Patient Home Monitoring (PHM) Closes Acquisition of Care Medical Partners, LLC, a Profitable Company; Increase in Revenues of...

Patient Home Monitoring Corp. (PHM) (TSX VENTURE:PHM), a fast growing and
profitable company focused on rolling-up annuity-based healthcare service
companies in the US and Canada, announced it closed the acquisition of Care
Medical Partners, LLC ("Care Medical"), a profitable Georgia-based company
focused on providing home-based chronic pulmonology services. The acquisition is
expected to have an immediate and substantial impact on earnings-per-share (EPS)
and is expected to increase total run-rate revenues of PHM to over $27 million
annually.


Acquisition 

PHM Post-Acquisition is expected to generate:



--  Over $27 million in annual run-rate revenue 
--  Over $5.75 million in annual run-rate EBITDA 
--  Significant new organic growth cross-selling opportunities designed to
    generate additional revenue and profit growth



Care Medical generated over $13.1 million in revenue for the period between
March 31, 2013 and March 31, 2014, with just over $2 million in Adjusted
EBITDA(1) over the same period, based upon final unaudited due diligence.


PHM paid $5,476,150 for the acquisition, which is equivalent to 2.72 times
trailing 12-month unaudited Adjusted EBITDA(1), paid in cash, stock and
acquisition of medical equipment leases. 


Under the terms of the Definitive Purchase Agreement, PHM will acquire 100% of
the units of Care Medical for a total consideration of (1) US $144,243.60 in
cash to the sellers and (2) 5,655,476 shares of PHM issued to the sellers,
subject to TSX approval. The sellers agreed to take PHM shares at a share value
of US$0.26 per share or equivalent of approximately CAD$0.28 per share. 


As part of the transaction, PHM will acquire $3.15 million in medical equipment
placed with patients generating revenue through paying various leases and loans.
PHM plans to secure additional debt financing in the near future with a focus to
increase shareholder value for this and other medical equipment acquired to
service patients.


"There is an immediate and positive EPS impact with this acquisition," said
Michael Dalsin, Chairman and CEO of PHM. "While the acquisition will only be
reflected in PHM's financial statements for the last month of the current
quarter, I expect there to be a significant impact on this quarter's financial
results with the full force of revenue and profits being recorded in this year's
fiscal fourth quarter."


"Care Medical is a complimentary fit with our previous South Carolina
acquisitions both in services offered and geographically," continued Mr. Dalsin.
"With our latest acquisitions in Florida, South Carolina, and Georgia, we are
solidifying PHM's regional presence in the southeastern United States while at
the same time providing significant expansion opportunities for our
California-based cardiology service business unit. While we were able to acquire
this business at a favorable multiple, I expect our post integration multiple to
be much lower. Andrew Folmer and the operational team plan to efficiently
integrate the business into PHM and are focused on generating organic and
cross-selling revenue immediately within the existing growing patient database."



"Our M&A team is nearing the LOI stage with two additional acquisition targets
and I expect to have the next deal lined up shortly," Mr. Dalsin concluded. "We
have plenty of cash and a solid balance sheet combined with strong positive cash
flow, which puts PHM in a position to close these subsequent transactions
without additional equity financing."


About Care Medical 

Care Medical services patients with chronic pulmonary illnesses. Operating for
more than two decades, Care Medical has Medicare competitive bids in both
Georgia and South Carolina. The operation is intended to integrate with PHM's
Resource Medical division and maintains a database of more than 10,000 patients
that may benefit from PHM's cross selling services, including Coumadin testing
services, complex COPD treatment services, and pulmonology drug delivery
services. 


About PHM

PHM is an acquisition-oriented, fast-growing and profitable company servicing
patients with heart disease and other chronic health conditions. PHM is focused
on acquiring companies in a highly fragmented and developing market of small
privately-held companies servicing chronically ill patients with multiple
disease states caused mainly by age and obesity. Because of the new and highly
fragmented nature of the market, PHM is actively and successfully identifying
and evaluating profitable, annuity-based companies to acquire at favorable
prices in order to integrate their patient databases and technical expertise.
PHM's post-acquisition organic growth strategy is to increase annual revenue per
patient by offering multiple services to the same patient, consolidating the
patient's services and making life easier for the patient. The expected result
is growing EPS with each acquisition and growing revenue and profits from the
cross selling efforts.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.  


 (1)  Adjusted EBITDA is defined as EBITDA plus Stock Based Compensation. 

Forward-Looking Statements 

Information in this news release that is not current or historical factual
information may constitute forward-looking information within the meaning of
securities laws. Implicit in this information, particularly in respect of the
future outlook of PHM and anticipated events or results, are assumptions based
on beliefs of PHM's senior management as well as information currently available
to it. While these assumptions were considered reasonable by PHM at the time of
preparation, they may prove to be incorrect. Readers are cautioned that actual
results are subject to a number of risks and uncertainties, including the
availability of funds and resources to pursue operations, decline of
reimbursement rates, dependence on few payors, possible new drug discoveries, a
novel business model, dependence on key suppliers, granting of permits and
licenses in a highly regulated business, competition, difficulty integrating
newly acquired businesses, low profit market segments as well as general
economic, market and business conditions, and could differ materially from what
is currently expected. This press release refers to EBITDA (earnings before
interest, tax, depreciation and amortization) and Adjusted EBITDA (EBITDA plus
Stock Based Compensation) which are non-GAAP financial measure that do not have
any standardized meanings prescribed by GAAP. PHM's presentation of these
non-GAAP financial measures may not be comparable to similarly titled measures
used by other companies. These non-GAAP financial measures are intended to
provide additional information to investors concerning PHM's performance. The
references in this press release to projected EBITDA and revenue are
forward-looking information about prospective financial performance and readers
are cautioned that this information may not be appropriate for other purposes.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Patient Home Monitoring Corp.
Michael Dalsin
Chairman
(323) 253-3055
www.phmhometesting.com
Patient Home Monitoring Corp. (TSXV:PHM)
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