Standard Management Reports First Quarter 2007 Results

INDIANAPOLIS, May 23  /PRNewswire-FirstCall/ -- Standard Management Corporation ("Standard Management" or the "Company") (OTC:SMANOTC:SMANP), an Indianapolis-based company, provides through Universal Healthcare Company, LLC ("Universal" or "UHCC") pharmaceuticals to long-term care and infusion therapy patients, today reported a net loss from continuing operations for the three months ended March 31, 2007 of $0.12 per diluted share, or $2.627 million; an improvement of 20% over first quarter 2006.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO )

  Continuing Operations:

  Net revenues

  Quarterly analysis:

  -- Sales for the first quarter of 2007 increased $.3 million or 12% to
     $2.4 million compared to the first quarter of 2006 due to increased
     volume.

  Gross profit

  -- Gross profit for the first quarter of 2007 increased by $.2 million or
     15% to $.7 million compared to the first quarter of 2006, primarily due
     to increased sales volume.

  Depreciation and amortization

  -- Depreciation and amortization was $.1 million and $.2 million in the
     first quarters of 2007 and 2006, respectively.  The decrease was due to
     the sale of furniture and equipment.

  Selling, general and administrative expenses

  -- Selling, general and administrative expenses for the first quarter of
     2007 decreased by $.8 million or 28% to $2.0 million compared to the
     first quarter of 2006, primarily due to a $.4 million decrease in
     professional fees, a $.1 million decrease in compensation expense (a
     $.3 million decrease in salaries partially offset by a $.2 million
     increase in stock option expense), a $.2 million general corporate
     overhead decrease, and $.1 million in decreased operating expenses at
     Precision Healthcare.

  Other income

  -- Other income for the first quarter of 2007 of $.1 million is rental
     income from leasing space at the Company's corporate headquarters.
     Other income for the first quarter of 2006 of $.2 million is primarily
     due to the dividends received from preferred stock the Company owned
     through 2006, as well as rental income from leasing space at the
     Company's corporate headquarters.

  Interest expense

  -- Interest expense for the first quarter of 2007 decreased by $.2 million
     or 16% to $.8 million compared to the first quarter of 2006, primarily
     due to the exchange of certain debt into equity in June 2006.

  Federal income tax expense

  -- Provision for federal income tax remained zero due to a 100% valuation
     allowance on the net losses in the first  quarters of 2007 and 2006.

  Discontinued Operations:

  -- Net loss from discontinued operations for the first quarter of 2007 was
     $.3 million compared to net loss of $1.1 million for the first quarter
     of 2006.  The reduction was primarily due to the cessation of
     operations of a base of business during 2006.

  Earnings:



For the quarters ended March 31, 2007 and 2006, net loss from continuing operations was  $2.6 million or $0.12 per diluted share and a loss of $3.2 million or $0.35 loss per diluted share, respectively.

Chairman's Comments:

Ronald D. Hunter, Chairman, President and Chief Executive Officer stated, "By remaining committed to the transformation of Standard Management through the development of Universal Healthcare Company, LLC, we have attracted properly priced capital and are scheduled to close on our previously announced acquisition of In-House Pharmacies, Inc. d/b/a Community Medical Pharmacy in San Diego, California.

Mr. Hunter commented, "With a robust pipeline complimented by available capital, management is confident that long-term shareholder value will be accessible in the pharmaceutical sector of healthcare."

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 ability of the Company to address the factors sighted by our independent auditors as a basis for their qualified audit opinion, 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, IN. Information about the Company can be obtained by calling the Investor Relations Department at 317.574.6224 or via the Internet at http://www.sman.com/.

             STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
                    (unaudited, dollars in thousands)


                                                   March 31    December 31
                                                     2007         2006
                                                  ----------    --------
                        ASSETS

  Current assets:
  Cash and cash equivalents                            $403        $565
  Accounts receivable, net                              928       1,004
  Inventories                                           787         750
  Prepaid and other current assets                      464         535
  Assets of discontinued operations                     317         948
                                                    --------    --------
    Total current assets                              2,899       3,802

  Property and equipment, net                         7,963       8,037
  Assets held for sale                                  927         931
  Deferred financing fees, net                        1,442       1,263
  Officer and other notes receivable, less
   current portion                                      776         776
  Intangible assets, net                                285         304
  Goodwill                                            2,078       2,078
  Other noncurrent assets                             1,341       1,302
    Total assets                                    --------    --------
                                                    $17,711     $18,493
                                                    --------    --------
        LIABILITIES AND SHAREHOLDERS' DEFICIT

