SOURCE: London & Pacific Healthcare, Inc.

February 26, 2007 16:00 ET

London & Pacific Healthcare, Inc. and Its Subsidiary HealthSPAC, LLC Unveil Growth Strategy With Pharmaceutical Services, Inc.

World-Class Management Team & Directors Provide Required Experience to Enhance Value for Investors Through SPAC Strategy

EL SEGUNDO, CA -- (MARKET WIRE) -- February 26, 2007 -- London & Pacific Healthcare, Inc. ("London & Pacific," the "Company") (PINKSHEETS: LDPH), a diversified healthcare holding company, on behalf of its subsidiary, HealthSPAC, LLC, today announced the launch of its first special purpose acquisition company ("SPAC"), Pharmaceutical Services, Inc. Based in California, HealthSPAC, LLC was formed by the Company to sponsor and launch specialized SPACs focused on healthcare.

Pharmaceutical Services, Inc. intends to raise the required capital to effect one or more strategic investments in the pharmaceutical service sector, a global market with current sales of $15 billion annually. Formed as a SPAC, the Company believes that this structure will provide more protection and flexibility for investors than a cash shell or investment fund.

HealthSPAC, through Pharmaceutical Services, Inc., is poised to acquire and increase the market value of pharmaceutical and biotechnology service companies based on three industry drivers:

--  Global market growth - The pharmaceutical and biotechnology services
    market has been growing at an average of 11% annually and independent
    forecasts predict this trend will continue at least through 2011.
    
--  Collective executive experience brings value to this largely
    fragmented market - Current drug development services providers face
    limitations on their ability to raise funds and the depth of leadership
    required to grow through diversification and/or M&A activity.
    
--  Overall acceptance of consolidation - In general, major pharmaceutical
    and biotechnology companies welcome the consolidation of this fragmented
    service landscape to create global service providers to match consolidation
    in the client base.
    

HealthSPAC has recently received an investment commitment of up to $5,000,000 from Houston-based Equus Total Return, Inc., a closed end NYSE-listed fund (NYSE: EQS). This investment will be used to support efforts to identify, develop and provide management support to healthcare-related SPACs. Pharmaceutical Services, Inc. is the initial effort for HealthSPAC.

"Pharmaceutical Services, Inc. will position itself for substantial growth and value appreciation for its investors. It is the intention of this company to acquire important service providers with innovative and compatible offerings that pharmaceutical and biotech companies require for their substantial and growing R&D efforts," commented Mr. Stuart Bruck, Executive Chairman of London & Pacific Healthcare. Mr. Bruck added, "The acquisitions will form the basis of a portfolio of international companies focused on consolidating and marketing these services worldwide."

Mr. Ed Robinson, Chairman and CEO of Pharmaceutical Services, Inc., said, "Management is confident that our strategy will enable the company to emerge as a leading provider in the drug development services market. We are moving into a very dynamic environment that will foster growth and profitable returns for our shareholders."

Additionally, Pharmaceutical Services, Inc. has also announced the formation of a senior management team with an aggregate of over 100 years experience in the biotechnology and pharmaceutical services industries and a successful record of accomplishment of sourcing and completing large-scale acquisitions and achieving internal growth. These executives and directors include:

Ed Robinson, Chairman and CEO, 54, has been involved with contract research and development services for more than 20 years, across several continents. In the mid-1980s, he was an early member of Kodak's Life Sciences group and member of the founding management team for Genencor International, Inc. as senior manager in a group that evolved to more than $300 million in annual sales from 1990 to 1997. Simultaneously, Mr. Robinson served on the Board of a joint venture with Kyowa Hakko in Japan. From 1997 to 2000, Mr. Robinson served as President of Lonza Biologics which became a leader in the development and manufacturing of monoclonal antibodies and recombinant proteins using mammalian cell culture. Sales tripled during Mr. Robinson's tenure, with a substantial increase in profitability. Later roles included President, Pharmaceutical Services Division, Solutia, Inc. and Executive Vice President, Pharma and Biopharmaceuticals, Cambrex Corporation. He is currently Chairman of ImagiSonix Inc., Worcester, Massachusetts and a non-executive director at BAC BV, a spin-off of Unilever, located in Naarden, The Netherlands. Mr. Robinson also serves on the advisory board of FF&P Private Equity in London, England and as an advisor to Frost and Sullivan, India, and its clients on strategic life sciences investments in Europe and North America. Mr. Robinson earned his MBA in Management at Rochester Institute of Technology and his BSc in Management and Marketing at Clarkson University (Potsdam, NY), in addition to his completion of an Advanced Management Program at Pennsylvania State University.

