Q3 2008 Financial Highlights

• Gross profit increased $143,590 to $357,420 for Q3 2008 from $213,830 for Q3 2007, representing an increase of 67%.
• Gross profit percentage was 68% and 61% for the three and nine months ended September 30, 2008, respectively, compared to 21% and 37% for the corresponding periods in 2007.
• Net loss per share for Q3 2008 decreased 67% to $(0.01) from $(0.03) for Q3 2007.
• Net cash used in operating activities decreased to $(196,506) for the nine months ended September 30, 2008 from $(546,190) for the nine months ended September 30, 2007.
• Total net cash flows increased $500,339 during the nine months ended September 30, 2008 compared to a decrease of $(1,155,419) during the corresponding period in 2007.
• Working capital increased $225,891 to $816,125 for Q3 2008 from $590,234 for Q3 2007, representing an increase of 38%.
• Current ratio (current assets divided by current liabilities) improved to 6.0 at September 30, 2008 from 2.7 at September 30, 2007.
• Capital surplus (total assets minus total liabilities) improved to $1,785,168 at September 30, 2008 from $774,883 at September 30, 2007.
• Cash and cash equivalents increased $477,894 to $532,545 at September 30, 2008 from $54,651 at June 30, 2008.

Q3 2008 Performance and Analysis

The company attributes its sequential growth in gross profit and gross profit percentage, and its sequential decrease in net loss, to the shift in its sales strategy to high-quality sales through affinity groups and brokers and agents from lower-quality sales through marketing companies, and to cost-cutting measures that management implemented during the past couple of quarters.  The number of new members joining CARExpress has been growing quickly over the past couple of months, notwithstanding the condition of the financial and credit markets.  The company attributes these results to the shift in its sales strategy from sales through marketing companies to sales through employers and affinity groups and its Hispanic sales campaign.  The company is also experiencing interest from employers and affinity groups that currently offer traditional health insurance to their employees and members but, because of the high cost of such programs and the weak state of the U.S. economy, are seeking a less expensive form of health benefits as an alternative to their current insurance programs.

"I am very pleased with our Q3 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.  More importantly, we are beginning to experience rapid growth in the number of new members joining CARExpress.  We have successfully completed the planned transition of our primary source of sales from marketing companies like Trident Marketing International to affinity groups and are now beginning to reap the rewards of our hard work.  Our focus on affinity groups should greatly accelerate our growth as these types of groups boast large numbers of members that will remain CARExpress members for a long period of time.  It is also far less costly for us to sell through these groups than it is for us to engage in expensive, nation-wide marketing and advertising campaigns through marketing companies."

"We experienced a decrease in revenue for the three- and nine-month periods ended September 30, 2008 compared to the corresponding periods in 2007 as a result of the shift in our sales strategy from sales through marketing companies to sales through employers and affinity groups," stated Alex Soufflas, Executive Vice President and Chief Financial Officer of National Health Partners, Inc.  "However, the shift in our sales strategy coupled with the cost-cutting initiatives that we recently implemented have resulted in substantially lower direct costs and lower operating expenses for the company.  As a result, our gross profit and gross profit margins for the three- and nine-month periods ended September 30, 2008 were substantially higher than our gross profit and gross profit margins for the corresponding periods in 2007.  Similarly, our net losses and net losses per share for the three- and nine-month periods ended September 30, 2008 were substantially lower than our net losses and net losses per share for the corresponding periods in 2007.  The shift in our sales strategy and the implementation of cost-cutting initiatives also resulted in a substantial decrease in net cash used by operating activities during the nine-month period ended September 30, 2008 compared to the corresponding period in 2007."

2009 Outlook

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 we are utilizing, we have diversified the number and mix of organizations selling our programs," explained Mr. Daniels.  "Purchases of our CARExpress membership programs by members of affinity groups located throughout the country and our Hispanic sales campaign, combined with our recent cost-cutting initiatives, will be the primary driver for revenue, positive cash flow and profitability in 2009.  We are very excited about what 2009 has in store for National Health Partners.  We are currently adding a growing number of new members each month and expect to release some exciting news during the next couple of weeks."