Standard Management Realigns Expense Structure

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, today announced as a part of its continued transition into the pharmaceutical delivery market, the Company is significantly reducing corporate overhead.

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Ronald D. Hunter, Chairman, President and Chief Executive Officer of Standard Management stated, "As a developmental stage initiative, it is paramount we align our expenses with the business model while the company finalizes current acquisitions under consideration."

Mr. Hunter continued, "The reductions are primarily related to reduced executive compensation, retirement and the elimination of selected senior management positions.  The Company expects to realize a savings of approximately $1.8 million annually.

"The foundation of the Company's transition began with strengthening the balance sheet and reducing debt.

   * Increased equity by $11.1 million while eliminating $11.1 million of
     debt in connection with an exchange offer for the Trust Preferred
     Securities.

   * Reduction of corporate overhead by $1.8 million.



"With these initiatives in place, the Company is now in a position to attract additional capital in the debt and equity markets enhancing the ability to complete acquisitions.

"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; reduction of corporate expenses; 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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