SOURCE: Physicians Adult Daycare, Inc.

January 03, 2007 11:46 ET

Physicians Adult Daycare, Inc. to Increase Revenue by 83%

Physicians Adult Daycare Executes Second Acquisition That Bolsters Balance Sheet

HOUSTON, TX -- (MARKET WIRE) -- January 3, 2007 -- Physicians Adult Daycare, Inc. (PINKSHEETS: PHYA) announced today that an agreement to purchase an additional adult daycare company has been executed.

CEO Duane Starkey states, "We are excited about this addition to our company. It should increase our annual gross revenues by an additional $750,000 with low to no maintenance. This facility will be converting to the expanding Star Plus HMO program in Texas, allowing for increased reimbursements and increased healthcare related services. We have solid expectations of the continued growth and success of the facility and the area. The center is ideally located near Houston, Texas, and will be an excellent center point for additional facilities to be developed in the area."

Mr. Starkey also goes on to say, "This company has been well established in the Houston area for 15 years, and the seller/owner of the facility is an experienced and renowned executive with many years experience in the adult daycare field. She has agreed to continue a working relationship with the facility and our company as a valued consultant. We welcome this addition to our management team."

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.

In June of this year the company PHYA was reorganized. Shortly thereafter, PHYA embarked on its acquisition program by acquiring two adult daycare centers in Texas. These centers grossed revenues in excess of $900,000 in 2005. PHYA plans for 2006 numbers to be released sometime during the first quarter of 2007.

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.

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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