John May, Chief Financial Officer, 58, is currently CFO for London & Pacific Healthcare, Inc. and is a director of AIM listed Tomco Energy Plc and NASDAQ listed Avatar Systems, Inc. He is also a director of Platinum Diversified Mining, Inc. (a SPAC) listed on AIM and Southbank UK Plc, an engineering company listed on the Channel Islands Stock Exchange. He was previously Finance Director of AIM listed London & Boston Investments Plc, now PSG Solutions Plc and a non-executive Director of AIM listed Croma Group Plc. Mr. May is also currently a principal of a boutique chartered accountancy practice, focusing on advising companies on finance raising, mergers and acquisitions, business strategies and entry onto the PLUS and AIM markets and Nasdaq. He was previously a Senior Partner at Horwath Clark Whitehill, a UK accountancy firm, for 17 years, including 8 years on the Managing Board. Mr. May is the Policy Director and Deputy Chairman of the Small Business Bureau Limited (SBB) and Deputy Chairman of the Genesis Initiative, which are lobbying groups to the UK government on behalf of small businesses. He is also a Conservative Borough Councillor for Surrey Heath Borough Council. Mr. May qualified as a chartered accountant in 1974 having previously gained his DIA at the University of Bath Management School in 1970 and his BA from the University of London in 1969.

Stuart Bruck, Director, 56, is Executive Chairman of London & Pacific Healthcare, Inc. and has over thirty years of executive-level experience in the healthcare industry. Following his work with the New York State Health Planning Commission in the early 1970s, Mr. Bruck joined the United Hospital Fund of New York in 1974 as Assistant to the President where he served until 1978. In 1979, he was recruited to Los Angeles by National Medical Enterprises, Inc. (NME), a NYSE-traded hospital management company. At this company he was made responsible for selected acquisitions and development projects in the US and Latin America and was later made responsible for managed care. Following his work at NME, in 1984 he was appointed Vice President of Marketing and Development for Nu-Med, Inc., a publicly traded healthcare management company. In 1990, he co-founded Medical Development and Technology, Inc., which was acquired by AHI Healthcare Systems, Inc. (AHI) in 1992, where Bruck was appointed Senior Vice President in charge of development where he served until 1997. This company's shares traded on NASDAQ beginning in 1995 until 1997 when it was successfully sold. Later in 1997, he joined Pacific Investments Plc (UK), a London-based private equity company, to form Pacific Healthcare Limited, a private-equity vehicle for healthcare investment. At Pacific Healthcare, he also served as Chief Executive of Barbican Healthcare Plc, a publicly traded company, until 1999 when it was successfully sold to BUPA, the largest private healthcare insurer in the UK. Mr. Bruck then returned to the US to form L&P which later funded and then launched Healthcare Enterprise Group PLC, a publicly traded London-based firm, focused on occupational healthcare and specialized medical devices. Mr. Bruck served as Executive Chairman of this company until 2005.

Dr. Neil Murray, Director, 43, is the Founder and a Principal of Essential Science Ltd, based in Brechin, Scotland. This company provides expert support to businesses from start-ups to diversified multinationals who are seeking to leverage their intellectual property in the life sciences market. Dr. Murray has nearly 20 years of experience in pharmaceutical R&D, sales and marketing and business management. He has held executive positions with Solutia Inc. as Global Director of Sales and Marketing in their Pharmaceutical Services business and at Vernalis Ltd. (formerly Vanguard Medica Ltd.) as Director of Chemical Development. Earlier in his career, Dr. Murray served as Director of Business Development, Europe for Sigma-Aldrich Fine Chemicals and as Outsourcing Manager for Glaxo-Wellcome Research and Development group. Dr. Murray gained his BSc in Chemistry (1st Class Honors) and his Ph.D. from the University of Dundee.

