INR

PHM (TSX VENTURE:PHM) released several performance indicators today, including a
revised business update presentation for the capital markets.


Annuity-Based Revenue and Monthly Growth Figures

PHM's revenue is comprised of two components:



1.  Existing Patient Revenue. PHM generates a recurring monthly revenue
    stream from enrolled weekly testers. 
2.  New Patient Revenue. New patients add to the existing monthly revenue
    stream. 



1. Existing Patient Revenue

PHM generates recurring revenue by recording INR tests on a weekly basis. There
is a strong relationship between number of INR tests performed and revenue
because PHM is reimbursed by Medicare and most private insurance providers after
every fourth eligible INR test. These revenue-generating INR tests are a useful
metric to analyze recurring monthly revenue.


Quarter Ending June 30, 2011 INR Tests Recorded

For the quarter ending June 30, 2011, PHM recorded 10,460 INR tests. This
compares to 6,312 INR tests recorded for the quarter ending March 31, 2011 and
represents a growth of 65.7% in INR tests recorded for the quarter.


Once enrolled, PHM ships a meter, with an expected 5 year economic life, to a
patient. With this meter, PHM generates monthly recurring revenue by providing
weekly monitoring services to the patient. 


2. New Patient Revenue

Understanding how many meters were shipped to newly enrolled patients each month
is relevant for analyzing growth, because shipment of a meter is a prerequisite
to performing INR tests eligible for reimbursement.(2)


June 2011 Growth

PHM shipped 220 meters in June 2011. These new meters were shipped to patients
who have been prescribed weekly INR tests. If these new patients, along with the
new patients added in April and May 2011, achieve compliance levels equal to
those generated by existing PHM patients, the tests would generate additional
annual revenues in excess of $800,000 above and beyond the revenue reported for
the quarter ending March 31, 2011. While there can be no guaranty that new
patients will have the same compliance level as existing patients, or that
existing patients will maintain the same level of compliance as in the past,
clinical data overwhelmingly supports the health benefits for compliant patients
that test weekly. 


Private Placement

In anticipation of increased growth, PHM has decided to accept a small placement
of $700,000 from DRM Ventures, Inc., a capital pool company listed on the TSXV.
When a patient enrolls, PHM invests in a revenue generating in-home testing
meter. This placement will ensure PHM has enough capital to invest in meters for
patients enrolling in the coming quarters.


Michael Dalsin, Chairman of PHM, said of this news "We are excited by the strong
growth we are experiencing and even more excited that the market for a safe,
in-home testing solution remains robust and large. PHM's INR tests recorded for
June 2011 exceeded total INR tests for Q1, 2011 and with the new management
leadership, PHM seems well positioned to match the growth potential of the
market."


Management Update

Since the addition of Jaime Gerber as Chief Strategic Officer and interim CEO
and Leslie Becker as Executive Vice President for Revenue Growth in May 2011,
PHM has increased meter shipments and experienced a significant improvement to
its future customer pipeline. Shipments in June benefited from their focus upon
increasing market penetration with customers that had already expressed
interest. The pipeline of potential large cardiology group customers has
expanded because these executives have focused PHM on revenue growth through
systematic marketing and sales efforts in targeted core markets. Improvement in
pipeline among new groups may be expected to appear in August.


At the time of the departure of Ed Berenblum as CEO, Mr. Berenblum had indicated
a desire to continue a relationship with PHM. He has since reversed course, and
has threatened to file litigation against the Company in connection with his
employment and termination. Initial communications suggest he might assert a
variety of theories and claims for damages, including breach of contract, breach
of an alleged fiduciary duty to him, infliction of emotional distress upon him,
diminished wages of his wife, and other theories leading him to assert a
potential seven-figure claim. The Company believes that the allegations and the
damage theories are without merit, and will vigorously defend any action that is
filed. Nevertheless, there can be no guaranty of an outcome, and an unfavorable
ruling could have a material adverse effect upon the Company.


PHM also released a revised business update presentation which can be found at
www.phmhometesting.com/investor.


(1) International normalized ratio ("INR") tests are used as measures of current
and future sales performance. Please refer to the "Non-GAAP Measures" section of
PHM's MD&A for further discussion on these operational measures.


(2) Management does not mean to suggest or imply that shipment of meters is
equivalent to revenue. Before PHM can earn revenue, a meter must be shipped. The
shipment of a meter does not ensure revenue. Revenue is achieved only after
tests are recorded by a patient eligible for coverage. If patients receiving new
meters do not test as frequently as existing PHM patients, revenues will not
grow as fast as indicated by past meter shipments. Management does not propose
meter shipments as a non-GAAP financial measurement. Instead, management is
attempting to offer relevant current factual information to investors who
otherwise would not be aware of actual revenue numbers until receiving financial
reports for the prior quarter. Management believes that information about meters
shipped is relevant, but not dispositive, information about activity and growth.
Factors that could make meter shipments not correlate well with revenues include
lower compliance rates or high drop-out rates by new patients, changes in
reimbursement rates, meter shipment for replacement, or a sudden drop in patient
testing after shipment because of a move to alternative treatment. There is no
simple reconciliation between meter shipment and GAAP revenue.


About PHM

PHM is a healthcare services company focused on providing in-home testing for
patients on blood thinner medications such as Coumadin(R) or warfarin. Medicare
recently expanded reimbursement for in-home patient self testing (PST) of blood
coagulation levels. PHM has a unique value proposition to cardiology groups that
manage patients on blood thinners, focusing on systemization to enroll patients
in PST. Current enrollment compliance levels may not be predictive of future
enrollment compliance levels. This unique, systemized approach creates an
opportunity for physician groups to operate more efficiently, increasing revenue
to their clinic while providing a higher standard of care for patients. 


Information in this news release that is not current or historical factual
information may constitute forward-looking information within the meaning of
securities laws. Implicit in this information, particularly in respect of the
future outlook of PHM and anticipated events or results, are assumptions based
on beliefs of PHM's senior management as well as information currently available
to it. While these assumptions were considered reasonable by PHM at the time of
preparation, they may prove to be incorrect. Readers are cautioned that actual
results are subject to a number of risks and uncertainties, including the
availability of funds and resources to pursue operations, decline of
reimbursement rates, changes in US healthcare laws, coverage or budgets,
dependence on few payors, possible new drug discoveries, a novel business model,
dependence on key suppliers, granting of permits and licenses in a highly
regulated business, competition, low profit market segments as well as general
economic, market and business conditions, and could differ materially from what
is currently expected.

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