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ISCR News instaCare Corp. Reports Second Quarter 2006 Financial Results; Revenues Climb 741% vs. 2005, Reaffirms 2006 Financial Guidance

Highlights of the quarter and recent weeks include:

-- Revenues increased 741% from year-ago quarter

-- Negotiations underway with the Mexican Federal government's health agency for instaCare's proprietary e-health technologies for prescription drug prescription fulfillment

-- Company opens government subsidized distribution facility in North Dakota

Second Quarter Financial Results

For the second quarter of 2006, instaCare reported revenues of $9,009,052, a 741% gain from the $1,070,848 recorded during the second quarter of 2005. The increase in revenues was a result of the Company's market focus towards the direct sales of diabetic test strips into several prescription drug channels. Total expenses for the quarter ended June 30, 2006 were $552,258, a 7% decline compared with total expenses of $594,887 incurred during the quarter ended June 30, 2005. The decrease in total expenses was mainly a result of a reduction in labor and consulting expenses.

The Company's net loss for the three months ended June 30, 2006 was $(583,937), or $(0.08) per share issued and outstanding, compared with a net loss of $(723,619) or $(0.13) per share issued and outstanding as reported for the year-ago quarter. The decrease in net loss for the second quarter of 2006 was the result of the Company's overall decrease in payroll and consulting fees and the elimination of merger expenses and write-offs during the period ended June 30, 2006.

Year-to-Date Financial Results

For the first six months of 2006, instaCare reported revenues of $16,475,973, a 420% gain from the $3,170,238 recorded during the first six months of 2005. The increase in revenues was a result of the Company's market focus towards the direct sales of diabetic test strips in the wholesale arena. Total expenses for the six months ended June 30, 2006 were $1,092,321, a 59% decline compared with total expenses of $2,678,377 incurred during the six months ended June 30, 2005. The decrease in total expenses was mainly a result of a decrease in the amount of share-based compensation granted for services and a decrease in the amount of professional and consulting fees required for operations.

The Company's net loss for the six months ended June 30, 2006 was $(544,172), or $(0.07) per share issued and outstanding, compared with a net loss of $(3,089,522) or $(0.58) per share issued and outstanding as reported for same period in 2005.

Keith Berman, chief financial officer of instaCare, commented, "We continue to make great strides in our direct to patient diabetic strips business and in all wholesale channels, and our quarter over quarter sales have been impressive by any standards. However, I would like to caution that the summer months are typically somewhat slower and we are using this time to redirect our direct from manufacturer contracts. In addition, rebates continue to influence our expenses and can cause our expenses to vary from quarter to quarter and negatively impacted expenses during the June quarter. We are working hard to achieve profitability in every quarter."

instaCare had cash and equivalents of $125,157 as of June 30, 2006. The Company is seeking to raise additional funds.

Subsequent to the completion of the quarter, Robert L. Cox resigned as chairman and chief executive officer of instaCare. Robert Jangunich, a member of the board of directors, assumed the position of chairman of the board, and Keith Berman, chief financial officer, has assumed the position of interim principal executive officer and is responsible for day-to-day operations of instaCare. In addition, the Company announced that it has entered into discussions for an exclusive Strategic Development and Marketing Agreement with the Mexican Federal government's health agency ISSSTE (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado). The initiative, when completed, will cover the Company's proprietary e-health technologies tied to its prescription drug fulfillment systems.

Robert Jangunich, chairman of the board, commented, "In addition to our talks to implement our Proprietary MD@Hand technologies to potentially 11 million workers who generate 10 million prescriptions per month, we are making strong progress on several other fronts, which will continue to strengthen the Company. In the diabetes area, we are making a very aggressive shift to selling higher-margin, profitable products. In addition, we are shifting from sales of the diabetes products through mail order channels and instead are focusing on sales to institutions, which are more profitable for us."

Financial Guidance

instaCare reaffirms the financial guidance it has established regarding revenues for the remainder of 2006. Management based this guidance using such factors as the current revenue run rate and the market demand for its products at certain price and profit levels. Management also took into account the seasonality of the business. Based on management's estimate, the Company continues to believe that revenues for fiscal 2006 will be within a range at the lower end of $20 million and the higher end of $26 million.

Forward Looking Statements:

This release contains forward-looking statements about our business or financial condition that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this release, words such as "believes," "expects," "forecasts," "intends," "projects," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain statements not accompanied by such expressions.

