SOURCE: New York Health Care, Inc.

July 07, 2006 10:33 ET

BioBalance Corp. (BBAL-OTC Bulletin Board) Rated 'Buy' by Kareg Corporation Analyst

Initiating Coverage With a "Buy" Recommendation for BioBalance Corporation ("BioBalance"), a Wholly Owned Subsidiary of New York Health Care, Inc. (OTCBB:BBAL -News)

NEW YORK, NY -- (MARKET WIRE) -- July 7, 2006 -- In a new independent investment research report by Kareg, BioBalance Corp. (OTCBB: BBAL) shares are given a "Buy" recommendation. The new independent analyst report was written by Sheldon S. Traube, Vice-President and Director of Research of Kareg Corporation. Kareg is an independent research analysis firm based in New York City. Sheldon Traube, with more than 25 years of experience primarily as a "Sell Side" Equity Analyst, specializes in health care, technology and emerging growth opportunities.

The report indicates that BioBalance received FDA approval to begin phase II clinical trials for Probactrix, its lead product candidate. According to Mr. Traube, "BioBalance's Probactrix has great potential in IBS market and other GI indications which could prove to be a home run for the company."

A copy of the report can be obtained by emailing SSTANALYST@AOL.COM

Probactrix is a patented strain of non-pathogenic E.coli M-17 that was originally isolated from the intestinal microflora of a healthy volunteer. One mechanism of action is believed to work by selective displacement of pathogenic bacteria in the digestive tract and preventing their re-colonization, restoring a healthy balance of intestinal flora without the potential negative consequences of antibiotic use. The active ingredient in Probactrix has a long history of use for a variety of gastrointestinal conditions, which has been well documented in foreign studies.

About BioBalance Corporation

BioBalance is a biopharmaceutical company focused on the development of innovative treatments for GI disorders that are poorly addressed by current therapies. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), Crohn's disease, ulcerative colitis, C. difficile infections and antibiotic-associated diarrhea. New York Health Care, Inc. (the "Company") and BioBalance completed a business combination on January 2, 2003, accounted for as a "reverse acquisition," in which BioBalance became a wholly owned subsidiary of the Company. BioBalance's lead product, Probactrix®, recently received FDA approval to begin phase II clinical trials for pouchitis. Additional information on BioBalance is located on the BioBalance website at www.biobalance.com.

All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of BioBalance products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. Kareg received $20,000 for the preparation and publication of research reports on Probactrix.

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