Standard Management Announces the Sale of the Assets of Rainier Home Health Care Pharmacy, Inc.

INDIANAPOLIS, Aug. 16  /PRNewswire-FirstCall/ -- Standard Management Corporation ("Standard Management" or the "Company") (OTC:SMANOTC:SMANP), an Indianapolis-based provider of pharmaceuticals to long-term care and infusion therapy patients, announced today the sale of the assets of Rainier Pharmacy to Omnicare, Inc. of Covington, KY.  The deal valued at approximately $14.0 million consisted of $12 million in cash with the balance in assumed liabilities with an earnout provision.

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Ronald D. Hunter, Chairman, President and Chief Executive Officer of Standard Management stated, "This transaction allows Standard Management the opportunity to take measure of what we have accomplished during our first year of acquiring independent institutional pharmacies enabling the company to leverage our resources to achieve the best results possible."

Mark Long, Standard Management's Executive Vice President Pharmacy Operations commented, "We are fortunate to have a robust pipeline to replenish Rainier's revenue stream."  Mr. Long continued, "Our acquisition strategy is to identify pharmacies capable of growing revenue 15%+, per year and consistently reaching 8-10% EBITDA.  Standard Management continues to believe the trend lines and demographics will drive the pharmaceutical sector providing opportunities for our shareholders."

This press release contains "forward-looking statements" within the meaning of section 27 A of the Securities Act of 1933.  The use of the words "believe," "expect," "anticipate," "intend," "may," "estimate," "could," "plans," and other similar expressions, or the negations thereof, generally identify forward-looking statements.  Forward-looking statements in this press release include, without limitation, the performance and growth of our business, potential future acquisitions, and their impact on the Company's performance.  These forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which could cause actual results to be materially different from those contemplated by the forward-looking statements.  Such factors include, but are not limited to the ability of our management team to successfully operate a health services business with limited experience in that industry; our ability to expand our health services business both organically and through acquisitions, including our ability to identify suitable acquisition candidates, acquire them at favorable prices and successfully integrate them into our business; general economic conditions and other factors, including prevailing interest rate levels and stock market performance, which may affect our ability to obtain the proposed capital and additional capital when needed and on favorable terms; customer response to new products, distribution channels and marketing initiatives; and increasing competition in the sale of our products.

We caution you that, while forward-looking statements reflect our good faith beliefs, these statements are not guarantees of future performance.  In addition, we disclaim any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Standard Management is a holding company headquartered in Indianapolis, Indiana.  Information about the Company can be obtained by calling the Investor Relations Department at [phone] or via the Internet at http://www.sman.com/. 

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DATASOURCE: Standard Management Corporation



CONTACT:  Michael B. Berry, Investor Relations of Standard Management

Corporation, [phone]



Web site:  http://www.sman.com/ 

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