SOURCE: Southern Home Medical Equipment Inc.

May 17, 2011 09:20 ET

Southern Home Medical Forecasts Corporate Revenues of $1.3 Million by Year End 2011

LYMAN, SC--(Marketwire - May 17, 2011) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHOM), a holding company providing healthcare services, staffing and equipment to medical institutions, announced today that based on strong organic growth and Encore franchisees revenue reports, the Company expects to generate $1.3 Million in corporate revenues for the year ending December 31, 2011.

Southern Home Medical has spent the past two years creating a solid financial base and improving its operational fundamentals. The Company is leveraging its position by offering specialized healthcare services to help our franchisees grow their existing businesses. Southern Home is now preparing to expand into new markets geographically and offer additional, highly competitive service programs that can attract a more diverse client base.

The Company recently announced the launch of Respi-Care and Backstage Solutions, programs that are designed to accelerate its franchisees' sales momentum, while controlling costs. The Company's Apnea Rx division is addressing under-served markets, like sleep apnea and chronic respiratory disease, by increasing patient access to life-saving testing and breathing equipment.

Encore franchisees are reporting record growth due in part to the acceptance of these specialized programs. Based on this measurable growth, Southern Home Medical forecasts approximately $1.3 million in corporate gross revenues in fiscal year 2011.

"Our franchisees are equipped to address the long-term needs of the nation's healthcare industry," stated Jeff Sarvis, CEO of Southern Home Medical. "Encore Medical has experienced profitable growth by filling the void left by medical staffing shortages."

About Southern Home Medical Equipment, Inc.
Southern Home Medical Equipment, Inc. is a holding company with a focus on servicing the needs of the U.S. healthcare industry. The Company has quality health care professionals to support hospitals, rehab centers, nursing homes and other medical facilities providing RN's, LPN's, CNA's, RT's, billing specialists, customer service specialists, delivery techs and marketing reps. The Company has contractual agreements with partner businesses located in Charleston, Columbia, Greenville, Florence and Lake Hartwell, of South Carolina; Nashville, Tennessee; Baltimore, Maryland; Dunwoody, Georgia; and Philadelphia, Pennsylvania. Southern Home Medical is leveraging the success of these business models to expand sales opportunities in these areas with health, medical, staffing and equipment needs. For more information, visit www.southernhomemedical.com.

The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.

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