SOURCE: Union Dental Holdings, Inc.

Union Dental Holdings, Inc.

March 23, 2010 07:30 ET

Union Dental Provides Shareholder Update

CORAL SPRINGS, FL--(Marketwire - March 23, 2010) -  Union Dental Holdings, Inc. (PINKSHEETS: UDHI) - http://www.uniondental.com/ir -- a national provider of a suite of dental services to union members and dentists has released this update in an effort to provide its shareholders with greater understanding of its business plan and its corporate strategy over the coming year.

Union Dental consists of two primary businesses:

1. The Union Dental Network (the "Dental Network"). The Dental Network was an idea conceived by our CEO more than 20 years ago. The idea was simple: to provide union members with excellent dental care by networking large numbers of dentists in various locations all over the country. In order to execute on this idea, Union Dental would need to convince both unions and dentists to participate. Twenty years later, Union Dental has attracted the likes of the Communications Workers of America (CWA), the International Brotherhood of Electrical Workers (IBEW) the United Association of Plumbers and Pipe Fitters (UA), National Federation of Public and Private Employees (NFOPAPE), Fraternal Order of Police (FOP), International Association of Fire Fighters (IAFF), The Association of Flight Attendants - Communications Workers of America (AFA-CWA) and most recently the American Federation for Labor - Congress of Industrial Organizations. These groups comprise some of the largest unions in America. In terms of membership, our unions under contract number 120 of the 1,200 local CWA labor unions. Of the 120 local labor unions and their 120,000 membership together with their families has dental services purchasing power in excess of $2,000,000,000 per year. CWA alone has approximately 3,200,000 insured offering much room for expansion.

As a result of the purchasing power of our union worker customers, we have been able to build networks of dentists all over America. Today, there are a total of 1900 dental providers that participate in our Dental Network. Each dentist pays an annual fee of up to $5,000 in order to control "areas of exclusivity" for a particular group of union worker customers.

Union Dental believes that going forward, the Dental Network will be successful and grow as long as it can execute on a four prong strategy. 

  • Union Dental has expanded and moved into its new Coral Springs facility where they have become a Total Service Provider (TSP) and offers patients all aspects of dentistry including General Dentistry, Periodontics, Pedodontics, Implants, Endodontics, Orthodontics, Cosmetic Dentistry, Oral Surgery and Sedation Dentistry.
  • Union Dental will continue to cherish its relationships with the unions in America and build additional relationships with local, regional and national unions. 
  • The purchasing power of the Dental Network's union member customers will make it easier for Union Dental to execute on the second prong of the strategy -- to bring on additional dentists. 
  • The last part of the strategy is to cross sell our dentists and provide them with access to additional union worker customers by buying additional "areas of exclusivity" and more unions to this growing network of providers. This is to say that when we already have an established network in a locale, and we add a new union for that same locale, approximately 90% percent of the existing dentists pay an additional fee to gain access to the new union worker customer base. The ability to attract new dentists to the Dental Network with relatively minimal marketing costs is very powerful.

2. Union Dental has its own dental facility with 12 operatories and a full service laboratory to make all prosthetics for the dental industry. The Company has added local labor unions like the Fraternal Order of Police and the National Federation of Public and Private Employees, International Association of Fire Fighter and the American Federation of Labor - Congress of Industrial Organizations to use the Coral Springs facility. In this manner, UDHI can compile insurance reimbursements records of insurance companies providing these policies to union members. Once UDHI has complete documentation of the reimbursements it will be able to sign additional union contracts in other local areas and it will offer these unions and services to all dentists in the local network. The initial plan will start in Broward County then expand to the other adjacent counties in Florida before "rolling out" the plan nationwide in the next 24 months.

About Union Dental Holdings, Inc., Direct Dental Services, Inc. and Union Dental Corp. 

Direct Dental Services and Union Dental Corp. are wholly owned subsidiaries. Direct Dental Services provides dentists with "areas of exclusivity" to participate with various unions including the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW), United Association of Plumbers and Pipe Fitters (UA) and The Association of Flight Attendants - Communications Workers of America (AFA-CWA). Direct Dental Services receives annual management fees from the dentists in exchange for practicing in these "areas of exclusivity" where CWA and IBEW members use the dentists' services. Union Dental manages a dental practice in Coral Springs, Florida. 

WEBSITE: www.afadental.com/ir www.uniondental.com/ir www.aflciodental.com/ir

"Safe-Harbor" Statement: Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

Contact Information

  • CONTACT INFORMATION:
    Dr. George D. Green
    President
    Email Contact