SOURCE: The BioBalance Corporation

April 12, 2005 12:37 ET

New York Health Care, Inc. Signs Agreement to Divest NJ Home Healthcare Business

NEW YORK, NY -- (MARKET WIRE) -- April 12, 2005 -- New York Health Care, Inc. (the "Company") (OTC: BBAL) announced today that it has entered into a definitive agreement with Accredited Health Services, Inc. ("Accredited"), a wholly owned subsidiary of National Home Health Care Corp. (NASDAQ: NHHC), pursuant to which Accredited will acquire certain assets of the Company's New Jersey home healthcare business for $3 million. Revenues for the New Jersey business were approximately $6.7 million in 2004. Pursuant to the terms of the definitive agreement funding of the purchase price has been received by the Company and a formal closing, as to which there are no conditions other than an orderly transition, will occur within 45 days of the signing of the agreement.

Dennis O'Donnell, CEO of the Company and its BioBalance Corporation subsidiary said, "We are pleased at the significant progress we are making in restructuring the Company as a pure pharmaceutical play focused on developing BioBalance's proprietary novel treatments for chronic gastrointestinal disorders that are poorly addressed by current therapies."

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 is located on the company 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 2003 Annual Report on Form 10-K, its latest quarterly report on Form 10-Q and current reports on Form 8-K.

Contact Information

  • Contacts:

    Dennis O'Donnell
    New York Health Care, Inc.
    Tel: (212) 679-7778
    Fax: (212) 679-7774
    dodonnell@biobalancecorp.com

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