SOURCE: Sleep Holdings, Inc.

January 25, 2007 09:00 ET

Sleep Holdings, Inc. to Acquire Another Texas Facility -- REM Sleep Diagnostics in Huntsville, Texas

Acquisition to Broaden Holdings in Texas Market

DALLAS, TEXAS -- (MARKET WIRE) -- January 25, 2007 -- SLEEP HOLDINGS, INC. (PINKSHEETS: SLHJ) Chairman and CEO Roy Mers announced today that SLEEP HOLDINGS, INC. has entered into a Letter of Intent "LOI" to acquire REM Sleep Diagnostics, located at 130 Medical Center Parkway, Suite 7, Huntsville, Texas 78228. REM Sleep Diagnostics is an established sleep diagnostic center and sleep-related medical equipment provider headed by Mr. John Childers, Director of Operations. Mr. Childers founded the company and developed it into a profitable operation in less than three years by offering excellent service to physicians and their patients.

Terms of the acquisition are a combination of equity and a 7%, 5-year convertible note totaling $675,000 (the "Note"). The transaction will result in REM Sleep Diagnostics becoming a subsidiary of Sleep Holdings, Inc. The principal Note amount of $325,000 incorporates a conversion to common stock. SLEEP will have the right to convert the unpaid principal balance of the Note into shares of the common stock of SLEEP on the basis of $4.00 for each share of SLEEP'S common stock. The transaction is expected to close by the 2nd quarter of 2007.

Mr. Childers says, "I am excited to partner with Sleep Holdings which gives us access to their breadth of capital, seasoned operations team and national recognition." Mr. Childers adds, "Being part of the Sleep Holdings family gives us the ability to expand our marketing efforts, facilitate more rapid growth and gain greater exposure in the marketplace."

"We are very excited about adding REM Sleep Diagnostics and its founder John Childers to our growing family of sleep diagnostic centers. With this acquisition we can expand the North Houston market which demographically fits our acquisition profile," explains Roy Mers. "REM Sleep Diagnostics will significantly strengthen our diagnostic presence in North Houston and add depth to our Texas diagnostic business unit."

In further response to the proposed acquisition, Mr. Childers said, "We at REM Sleep Diagnostic have found a great partner with impressive resources, expertise, and commitment to the sleep diagnostic industry. These credentials will serve us well as we continue to offer quality service to our clients."

The Business

SLEEP HOLDINGS is a healthcare service provider focused on the rapidly growing market of sleep medicine and provides innovative solutions to patients suffering from sleep disorders. The Company provides the highest standard sleep studies, medical directorship, patient education, and therapeutic recommendations in order to assist patients with an overall improved quality of life.

The Company is seeking out prospective sellers of sleep diagnostic centers in various markets within the United States and is developing relationships necessary to acquire and fully develop sleep diagnostic centers.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks and uncertainties.

Sleep Holdings, Inc. is a registered trademark. Other product or service names mentioned herein are the trademarks of their respective owners.

Contact Information

  • For More Information:
    Investor Relations
    Sleep Holdings, Inc.
    (214) 446-9300