SOURCE: Sleep Holdings, Inc.

April 12, 2007 09:30 ET

Sleep Holdings, Inc Announces Letter of Intent to Purchase Athens Sleep Center and Associated DME Company

Acquisition to Add an Estimated $1.3 Million in Annual Revenue to Sleep Holdings, Inc.

DALLAS, TX -- (MARKET WIRE) -- April 12, 2007 -- Sleep Holdings, Inc. (PINKSHEETS: SLHJ), a leading provider of sleep diagnostics and sleep related equipment "DME" sales, today announced that it has entered into a Letter of Intent to purchase the assets of Athens Sleep Center and associated DME company "ASC" for $1.5 million and 65,000 shares of restricted stock. Terms of the agreement are $500,000 cash, 65,000 shares of restricted stock and a $1,000,000 convertible note. ASC's 4 bed diagnostic center provides a comfortable and convenient alternative to hospital-based sleep studies.

"We are thrilled to have the opportunity to work with Dr. Cates in the purchase of Athens Sleep Center. Dr. Cates possesses a clear vision of what can be accomplished in the sleep disorder industry with Sleep Holdings, Inc. as a platform company. We embrace Dr. Cates' vision, with SLHJ providing the capital to purchase his business and investment in the subsequent growth of the business," said CEO Roy Mers.

"Athens Sleep Center is an outstanding business in a unique and dynamic sleep diagnostic marketplace. Partnering with a leader like Dr. Ron Cates will be a very successful investment for Sleep Holdings, Inc.," said COO Tim Kriske.

"I spoke with a number of sleep industry professionals when I was researching Sleep Holdings, Inc. to purchase Athens Sleep Center. I chose Sleep Holdings because they understood my business model, shared my view of the business opportunity and had an excellent track-record of being an effective partner for a business owner," said Athens Sleep Center's owner Dr. Ron Cates.

About Sleep Holdings, Inc.

SLEEP HOLDINGS, INC. is a publicly traded company that is acquiring sleep disorder related companies. Sleep Holdings, Inc. intends to grow its revenues by (i) acquiring small independent sleep centers and corporate owned diagnostic centers, (ii) opening new freestanding sleep centers, (iii) opening new hospital based sleep centers under our management in conjunction with hospital partners, (iv) provide management services and technical support for sleep disorder centers and (v) increase the Company's internal sales and rental volumes of sleep related medical equipment DME.

This news 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

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    Sleep Holdings, Inc.
    (214) 446-9300