A Merger in Senior Healthcare Promises Strategic Solutions.

BOYNTON BEACH, Fla. -- Two prominent senior healthcare providers have announced their merger and the creation of an innovative new organization to deliver comprehensive medical and rehabilitation services to seniors in residential settings. The organizations, Mobile Medical Industries, Inc. (MMI), its affiliates MD to You, CareGivers, CareAdvantage, and Alliance Care, Inc., will operate as AllianceCare throughout its locations in Florida, Texas and Tennessee. Announcement of the private-company merger was made by Greg Bellomy, AllianceCare President and CEO.

"Bringing these two great organizations of professionals together is the start of a whole new strategy in senior healthcare delivery," Bellomy says. "Our entire focus is to bring a full range of services to patients with complex medical issues who otherwise might not receive care at all or may access care through institutionalized settings. Most anything that's done traditionally in a physician's office can be done in the home. The direct impact of our proactive model is better patient outcomes, less expensive care, all in a setting that is much more pleasant and convenient for the patient."

Combining the medical services of MMI with the rehabilitation clinics operated by the former Alliance Care, the two organizations are highly complementary. The "new" AllianceCare emerges with more than 1000 employees (65% licensed physicians, nurses or therapists), 12,000 patients (70% living in senior facilities) and projected revenue growth to $100 million in 2005.

"The strength of this merger is the exceptional fit of the two companies," said Sally Hemlepp, Senior Vice-President of the new organization (and founder of the former AllianceCare). "You have House Call Physicians, Skilled and Private Duty Nurses, Rehabilitation Therapists all under one experienced management team bringing complete and connected care - diagnosis, treatment, disease management, wellness and prevention strategies - to seniors right where they live."

AllianceCare is at the front of an evolving trend toward seniors receiving healthcare at home whenever possible. The patients prefer the privacy and comfort of their home environment; and it is a proven statistic that mortality rates are lower and patients are healthier the longer they are able to remain safely in their home. And, because of the effectiveness of treatments, costs to the insurers, largely Medicare, are actually reduced thanks to the reduction of unnecessary hospitalizations and emergency clinic visits.

"Our experience indicates that going into a patient's home setting provides a unique perspective of their healthcare needs. Home visits reveal many issues not readily discovered in an office setting - such as poor diet issues, safety issues, etc.," says Dr. Ronnie Morris, AllianceCare Medical Director. "And since our physicians spend a significantly longer time with each patient than they would otherwise be able to in an office setting, they are able to build a strong personal connection with the patient and their families."

AllianceCare is organized to provide Medical care (MD and nursing), Diagnostic, Rehabilitation Therapy, and Private Duty Services through two channels: Healthy Lifestyle Centers located in senior retirement communities, and Homecare Centers of Excellence serving private residences.

The Healthy Lifestyle Centers are located in Assisted Living, Independent Living and Continuum of Care Communities (CCRC) operated by leading corporate owners, such as Emeritus Assisted Living and Sunrise Senior Living and many independent facilities. In addition to medical care and rehabilitation therapy, the centers also provide Wellness Programs, such as blood pressure and diabetes screening; Risk Management, such as Falls Prevention and Low Vision; and Respite Specialty Programs, such as Orthopedic and Post-Surgery Recovery.

The Homecare Centers of Excellence provide medical, diagnostic and rehabilitation services in private residences and also offer Chronic Illness Programs for Diabetes, Cardio-Pulmonary Disease and Oncology; and Acute Medical Events, such as Orthopedic procedures and Pre-Post-Surgery Programs.

"Everything we have seen points to AllianceCare as being the first organization to make this integration strategy work on a major level," Bellomy adds, "and rightly so. These were uniquely qualified providers in the first place, and now more so than ever, our interdisciplinary practices are keeping seniors healthy in a lower cost setting."

A leadership strategy with demonstrated results points to a sustained growth path for AllianceCare by simply replicating its service model in expansion markets. Growing cost pressures in the $1.3 trillion (2000) healthcare sector are driving such innovations, and an ability to retain seniors in their residence, whether private or community living, are the solution consumers, corporate owners and insurers are heartily accepting. The combined opportunity within this sector is large and growing - $43+ billion to date.

AllianceCare plans to add ten new markets in 2005, and has projected continually rapid growth based on explosive growth in the senior population expected to increase by 39% over ten years.

"AllianceCare is very well positioned to benefit from demographic growth factors," Bellomy states, "and to fully develop the opportunity in senior consumer preference for aging in place."

Bellomy and his leadership team are accustomed to fast growth management. He has more than twenty years in healthcare experience including a Group President role of a $250 million unit of RehabCare Group (NYSE:RHB). Sally Hemlepp was the founder, President and CEO of the former Alliance Care, is a licensed therapist who also was a founder of IntegraCare. Chief Financial Officer, James Douthitt, was previously the CAO and Interim CFO for RehabCare Group. Chief Information Officer and Chief Clinical Officer, William Haffey, Ph.D., held a similar post with TheraTx (NASDAQ:THTX) and was a founder of Cogent Healthcare. Dr. Ronnie Morris, Senior Vice President and Medical Director is the founding partner of MDVIP, Inc., a medical concierge service entity operating in seven states.

"Our organization has personal and professional strengths at every key position," Bellomy says, "so managing growth will be more than posting steadily higher revenues and earnings. The quality of services we provide to seniors and how we improve that performance will be the standard by which AllianceCare will be judged by others and ourselves."

AllianceCare is a senior healthcare provider of medical services, rehabilitation therapy and home health services through 11 branch offices and 150 senior communities located in Florida, Texas and Tennessee. Institutional investors include Three Arch Partners, Cardinal Partners, GE Capital, and Millenium Capital. Complete information may be obtained by contacting Rosemary Kelly, V.P. Marketing, or James Douthitt, CFO at AllianceCare, Inc., 2500 Quantum Lakes Dr., Suite 108, Boynton Beach, FL 33426; by calling 561-244-0220, faxing 561-244-0221, or e-mailing [e-mail] or [e-mail].