Banyan Announces Acquistion of Chiropractic Chain by Subsidiary -- Chiropractic USA Inc.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 11, 2001

Banyan Corp. (NQB Pinks: "BANY") announces that its wholly owned subsidiary, Chiropractic USA Inc., has reached an agreement with Advanced Health Care Center Inc. of Lake Charles, La., to purchase its chain of Chiropractic clinics in Louisiana.

The purchase of the clinics is subject to a thorough due diligence review by Chiropractic USA.

Banyan President, Cory Gelmon, stated that: "Our preliminary review of the clinics and the financial performance of the business as a whole has lead us to believe that this will be an excellent acquisition for Chiropractic USA. Naturally, our preliminary findings need to be confirmed by a thorough due diligence process, which will commence shortly."

Banyan CEO, Michael Gelmon, commented: "The clinics' revenues in each of the last three years have been approximately $2 million, with net income in excess of half a million dollars per annum. Obviously this acquisition will bring significant income to the company, and help launch the Chiropractic USA business model. While Chiropractic USA intends to be primarily a franchisor of Chiropractic clinics, we feel it is necessary to establish some corporately owned clinics, which will act as a flagship for the chain."

Cory Gelmon continued, "Our business model is significantly different than previous attempts at establishing Chiropractic chains. While the acquisition of corporately owned clinics is important for us to gain a beachhead in the industry, we are launching our franchising program this fall by utilizing a variety of franchising methods including the use of Area Developers who will develop specific territories with the Chiropractic USA brand -- either by converting existing clinics to operate as Chiropractic USA franchisees or by attracting new Chiropractors to set up franchised clinics under our logos, marks and uniform operating and marketing systems. Our primary goal is to create value added for all Chiropractors operating under the Chiropractic USA banner."

Chiropractic USA's Director of Operations, Dr. Jeff Schacter, said: "I am looking forward to reviewing all clinical operations and meeting with the Chiropractors on site as soon as possible. This is the first step in our development of a national chain of Chiropractors, and I am hopeful that the clinics and the operations check out as anticipated."

The company intends to finance the acquisition through debt financing due to the significant cash flow provided by the clinics.

Banyan Corp. is a publicly traded holding company focused on investing in and building a network of operating subsidiaries engaged in various innovative businesses. Currently the company's wholly owned subsidiary, Chiropractic USA Inc. is focusing on the development of branded Chiropractic clinics throughout North America by way of acquisitions of existing clinics as well as franchising chiropractic clinics under its marks and uniform operating systems and practices.

In addition, Banyan's wholly owned subsidiary, DoubleCase Corp., sells a line of hard-sided protective carrying cases for notebook computers under the DoubleCase brand name. DoubleCase's products are currently available through distribution from Ingram Micro and sold through a wide variety of Internet e-commerce storefronts, computer mail order catalogs, Value Added Resellers (VARs), a number of overseas vendors, and to the U.S. government.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by Banyan Corp.) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Banyan Corp. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors. For a description of additional risks and uncertainties, refer to Banyan's filings with the Securities and Exchange Commission.