Arcadia Resources, Inc. (AMEX: KAD), an innovator in consumer health care services, today announced that it has received notification from the Centers for Medicare and Medicaid Services (CMS) confirming the correction of the issuance date for one of the Company's supplier numbers. As a result, the Company will bill and expects to receive Medicare reimbursement for certain durable medical and respiratory equipment (DME) and services previously thought to be uncollectible due to this licensure issue. The notification specifically relates to goods sold and services provided subsequent to the Alliance Oxygen and Medical Equipment acquisition in July 2006. In total, the Company has established reserves of approximately $1.3 million due to these Florida licensure issues.

?These anticipated Medicare payments will improve our liquidity and financial position in the short-term. We expect this will provide between $700,000 and $800,000 in additional EBITDA and cash flow for the Company and will help us move towards our stated commitment of being EBITDA and cash flow positive beginning in October 2007, our Fiscal 2008 third quarter,? said Marvin Richardson, Chief Executive Officer.

The post-acquisition licensure and credentialing process for durable medical equipment operations is time consuming and has resulted in delays in billing and collections. In some instances, the claims were initially denied, requiring the Company to establish significant reserves following the acquisitions.

?We are encouraged that a portion of the fully reserved receivables related to similar DME licensure issues from other business acquisitions may ultimately be collected. Further, this positive news will be one of the considerations in determining the adequacy of our accounts receivable reserves going forward,? concluded Mr. Richardson.

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, 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. 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