HORSHAM, Pa - (BUSINESS WIRE) - National Health Partners, Inc. (OTCBB: NHPR - News), a leading provider of unique discount healthcare membership programs, announced its financial results for its fiscal quarter ended June 30, 2008.  Revenue for its fiscal quarter ended June 30, 2008 increased almost 10% to $882,016 from $822,177 for its fiscal quarter ended March 31, 2008 as gross profit increased 83% to $648,481 for its fiscal quarter ended June 30, 2008 from $354,302 for its fiscal quarter ended March 31, 2008.  In addition, the company achieved a net loss per share of $(0.01) for its fiscal quarter ended June 30, 2008, representing a 50% decrease from a net loss per share of $(0.02) for its fiscal quarter ended March 31, 2008, as the company achieved its smallest net loss from operations in its history.

Q2 2008 Highlights

• Revenue for Q2 2008 increased almost 10% to $882,016 from $822,177 for Q1 2008.
• Gross profit increased $294,179 to $648,481 for Q2 2008 from $354,302 for Q1 2008, representing an increase of 83%.
• Net loss per share for Q2 2008 decreased 50% to $(0.01) from $(0.02) for Q1 2008.
• Net cash flows increased $1,121,874 to $22,445 for Q2 2008 from $(1,099,429) for Q1 2008.
• Working capital increased $404,342 to $501,534 for Q2 2008 from $97,192 for Q1 2008, representing an increase of 316%.
• The company was selected by a 5,000-member union as the health benefit program provider for all of the union's members
• The company entered into an agreement with the Polish National Alliance, which will be promoting the company's CARExpress health discount programs to its 65,000 households nationwide through a multi-faceted marketing campaign.

The company attributes its sequential growth in quarterly revenue and gross profit, and its sequential decrease in net loss, to an increase in sales of its CARExpress health discount programs and CARExpress Plus membership programs through high-quality sales channels such as affinity groups and brokers and agents, and to cost-cutting measures that management implemented during the quarter.  The company has entered into agreements with several affinity groups, such as unions, associations, chambers of commerce, small business associations and other organizations that have a large number of members or employees, as well as insurance brokers and agents over the last several months.  By expanding the number and quality of the sales channels it is utilizing, it has diversified the number and mix of organizations selling its programs.

"I am very pleased with our Q2 2008 financial results," stated David M. Daniels, President and Chief Executive Officer of National Health Partners.  "We are experiencing substantial growth in the number of affinity groups and other business partners through which we are selling both our CARExpress health discount programs and our CARExpress Plus membership programs.  We have successfully completed the planned transition of our primary source of sales from marketing companies to affinity groups and are now beginning to reap the rewards of our hard work.  It is very gratifying to know that so many large membership organizations located across the country are expressing such a tremendous interest in our programs."

"I am also pleased with our financial results for Q2 2008," stated Alex Soufflas, Chief Financial Officer and Executive Vice President of National Health Partners.  "Our revenue increased almost 10% between Q1 2008 and Q2 2008 and our gross profit from operations increased 83% between Q1 2008 and Q2 2008.  The substantial increase in our gross profit was a direct result of the cost savings that we achieved from our decision to shift our primary source of sales from marketing companies to affinity groups.   These costs savings also reflected themselves in our bottom line, which improved substantially between Q1 2008 and Q2 2008.  Our net loss per share deceased 50% from $(0.02) to $(0.01) as the company achieved its smallest net loss from operations in its history." 

"We recently announced relationships with two groups - the Polish National Alliance and a 5,000-member union - that will represent the greatest driving forces behind our revenue growth during the second half of 2008," added Mr. Daniels.  "Purchases of our CARExpress membership programs by members of affinity groups located throughout the country will be the primary driver for revenue, positive cash flow and profitability going forward.  Our Q2 2008 net loss of $381,002 was the smallest loss in our company's history, and this achievement is even more impressive when you take into consideration that $221,794 of the net loss was for non-cash expenses.  We are very excited about what the remainder of 2008 has in store for National Health Partners."