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MDHI Provides Update on FirstFitness Merger - Operation Expected to Produce 2012 Revenues in Excess of $12 Mil - Warrants of 15.5 Mil Cancelled
Date:1/25/2012

d Fitness Challenge that will attract significantly more retail sales opportunities to their distribution businesses. Also to be unveiled this weekend will be the most lucrative network marketing compensation program in the Country that will allow the Company's important distribution partners increased opportunities to boost up front income while still producing even more residual income.

Mr. Branson continued, "We are expecting the combination of the introduction of this revolutionary new appetite suppression product and the start of the 90-Day Ultimate Body Weight Loss and Fitness Challenge, combined with the implementation of this new and innovative distribution compensation plan to significantly accelerate our revenue growth resulting in one of our strongest years ever.  We could not be more positive about our future."

Under the terms of the proposed merger agreement, FirstFitness Nutrition, Inc. and Medical Alarm Concepts, Inc. will operate as separate subsidiaries of Medical Alarm Concepts Holding, Inc. Current shareholders of FirstFitness Nutrition are expected to hold approximately 50% of the common and preferred shares of newly combined entity. Medical Alarm Concepts, Inc. is expected to retire a significant portion of its convertible notes and outstanding warrants prior to the consummation of the merger. This is expected to result in a reversal of derivative liability charges yielding a large, non-cash net income gain. As part of this process, an investor has agreed to cancel, without exercise, 15.5 million in the money warrants. Additional warrant surrenders are expected in the future, all of which will reduce shareholder dilution and more adequately allow the Company to reflect its true financial position during future periods.

Ronald Adams, President of Medical Alarm Concepts commented, "Over the short term, investors will see many positive changes as we restructure our balance sheet. We have very successfully negotiated with k
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SOURCE Medical Alarm Concepts Holding, Inc.
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