American Hospital Resources Signs Agreement to Acquire National Institutional Pharmacy Services Inc.

Business Editors, Health & Pharmaceutical Writers

SANTA ANA, Calif.--(BUSINESS WIRE)--Nov. 4, 2002

American Hospital Resources (OTCBB: AMHR) announced the signing of an agreement to acquire all of the operating assets of National Institutional Pharmacy Services Inc. ("NIPSI"). Closing is scheduled to take place by Nov. 15, 2002.

NIPSI, established in 1992, provides pharmaceutical dispensing services, medical records support, Medicare Part-B services, and pharmacy consulting services to over 2,400 long-term care beds located in the Greater Houston and San Antonio, Texas marketplaces. These 2,400 long-term beds generated over $6.5 million in annual revenue for NIPSI in 2001. In addition, NIPSI has signed a lease agreement to open a satellite pharmacy in the Dallas-Fort Worth area. This pharmacy is scheduled to be in operation by the end of 2002 and will service pending contracts, which may add as many as 400 additional beds.

Christopher Wheeler, the founder and chief executive officer of AMHR stated: "We are very pleased with the addition of NIPSI and the quality pharmacy management team currently working in both the Houston and San Antonio markets. We are equally excited about the prospects to build additional pharmacy business in those two cities as growth opportunities present themselves. NIPSI has a long-standing reputation as a quality pharmacy services provider, and is highly regarded in the long-term care industry. We at AMHR consider ourselves very fortunate to add this truly top-notch company and management team to our family."

Michael Hunter, the chief executive officer of NIPSI added: "The acquisition of NIPSI by AMHR is a natural fit. The shared goals and values combined with the dedication to quality patient services is the foundation upon which both companies have built their respective business models. Such standards are so compatible that any transition in operations should be virtually seamless."

AMHR also announced that it has completed its due diligence review of Quantum Pharmacy Alliance Ltd. and anticipates closing this acquisition as soon as documents can be signed by all parties. Quantum is a pharmaceutical purchasing cooperative whose members are independent pharmacy operators that service various alternate care settings such as nursing homes, sub-acute care facilities and correctional facilities. Through its buying agreements, Quantum members purchase approximately $120 million of pharmaceuticals and related medical supplies annually.

American Hospital Resources Inc. specializes in the acquisition and consolidation of pharmacy outsourcing businesses. AMHR plans to acquire and consolidate pharmacy operations in several regions of the country with a plan to gain labor efficiencies as well as increase its pharmaceutical buying power and enhance its pricing and purchasing terms with the pharmaceutical supply houses.

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 Exchange Commission.