SOURCE: Southern Home Medical Equipment, Inc.

July 19, 2007 09:00 ET

Southern Home Medical Announces Franchising Agreement With Aegis Medical Solutions, LLC

SPARTANBURG, SC--(Marketwire - July 19, 2007) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHMM) is pleased to announce that the Company has sold its third franchise of Encore Medical Staffing, Inc. in Columbia, South Carolina to Aegis Medical Solutions, LLC. Greg Tucker, President and CEO of Southern Home Medical, states, "We are pleased to have the team from Aegis Medical Solutions joining our Company. There is strength in numbers. The Aegis Medical Solutions team brings with it a diverse cross section of business professionals. The Aegis team will represent us well in the Columbia market and has expressed interest in contracting additional markets. We are extremely excited to have them as part of our Company."

Encore Medical Staffing, Inc. www.encoremedicalstaffing.com supplies quality healthcare professionals on a per diem and temporary contract basis to hospitals, rehab centers, nursing homes and other medical facilities. The majority of the staffing professionals are Registered Nurses, Licensed Practical Nurses and Certified Nursing Assistants. Encore Medical Staffing, Inc. is aggressively recruiting motivated business professionals interested in franchising or joint ventures with the company. Master Franchising Agreements are being considered by state.

Robert Hale (rhale@medicosc.com) of Aegis Medical Solutions, LLC stated, "We are excited about the future of our company and our relationship with Southern Home Medical. There is a tremendous need for nursing services here in the Columbia market and our company is positioned to grow aggressively. We are pleased to have this market for Encore Medical Staffing and we look forward to the possibility of pursuing additional markets in the future."

About Southern Home Medical Equipment, Inc.:

Southern Home Medical is a holding company with a focus on medical equipment operations in the Southeastern United States. Formed in January 2005, with its principal place of business in Spartanburg, S.C., Southern Home Medical will be expanding its operations through the acquisition of existing durable medical equipment companies and through the start up of additional sites in strategic locations throughout the Southeast. Southern Home Medical provides "in-home" and nursing home patients with a complete line of medical equipment that includes: oxygen concentrators, semi-electric beds, wheelchairs, CPAPs, BiPAPs, enteral tube feeding, etc. Through its Encore Health & Wellness Division, Southern Home has also moved into additional health, wellness, and fitness related businesses to include Encore Medical Staffing, Inc. and Ladies Health & Fitness, Inc.

www.southernhomemed.com www.encoremedicalstaffing.com www.ladieshealthandfitnessusa.com

Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

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