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United American Healthcare Corporation Announces Fiscal 2009 Second Quarter Results
Date:2/5/2009

contract expiration date of June 30, 2009.

Management expects to incur substantial expenses related to the impending TennCare contract discontinuance. The net loss is estimated in the range of $4.6 million to $6.6 million, including claims processing costs, employee severance, lease termination costs and other general administrative expenses from November 2008 through June 2009. As a result of the contract discontinuance, the total number of employees of the Company was 29 at December 31, 2008, compared to 111 at December 31, 2007.

As of Dec. 31, 2008, United American Healthcare reported cash, cash equivalents and short-term marketable securities of $16.6 million, compared to $19.5 million as of June 30, 2008. The Company remains debt-free.

"We will continue managing prudently in this transition to the discontinuance of UAHC-TN's TennCare contract," concluded Brooks. "In the face of these immediate challenges, as well as the broader challenges in the overall economy, the Company's management team and board continue to take actions to reduce expenses and conserve cash until a final decision is made concerning the strategic options available to the Company."

Fiscal 2009 Second Quarter Conference Call

United American Healthcare Corporation will host a conference call at 4:30 p.m. Eastern Time today to discuss these results and current business trends. To access the live conference call, please dial 1-877-857-6167 and provide the conference passcode 8412524. A replay of the call will be available through Tuesday, April 28, 2009. To access the replay, please call 1-888-203-1112 and provide conference passcode 8412524.

Participation in the call's question-and-answer session will be limited to institutional investors and analysts. Individual investors and retail brokers are invited to listen via a live webcast. To listen, please go to the investor section of t
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SOURCE United American Healthcare Corporation
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