Monday May 18, 2009, 9:45 am EDT

HORSHAM, Pa. - (BUSINESS WIRE) - National Health Partners, Inc. (National Health) (OTCBB: NHPR - News), a leading provider of unique discount healthcare membership programs, announced its financial results for its fiscal quarter ended March 31, 2009.  The company generated gross profit of $285,899 for Q1 2009 as its gross profit percentage rose to 68% for Q1 2009 from 63% for Q4 2008 and 43% for Q1 2008.  Direct costs (sales commissions and network provider costs) decreased $335,931 to $131,944 for Q1 2009 from $467,875 for Q1 2008, representing a decrease of 72%, as net cash used by operating activities decreased 51% to $(179,822) for Q1 2009 from $(365,780) for Q1 2008.  After excluding non-cash equity-based compensation expense, the company's net loss per share decreased 50% to $(0.01) for Q1 2009 compared to $(0.02) for Q1 2008.  

The company believes that revenue received from sales of CARExpress membership programs by members generated through affinity groups, employers and insurance brokers located throughout the country, combined with lower costs realized through the company's recent cost-cutting actions, will be the primary driver for revenue, positive cash flow and profitability in 2009.  The company expects to generate more than $8 million of revenue during 2009 and positive cash flows from operating activities of more than $1 million during the remainder of 2009. 

2009 Achievements and Projections

• Sales to new members during the first 6 weeks of Q2 2009 are already 200% to 300% greater than sales to new members during Q1 2009 or any fiscal quarter in 2008.
• Record revenue of more than $8 million during the full 2009 year representing an increase of between 200% and 350% over 2008 revenue.
• Positive cash flows from operating activities of more than $1 million during the remainder of 2009.
• Gross profit percentage was 68% for Q1 2009 compared to 63% for Q4 2008 and 43% for Q1 2008.
• Direct costs (sales commissions and network provider costs) decreased $335,931 to $131,944 for Q1 2009 from $467,875 for Q1 2008, representing a decrease of 72%.
• Net cash used by operating activities decreased 51% to $(179,822) for Q1 2009 from $(365,780) for Q1 2008.
• Net loss per share decreased 50% to $(0.01) for Q1 2009 from $(0.02) for Q1 2008.

"I am very excited about what we are currently accomplishing," stated David M. Daniels, President and Chief Executive Officer of National Health Partners.  "We previously announced that we believed that Q2 2009 would be our breakout quarter.  I am pleased to say that we are currently generating a substantial number of members at an accelerating rate just as we predicted.  We have already generated 200% to 300% more new members during just the first six weeks of Q2 2009 then we generated during Q1 2009 or any of our fiscal quarters in 2008.  I am also pleased with how well we have gotten our costs under control and improved our financial metrics.  We generated a record gross profit percentage of 68% during Q1 2009 while reducing our direct costs and cash used by operating activities to the lowest levels in years.  The combination of our quickly growing revenue with our low cash out-flows will provide us with stellar financial results during the remainder of 2009."

"Our business is kicking on all cylinders right now, and we only expect it to get better," continued Mr. Daniels.  "We have several major opportunities that are all in various stages of starting up, and they are coming from a variety of different sources, like affinity groups, insurance brokerages, healthcare companies, employee leasing companies and small businesses.  We expect to announce agreements with two of these organizations this week, each of which has the potential to increase our sales dramatically.  2009 is shaping up to be an incredible year for National Health Partners.  I am very excited about what the future holds for us."