  Current liabilities:
    Accounts payable                                $1,567       $1,720
    Accrued expenses                                 2,876        2,101
    Current portion of long-term debt                6,049        4,306
    Liabilities of discontinued operations           1,031        1,471
                                                   --------    --------
    Total current liabilities                       11,523        9,598

  Long-term debt, less current portion              20,147       22,809
  Common stock warrants                                486           87
  Other long-term liabilities                        1,073        1,070
                                                   --------     --------
    Total liabilities                               33,229       33,564

  Shareholders' deficit:

  Common stock, no par value, and additional
   paid in capital, 200,000,000 shares
   authorized and 40,861,367 shares and
   19,011,367 shares issued
   in 2007 and 2006, respectively
                                                    73,223       70,785
  Retained deficit                                 (78,118)     (75,214)
  Treasury stock, at cost, 2,840,173 shares        (10,829)     (10,829)
  Accumulated other comprehensive income               206         187
                                                   --------     --------
    Total shareholders' deficit                    (15,518)     (15,071)



             STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
        (unaudited dollars in thousands, except per share amounts)


                                                    Three Months Ended
                                                          March 31
                                                 ------------    ----------
                                                     2007          2006
                                                 ------------    ----------
  Net revenues                                     $  2,373       $ 2,114
  Cost of sales                                       1,686         1,517
                                                 ------------    ----------
              Gross profit                              687           597

  Selling, general and administrative
   expenses                                           2,004         2,843
  Impacts related to value of warrants
   and derivatives                                      569           (63)
  Depreciation and amortization                          64           181
                                                 ------------    ----------
              Operating loss                         (1,950)       (2,427)

  Other income, net                                     101           215

  Interest expense                                      778           981
                                                ------------     ----------
              Loss from continuing
               operations before
               income taxes                          (2,627)       (3,193)

  Income tax expense (benefit)                            -             -
                                                ------------     ----------
              Net loss from continuing
               operations                            (2,627)       (3,193)

  Discontinued operations:

  Loss from discontinued operations                    (277)       (1,129)
                                                ------------     ----------
              Net loss                              $(2,904)      $(4,322)
                                                ------------     ----------
   Loss per share - basic and diluted
              Loss from continuing
               operations                            $(0.12)       $(0.35)
              Loss from discontinued
               operations                             (0.01)        (0.13)
                                                 ------------    ----------
                    Net loss                         $(0.13)       $(0.48)
                                                 ------------    ----------
               Weighted average shares
                outstanding                      21,662,861     9,095,208
                                                 ------------    ----------



             STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES
                 RECONCILIATION STATEMENT AND DEFINITIONS
                              Non-GAAP Basis
                    (unaudited, dollars in thousands)

                                                 Three Months Ended March 31
                                                 ---------------------------
                                                      2007          2006
                                                 ------------    -----------
 Earnings before interest, income taxes,
   depreciation and amortization

  ("EBITDA"):
  Operating income (loss)                           $(1,950)     $(2,427)
  Other income, net                                     101          215
  Depreciation and amortization                          64          181
  Impacts related to value of warrants and
   derivatives                                           569          (63)
                                                 ------------   -----------
    EBITDA                                          $(1,216)     $(2,094)
                                                 ------------   -----------

  Footnotes to Financial Information:

  Definitions:
    GAAP:    Amounts that conform with U.S. Generally Accepted Accounting
             Principles.
    Non-GAAP: Amounts that do not conform with U.S. GAAP.


  Note 1:     Standard Management believes that the readers' understanding
              of our performance is enhanced by the Company's disclosure of
              certain Non-GAAP financial measures as presented in this
              document. The Company's management believes that the adjusted
              results provide some additional focus on the ongoing
              operations of the Company. Standard Management's method and
              calculation of these measures may be different than those used
              by other companies and, therefore, they may not be comparable.

  Note 2:     EBITDA shown in these financial presentations is earnings
              before interest expense, other income, income taxes,
              depreciation and amortization. Standard Management believes
              that certain readers find EBITDA to be a method for measuring
              a company's ability to service its debt, which is the primary
              reason that Standard Management uses this financial measure.
              EBITDA does not represent cash flows from operating activities
              as defined by GAAP and should not be used as a measure of
              liquidity. Standard Management's calculation of EBITDA may be
              different from other companies.


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DATASOURCE: Standard Management Corporation



CONTACT:  Standard Management Corporation Investor Relations, +1-317-574-

6224



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

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