SOURCE: Sleep Holdings, Inc.

September 14, 2007 10:00 ET

Sleep Holdings, Inc. Completes Acquisition REM Sleep Center

REM Sleep Diagnostics Will Provide Company With 4 Diagnostic Beds

DALLAS, TX--(Marketwire - September 14, 2007) - Sleep Holdings, Inc. (OTC: SLHJ) ("Sleep Holdings" or the "Company"), an owner and operator of sleep disorder diagnostic and therapy centers nationwide, announced today that it has acquired the assets of REM Sleep Diagnostics.

Located in Huntsville, Texas, REM Sleep Diagnostics has been providing sleep diagnostics and therapy for over 4 years in the Huntsville community, which is located approximately 50 miles from Houston, Texas. The purchase price of $675,000 was paid through a combination of cash and convertible notes.

According to Roy Mers, Chief Executive Officer of Sleep Holdings, the REM acquisition adds all of the right elements to the Company's growth profile; a facility that recently expanded to four beds in a new and improved 'state-of-the-art' location and a highly seasoned staff led by John Childers, the General Manager of the Center.

Mr. Childers added, "The combination with Sleep Holdings will add several growth drivers to REM's business going forward. We recognized the growing recognition for excellence in service and available resources and expertise that Sleep Holdings will provide to our business and community."

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) providing management services and technical support for sleep disorder centers and (v) increasing the Company's internal sales and rental volumes of sleep-related therapy products. For more information, please visit www.sleepholdings.com.

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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