accessories are seasonal with the peak season running from May to September. Sales for the six months ended August 31, 2006 increased by 13% to $4,817,477 as compared to $4,237,478 for the same period in the previous year. Sales for the three months ended August 31, 2006 also increased by 13% to $2,529,421 as compared to $2,220,403 for the same period in the previous year. This increase is a result of higher volume of existing products and sales from the IER monitoring services. Sales from the Company's retail store were immaterial for the reporting period. For the six months ended August 31, 2006, 89% of the total sales were from scooters, power chairs and scooter accessories.

Gross profit increased by 6% from $1,013,483 from $950,940 for the three months ended August 31, 2006 and by 11% from $1,821,592 to $2,032,363 for the six months ended August 31, 2006 as compared to similar periods in the previous year. Gross profit as a percentage of sales was 42% for the six months ended August 31, 2006 as compared to 43% for the same period last year. For the three months ended August 31, 2006, gross profit as a percentage of sales was 40% as compared to the same period in the previous year. The decline in gross profit as a percentage of sales is due competitive pricing offered to customers in order to increase volume during the peak season of May to September.

To further update, with regards to the company receiving a cease trade order from the British Columbia Securities Commission on July 10, 2006 under Section 164 of the Securites Act, R.S.B.C. 1996, c.418. The company this week filed the required materials to reactivate the company. We will be providing an update soon with regards to the removal of the cease trade, which we hope the BCSC will expedite considering the circumstances involved.

About AMS Homecare

Founded in 1989, AMS Homecare is a successful purveyor of mobility equipment, durable, disposable medical products, and patient monitoring technology and is a US retailer with its own pharmacy/durable equipment store (http://www.65plusstore.com). With a base of 300-plus dealer customers in Canada, the company is moving forward to strengthen its foundation and to build an organization capable of serving the independence needs of the aging populations in Canada and the United States. More information is available at http://www.amshomecare.com.

Safe Harbor Statement: Statements contained in this fact sheet relating to AMS Homecare that are not historical facts are "forward-looking" under the Private Securities Litigation Reform Act. Forward-looking statements are subject to risks and uncertainties. Investors should refer to the Full and Complete Safe Harbour Statement disclosed on the company website (http://www.amshomecare.com).


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