Southern Home Medical Announces a Reduction in Outstanding Preferred and Common Shares

LYMAN, S.C., Oct. 19, 2012

Southern Home Medical is dedicated to its shareholders to take a position of strength and unwillingness to compromise with entities that have not fulfilled the services promised to the Company. These actions taken by the Company reinforces its commitment to rein in unnecessary dilution thus strengthening the shareholder value of its stockholders.

"We are pleased with our progress into the last half of 2012. Opportunities to grow this Company continue to come our way and we are optimistic they will come to fruition soon," said President and CEO of Southern Home Medical, Jeff Sarvis.

About Southern Home Medical, Inc.

Southern Home Medical, Inc. is a Holding Company with a focus on servicing the needs of the U.S. healthcare Industry.  The Company has quality health care professionals to address national shortages in hospitals, rehab centers, nursing homes, and other medical facilities. Personnel are available 24/7/365 and include: RN's, LPN's, CNA's, RT's, billing specialist, customer service specialist, delivery techs, and marketing reps.  The has contractual agreements with partner businesses in Columbia, Florence, Charleston, Greenville and Lake Hartwell, of South Carolina; Nashville, Tennessee; Baltimore, Maryland; Atlanta, Georgia; and Philadelphia, Pennsylvania. Southern Home Medical is leveraging the success of the businesses to expand sales opportunities in these areas of health, medical, staffing and medical equipment needs. For more information, visit: www.southernhomemedical.com    www.encoremedicalstaffing.com www.apnearx.net

Forward-Looking Statement

The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.