Khandaker Partners & Co. Initiates Research on BioBalance Corp.

Khandaker Partners & Co., a Wall Street independent
research and advisory firm specializing in small cap and emerging
growth companies, announced today that it has initiated research
coverage on BioBalance Corporation ("BioBalance"), a wholly-owned
subsidiary of New York Health Care, Inc. (the "Company"; OTCBB:BBAL).
The report indicates that BioBalance received FDA approval to begin
phase II clinical trials for Probactrix(R), its lead product
candidate. According to Khandaker Partners Analyst, Andrew Gaw, CFA,
"BioBalance Probactrix(R) has great potential in IBS market which
could prove to be a home run for the company."
   A copy of the report can be obtained by emailing
[e-mail]
   Probactrix is a patented strain of non-pathogenic E.coli M-17 that
was originally isolated from the intestinal microflora of a healthy
volunteer. One mechanism of action is believed to work by selective
displacement of pathogenic bacteria in the digestive tract and
preventing their re-colonization, restoring a healthy balance of
intestinal flora without the potential negative consequences of
antibiotic use. The active ingredient in Probactrix has a long history
of use for a variety of gastrointestinal conditions, which has been
well documented in foreign studies.

   About Khandaker Partners

   Khandaker Partners & Co. (Khandaker) is dedicated exclusively in
the emerging growth sectors of healthcare, information technology and
energy. Khandaker identifies firms with near term and long term
opportunities. The cost of enrollment in our one year micro-cap
research portfolio (US$24,000) is paid by the company to support the
various research activities. www.khandakerpartners.com

   About BioBalance Corporation

   BioBalance is a biopharmaceutical company focused on the
development of innovative treatments for GI disorders that are poorly
addressed by current therapies. These disorders include pouchitis,
Irritable Bowel Syndrome (IBS), Crohn's disease, ulcerative colitis,
C. difficile infections and antibiotic-associated diarrhea. New York
Health Care, Inc. (the "Company") and BioBalance completed a business
combination on January 2, 2003, accounted for as a "reverse
acquisition," in which BioBalance became a wholly-owned subsidiary of
the Company. BioBalance's lead product, Probactrix(R), recently
received FDA approval to begin phase II clinical trials for pouchitis.
Additional information on BioBalance is located on the BioBalance
website at www.biobalance.com.

   Forward-Looking Statements: All statements in this press release
that are not historical are forward-looking statements. Such
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projected, including,
but not limited to, uncertainties relating to technologies, product
development, manufacturing, market acceptance, cost and pricing of
BioBalance products, dependence on collaborations and partners,
regulatory approvals, competition, intellectual property of others,
and patent protection and litigation.