Banyan Corporation to Acquire National Diagnostic Solutions.

LOS ANGELES -- Banyan Corporation (OTC BB: BANY) said today it has signed a definitive agreement to acquire National Diagnostic Solutions, Inc., of Phoenix.

Banyan CEO Michael Gelmon said his company will use National Diagnostic Solutions as a "key entry point" into the diagnostic imaging arena for its newest subsidiary, Diagnostic USA(TM), Inc. In January, Banyan had signed an LOI to acquire a 40 per cent interest in National Diagnostic Solutions.

"Everyone at Banyan was so impressed after completing the due diligence that we made an offer for a partially- leveraged buyout of all of National Diagnostics," he said, including that the Nerve Conduction Velocity testing unit and Ultra Sounds operated by National Diagnostic generated billable revenues in excess of $7 million in 2004.

$1.6 Million in Accounts Receivable to Fund Future Acquisitions

Mr. Gelmon said that "approximately $1.6 million of bona fide accounts receivable are included in the acquisition. Banyan plans to use the Diagnostic USA cash flow to fund future acquisitions in the diagnostic imaging arena as well as reinvesting in our Chiropractic USA(TM) subsidiary, the largest chiropractic chain in the world."

Commenting on the acquisition, Blaine Riley of IMR, Inc., of Newport Beach, Banyan's investment banker, said it offered "many synergies.

"The acquisition of National Diagnostic brings a significant depth of imaging technology and diagnostic expertise to Banyan's Diagnostic USA subsidiary," he said. "I see this transaction as very complementary to Banyan's financial statements with respect to the bottom line and the top-line revenue being extremely accretive."

Financial details of the acquisition, which is subject to the completion of due diligence, were not announced.

Information about on Chiropractic USA and Diagnostic USA is available from Banyan Corporation Investor Relations at [phone] or online at www.chiropracticUSA.net.

About Banyan Corporation

Banyan Corporation (OTC BB: BANY) is a publicly-traded holding company focused on investing in and building a network of operating subsidiaries engaged in various innovative businesses. Banyan's Chiropractic USA subsidiary focuses on the development of branded chiropractic clinics throughout North America by franchising chiropractic clinics under its brand, and its new Diagnostic USA subsidiary focuses on the rapidly growing diagnostic imaging arena. Banyan's other subsidiary, Banyan Financial Services, Inc., provides practice finance solutions to the chiropractic, medical, dental and healthcare communities.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.

Chiropractic USA and Diagnostic USA are trademarks of Banyan Corporation.