SOURCE: Southern Home Medical Equipment, Inc.

August 29, 2007 08:30 ET

Southern Home Medical Reports Net Income of 17.5% for the First Six Months of 2007

SPARTANBURG, SC--(Marketwire - August 29, 2007) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHMM) is pleased to announce a net income on an accrual basis for the first six months of 2007 of $137,740.00. The net income was realized from revenue of $786,593.00 for the same period. Greg Tucker, President and CEO of Southern Home Medical, stated, "We are pleased with our progress to date. We are building the foundation for a strong nationally represented company. 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. We also own a line of fitness centers called Ladies Health & Fitness with two locations in Greenville, S.C."

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 royalties and franchise fees 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."

For more information on the company, refer to the websites below:

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