SOURCE: The BioBalance Corporation

August 04, 2005 10:22 ET

New York Health Care Announces Management Changes

Company Reschedules Annual Stockholder Meeting for August 31

NEW YORK, NY -- (MARKET WIRE) -- August 4, 2005 -- New York Health Care, Inc. (the "Company") and its wholly owned subsidiary The BioBalance Corp. ("BioBalance"), (OTC: BBAL) announced today that the Company has executed a termination agreement (the "Termination Agreement") with Jerry Braun and Jacob Rosenberg, employees of the Company's home healthcare business, effective immediately.

The Company also announced that Dennis O'Donnell, the Company's CEO, was appointed to the additional office of President of the Company and has relinquished his role as corporate secretary. David C. Katz was appointed corporate secretary, a non-executive position, to fill the role vacated by Mr. O'Donnell.

As part of the Termination Agreement, among other things, Braun and Rosenberg have resigned from all of their remaining positions with the Company and released the Company from all obligations under their respective employment agreements and other agreements (except for certain indemnification rights and rights under certain option agreements which survive as modified by the Termination Agreement) in consideration for a negotiated cash payment. In addition, under the Termination Agreement Braun and Rosenberg continue to be bound by certain non-disclosure provisions and agreements not to compete with the Company.

Mr. O'Donnell stated, "We are pleased that this agreement will allow us to move forward with our efforts to sell the Company's remaining home healthcare business and position the Company as a pure pharmaceutical business." Mr. O'Donnell added, "I am personally excited to be assuming the additional title of President and leading the company to new achievements."

The Company also announced that it has rescheduled its Annual Meeting of Stockholders to Wednesday, August 31st, 2005, at 10 a.m. local time so that the proxy can include details on the termination agreement. The meeting will be held at Hotel Pennsylvania, located at 401 Seventh Avenue in New York, across the street from Penn Station.

About New York Health Care and The BioBalance Corporation

Acquired by New York Health Care in January 2003, BioBalance operates as a wholly owned subsidiary. The Company's common stock trades under the symbol BBAL.PK. BioBalance, a development stage specialty pharmaceutical firm, is focused on the development of patented biotherapeutic agents for gastrointestinal disorders that are poorly addressed by current therapies via accelerated regulatory pathways. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), inflammatory bowel disease and diarrhea caused by antibiotics, chemotherapy or AIDS. Additional information is located on the BioBalance website 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 2004 Annual Report on Form 10-K as amended, 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 M. O'Donnell
    CEO
    New York Health Care, Inc.
    Tel: (212) 679-7778
    Fax: (212) 679-7774
    Email Contact

    Stanley Wunderlich
    CEO
    Consulting For Strategic Growth
    Tel: (800) 625-2236
    Fax: (212) 337-8089
    Email: Email Contact