BioBalance Announces Results of Clinical Study to be Presented at Major Scientific Meeting in New Orleans.

Business Editors/Health/Medical Writers

Digestive Disease Week 2004

NEW YORK--(BUSINESS WIRE)--May 18, 2004

The BioBalance Corp. announced that the results of a clinical study using PROBACTRIX(TM), BioBalance's novel biotherapeutic agent, will be presented tomorrow at the 2004 Digestive Disease Week (DDW) in New Orleans.

The study, entitled The Probiotic Agent E-Coli M17 Has a Healing Effect on Proximal Inflammation of the Small Bowel, will be presented by Dr. Samuel Adler, Chief of Gastroenterology at the Bikur Cholim Hospital in Jerusalem, Israel. Using capsule endoscopy (CE) performed on patients with chronic intestinal symptoms and no known diagnosis, Dr. Adler identified 18 patients with proximal inflammation of the small intestine, also referred to as "mucosal IBD". Many of these patients had previously been labeled as having intractable Irritable Bowel Syndrome. Of the 18 patients who completed the four to six week course on PROBACTRIX, 12 patients showed a clinical response with marked reduction in abdominal symptoms and improvement in well-being. In these 12 patients, pretreatment CE revealed significant inflammation in the proximal small bowel. Post therapy CE showed significant improvement paralleling the observed clinical improvement.

"The results are remarkable, particularly in light of the fact that many of these patients had little or no response to conventional treatments," said Dr. Adler. He added, "While the exact number of patients with mucosal IBD is unknown, this work might suggest that it is more common than previously thought." The Company has filed U.S. and international patent applications relating to the treatment of this disease.

Digestive Disease Week (DDW) is the largest international medical conference of physicians, researchers and academics in the fields of gastroenterology, hepatology, endoscopy and gastrointestinal surgery. DDW showcases approximately 5,000 abstracts of clinical studies and hundreds of lectures on the latest advances in GI research, medicine and technology.

Background on IBS and IBD

Irritable Bowel Syndrome (IBS) is one of the most common chronic gastrointestinal conditions, affecting approximately 40 million Americans or 20% of the adult population. Symptoms range from constipation to diarrhea and are often accompanied by abdominal pain and bloating. While IBS is responsible for half of the patient visits to gastroenterologists, only 20-30% of sufferers seek medical attention, thought to be due to the lack of effective treatment options available.

Inflammatory Bowel Disease (IBD) refers to two specific types of disease: Crohn's Disease and ulcerative colitis. Both of these diseases have different forms and are estimated to afflict more than one million Americans. Crohn's disease and ulcerative colitis are chronic digestive disorders. Their cause is unknown. Ulcerative colitis inflames the inner lining of the colon (large intestine) and the rectum. Crohn's disease may affect the lower part of the small intestine, the colon, and other parts of the digestive tract.

About The BioBalance Corporation

The BioBalance Corporation is a specialty pharmaceutical company focused on the development of novel treatments for various gastrointestinal (GI) disorders that are poorly addressed by current therapies via accelerated regulatory pathways. These disorders include Irritable Bowel Syndrome (IBS), inflammatory bowel disease and diarrhea caused by antibiotics, chemotherapy or AIDS.

BioBalance operates as a wholly owned subsidiary of New York Health Care, a home healthcare company with which it merged on January 2, 2003 in a Stock Exchange Agreement. The combined entity trades on the OTC Pink Sheets under the symbol BBAL. Additional information is located on the company website at www. biobalancecorp.com.

SAFE HARBOR STATEMENT In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future events, financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, satisfaction of approvals and conditions applicable to the transaction described above, the company's ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by the company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, cautionary statements made in New York Health Care's 2003 Annual Report on Form 10-K, its latest quarterly report on Form 10-Q and current reports on Form 8-K.