SOURCE: Southern Home Medical Equipment Inc.

May 23, 2011 10:00 ET

Southern Home Medical Projects $7 Million in Annual Revenue Post Merger With Washington, DC-Based Medical Group

LYMAN, SC--(Marketwire - May 23, 2011) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHOM), a holding company providing healthcare services, staffing and durable medical equipment to medical institutions, has previously announced the intent to merge with a network of medical clinics based in the Washington, DC area. Today, Southern Home Medical projected first operating year's revenues for the combined entity of $7 million.

"The synergies from this merger are substantial," says Jerry Overcash, Board Member at Southern Home Medical. "The companies will leverage each others' solutions and infrastructure to drive incremental revenue and reduce operating costs. The fact that the companies are currently operating in the same geographical footprint is an added advantage."

The parties will complete a formal due diligence process over the next several weeks. "The compatibility of our collective solutions and the companies' cultural match make this a quite promising venture," according to Jeff Sarvis, President and CEO of Southern Home Medical.

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.

Contact Information