SOURCE: Union Dental Holdings, Inc.

August 22, 2006 08:00 ET

Union Dental Signs Contract With CWA Local 3181

CORAL SPRINGS, FL -- (MARKET WIRE) -- August 22, 2006 -- Union Dental Holdings, Inc. (OTCBB: UDHI) -- http://www.uniondental.com/ir -- a provider of multi-state dental services for union members, announced today it has signed a contract to create a dental network for Communications Workers of America (CWA) Local 3181 in Palm Beach and St. Lucie counties in Florida.

George D. Green, president and CEO of Union Dental, said, "The Public Sector for CWA is the fastest growing sector of the union. They represent approximately 800,000 of the 3.2 million CWA insured members who cover a variety of occupations besides telecommunications such as food services, public maintenance and public service areas. The addition of this first group of public sector employees is significant because it establishes the provider discounts that will be afforded these employees regardless of their insurance coverage level. Although provided with different levels of coverage than our telecommunications locals, this group will participate with the telecomm locals to the benefit of both. The addition of these sector employees will require expansion of our networks which is of course revenue generating for Union Dental Corp."

Dr. Green further stated: "Since we recently announced the signing of a contract to build a nationwide dental network for the CWA Flight Attendants, I believe we will be approached by other unions representing a wide variety of occupations to add to our growing network of dentists. Each of our providers would be afforded a variety of insured union member groups from which to select their participation level. Some doctors may see patients from one union within a city while others within the same locale see union members from a different labor organization. Each doctors' office would still be afforded exclusivity for a certain group in a certain location as has always been customary and a unique feature of our business model."

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) Dental Networks. 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.uniondental.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.

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