Pacer Health Signs Agreement for New Hospital Information System.

Purchase to Add Over $5 Million in Software and Equipment to Pacer's Facilities

MIAMI -- Pacer Health Corporation (OTCBB:PHLH), a Miami-based owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities, announced today that it has entered into an agreement to purchase software and equipment to upgrade its information systems at all Pacer facilities. The total value of the software, hardware and licenses is expected to exceed $5 million.

Pacer signed an agreement with Alert Life Sciences, a clinical software provider, and Health Care Software, Inc. (HCS), a financial and business office software provider, to install new, state-of-the-art, clinical and business information systems in all Pacer owned facilities.

"Implementing HCS and Alert at all of Pacer's facilities will help streamline our operations and provide for more efficient and effective reporting mechanisms," said Rainier Gonzalez, Pacer's Chairman and Chief Executive Officer. "Upgrading our financial and clinical software further demonstrates our commitment to improve and continuously upgrade the facilities we acquire. Furthermore, we made sure to implement both a clinical and financial solution to both manage finances and ensure quality of care"

HCS, which is based in New Jersey, was founded in 1969 to provide healthcare organizations with a fully integrated, comprehensive system of clinical and financial applications. HCS will be installing INTERACTANT at Pacer's facilities, which is comprised of modular, on-line, real-time applications.

Alert Life Sciences, provides an all-inclusive suite of clinical software to hospitals. The software is designed to meet the needs of nurses and physicians using a completely paperless, touch-screen system and electronic medical records.

Alert and HCS will interface to provide a comprehensive state-of-the-art clinical and financial information system, making Pacer Health and its facilities completely paperless.

Pacer's executives expect implementation to be completed within the next twelve months.

About Pacer Health Corporation

Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities serving non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com for more information.

"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. They are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. Important risk factors - including, but not limited to risks associated with changes in general economic and business conditions (including in the IT 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 market acceptance of our services, and changes in our business strategies - could cause actual results to differ from those contained in forward-looking statements.