SOURCE: The BioBalance Corporation

March 14, 2005 08:30 ET

BioBalance Corp. Announces Manufacturing Agreement With Benchmark Biolabs

BioBalance Also Retains Consulting For Strategic Growth Ltd. for Investor Relations

NEW YORK, NY -- (MARKET WIRE) -- March 14, 2005 -- The BioBalance Corporation, a wholly owned subsidiary of New York Health Care Inc. (OTC: BBAL), announced today that it has entered into a manufacturing and supply agreement with Benchmark Biolabs Inc. in which Benchmark will manufacture PROBACTRIX® for BioBalance's proposed clinical trials of PROBACTRIX in the United States once BioBalance receives FDA clearance to proceed with the clinical trials. The product will be manufactured in a state-of-the-art facility located in Lincoln, Nebraska. Financial terms of the agreement were not disclosed.

PROBACTRIX is a proprietary, live strain of E. coli M-17 that is being developed as a prescription biological drug for the treatment of pouchitis and other gastrointestinal (GI) disorders. In order for BioBalance to achieve regulatory approval of PROBACTRIX, among other things, the FDA will ultimately require that PROBACTRIX be manufactured in a facility certified under Good Manufacturing Procedures, or "GMP." It is anticipated that Benchmark's manufacturing facility will become GMP-certified in the future.

In a separate development, BioBalance also announced that is has retained Consulting For Strategic Growth Ltd. (CFSG) as its consultant for investor relations and corporate development. CSFG assists client companies in exposing their story to the Wall Street community and focuses exclusively on emerging small cap companies which it believes have significant upside potential.

The Company's CEO, Dennis O'Donnell, said, "We are pleased to have selected Benchmark as our contract manufacturer for our lead therapeutic product candidate. This agreement is key to ensuring a consistent and high-quality supply of PROBACTRIX for our proposed clinical trials. We are also excited to obtain the advisory services of Stan Wunderlich and his team at CFSG. Stan has decades of hands-on corporate development experience, combined with broad personal contacts in the private equity markets and Wall Street's broker/dealer communities."

About The BioBalance Corporation

The BioBalance Corporation is a specialty pharmaceutical company focused on the development of novel treatments for various gastrointestinal (GI) disorders that are poorly addressed by current therapies via accelerated regulatory pathways. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), Crohn's disease, ulcerative colitis and diarrhea caused by antibiotics, chemotherapy or AIDS. Additional information is located on the BioBalance web site at www.biobalancecorp.com.

SAFE HARBOR STATEMENT In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future events, financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, satisfaction of regulatory and other approvals and conditions necessary to market PROBACTRIX, the company's ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by the company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, the risk factors set forth and cautionary statements made in New York Health Care's 2003 Annual Report on Form 10-K, its latest quarterly report on Form 10-Q and current reports on Form 8-K.

Consulting For Strategic Growth I, Ltd. ("CFSG") provides The BioBalance Corporation with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG's receipt of cash compensation from BioBalance, CFSG may choose to purchase the common stock of New York Health Care, Inc. and thereafter sell those shares at any time it deems appropriate to do so.

Contact Information

  • CONTACTS:
    Dennis O'Donnell
    President & CEO
    Tel: (212) 679-7778
    Fax: (212) 679-7774
    dodonnell@biobalancecorp.com

    Stanley Wunderlich
    Consulting For Strategic Growth
    Tel: (800) 625-2236
    Fax: (212) 337-8089
    Email: cfsg1@aol.com