SOURCE: The BioBalance Corporation

May 23, 2005 08:00 ET

New York Health Care, Inc. Announces Closing on Sale of N.J. Home Healthcare Business

NEW YORK, NY -- (MARKET WIRE) -- May 23, 2005 -- New York Health Care, Inc. (the "Company") (OTC: BBAL) announced today the closing of the asset sale for the Company's New Jersey home healthcare business to Accredited Health Services, Inc. ("Accredited"), a wholly owned subsidiary of National Home Health Care Corp., for $3 million. Revenues for the New Jersey business were approximately $6.7 million in 2004.

Dennis O'Donnell, CEO of the Company and its BioBalance Corporation subsidiary, said, "We are pleased to have closed this transaction with Accredited so quickly, and can now turn our efforts to sell the remaining portion of our home healthcare business."

About New York Health Care and The BioBalance Corporation

Acquired by New York Health Care in January 2003, The BioBalance Corporation operates as a wholly owned subsidiary. The Company's common stock trades under the symbol BBAL.PK. BioBalance 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), inflammatory bowel disease and diarrhea caused by antibiotics, chemotherapy or AIDS. Additional information regarding BioBalance is available 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 the Company's 2004 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
    CEO
    New York Health Care, Inc.
    Tel: (212) 679-7778
    Fax: (212) 679-7774
    dodonnell@biobalancecorp.com

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