SOURCE: Sleep Holdings, Inc.

February 06, 2007 09:30 ET

Sleep Holdings, Inc. Completes Acquisition of Sleep Technology Institute, Ltd in Sugar Land, Texas

DALLAS, TX -- (MARKET WIRE) -- February 6, 2007 -- SLEEP HOLDINGS, INC. (PINKSHEETS: SLHJ) announced that it has acquired Sleep Technology Institute LTD, located at 20403 University Blvd, Suite 300, Sugar Land Texas.

Sleep Holdings, Inc. paid $335,000 cash and issued an $865,000 convertible note for a total purchase price of $1,200,000. One half of the principal amount of the note can be converted at $1.00 per share and the remaining half at $2.00 per share into restricted and unregistered common stock of the company.

Sleep Technology Institute of Sugar Land is a state-of-the-art sleep diagnostic center and sleep-related medical equipment provider. STI is led by a management team with significant experience in the area of sleep diagnostics and sleep-related medical equipment. The company was founded by Mr. Kevin Asp, CRT, RPSGT, whose experience also includes serving two consecutive terms on the Board of Directors for the Association of Polysomnographic Technologists (APT) from 1998 to 2002 in which he was involved in the development of the role of the polysomnographic technologist through education and business development. He also served as Advisor to the Executive Committee for the APT in 2003. Mr. Asp and his team are remaining with the company under the new ownership.

The Sugar Land location hosts its proprietary IT infrastructure, enabling centralized scoring, billing, physician interpretations, and technical support for all its sleep centers nationally from Texas to Alaska.

Commenting on the acquisition, Company CEO, Roy Mers, said, "Sleep Diagnostic Management is one of the most promising growth areas in the medical services arena. By leveraging the professional relationships and resources of SLEEP HOLDINGS, we believe there is an exciting opportunity to promote rapid national expansion of Sleep Technology Inc.'s services.

"The management team at STI is exceptional and they are similarly attuned to issues of diagnostic quality, retention and service," said Mr. Mers. "We view this as an opportunity to solidify our business by bringing in a seasoned management team, so that we can maintain our focus on our important initiatives at Sleep Holdings, Inc."

Adding, "In fact, it is our belief that Sleep Technology Institute will prove to be a highly significant contributor to our Company's future growth."

Commenting on the transaction, Mr. Asp noted, "It was clear from the outset that we shared the same enthusiasm, expectations and vision for the future of sleep diagnostic centers."

"Given SLEEP HOLDINGS' expanding national presence, proven track record and people-oriented management style, I quickly recognized that SLEEP HOLDINGS was the right organization and business model with the right resources capable of accelerating Sleep Technology Inc.'s exciting growth potential," he concluded.

"Sleep Disorder Diagnostics is gaining momentum across the country," said Tim Kriske, SLEEP HOLDINGS' Chief Operating Officer. "We think this is an opportunity for us to leverage our existing resources, management expertise, and national presence to tap into an exciting, important and growing industry."

SLEEP HOLDINGS intends to grow its revenues by acquiring existing sleep diagnostic centers, opening new free standing sleep diagnostic centers, operating sleep centers in conjunction with hospital partners, and expanding internal sales and rental volumes of medical equipment specific to the sleep industry.

SLEEP HOLDINGS mission is to provide innovative solutions to patients suffering from sleep disorders. We strive to provide the highest standard sleep studies, medical directorship, patient education, and therapeutic recommendations in order to assist patients with an overall improved quality of life.

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.

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