SOURCE: Sleep Holdings, Inc.

September 13, 2007 10:00 ET

Sleep Holdings, Inc. Closes Financing

DALLAS, TX--(Marketwire - September 13, 2007) - Sleep Holdings, Inc. (OTC: SLHJ) ("Sleep Holdings" or the "Company"), an owner and operator of sleep disorder diagnostic centers nationwide, announced today that it has completed a $2.3 million private placement of Series A Convertible Preferred Stock and warrants. The transaction was completed with an investment fund specializing in emerging public companies with significant growth prospects. First Continental Capital, L.P. served as the Company's financial advisor for the transaction.

In this financing, the Company issued 2,300,000 shares of Series A Convertible Preferred Stock and warrants to purchase shares of Common Stock. Each share of Series A Convertible Preferred Stock is convertible into one share of Common Stock. The warrant is for five-years and will allow the purchase of up to 1,150,000 shares of Common Stock at an exercise price of $1.35 per share.

According to Roy Mers, Chief Executive Officer of Sleep Holdings Inc., "As the need for diagnostics and therapy for sleep disorders continues to become a national health priority, Sleep Holdings has taken several steps to put the Company in the position to become a leading provider of diagnostic services. This financing will provide the capital for our on-going successful program of acquiring existing centers that can become an important part of our national sleep center network."

About Sleep Holdings, Inc.

Sleep Holdings, Inc. is developing a leading sleep-disorder diagnostics company offering a comprehensive level of patient diagnostics and care. The Company 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. For more information, please visit

Forward-looking Statements

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.

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