National Health Partners
announces Record RESULTS FOR 2006

2006 revenues increase 660% as company forecasts over $1 million
in positive cash flows from operating activities during the remainder of 2007

Friday March 23, 11:32 am ET

HORSHAM, Pa – (BUSINESS WIRE) – National Health Partners, Inc. (OTCBB: NHPR - News), a leading provider of unique discount healthcare membership programs, announced today that Q4 2006 revenue increased almost 100% to $818,139 from $411,045 for Q3 2006 and that revenue for its full fiscal year ended December 31, 2006 increased 660% to $1,870,612 from $245,973 for 2005.  The company expects revenue for its full fiscal year ended December 31, 2007 to exceed $14 million as the company completes additional sales of its CARExpress membership programs and begins selling its CARExpress “wrap-around” programs.  The company also expects to begin generating positive cash flows from operating activities during the second quarter of 2007 and expects to generate over $1 million in positive cash flows from operating activities during the remainder of 2007.

2006 Financial Highlights

• Revenues for Q4 2006 increased almost 100% to $818,139 from $411,045 for Q3 2006.
• Revenues for the 2006 fiscal year increased 660% to $1,870,612 from $245,973 for the 2005 fiscal year.
• The company generated a gross profit of $432,807 in 2006 compared to a gross deficit of $104,693 in 2005.
• Net aggregate cash flows for 2006 increased $1,487,162 compared to a decrease of $312,108 for 2005.
• Cash and cash equivalents increased $1,487,162 to $1,596,969 at December 31, 2006 from $109,807 at December 31, 2005.
• Working capital increased $1,799,835 to $1,485,258 at December 31, 2006 compared to $(314,577) at December 31, 2005.
• The company’s current ratio (current assets divided by current liabilities) improved to 5.35 at December 31, 2006 from 0.32 at December 31, 2005.
• The company’s independent registered public accounting firm issued an unqualified audit opinion to the company in its 2006 audit report.

“We are extremely pleased with our financial results for 2006,” stated David M. Daniels, President and Chief Executive Officer of National Health Partners.  “Revenues increased 660% to $1,870,612 from $245,973 for the 2005 and our membership base continues to soar.  The tremendous growth in revenues we experienced this past year is the result of the significant recurring monthly revenue streams we are receiving from the members we are generating through our business partners.” 

 “Equally important is that our financial position has improved substantially during 2006,” stated Alex Soufflas, the company’s Chief Financial Officer and Executive Vice President.  “We generated gross income from operations, finished the year with almost $1.6 million in cash and have current assets that substantially exceed our current liabilities.  In addition, we accelerated the vesting of many of our most significant equity-based financial instruments and terminated several non-contributing contracts near the end of 2006 to reduce the amount of cash and non-cash expense we would otherwise have recorded during 2007 and help pave the way towards profitability in 2007 and beyond.”

Mr. Daniels added, “we currently believe that our current cash resources will be sufficient to sustain our current operations for the next 12 months and that we will not need to raise additional capital during the next 12 months.  Because of this and the substantial amount of positive cash flows we expect to generate from operating activities during the next 12 months, our independent accountants issued an unqualified opinion to the company in the audit report that we filed with our financial statements.  This is the first time in the company’s history that we have received an unqualified opinion from our independent auditors and is a tribute to the steps we have taken towards setting the stage for increased revenues and reduced costs during 2007.”

Outlook For 2007

The company expects to generate more than $14 million in revenues during 2007, representing an increase of 650% over 2006 revenue.  In addition, the company expects to begin generating positive cash flows from operating activities during the second quarter of 2007 and expects to generate over $1 million in positive cash flows from operating activities during the remainder of 2007.  The company attributes its substantial future growth in revenue primarily to the upcoming rollout of its CARExpress “wrap-around” programs.  With these programs, the company will offer its CARExpress membership programs in combination with complementary insurance programs, such as limited benefit, or “Mini-Med,” insurance programs and programs designed to complement Health Savings Accounts (HSAs).  The company has been receiving overwhelming demand for these “wrap-around” programs from small businesses, unions and other organizations.

“The rollout of our CARExpress “wrap-around” programs will be the primary driver for revenues, cash flows and profitability in 2007,” stated Mr. Daniels.  “As our revenues continue to grow and our costs continue to benefit from economies of scale, we will become profitable.  Achieving profitability will be a major milestone in our history.  Thereafter, as we continue to execute upon our business plan, we expect strong growth in our profitability.”

National Health Partners, Inc.

National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called “CARExpress.”  CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna.  The company’s primary target customer group is the 47 million Americans who have no health insurance of any kind.  The company’s secondary target customer group includes the 61 million Americans who lack complete health insurance coverage.  The company is headquartered in Horsham, Pennsylvania.  For more information on the company, please visit its website at www.nationalhealthpartners.com.

Safe Harbor Provision

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the company’s future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” or “believes” or the negative thereof or any variation thereon or similar terminology or expressions.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements.  Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct.  Important factors that could cause actual results to differ materially from the company’s expectations include, but are not limited to, its ability to fund future growth and implement its business strategy, its ability to develop and expand the market for its CARExpress membership programs, demand for and acceptance of its CARExpress membership programs, its dependence on a limited number of preferred provider organizations and other provider networks for healthcare providers, as well as those factors set forth in the company’s Annual Report on Form 10-KSB and its other filings and submissions with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.  Except as required by law, the company assumes no obligation to update or revise any of the information contained in this press release.

Contact:

National Health Partners, Inc.
Alex Soufflas, 215-682-7114
info@nationalhealthpartners.com

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Source: National Health Partners, Inc.

Send mail to info@nationalhealthpartners.com with questions or comments.  Copyright © 2006 NATIONAL HEALTH PARTNERS, INC.