Southern Home Medical Signs Letter of Intent to Create Encore Medical Market in Anderson, South Carolina

September 30, 2008

LYMAN, SC – September 30, 2008 – Southern Home Medical Equipment, Inc. (OTC:SHOM) announced today that its Encore Medical Staffing division (Encore Medical), one of the nation’s fastest growing providers of outsourced staffing and recruitment services to the health care industry, has entered into a Letter of Intent (LOI) with Effective Staffing Solutions, LLC (Effective Staffing) to develop a market for Encore Medical in Anderson, South Carolina. This represents the eighth Encore Medical market to be developed along the U.S. Eastern Seaboard.

Greg Tucker, President and CEO of Southern Home Medical, stated, We’ve had extensive discussions with Effective Staffing, who also operate Encore Medical’s location in Greenville, SC. This experienced team is eager to take advantage of Anderson’s business culture and favorable geographic location to build the foundation for another successful Encore Medical franchise market.

The city of Anderson is ideally located along the busy Interstate 85 corridor and is at the midway point between Atlanta, Georgia to Charlotte, North Carolina. Anderson County was ranked 14th out of 50 as one of the Hottest American cities for a business location, according to Expansion Management. The larger Greenville-Spartanburg-Anderson statistical area has a population of about 1.9 million, according to the 2005 U.S. Census.

This agreement strengthens our market position within one of the hottest growth regions in the U.S. Our Encore Medical brand has many new market opportunities nationwide. In total, we have identified 300 target markets across the U.S. for future expansion, added Tucker.

Encore Medical currently has locations in Charleston, Columbia, and Greenville, South Carolina; Baltimore, Maryland; and Palm Beach, Florida. Encore Medical supplies quality healthcare professionals on a per diem, temporary and contract basis to hospitals, rehab centers, nursing homes and other medical facilities. Encore Medical is aggressively recruiting motivated nursing professionals interested in franchising opportunities.

About Southern Home Medical Equipment, Inc.

Southern Home Medical is a holding company with a focus on nurse staffing operations. Formed in January 2005 with its principal place of business in Lyman, S.C., Southern Home Medical will be expanding its operations through the start up and support of Encore Medical Staffing businesses on a national level. The majority of the staffing professionals consist of Registered Nurses, Licensed Practical Nurses and Certified Nursing Assistants.

Encore Medical Staffing, Inc. is aggressively recruiting motivated nurse professionals interested in franchising opportunities. For more information, visit

Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.