For further information, visit the company's Web site: http://www.instacare.net or http://www.caredecision.net.

                            instaCare Corp.
                 Condensed Consolidated Balance Sheet
                               Unaudited

                                                           June 30,
                                                             2006
                                                         -------------
Assets

Current assets:
   Cash and equivalents                                  $    125,157
   Accounts receivable                                        660,341
   Inventory                                                  406,485
   Prepaid expenses                                            40,364
                                                         -------------
      Total current assets                                  1,232,347
                                                         -------------

Fixed assets, net                                             106,471

Other assets:
   Deposits                                                     3,412
                                                         -------------
      Total other assets                                        3,412
                                                         -------------

                                                            1,342,230
                                                         =============

Liabilities and Stockholders' (Deficit)

Current liabilities:
  Accounts payable                                             34,500
  Accrued expenses                                            181,932
  Customer deposits                                            33,603
  Notes payable                                               342,309
  Convertible notes payable                                 1,150,267
                                                         -------------
      Total current liabilities                             1,742,611
                                                         -------------

Stockholders' (deficit):
  Preferred stock, $0.001 par value, 3,249,000 shares
   authorized, 207,526 shares issued and outstanding              208
  Preferred series "A"  stock. $0.001 par value, 750,000
   shares authorized, no shares issued and outstanding              -
  Preferred series "C" stock, $0.001 par value, 20,000
   shares authorized, 20,000 shares issued and
   outstanding                                                     20
  Preferred series "D" stock, $0.001 par value,
   1,000,000 shares authorized, no shares issued and
   outstanding                                                      -
  Common stock, $0.001 par value, 1,750,000,000 shares
   authorized, 8,083,073 shares issued and outstanding          8,084
  Unamortized warrants                                         (6,761)
  Prepaid share-based compensation                             (5,010)
  Additional paid-in capital                               15,603,594
  Accumulated (deficit)                                   (16,000,516)
                                                         -------------
                                                             (400,381)
                                                         -------------

                                                         $  1,342,230
                                                         =============




                            instaCare Corp.
            Condensed Consolidated Statement of Operations
                               Unaudited

                       For the three months      For the six months
                              ended                    ended
                             June 30,                 June 30,
                      ----------------------  ------------------------
                        2006        2005         2006         2005
                      ----------  ----------  -----------  -----------
                                  RESTATED                  RESTATED

Revenue, net         $9,009,052  $1,070,848  $16,475,973  $ 3,170,238
Cost of sales         8,841,707     861,152   15,649,527    2,763,893
                     ----------- ----------- ------------ ------------

Gross profit            167,345     209,696      826,446      406,345
                     ----------- ----------- ------------ ------------

Expenses:
   Hardware costs             -      32,888            -       42,964
   General &
    administrative
    expenses            146,072     137,740      274,441      250,436
   Payroll expense      187,667     226,009      351,235      610,575
   Professional fees    127,615      40,409      193,500      119,027
   Consulting fees       51,323     144,705      125,648      461,385
   Depreciation and
    amortization         39,581      13,136      147,497       26,273
   Impairment loss on
    operating assets          -           -            -    1,167,717
                     ----------- ----------- ------------ ------------
      Total expenses    552,258     594,887    1,092,321    2,678,377
                     ----------- ----------- ------------ ------------

Net operating (loss)   (384,913)   (385,191)    (265,875)  (2,272,032)

Other income 
 (expense):
   Loss - related
    party                     -    (151,282)           -     (287,343)
   Interest income            -       5,485            -        9,016
   Financing costs       (5,000)   (107,131)      (5,000)    (404,964)
   Contingent legal
    fees                (90,000)          -      (90,000)           -
   Interest expense    (104,024)    (85,500)    (183,297)    (134,199)
                     ----------- ----------- ------------ ------------

Net (loss)           $ (583,937) $ (723,619) $  (544,172) $(3,089,522)
                     =========== =========== ============ ============

Weighted average
 number of common
 shares outstanding -
 basic and fully
 diluted              7,517,224   5,741,549    7,406,747    5,362,487
                     =========== =========== ============ ============

Net (loss) per share
 - basic and fully
 diluted             $    (0.08) $    (0.13) $     (0.07) $     (0.58)
                     =========== =========== ============ ============