Patient Home Monitoring (PHM) Announces Third Consecutive Quarter of Profitability in Reporting Third Fiscal Quarter 2013 Results

SAN FRANCISCO, CALIFORNIA--(Marketwired - Aug. 14, 2013) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a company focused on rolling-up annuity-based healthcare service companies in the US and Canada, today announced its third consecutive quarter of profitability. Additionally, PHM has succeeded in executing a training and enrollment partnership agreement with a large, multi-state pharmacy chain with over 400 locations in Florida and the surrounding states. Finally, PHM announced it had closed a financing of $2,129,500 and issued unaudited results for its third fiscal quarter ended June 30, 2013. In conjunction with the quarterly results and news, PHM's CEO, Bob Kusher, will conduct an earnings and update webcast on Wednesday, August 14, 2013.

To listen, please visit the investor website at:

www.phmhometesting.com/investor/Q3_2013_Conferencecall

Pharmacy Enrollment Channel

PHM has executed a training and enrollment partnership agreement with a company operating a chain of over 400 grocery store-based pharmacies in the southeastern United States. These pharmacies fill tens of thousands of monthly Coumadin prescriptions for patients eligible for PHM's weekly monitoring program. Under the agreement, the pharmacies will act as local points of training and enrollment for the PHM service.

Equity Financing and Roll-up Strategy

Today, PHM closed $2,129,500 in equity finance under the terms described in the August 10, 2013 announcement. PHM expects to close an additional $410,500 from US residents, insiders, advisors and associates of the Board of Directors in a second closing on or before August 26, 2013.

The proceeds from the financing will be used to add cash to the balance sheet, strengthening PHM's ability to acquire attractive annuity-based healthcare service companies without financing contingencies. PHM is working to identify, qualify and close healthcare companies with positive cash flow and profits that offer service and products complimentary to the weekly testing service.

Acquisition Strategy Overview

With a highly-fragmented market of thousands of small private companies delivering home-based and preventative healthcare services, PHM plans to realize significant benefits from a rapid roll-up of this market. These small, private companies generally yield favorable post-acquisition pricing. PHM plans to acquire companies that increase it's overall patient database, providing immediate opportunity to cross sell existing service lines to newly acquired patients. The acquisitions can also increase the types of service lines, providing an opportunity to increase sales to the existing patient population. PHM management will focus on earnings accretive targets that can yield EPS growth with each acquisition.

Q3 2013 Financial Highlights

• Executed Letters of Intent to acquire companies with trailing 12-month revenues of $4.2 million and EBITDA of $750,000.
• Increased cash on the balance sheet to $1,192,333.
• Actively engaged several additional promising acquisition candidates and continue to be engaged in negotiations with several targets.
• Generated Net Profit of $52,358 for the quarter; Generated $223,718 of Net Profit in the first nine months of FY2013.
• Generated Adjusted EBITDA⁽¹⁾ of $174,750 for the quarter.
• Generated Adjusted EBITDA before patient acquisition costs⁽¹⁾ of $300,158 for the quarter.
• Generated quarterly revenue of $921,874.
• Achieved gross margin of 65.8% for the quarter, in the face of a 3.7% reimbursement cut from Medicare as compared to last year.
• Generated gross profit of $606,999 for the quarter.

"We now have the pieces in place to execute on our roll-up strategy." said Mr. Bob Kusher, CEO of PHM. "We continue to generate profits from our platform business, we expect to close soon on the acquisition targets with which we signed letters of intent, we have officially launched our pharmacy Coumadin channel and we are building our pipeline of acquisition targets. With the recent financings as well as our current accounts receivable and profitability, we are very well placed to close a series of acquisitions that will improve our earnings per share. There will be some short term expenses incurred in evaluating acquisitions, but the longer term benefits for shareholder value should be well worth the expenditure."

(1)	"Adjusted EBITDA" and "Adjusted EBITDA before patient acquisition costs" are used as profitability measures. Please refer to the "Non-IFRS Measures" section of the most recent MD&A for further discussion on these measures.

About PHM

PHM is currently a positive cash flow and profitable company servicing patients with chronic heart disease and will act as a platform for acquisitions. PHM is focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively working to identify and evaluate profitable, annuity-based companies to acquire their patient databases and technical expertise at favorable prices. PHM's post acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.