GNOW American CareSource Holdings Inc (CE)

American CareSource Holdings, Inc. (NASDAQ: ANCI) announced today that it has implemented a new client service agreement with InterGroup Services Corporation, the most comprehensive Preferred Provider Organization (PPO) network serving Pennsylvania, New Jersey, Delaware and West Virginia. Under the agreement, American CareSource will make available its full complement of ancillary care services to InterGroup's clients through a network of ancillary care providers. American CareSource expects to realize an estimated $1 - $2 million in additional annual revenue once the agreement is fully implemented.

Commenting on today's news, David S. Boone, Chief Executive Officer of American CareSource, stated, "We are pleased to be working with InterGroup and are confident that our dedicated approach to customer satisfaction will enhance InterGroup's current offerings to its clients by providing high quality ancillary care services at a reduced cost. In addition, our contract with InterGroup allows us to expand our reach into important Mid-Atlantic states."

John George, President of InterGroup Services Corporation, stated, "Our partnership with American CareSource will enable us to offer our clients broader access to many types of ancillary providers at very attractive rates. This will improve our competitiveness in this important and growing healthcare segment."

About Ancillary Healthcare Services

American CareSource provides ancillary healthcare services through its network that offers cost effective alternatives to physician and hospital-based services. This market is estimated at $574 billion, and has grown to 30% of total national health expenditures. These providers offer services in over 30 categories, including laboratories, dialysis centers, free-standing diagnostic imaging centers, non-hospital surgery centers, as well as durable medical equipment such as orthotics and prosthetics, and others.

About American CareSource Holdings, Inc.

American CareSource Holdings, the first national, publicly traded ancillary care network services company, offers a comprehensive national network of approximately 2,500 ancillary service providers at over 25,000 sites through its subsidiary, Ancillary Care Services. The Company's ancillary network and management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both federal and local governments. For additional information, please visit www.anci-care.com.

About InterGroup Services Corporation

InterGroup Services Corporation is the most comprehensive PPO network serving Pennsylvania, New Jersey, Delaware and West Virginia. Privately held for over 20 years, InterGroup has been a pioneer in the PPO business providing access to high quality healthcare for over 700,000 plan participants. InterGroup's clients include more than 4,000 area employers, labor unions and other organizations. In addition, InterGroup's PPO network includes almost 90,000 physician locations and over 330 acute care facilities and hospitals. The network delivers substantial cost savings to its clients and plan participants through discounted fee for service arrangements, fee schedules and per diems. InterGroup builds custom networks to meet individual client needs. For additional information, please visit www.igs-ppo.com.

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve further risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.

Contact: Steven J. Armond Chief Financial Officer American CareSource Holdings, Inc. Tel: 972-308-6847