PainCare Reports on Key Corporate De...( CEO Comments on Company's Restruc...),Health

CEO Comments on Company's Restructuring, Recovery and Revitalization

ORLANDO, Fla., Oct. 3 /PRNewswire-FirstCall/ -- Randy Lubinsky, CEO of PainCare Holdings, Inc. (Amex: PRZ), one of the nation's leading providers of pain-focused medical and surgical solutions and services, today issued the following corporate update detailing recent developments that are expected to positively impact and support the Company's refined long term growth strategy. Specifically, Lubinsky stated:

"We have succeeded in implementing a series of important restructuring initiatives that have now positioned us to direct our focus on the ongoing recovery and planned revitalization of PainCare. Central to our corporate restructuring plan, PainCare completed the divestitures of its Ambulatory Surgery Centers (ASCs) located in Maryland and South Florida, generating more than $29 million in cash and debt relief and providing for $2.3 million in potential earn-out provisions over the next couple of years. Moreover, as a consequence of selling the ASCs, we succeeded in reducing our outstanding debt obligations to our senior lender from $30 million to $8.5 million, thus materially strengthening our balance sheet. Further, we remain in active discussions with our senior lender to resolve the remaining debt balance, and recently received a six-month forbearance on the associated note. Details related to this forbearance agreement, may be found in a Form 8-K that will be filed with the SEC in the next several days.

"In tandem with the sale of our ASCs, PainCare also initiated an in-depth review of our Practice Management Group. This evaluation process resulted in our election to either close or sell back to the original shareholder phys
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