SOURCE: Paladin Holdings, Inc.

February 22, 2008 12:21 ET

Paladin Holdings, Inc. Releases Southland Update Regarding Ambulance Operations

KINGSPORT, TN--(Marketwire - February 22, 2008) - Paladin Holdings, Inc. (OTCBB: PLHI) releases Southland Health Services, Inc. (Southland) update: In the Southland press release dated February 4th, Southland successfully reinstated its professional and liability insurance policies as of February 1, 2008 effective January 24, 2008. The Company immediately started reinstatement procedures for its licenses in Alabama, Georgia, Virginia and Tennessee. The Company has reinstated 3 of its licenses and commenced operations in Alabama, Tennessee and Virginia and expects to begin transports in Georgia in the very near future.

The Company did not cease operations and had no plan to permanently shut down. Ambulance transports were temporarily suspended as required by law, due to the lapse in insurance caused by delayed receipts. The Company retains valuable and significant infrastructure with its trucks, dispatch center, software and key personnel. The Company has successfully reinstated limited operations and continues to bring trucks into service where there is a need and as staffing is secured. Currently the Company is staffing 13 trucks in service and is targeting to have 25 to 30 trucks in service over the next few weeks. A difficult and challenging task is at hand to return the operations back to its previous levels. However, with the existing infrastructure, the Ambulance Operations can be reestablished with a new and improved customer payor mix. This should allow the Company to have improved profitability derived from smaller operations.

The Company understands the magnitude of the disruption to its employees, the communities and its shareholders. Southland continues, through its various subsidiaries, to explore all potential market expansion possibilities through new contractual opportunities and potential acquisitions.

About Paladin Holdings, Inc.

Paladin Holdings, Inc. (OTCBB: PLHI) participates in two distinct business segments:

Bad Toys, Inc.

This division, Bad Toys, Inc., American Eagle Manufacturing Company and Gambler Motorcycle Company, continues to design, manufacture, distribute, service and sell custom made, Harley-Davidson type, V-twin motorcycles from component parts. We also offer premium accessories, parts, customizing items and apparel related to Harley-Davidson motorcycles on-line and directly from our retail and factory outlets. This division also participates in Sprint Car Racing products and custom car construction and restoration.

Southland Health Services, Inc.

The second business segment, in which the company is a major shareholder (25%) of Southland Health Services, Inc., provides an array of Health Care services including ambulatory emergency and non-emergency patient transport, wheel-chair van, stretcher van and related transport services. Southland operates in Alabama, Tennessee, and Virginia. On January 24, 2008, the Company suspended operations due to a lapse in insurance coverage. The Company was re-insured on February 1, 2008 and is in the process of reactivating ambulance services in a limited number of communities.

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties outlined in its filings with the Securities and Exchange Commission, its press releases and other communications. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Contact Information

  • Contact:

    Larry N. Lunan
    President and Chief Executive Officer
    Paladin Holdings, Inc.
    (423) 247-9560

    Al Kau
    Investor Relations in California
    (888) 795-3166