SOURCE: Arcadia Resources

June 01, 2005 16:05 ET

Arcadia Resources Enters Indiana Market and Expands Into Metro Chicago With Acquisition of Health-Link, LLC

Retains UBS Investment Bank as M&A Financial Advisor

SOUTHFIELD, MI -- (MARKET WIRE) -- June 1, 2005 -- Arcadia Resources, Inc. (OTC BB: ACDI), a leading provider of home care and staffing services, mail order pharmacy and durable medical equipment ("DME"), announced today it has acquired 100% of the assets of Health-Link, LLC. Health-Link is a durable medical equipment supplier focused on respiratory disease management with operations in Northwest Indiana and Metropolitan Chicago, Illinois. Upon full integration of the acquisition, it is anticipated that Health-Link will operate the business under the Arcadia H.O.M.E. (home oxygen medical equipment) name. Terms of the acquisition were not disclosed.

Abraham Sabbagh, Managing Member of Health-Link, stated, "Health-Link is very excited to join Arcadia Resources. I believe Arcadia's expanded scope of services and strong management team will greatly benefit our customers in Northwest Indiana and Metro Chicago."

Larry Kuhnert, President of Arcadia Resources, stated, "We have known Mr. Sabbagh since 2000 as one of our highly successful sales affiliates operating Arcadia home care services in Michigan and Indiana. He currently continues to serve the Muskegon, MI, market and has relocated his Crown Point, IN, office to the Chicago area. As the principal of Health-Link, Abraham brings a cross section of marketing expertise on both the home care services and DME (durable medical equipment) side of our business. His experience is a tremendous asset to us as we create a new sales presence in the state of Indiana as well as significantly expand our existing market coverage in greater Chicago. This acquisition supports our overall strategy to expand sales nationwide across multiple revenue streams, including mail order, home health care products and services."

John E. Elliott II, Chairman and CEO of Arcadia Resources, stated, "We continue to be focused on solidifying Arcadia's position as a leading provider of home health care products and services. As our aggressive merger and acquisition strategy accelerates throughout 2005, we have retained UBS Investment Bank, one of the world's leading investment banking and securities firms, to act as our financial advisor. UBS will assist us to identify new opportunities of growth as well as facilitate additional M&A opportunities. We are targeting synergistic companies with established operations, clients and revenues in 2005."

Since mid-2004, Arcadia has successfully acquired multiple staffing, home health care and DME businesses in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts and North Carolina.

About Arcadia Resources, Inc.

Arcadia Resources, Inc. helps organizations operate more effectively and with greater flexibility, and enables individuals to manage illness and injury in the comfort of their own homes. Headquartered in Southfield, Michigan, the company's core businesses are comprehensive home care services, medical and non-medical staffing, mail-order pharmacy and durable medical equipment. For more information about Arcadia, please visit the company's Web site at http://www.ArcadiaResourcesInc.com. Investors should visit http://nfnonline.com/acdi/.

Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • For more information, contact:
    Geoff Eiten
    Investor Relations
    National Financial Network
    781-444-6100x613
    geiten@nfnonline.com