National Health Partners issues guidance for third-quarter 2009

National Health Partners, Inc. (OTCBB: NHPR), a leading provider of unique discount healthcare membership programs, announced that it expects to generate positive cash flows from operating activities of almost $100,000 during August, representing the first time in the company’s history that it has achieved positive cash flows from operating activities for a full month. The company also announced that it expects revenue for its third quarter ended September 30, 2009 to increase almost 100% from the revenue generated during its second quarter ended June 30, 2009, and revenue for its fourth quarter ended December 31, 2009 to increase between 50% and 100% from the revenue generated during its third quarter.

The company’s billings have been increasing substantially during its third quarter due to the success of its internet marketing campaign. The total billings generated by the company during August are expected to be 100% higher than the billings generated during July. As a result of the increase in billings, the company expects to generate positive cash flows from operating activities of almost $100,000 during August and expects to generate positive cash flows from operating activities for its fourth quarter. These achievements would represent the first time in the company’s history that it has achieved positive cash flows from operating activities for a full month and full quarter.

“I am very excited about the prospect of generating positive cash flow from operations during the month of August and for our fourth quarter,” stated David M. Daniels, President and Chief Executive Officer of National Health Partners. “We previously announced that we believed that our second quarter would be our breakout quarter. While the rollout of our internet marketing campaign during our second quarter was very successful, most of the revenue that began generating from these sales is being recognized during our third quarter for financial accounting purposes. Because the majority of our recent growth occurred during late June and July, the substantial improvement in revenue and cash flows that we were previously forecasting for our second quarter will instead be realized during our third quarter.”

“As a result, we expect revenue for our third quarter to increase 100% sequentially from the revenue generated during our second quarter, and expect revenue for our fourth quarter to increase between 50% and 100% sequentially from the revenue generated during our third quarter,” continued Mr. Daniels. “This will enable us to generate positive cash flow from operating activities of almost $100,000 for us this month. We intend to reinvest these funds into a substantially larger internet marketing campaign that will begin in the next couple of weeks. As this campaign ramps up during September, our billings will begin growing at an even greater rate. This will enable us to generate positive cash flows from operating activities for our fourth quarter.”

A summary of the company’s current financial projections are as follows:

• Positive cash flows from operating activities of almost $100,000 are expected during the month of August, representing the first time in the company’s history that it has achieved positive cash flows from operating activities for a full month.
• Revenue for the company’s third quarter is expected to increase 100% sequentially over revenue for its second quarter, and revenue for the company’s fourth quarter is expected to increase between 50% and 100% sequentially over revenue for its third quarter.
• Record number of new members generated during July due primarily to successful launch of internet marketing campaign.
• Billings for August are expected to be 100% higher than billings for July.
• Positive cash flows from operating activities expected for the company’s fourth quarter, representing the first time in the company’s history that it has achieved positive cash flows from operating activities for a full quarter.

“We are coming off of the best month in our company’s history,” continued Mr. Daniels. “We are currently preparing a new internet marketing campaign that will be much larger than our current campaign that we will roll out in a couple of weeks. The combination of our quickly growing revenue with our low cash out-flows will provide us with outstanding financial results during the remainder of 2009 and continuing into 2010. We will keep our shareholders informed of our growth as we continue to execute upon our business plan during the remainder of 2009.”