SOURCE: Southern Home Medical Equipment, Inc.

August 21, 2007 08:29 ET

Southern Home Medical Poised for Strong Growth

SPARTANBURG, SC--(Marketwire - August 21, 2007) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHMM) is pleased to clarify its current business structure and plans for future growth. Greg Tucker, President and CEO of Southern Home Medical, stated, "We began as a publicly traded holding company on December 13, 2006 with interest in acquiring medical equipment operators. In addition, we recognized that the future of healthcare is on the preventive side and therefore, we formed a Health and Wellness division designed to take advantage of interesting business models in the health, wellness and fitness arenas. To date we have acquired medical equipment operations in South Carolina and Louisiana. The three locations in Louisiana alone generated over 1.2M in revenue in 2006 and a 14% net profit of over $170,000.00. We also own a line of fitness centers called Ladies Health & Fitness with two locations in Greenville, S.C. The fitness centers have tremendous franchising potential. In 2006, the medical equipment companies and fitness centers combined billed out over 2M in revenue."

Mr. Tucker went on to state, "We have also decided to focus a significant portion of our time and effort on the growth and development of Encore Medical Staffing, Inc. We are the franchisor of this business and take in a 5% royalty on each location that is opened under the Encore name. Our business model is based on an already existing successful nurse staffing agency in Louisiana that generated over 3M in revenue in 2006 and is on pace to generate close to 4M in 2007. Temporary nurse staffing has become a critical issue in hundreds of markets nationwide, and our business model addresses the need in a very unique way. Encore Medical Staffing supplies quality healthcare professionals on a per diem and temporary contract basis to hospitals, rehab centers, nursing homes and other medical facilities. To date, we have one location open in Kentucky, and three are beginning operations in Greenville, Columbia, and Charleston, S.C. For more information, you can review our nurse staffing website at"

Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E 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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