InstaCare Corp. Continues Turnaround & Reports 291% Revenues Increase in 2Q 2008

-- Revenues grew by 291% in 2Q 2008 vs. 2Q 2007 as sales and orders for at-home diagnostics and medical surgical product continued to surge

-- ISCR reports 2Q 2008 operating profit of $140,513 and enhanced operating margins vs. 2Q 2007

-- Company implements New Letters of Commitment executed with two medical surgical products companies and a new diabetic products manufacturer

For the second quarter of 2008, InstaCare reported revenues of $3,020,694, a gain of 291% from $1,036,849 recorded during the second quarter of 2007. The increase in revenues was due primarily to sales from the distribution of medical diagnostic and medical disposable products for patients with chronic diseases. Total operating expenses for the quarter ended June 30, 2008 were $204,118, a decrease of $98,554 over the quarter ended June 30, 2007. The Company reported an operating profit of $140,513 during the second quarter of 2008 compared with an operating loss of $174,475 recorded during the second quarter 2007. The Company incurred a net profit of $17,652, or nil per basic share for the quarter ended June 30, 2008, compared with a net loss of $150,570 or ($0.01) per basic and diluted share reported for the quarter ended June 30, 2008. InstaCare had current assets of $1,353,874 as of June 30, 2008.

Keith Berman, Chief Financial Officer of InstaCare, commented, "We are pleased to report another exceptional quarter for InstaCare as our businesses grew and remained profitable, on a continued surge in sales. We have successfully implemented our medical diagnostics and medical disposable products distribution plans and these businesses have generated almost six million dollars in sales during the first half of fiscal 2008, quite an accomplishment even in a slowing national economy. We are currently maintaining momentum in what is usually our slowest quarter, perhaps signifying further developments later this year."

For the first six months of fiscal 2008, InstaCare reported revenues of $5,818,076, a gain of 174% from $2,120,131 recorded during the first six months of fiscal 2007. The Company reported an operating profit of $287,034 during the first six months of fiscal 2008 compared with an operating loss of $430,140 recorded during the first six months of fiscal 2007. The Company reported net income of $59,381 for the first six months of fiscal 2008, compared with a net loss of $553,756 reported for the first six months of fiscal 2007.

Forward-Looking Statements:

This release contains forward-looking statements about our business or financial condition that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this release, words such as "believes," "expects," "forecasts," "intends," "projects," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain statements not accompanied by such expressions.

    For further information, visit the company's Web Site:
http://www.instacare.net.

     Company Contact:
     InstaCare Corp.
     Keith Berman
     (805) 446-1973
     info@instacare.net



                               InstaCare Corp.
                    Condensed Consolidated Balance Sheets

                                                    June 30,    December 31,
                                                      2008           2007
    Assets
    Current assets:
      Cash                                          $113,167         $4,353
      Accounts receivable                            966,126        669,041
      Inventory                                      270,450         96,450
      Prepaid expenses                                 4,131          3,816
        Total current assets                       1,353,874        773,660

    Fixed assets, net of accumulated depreciation
     of $163,126 and $145,000, respectively           18,124         36,250

    Other assets:
      Deposits                                         3,412          3,412
      Amortizable loan fees                           41,669
        Total other assets                            45,081          3,412

          Total assets                            $1,417,079       $813,322

    Liabilities and Stockholders' Equity
    Current liabilities:
      Accounts payable                               $40,806       $120,107
      Accrued expenses                               195,905        199,265
      Accrued interest                               502,335        412,837
      Line of credit                                 586,923        467,044
      Demand note - related party                        280            280
      Notes payable, current portion                 183,361        181,021
      Convertible notes payable                    1,452,688      1,377,689
        Total current liabilities                  2,962,298      2,758,243

    Long-term debt, net of current portion            57,831         85,109

        Total liabilities                          3,020,129      2,843,352

    Stockholders' (deficit):
      Preferred stock, $0.001 par value, 3,249,000
       shares authorized, 207,526 shares issued
       and outstanding as of June 30, 2008 and
       December 31, 2007, respectively                   207            207
      Preferred series "A" stock, $0.001 par value,
       750,000 shares authorized, no shares issued
       and outstanding as of June 30, 2008 and
       December 31, 2007, respectively                     -              -
      Preferred series "C" stock, $0.001 par value,
       1,000,000 shares authorized, 17,860 and 20,000
       shares issued and outstanding as of June 30,
       2008 and December 31, 2007, respectively           18             18
      Preferred series "D" stock, $0.001 par value,
       1,000 shares authorized, no shares issued and
       outstanding as of June 30, 2008 and December
       31, 2007, respectively                              -              -
      Preferred series "E" stock, $0.001 par value,
       1,000,000 shares authorized, no shares issued
       and outstanding as of June 30, 2008 and December
       31, 2007, respectively                              -              -
      Common stock, $0.001 par value, 1,750,000,000
       shares authorized, 39,962,071 and 29,200,026
       shares issued and outstanding as of June 30,
       2008 and December 31, 2007, respectively       39,962         29,200
      Additional paid-in capital                  17,713,847     17,354,200
      Shares authorized and unissued, 725,720
       and 3,700,294                                     726          3,700
      Dividends payable                              386,475        292,392
      Accumulated (deficit)                      (19,744,285)   (19,709,747)
                                                  (1,603,050)    (2,030,030)

        Total liabilities and stockholders'
         (deficit)                                $1,417,079       $813,322



                               InstaCare Corp.
               Condensed Consolidated Statements of Operations
                                 (Unaudited)

                           Three Months Ended          Six Months Ended
                                June 30,                   June 30,
                            2008          2007         2008          2007

    Revenue             $3,020,694   $1,036,849   $5,818,076   $2,120,131
    Cost of sales        2,676,063      908,652    5,025,946    1,797,304

    Gross profit           344,631      128,197      792,130      322,827

    Expenses:
      General &
       administrative       64,558       78,967      125,304      181,526
      Consulting            28,442      119,810       93,735      378,077
      Payroll expense       79,815       34,664      200,335       87,898
      Professional fees     22,240       57,486       67,596       81,976
      Depreciation and
       amortization          9,063       11,745       18,126       23,490
        Total expenses     204,118      302,672      505,096      752,967
    Net operating income
     (loss)                140,513     (174,475)     287,034     (430,140)
    Other income
     (expense):
      Contingent expenses        -       81,600            -            -
      Financing costs      (66,786)      (1,907)    (116,260)     (11,123)
      Interest expense,
       net                 (56,075)     (55,788)    (111,393)    (112,493)
        Total other
         income
         (expense)        (122,861)      23,905     (227,653)    (123,616)
    Net income (loss)       17,652     (150,570)      59,381     (553,756)
    Add: Dividends
     declared on
     preferred                   -            -            -            -
    Income (loss)
     available to
     common
     shareholders'         $17,652    $(150,570)     $59,381    $(553,756)
    Weighted average
     number of
     common shares
     outstanding-
     diluted           216,264,003   11,341,941  211,122,433   10,768,735
    Net income (loss)
     per share-diluted       $0.00       $(0.01)       $0.00       $(0.05)

    Weighted average
     number of Common
     shares
     outstanding -
     basic              38,546,597   11,341,941   36,297,301   10,768,735

    Net income (loss)
     per share - basic       $0.00       $(0.01)       $0.00       $(0.05)

SOURCE InstaCare Corp.

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