TIGroup Raises $535,000 from Warrant Exercises and Private Placement of Additional Shares of Preferred Stock

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Tri-Isthmus Group, Inc. (TIGroup) (Pink Sheets:TISG), a provider of financial solutions to the healthcare industry, said today that exercise of warrants by members of its board of directors, management team and non-affiliated investors has yielded approximately $423,275 in fresh proceeds for the company. The warrants were issued in connection with TIGroup’s Series 5-A Preferred Stock financing completed in July 2005 and had an exercise price of $0.50. The warrants were exercised into 877,300 shares of common stock.

TIGroup raised an additional $112,000 through the sale of 112 additional shares of TIGroup’s Series 6-A Preferred Stock. The closing on these funds was delayed and was part of the financing closed in May 2008.

CEO David Hirschhorn said, “Members of our management team and board of directors as well as existing investors exercised warrants covering almost one million shares in July and again in August and September with exercise prices of $0.35 to $0.50 a share. A majority of the warrants exercised had a strike price of $0.50 a share. In addition, members of management were granted new options this quarter with exercise prices of $0.62 per share.

“This signals ongoing strong support for our company and its business model by the people who know it best. This continued backing by some of our earliest investors as well as our management and board underlines their confidence in our vision and plan for growth. As evidenced by my employment agreement, the prices on our warrant strike price continue to increase and constitute a substantial premium on current price levels of our stock. This premium, we feel is justified based on our past performance, our increasing revenue run rate and the current initiatives and activities of our company.

“We have now reported three consecutive quarters of record revenues and we expect the quarter ended September 30, 2008 to follow the trend with revenues approaching $10 million for the fourth quarter. In the meantime, we continue to explore the possibility of an AMEX listing as we monitor market conditions,” Hirschhorn said.

About Tri-Isthmus Group, Inc.

Tri-Isthmus Group, Inc. (TIGroup) acquires and provides financial, operational and technological services to healthcare facilities primarily located in rural markets. The company promotes quality medical care by offering improved access and breadth of services. TIGroup unlocks the value of its investments by developing strong, long-term and mutually beneficial relationships with their physicians and the communities they serve. The company operates numerous medical facilities and employs over 350 people in Oklahoma and California. The company is building a portfolio of interests in ambulatory surgical centers, rural hospitals, surgical hospitals and other centers operating in partnership with physicians. TIGroup’s wholly owned subsidiary TIG Financial Solutions LLC provides insurance services for physicians and patients. For more information, visit http://www.tig3.com.

A profile for investors can be accessed at http://www.hawkassociates.com/profile/tisg.cfm. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at 305-451-1888, e-mail: tigroup@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com. To receive free e-mail notification of future releases for TIGroup, sign up at http://www.hawkassociates.com/about/alert/.

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company’s Forms 10-K and 10-Q filed with the SEC.