Southern Home Medical Announces First Master Franchise Agreement Signed for the State of North Carolina

LYMAN, SC--(Marketwire - January 29, 2008) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHMM) recently announced an immediate shift in the long term growth strategy of the company. With a solid infrastructure in place, Southern Home Medical has begun their accelerated growth campaign of the Encore Medical Staffing division. The company has sold their first Master Franchise in the state of North Carolina to Aegis Medical Solutions, LLC based out of Columbia, South Carolina. Greg Tucker, President and CEO of the company, stated, "This is an exponential step for our company. It doubles, or perhaps triples the available resources for building out this state. The team at Aegis Medical Solutions has already shown the ability to take the Encore model and move it forward successfully. The Columbia, S.C. market has exceeded expectations due to the leadership of the Aegis team."

Robert Hale of Aegis Medical Solutions, LLC, stated, "We are very pleased with our results in the Columbia market. We have exceeded our growth forecasts for the month of January and are already adjusting our projections upward for the future. The Aegis team began as four strong business leaders with diverse backgrounds that complement one another. We are confident in our ability to build out the state of North Carolina and will begin immediately looking for qualified candidates that are capable of developing a market. Anyone interested in a potential market in the state of North Carolina should feel free to contact me at robby@encoremedicalstaffing.com or I can be reached at 803-414-0103."

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.

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