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Arcadia HealthCare Selects Indianapolis for New Corporate Headquarters
Company to Jump Start DailyMed ™ Launch with 1.8 Million Hoosiers

INDIANAPOLIS (Oct.10, 2007) – Governor Mitch Daniels joined Arcadia HealthCare (AMEX:KAD) CEO Marvin Richardson today to announce the Company’s plans to relocate its national headquarters to Indianapolis, IN. The move sets the stage for the Company’s national launch of its DailyMed™ consumer product line aimed at reducing medication errors, improving medication compliance and ultimately lowering the cost of care.

Arcadia HealthCare, a leading provider of home health care, durable medical equipment and pharmacy services, will relocate its Southfield, MI corporate headquarters to Indianapolis’s north side and will begin hiring managers, pharmacists, pharmacy technicians and sales staff later this year. The Company plans to hire more than 400 new employees by 2010. Additionally, the State of Indiana will encourage 1.8 million Hoosiers to take advantage of DailyMed™, to improve outcomes and lower Indiana’s health care expenditures.

“News of new jobs in Indiana is always a great story, but today’s announcement comes with special meaning. This new headquarters establishes a long-term presence here that will continue to create jobs for Hoosiers well into the future,” said Governor Daniels.

Arcadia is developing a relationship with Indiana’s Family & Social Services Administration (FSSA) via its Options Program as well as its Community Action Agencies (CAA) and the Area Agencies on Aging (AAA) to promote DailyMed™ to approximately 100,000 Medicaid recipients. Additionally, 1.7 million Hoosiers enrolled in Medicare will be informed about DailyMed through a direct-to-consumer campaign on health and wellness.

“We are thrilled with our collaboration with the State of Indiana and as a native Hoosier, I could not be more pleased with our selection of Indianapolis for our new corporate headquarters,” said Richardson. “The statewide DailyMed™ initiative will allow us to jump start our national launch, which we anticipate will occur in April 2008. Based on metrics from our successful rollout in the Minneapolis – St. Paul Metroplex, we estimate this Indiana initiative should represent $40 million in incremental revenues in Fiscal 2009 ending March 31, 2009, a 30% increase in company revenue. We also expect some revenue growth in the balance of Fiscal 2008 ending March 31, 2008 as we implement the program beginning in November 2007,” concluded Richardson.

In addition to the DailyMed™ rollout, Arcadia’s move is supported by the Indiana Economic Development Corporation, which offered the Company up to $6 million in performance-based tax credits and up to $137,500 in training grants based on current job creation plans. The City of Indianapolis offered the company property tax abatement, and Indianapolis Economic Development and the Indy Partnership assisted in the effort. These incentives, along with the reduced costs associated with the consolidation of four (4) regional offices into one (1) corporate office, will allow the Company to recognize both tax and SG&A savings. Such cost reductions have been a stated priority for the Executive Team.

Finally, Arcadia HealthCare’s move is accompanied by clinical trial with the Purdue University School of Pharmacy and Pharmaceutical Sciences, of West Lafayette, IN. The trial will examine prescription drug compliance among current DailyMed™ users. The objective of the study is to demonstrate that DailyMed™ can improve a person’s ability to adhere to a prescription drug regimen, thus reducing other medical and healthcare costs associated with medication errors and non-compliance. Nationally, medication-related problems create more than $177.4 billion in avoidable health care costs, according to the American Society of Consultant Pharmacists.

"Within the pharmacy community, we recognize the benefits technology and automation can bring to pharmaceutical care and outcomes," said Craig K. Svensson, Pharm. D., Ph.D., Dean of the College of Pharmacy, Nursing and Health Sciences at Purdue University. "Alternatives to prescription vials and plastic medication reminders may be helpful to patients trying to organize their use of multiple medications. The DailyMed™ program offers a possible solution to simplify medication management to help ensure patients take the right dose of medication at the right time. We are pleased to extend our expertise to a compliance study of product that may help patients in their daily treatment."

DailyMed™ is available on-line at www.DailyMedRx.com or by calling (800) 973-1955.

About Arcadia HealthCareSM
Arcadia HealthCareSM is a service mark of Arcadia Resources, Inc. (AMEX: KAD), and is a national provider of alternate site healthcare services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; comprehensive central fill and licensed pharmacy services including its proprietary DailyMed™ Pharmacy program and a catalog of healthcare-oriented products, available for purchase on http://www.ArcadiaHealthCare.com and other leading retailer websites. Through industry partnerships, the Company is also establishing a licensed model for walk-in routine (non-emergency) medical clinic inside of retail stores. Arcadia HealthCare’s comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes or through the convenience of local healthcare sites. The Company’s annual report on Form 10-K for the year ended March 31, 2007 is available on the Company’s website (http://www.arcadiahealthcare.com) and the SEC website (http://www.sec.gov).

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Media Contacts:
Amalia "Molly" Blanco (317)569-8234
Davis Hodge at Kreab/Strategy XXI (212) 935-0210

Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities Exchange Act of 1934, as amended and otherwise within the meaning of court opinions construing such forward-looking statements. Arcadia claims all safe harbor and other legal protections provided to it by law for all of its forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, estimates, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized, including our estimates of consumer demand for our services and products, required capital investment, competition, and other factors. Actual events and results may differ materially from those expressed, implied or forecasted in forward-looking statements due to a number of important factors, including, but not limited to, the following: (1) Relocating our corporate headquarters may result in temporary instability as personnel, records, and equipment are transitioned to our new location ; (2) We may not be able to attract and retain the key management employees and other skilled workers needed to meet our hiring goals; (3) We may not succeed in executing the national launch of DailyMed™ on schedule; (4) The metrics from the pilot launch of DailyMed™ in the Twin Cities may not accurately predict the demand for DailyMed™ in other geographic regions, potentially resulting in lower than expected revenue growth; (5) The marketing initiatives currently planned in conjunction with the State of Indiana and its agencies may be insufficient for DailyMed™ to achieve the market penetration necessary to meet our revenue growth targets; (6) The Purdue University School of Pharmacy study of DailyMed™ may not find that DailyMed™ improves medication compliance, or may not find that such compliance eliminates other medical and healthcare costs; such a finding could potentially harm our ability to market DailyMed™; (7) We may not be able to realize the full value of the tax credits and grants offered by the State of Indiana and its agencies; (8) Due to our history of operating losses and negative cash flows, we cannot be certain that we will be able to generate sufficient cash flow, including obtaining additional debt or equity financing, to meet our obligations on a timely basis. An inability to raise sufficient capital to fund our operations would have a material adverse effect on our business and would raise substantial doubt about our ability to continue as a going concern; (9) We may be unable to execute and implement our growth strategy; (10) Changes in economic, political and regulatory conditions, including governmental regulations, may force us to alter or abandon certain plans and initiatives; (11) Our management team is relatively new and may not be able to successfully pursue its business plan; (12) The Company may be required to enact restructuring measures in addition to those announced on March 30, 2007 and thereafter; (13) Other unforeseen events may impact our business. The forward-looking statements speak only as of the date hereof. Additional information that could materially affect the Company may be found in the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.