GNOW American CareSource Holdings Inc (CE)

American CareSource Holdings, Inc. (NASDAQ: ANCI) announced today that it has signed a new client service agreement with the health insurance subsidiaries of HealthMarkets, Inc. (http://www.healthmarkets.com), providers of personalized health insurance plans for individuals, families and the self-employed nationwide.

Under the agreement, American CareSource will make available a complement of ancillary healthcare services to members of HealthMarkets' subsidiaries through its Ancillary Care Services (ACS) network of providers.

Commenting on today's news, David S. Boone, Chief Executive Officer of American CareSource, noted, "HealthMarkets represents an important segment of the health insurance market, providing flexible health insurance plans for individuals. As such, we are especially pleased to welcome them as a new client and look forward to helping them provide an even greater array of ancillary healthcare services to their members. Our new agreement with HealthMarkets represents a significant next step in our stated strategy to diversify our client mix and to work with direct payors throughout the industry."

Phillip J. Hildebrand, President and Chief Executive Officer of HealthMarkets, Inc., said, "HealthMarkets is very excited to sign this agreement with American CareSource. The combination of their comprehensive ancillary provider network, coupled with our focus on providing flexible, individual health insurance plans, will help provide our members with better access to the highest quality ancillary care available in their local area."

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 HealthMarkets, Inc.

HealthMarkets� is the brand name for products underwritten and issued by the insurance subsidiaries of HealthMarkets, Inc. -- The Chesapeake Life Insurance Company�, Mid-West National Life Insurance Company of Tennessee(SM) and The MEGA Life and Health Insurance Company(SM). Products provided under the HealthMarkets brand are designed to provide personalized protection to individuals, families, and the self-employed. For further information regarding products offered by the HealthMarkets' Companies, visit www.healthmarkets.com. The administrative offices of HealthMarkets, Inc. and its underwriting companies are located in North Richland Hills, Texas. Products are marketed through independent agents in sales offices across the country. For more information about the HealthMarkets Companies visit www.healthmarketsinc.com.

ANCI-G

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