AT&T BusinessDirect Solution Helps Streamline Billing for Arcadia HealthCare.

National Health Care Service Provider Enhances Operational Efficiency Through Integrated AT&T Business Network Solution

INDIANAPOLIS -- AT&T Inc. (NYSE:T) has announced a new two-year contract with Arcadia HealthCare, a national provider of alternate site health care services and products throughout the United States and Canada. Arcadia offers durable medical equipment and non-medical and medical staffing, as well as traveling nurses who allow patients to manage injury and illness from the comfort of home. Arcadia HealthCare is also a premium provider of a comprehensive central fill and licensed pharmacy service, including its proprietary DailyMed[TM] Pharmacy program, and offers a catalog of health care-oriented products.

With more than 100 sites across the country, Arcadia HealthCare's former accounting and billing processes included reviewing invoices manually and posting all items to a main office for processing. Under terms of the new contract, AT&T will provide the company with the AT&T BusinessDirect([R])portal, streamlining these financial operations onto a reliable network solution that enhances financial operating efficiency and enables real-time snapshots of expenses and other critical business data.

Performing at 99.8 percent reliability, the AT&T BusinessDirect portal offers near real-time performance reporting and allows Arcadia HealthCare to manage its systems, track network application and quickly identify and address late charges and wait times. With an easy-to-read user-friendly interface, AT&T BusinessDirect portal improves the speed, accuracy and productivity of Arcadia HealthCare's operations while controlling overall costs.

"This expanded relationship with AT&T will provide critical cost-efficiencies to Arcadia HealthCare and enable a better service level for our customers across the country," said Cathy Sparling, senior vice president of Administration, Arcadia HealthCare. "AT&T provides the most complete suite of quality communications in the most places to help us as we prepare for continued competition in the medical-staffing and pharmacy services industry."

In addition to its AT&T BusinessDirect services, AT&T expanded its contract with Arcadia HealthCare to include local and long distance voice, wireless, Web and teleconferencing solutions. These services are fully consolidated under AT&T Business Network (ABN), which offers AT&T services on a single bill and contract. ABN's integrated bundle of service offers even greater management agility for Arcadia HealthCare.

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About Arcadia HealthCare(SM)

Arcadia HealthCare(SM) is a service mark and trade name of Arcadia Resources, Inc. (AMEX: KAD). Arcadia HealthCare is a national provider of alternate site healthcare services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; comprehensive central fill and licensed pharmacy services including its proprietary DailyMed[TM] Pharmacy program and a catalog of healthcare-oriented products, available for purchase on http://www.arcadiahealthcare.com and other leading retailer websites.

Through industry partnerships, the Company is also establishing a licensed model for walk-in routine (non-emergency) medical clinics inside of retail stores. Arcadia HealthCare's comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes or through the convenience of local healthcare sites. The Company's annual report on Form 10-K for the year ended March 31, 2007 is available on the Company's website (http://www.arcadiahealthcare.com) and on the SEC website (http://www.sec.gov).

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

(c) 2007 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.