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Dardadog
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2004-05-10 09:05:32


Critical Home Care, Inc. Acquires Arcadia Services, Inc. and Arcadia Rx, LLC


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WESTBURY, N.Y., May 10 /PRNewswire-FirstCall/ -- Critical Home Care, Inc. (OTC Bulletin Board: CCLH.OB) ("Critical Home Care") announced today that it has acquired Arcadia Services, Inc. ("Arcadia Services") and Arcadia Rx, LLC. ("Arcadia Rx"). Arcadia Services is a national provider of staffing and home care services located in multiple states with revenues of approximately $75,000,000 for the calendar year 2003. Arcadia Rx is a mail service pharmacy with revenues for calendar year 2003 of approximately $3,000,000. Critical Home Care is a durable medical equipment company with revenues for the fiscal year ending September 30, 2003 of approximately $5,000,000. The transaction was completed pursuant to a merger between Critical Home Care, CHC Sub, Inc., a wholly-owned subsidiary of Critical Home Care and RKDA, Inc. ("RKDA"), the parent company of Arcadia Services and Arcadia Rx. The transaction was effective May 10, 2004. Critical Home Care completed the private financing of the transaction through the sale of 32 million shares of its common stock. In addition, the company issued seven year warrants representing the right to purchase an additional 3.2 million shares of common stock at an exercise price of $.50 per share. Sandgrain Securities acted as the exclusive placement agent for the offering. The transaction included leading institutional investors. John E. Elliott, II, 47, who began his health care career in 1978, will assume the positions of Chairman and Chief Executive Officer. Prior to this transaction, Elliott was the chairman of AMI Holdings, Inc., which is a major shareholder in Fidlar Doubleday, Inc., Neogenomics, Inc. and SSAC, LLC. Elliott commented, "The combination of these companies is a powerful platform that is 'direct to patient' along with a strong professional staffing component." Lawrence Kuhnert, 53, will become President and Chief Operating Officer. Kuhnert has over 21 years experience in operating, developing, acquiring and divesting healthcare companies. Kuhnert stated, "We are excited about the opportunity that the combination of these businesses offer through value added products and services for our homecare patients." Prior to this transaction, Kuhnert was Director of Acquisitions for Rotech Medical Corporation where he managed numerous acquisitions which were instrumental in Rotech's successful growth. Both Elliott and Kuhnert will serve as Directors of the company. David Bensol, 48, the former chief executive officer of Critical Home Care, will become Executive Vice President and remain a Director. Bradley Smith, 52, will remain Secretary. Eric S. Yonenson, 55, will remain Chief Financial Officer. Cathy Sparling, who has been with Arcadia Services for 14 years, will stay on as Chief Operating Officer of Arcadia Services along with its senior management team consisting of Vice President Barbara Gay, Vice President Phyllis Pheeney and Vice President of Finance Lakshumanan Sundaram. The new management team has a combined total of more than 80 years of health care experience. Critical Home Care's headquarters will remain in Westbury, New York. This news release contains forward-looking statements regarding Critical Home Care's business operations and outlook. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, level of customer demand, competitive pressures and other important factors detailed in Critical Home Care's Form 10-K for fiscal year 2003 filed with the Securities and Exchange Commission. Contact: John E. Elliott, II Critical Home Care, Inc. Office: (248) 352-7530 Mobile: (734) 516-2803 SOURCE Critical Home Care, Inc. -0- 05/10/2004 /CONTACT: John E. Elliott, II of Critical Home Care, Inc., Office: +1-248-352-7530 or Mobile: +1-734-516-2803/ (CCLH) CO: Critical Home Care, Inc.; Arcadia Services, Inc.; Arcadia Rx, LLC; CHC Sub, Inc.; RKDA, Inc. ST: New York IN: HEA MTC OTC SU: TNM PER

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Due Da Due......But Be Quick About It!!!!!


DaDog


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