Arcadia Resources, Inc. (AMEX:KAD) announced today that it has completed the sale of its Durable Medical Equipment (DME) locations in Florida and Colorado to Aerocare Holdings, Inc. in two separate transactions for total cash proceeds of $7,700,000. In connection with the transactions, Arcadia will retain the accounts receivable relating to services provided at these sites prior to August 16, 2007, totaling approximately $7,000,000.

After using part of the proceeds to reduce debt and other obligations by approximately $4,300,000, Arcadia will have approximately $10,000,000 (including the balance of the purchase price and the expected collection of the remaining accounts receivable) to support its on-going operations and further develop its DailyMedTM product offering.Aerocare held back $750,000 for 12 months to secure Arcadia's obligations.

As part of the transaction, Arcadia and Aerocare Holdings have also agreed to negotiate a DailyMed? co-marketing agreement for all of Aerocare's locations nationwide within the next 90 days.

?This transaction is a significant step towards meeting our goal of reducing debt, increasing our cash position, investing in our DailyMedTM initiatives and generating positive EBITDA and operating cash flow beginning in October 2007, our fiscal 2008 third quarter,? said Arcadia's CEO Marvin Richardson. ?Even after paying down certain liabilities and a portion of our debt, the combination of the cash proceeds from the sale and the expected collection of the accounts receivable we retained, should provide us with approximately $10,000,000 to be used to support on-going operations and growth initiatives,? continued Richardson.

The agreement for the sale of the Florida operations includes certain obligations by Arcadia to compensate the buyer if the federal government enacts legislation that would reduce the Medicare rental oxygen reimbursement time period to less than 36 months in calendar years 2008 or 2009. The amount due the buyer would depend on the number of months that the new legislation would provide for reimbursement, and the maximum amount would be $1,000,000 if the number of months is reduced to 18 months or lower.

With the completion of these transactions, Arcadia's remaining DME operations will consist of 22 DME locations in states other than Florida and Colorado, which generateapproximately $24 million in gross revenues and contribute positively to Arcadia's EBITDA.

Arcadia negotiates an expanded co-marketing relationship

In conjunction with the sale of the Florida DME subsidiary, Aerocare has agreed to negotiate a co-marketing relationship for Arcadia's core product offering of DailyMedTM. The agreement is to be negotiated within 90 days of the closing of the sale on mutually agreeable terms. Arcadia expects to leverage the previously owned locations along with current Aerocare locations to increase market penetration of DailyMedTM, Arcadia's compliance packaging pharmacy offering, which will improve medication administration and safety for Aerocare's customers.

About Arcadia Resources

Arcadia Resources, Inc. is a national provider of alternate site healthcare services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; comprehensive central fill and licensed pharmacy services available for purchase on http://www.prairiestonerx.com; and a catalog of healthcare-oriented products, also available for purchase on http://www.arcadiahomehealth.com and other leading retailer websites. Through industry partnerships, the Company is also establishing walk-in routine (non-emergency) medical clinics inside of retail stores. Arcadia's comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes or through the convenience of local healthcare sites. For more information on the Company, visit our website: http://www.arcadiaresourcesinc.com. The Company's annual report on Form 10-K for the year ended March 31, 2007 is available on the Company's website and the SEC website (http://www.sec.gov).

Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities Exchange Act of 1934, as amended and otherwise within the meaning of court opinions construing such forward-looking statements. The Company claims all safe harbor and other legal protections provided to it by law for all of its forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, estimates, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized, including our estimates of consumer demand for our services and products, required capital investment, competition, and other factors. Actual events and results may differ materially from those expressed, implied or forecasted in forward-looking statements due to a number of factors. Important factors that could cause actual results to differ materially include, but are not limited to (1) our ability to compete with our competitors; (2) our ability to generate sufficient cash flow to meet our obligations on a timely basis, including obtaining additional debt or equity financing and/or restructuring existing indebtedness and financing accounts receivables, which may be difficult due to our history of operating losses and negative cash flows; although management believes that the Company's short-term cash needs can be adequately sourced, we cannot assure that such additional sources of financing will be available on acceptable terms, if at all, and an inability to raise sufficient capital to fund our operations would have a material adverse affect on our business and would raise substantial doubt about our ability to continue as a going concern; (3) the ability of our affiliated agencies to effectively market and sell our services and products; (4) our ability to procure product inventory for resale; (5) our ability to recruit and retain temporary workers for placement with our customers; (6) the timely collection of our accounts receivable and our eligibility and ability to successfully bill and collect Medicare reimbursement, in conformity with Medicare program policies and procedures, including those for certain DME and services previously thought to be uncollectible due to licensure issues; (7) our ability to attract and retain key management employees; (8) our ability to timely develop new services and products and enhance existing services and products; (9) our ability to execute and implement our growth strategy; (10) the impact of governmental regulations; (11) marketing risks; (12) our ability to adapt to economic, political and regulatory conditions affecting the health care industry; (13) other unforeseen events that may impact our business; (14) our ability to successfully integrate acquisitions; and (15) the ability of our new management team to successfully pursue its business plan and the risk that the Company may be required to enact restructuring measures in addition to those announced on March 30, 2007 and thereafter; (16) the risk of indemnity and other claims being set-off against the holdback monies payable to us; (17) the risk of legislation being enacted that would trigger our payment obligation relative to reductions in the cap for Medicare oxygen rental reimbursement; and (18) our ability to negotiate on acceptable terms a co-marketing relationship with Aerocare. The forward-looking statements speak only as of the date hereof. Additional information that could materially affect the Company may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.

Kreab/Strategy XXI
Andrew Frank, 212-935-0210
or
Davis Hodge, 212-935-0210