Dr. Timothy P. Noonan, Director, 45, is Principal of Landhouse Strategies, LLC, where he is responsible for project sales, management and technical input for project engagements with a variety of clients ranging from start-ups to multinational pharmaceutical companies. Prior to joining Landhouse Strategies, Dr. Noonan was Vice President of Operations and Business Development for Clinquest, Inc. (Hudson, MA), where he managed project teams performing clinical trials, data management, biostatistics and financial management, and was responsible for resource allocation, project assignments, performance assessments, sales and marketing, and business development. Dr. Noonan also held executive positions with United Resources Group (New York, NY), Solutia, Inc. (St. Louis, MO), Hybridon, Inc. (Milford, MA) and Hydridon, Inc. (Worcester, MA). He has served on the Scientific Advisory Board of QCB, Inc. and the Board of Directors of Drawn Optical Components. He is currently a board member of ImagiSonix Inc., Worcester, Massachusetts. Dr. Noonan earned his BA Biology from Assumption College (Worcester, MA), his MS Student Chemistry from Boston College and his Ph.D. from Clark University in Worcester, MA. He has contributed 16 scientific publications and 39 abstracts and presentations. Dr. Noonan is also an inventor on an issued US patent.

Paul Woitach, Director, 48, is the founder and CEO of Pharmaceutical Advisors LLC, an innovative life sciences advisory business located in Princeton, New Jersey. In this role, he and his team of experts advise a wide cross section of clients from start-ups to major pharmaceutical companies to venture capital firms on the drug development process, with a focus on speed to market and risk management. The firm also conducts technology assessment & due diligence as well as market development for life sciences products. Prior to this role, Mr. Woitach was President and CEO of Immunogenetics, Inc., a manufacturer of drug delivery technology, animal pharmaceuticals, biologicals and human dermatology products. As part of the turnaround, Mr. Woitach completed a $48m debt financing in addition to multiple licensing and asset sales transactions. Earlier in his career, Mr. Woitach was General Manager, North America for Swiss laboratory instrument manufacturer Mettler Toledo. He also spent 16 years with Eastman Kodak Company, finishing as Vice President and Executive Director in the Health Imaging Division. Mr. Woitach also serves on the advisory boards for incubators at the New Jersey State Center for Commercialization for Innovative Technology and the Hackensack University Medical Center Life Sciences Institute. Earlier board work included listed companies Rheometric Scientific and Proterion, Inc. Mr. Woitach earned a BS in Economics and International Relations and an MBA from the University of Rochester, New York.

Dr. Daniel Marshak, Chairman, Scientific Advisory Board, 49, is Vice President and Chief Scientific Officer for NYSE-listed PerkinElmer, Inc. He is responsible for the strategic direction of PerkinElmer's R&D functions and helping to drive new growth in personalized medicine and predictive diagnostics. He also holds an appointment as Adjunct Associate Professor at the Johns Hopkins University School of Medicine, Baltimore, Maryland. Prior to joining PerkinElmer, Dr. Marshak was Vice President and Chief Technology Officer, Biotechnology, for Cambrex Corporation, a NYSE-listed company, and also served a number of years as Senior Vice President and Chief Scientific Officer for NASDAQ company Osiris Therapeutics, Inc., a biotechnology company focused on adult stem cells for medical applications. Earlier in his career, Dr. Marshak was a Senior Staff Investigator at the Cold Spring Harbor Laboratory, Long Island, New York and served as Assistant Professor, School of Medicine, State University of New York at Stony Brook. He received a BA in biochemistry and molecular biology from Harvard University, Cambridge, Massachusetts and his Ph.D. from Rockefeller University, New York City, in biochemistry and cell biology. He did postdoctoral research in pharmacology at the Howard Hughes Medical Institute at Vanderbilt University School of Medicine, Nashville, Tennessee and at the National Institutes of Health, Bethesda, Maryland. Dr. Marshak is an inventor on six issued US patents and has published more than 100 scientific publications and one textbook.

About London & Pacific Healthcare, Inc.

London & Pacific Healthcare, Inc. has offices in the US and UK. The Company works with a select group of healthcare companies and organizations to create extraordinary value, growth and financial returns. London & Pacific focuses its broad expertise in operational, regulatory and financial skills to achieve outstanding results for London & Pacific clients, partners and investors. For additional information, please visit the corporate website at www.lphealthcare.com.

Safe Harbor Disclaimer: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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