American Hospital Resources Files Quarterly Financial Report.

Business Editors

PASADENA, Calif.--(BUSINESS WIRE)--Aug. 16, 2002

American Hospital Resources (OTCBB: AMHR) announced the completion and filing of their quarterly financial report covering the quarter ending June 30, 2002.

The complete 10-QSB report is available on the SEC EDGAR database. The acquisition by New Horizon Education Inc. resulting in American Hospital Resources becoming a fully reporting public company took place near the end of the second quarter. As a result, the financial results reflect only two weeks of actual operations.

Based on the two-week period, the reported revenues for the quarter were $58,100. The loss for the quarter was reported as $2,349. If the acquisition had taken place on Dec. 31, 2001, the pro forma unaudited revenues for the quarter would have been $295,020 with earnings of $31,687. It is recommended that the notes section of the EDGAR filing be consulted for details.

On April 29, 2002 AMHR announced a letter of intent to acquire PHI Healthcare. The due diligence period has lapsed with neither side completing their review. Additionally, overall securities market conditions during the summer have not been favorable. As a result, both companies have agreed to terminate merger talks at the present time.

Both American Hospital Resources and PHI Healthcare are hopeful that mutually beneficial business relationships can be explored at a later date. American Hospital Resources is now advancing discussions with other candidates and potential team members.

American Hospital Resources Inc. specializes in the acquisition of pharmacy outsourcing businesses and material management outsourcing companies, as well as organic crisis management.

Christopher Wheeler, president of American Hospital Resources, stated, "We are entering a new chapter in the history of healthcare supply chain management. This fragmented industry is ripe for consolidation and we believe that our management model and acquisition strategy will provide a compelling reason for independent operations to join the AMHR team.

"Current turbulent market conditions have led investors to be appropriately skeptical. The appeal of AMHR is based on the demographics of the population and the relentless growth of the pharmaceutical industry. As such, the growth of shareholder value will not be dependent on fads or discretionary spending patterns.

"The medical needs of an aging population base and the growing needs of hospital administrators to streamline operations form the cornerstone of our business plan. Consolidated buying power should allow AMHR to get the best possible terms from the pharmaceutical supply houses. We believe this should make AMHR the standout supply choice for hospitals and long-term care facilities nationwide."

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risk and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices and other factors discussed in the company's various filings with the Securities and Exchange Commission.