Southern Home Medical Launches New Web-Hosted Compliance and Client Service Solution

May 11, 2011

Backstage Solutions Suite to Accelerate Growth Across Encore Franchisees

LYMAN, SC – May 11, 2011 – Southern Home Medical Equipment, Inc. (PinkSheets: SHOM), a holding company providing healthcare services, staffing and equipment to medical institutions, announced today the launch of a new solutions platform, Backstage Solutions, for its Encore Medical division (http://encoremedicalstaffing.com/). Backstage is a Web-hosted solution that is designed to support the accelerated growth of Encore Medical franchisees, while meeting their operational compliance requirements.

Backstage creates an integrated platform to more efficiently support the recruiting, certification and scheduling of the franchisees’ nurses and healthcare programs.  Backstage also delivers new compliance and client services features that enhance the quality of the franchisees’ offerings. Creating and delivering Backstage represents a year-long initiative for Encore Medical.  It is a significant step in building the infrastructure to support our franchisees’ aggressive growth and substantially increase the value of new franchisees as they join our network, said Jeff Sarvis, president and CEO of Southern Home Medical.

Sarvis continued, Backstage enables franchisees to more easily navigate the complex healthcare compliance process. As a result, franchisees can best meet the demands of their growing business in a highly efficient and compliant manner.

About Southern Home Medical Equipment, Inc.

Southern Home Medical Equipment, Inc. is a holding company with a focus on servicing the needs of the U.S. healthcare industry. The Company has quality health care professionals to support hospitals, rehab centers, nursing homes and other medical facilities providing RN’s, LPN’s, CNA’s, RT’s, billing specialists, customer service specialists, delivery techs and marketing reps. The Company has contractual agreements with partner businesses located in Charleston, Columbia, Greenville, Florence and Lake Hartwell, of South Carolina; Nashville, Tennessee; Baltimore, Maryland; Dunwoody, Georgia; and Philadelphia, Pennsylvania. Southern Home Medical is leveraging the success of these business models to expand sales opportunities in these areas with health, medical, staffing and equipment needs.