Arcadia Resources, Inc. (AMEX: KAD), an innovator in consumer health care services, today announced that it has reorganized its business units and reassigned several members of management to new responsibilities. These changes will enhance the Company's ability to take full advantage of growth opportunities in the health care marketplace and are another step in management's previously announced plan to achieve greater cost efficiencies by further integrating existing and newly acquired businesses.

?Arcadia Resources completed several initiatives within the past year, including the acquisition of PrairieStone Pharmacy and the launch of our CareClinic business, to capitalize on the shift in the U.S. marketplace toward health care services that are more accessible, responsive and cost-efficient. To ensure that we are structured to derive the greatest benefit from the changes in the marketplace, we are realigning our organization to accommodate our new business model and strategy to pursue growth opportunities,? said Marvin Richardson, President and CEO.

The Company reorganized its businesses along functional lines to sharpen its focus on opportunities in the rapidly evolving health care marketplace. The Retailer & Employer Services unit now comprises the PrairieStone and CareClinic operations. In-Home Health Care incorporates various affiliate and owned services. And the Durable Medical Equipment (DME) unit continues to provide respiratory care, orthotics and other medical equipment. Also as part of the reorganization, senior team members were given responsibility for the Business Development and Sales & Marketing functions. Key appointments include:

  • Lynn Fetterman, interim CFO, who had been serving as a contracted employee, will continue in that position as a full-time employee of the Company.
  • Alan Lotvin, MD, CEO of CareClinic and the Company's Chief Medical Officer, has been given responsibility for Business Development.
  • John Brady, co-founder and President of the PrairieStone Pharmacy business acquired by Arcadia earlier this year, and Executive Vice President, has been given responsibility for Sales & Marketing of all business segments. He will also oversee the integration of newly acquired JASCORP pharmacy services software unit.
  • Harry Travis, Senior Vice President of the Company's CareClinic division, has been named head of Retailer / Employer Services, which includes Arcadia's PrairieStone and CareClinic divisions.
  • James Haifley, Executive Vice President of Durable Medical Equipment, will now have additional responsibility for the retail and catalog divisions.
  • Cathy Sparling will head Administration for all business segments, which includes the Company's Human Resources and Administrative Services groups.
  • The Company has announced that it will seek an executive to head the In-Home Health Care division, which includes Arcadia Resources' caregiver services and staffing businesses.

Management Comments

Mr. Richardson added, ?We believe that the actions we have taken to build an innovative health care business model and reorganize the Company have put Arcadia Resources on a clear path toward the future. The elements of success are all in place.?

?The marketplace is evolving in a manner that will reward innovative and nimble competitors such as Arcadia Resources. Our organization has been structured to deliver on our vision. And our team is capable, motivated and energized. As a result, we are confident in our prospects for improving our financial performance and enhancing shareholder value during the coming months and years,? Mr. Richardson concluded.

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; (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, including our ability to timely identify and successfully pursue existing and future growth opportunities; (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. 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
Dan Fleshler/Davis Hodge, 212-935-0210