Auditors Remove Going Concern Modification to Pacer Health Corporation's Financial Reports.

MIAMI -- Pacer Health Corporation (OTCBB: PHLH), a Miami-based owner-operator of acute care hospitals, medical treatment centers and residential care facilities, announced today that the company's independent auditors have elected not to include the going concern modification in their opinion relative to Pacer Health's financial statements for the year ended December 31, 2004.

An auditor is required to evaluate conditions or events discovered during an engagement that raise questions about the ability of its client to continue as a going concern. An auditor who concludes that substantial doubt exists about the entity's ability to continue operating and who is not satisfied that management's plans are enough to mitigate these concerns is required to issue an audit opinion that will contain a paragraph outlining issues with this assumption.

In its recently filed 10KSB report, which included Pacer Health's financial statements for the year ended December 31, 2004, Pacer's auditors did not include any such going concern paragraph in their audit opinion. Such a modification was included in Pacer Health's 10KSB report for the previous year.

"The removal of the going concern modification is a clear signal that Pacer Health is successfully implementing its business plan and generating sufficient revenues to sustain its operations," said Rainier Gonzalez, chairman and CEO of Pacer Health. "We believe this independent validation of our model will reinforce investor confidence in our company."

About Pacer Health Corporation

Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric facilities, primarily serving the growing senior citizen population and non-urban areas throughout the Southeast. Shareholders are encouraged to visit the company's web site at www.pacerhealth.com and register to receive Pacer Health news updates.

Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.