SOURCE: Physicians Adult Daycare, Inc.

December 06, 2006 16:15 ET

Physicians Adult Daycare, Inc. Launches Into Multi-Billion Dollar Adult Daycare Industry

HOUSTON, TX -- (MARKET WIRE) -- December 6, 2006 -- Physicians Adult Daycare, Inc. (PINKSHEETS: PHYA) announced today that the company is on schedule to meet or exceed its plans for expansion into the lucrative adult daycare industry. According to an update from Tony Markus, CFO of Physicians Adult Daycare, Inc. (PAD), since the company's reorganization in June of this year, PAD has acquired its first two adult daycare centers in Texas. These two centers alone generated gross revenues in excess of $900,000 in 2005, and Mr. Markus was confident that as the company continues to acquire additional facilities, its revenue base will increase substantially.

"We are very excited about the growth prospects for the company," stated Duane Starkey, the new CEO of Physicians Adult Daycare, Inc. "We now have an experienced management team in place for the Adult Daycare Industry. Educating the general public about the advantages and services provided by adult daycare is the next major challenge that we are currently focused on meeting. These programs provide a viable, cost-effective, and efficient alternative to nursing home confinement. The adult daycare centers provide health and nursing services, in addition to providing a comfortable environment for social interaction and facilitating the daily tasks that are often a challenge to many as they grow older. The clients are picked up at home in the morning and returned that afternoon. They enjoy meals, social interaction, and active fitness programs. We believe these centers will fill an overlooked niche in the health services industry."

The Economic Value of the U.S. Market is reflected in a recent survey by Wake Forest University. According to the survey, the average adult daycare center in the United States had annual revenues of $365,000 in 2002 with 3,407 centers in the U.S. These centers tallied over $1.234 billion in actual gross revenues while serving 1.56 million people. These centers still failed to meet the actual demand that the survey concluded was approximately 8,520 centers necessary to serve a projected client base of 3.9 million people, resulting in projected revenues of $3.109 billion. Globally, 60 million people are in need of these services, a $45 billion potential market.

As the population ages, increasing demands and pressures will be placed on an already strained infrastructure. In the U.S. by the year 2020 the elderly over age 65 will reach 70 million people, which will double the current market demand. This means the number of centers needed will exceed 17,000 representing a market value of approximately $6.2 Billion.

About Physicians Adult Daycare, Inc.

We provide needed services for a PROLONGED and ACTIVE LIFE for family loved ones on a daily basis WITHOUT THE CONFINEMENT of a NURSING HOME. We refer to those who use our services as CLIENTS. A typical day begins when our transportation system picks up your loved one at their home. After a continental breakfast, activities such as arts and crafts, games of pool or bingo, and exercise continue until lunch except on the days for scheduled group outings. A complete hot meal under dietary supervision is served before the rest period. Then activities resume until time for your loved one to be returned home. For more information go to the corporate website at

"Forward-Looking Statements"

Certain statements in this news release may contain 'forward-looking' information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.

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