SOURCE: Cloud Nine Employment Services

August 30, 2005 14:55 ET

Major Investor Tries to Save Struggling Healthcare Company

SACRAMENTO, CA -- (MARKET WIRE) -- August 30, 2005 -- A shareholder of World Health Alternatives, Inc. is currently in negotiations with several private equity groups in the hopes of raising funds that may need to exceed $26 million to help bail out the recently battered company.

Eric Allison started Pulse Healthcare Staffing in 2001, which grew fast as a result of the market's high demand for nurses. He sold the business to a publicly traded company, World Health Alternatives, Inc., in April 2004 for more than $16 million plus stock. Allison has now emerged as a potential buyer of World Health.

"It's been a bad week. I lost $18 million," Allison said last Friday, when World Health issued bad news and shares plunged 74 percent in a single day amid revelations of accounting irregularities, financial problems, underpaid taxes and the departure of its CEO. "Now we need to go and fix the company."

Allison needs at least $22 million to $26 million to help the struggling company.

"A growing group of investors hopes to buy a controlling stake in World Health, work with management to assess the future and search for a new CEO," Allison said.

Allison, a major investor in World Health, is now trying to salvage the company. Rescue efforts started with e-mails to management and calls to other investors, Allison said. "I don't know what started what, but I started getting calls back," he said. "As soon as it came to light that the company had significant issues, we went into action to identify problems and get the company on the right track."

Allison has personally committed up to $10 million to gain control of the company. Negotiations were under way on Thursday with two large private equity groups, and additional money has come in from other sources.

If successful, Allison says, he hopes to work with management to assess the company, and hopes it can succeed on a go forward basis. The move, if it occurs, will likely play out over the next couple of weeks.

The views expressed in this press release reflect Eric Allison's personal views about the subject company and contains forward-looking statements. The words or phrases "would be," "would allow," "intends to," "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "can," "potentially," "should," "believe," "considers," "hopes," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include: (a) whether the Company will successfully acquire existing staffing companies to grow its staffing business; (b) whether the Company will have adequate financing to expand the business; (c) whether the Company will effectively manage its expanding operations, which will place significant demands on its managerial, financial and informational systems; (d) competition among medical staffing companies for clients and qualified nurses and other healthcare professionals and personnel; (e) the Company's ability to locate and fill staffing orders; (f) whether general economic conditions and the regulatory environment will be favorable to the growth of the Company's business; (g) the Company's ability to grow organically; The Company's past performance, or Allison's personal views about its performance, are not necessarily indicative of future performance. Eric Allison does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.

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