Allarae HealthCare Announces Joint Venture with Lobeck Medical AG, Frick, Switzerland

DALLAS & FRICK, Switzerland--(Business Wire)--
Allarae HealthCare, Inc., Dallas, Texas (Pink Sheets:ALHI), and
Lobeck Medical AG, Frick, Switzerland (FRANKFURT:34L) (ISIN
CH0025477065), announce a long term joint venture agreement and
product distribution alliance. The alliance will provide Allarae with
access to an established global distribution channel for immediate
sale of its products and services in about 30 countries outside the
US, while making Lobeck products available to Allarae for exclusive
distribution in the United States. Both companies will centralize
manufacturing and warehousing at Lobeck central manufacturing
facilities in Frick, Switzerland.

The companies are complementary and active in the personal health
screening area. Allarae is now focusing on development/acquisition of
innovative personal testing, screening and monitoring
products/services including breast and other cancer early detection
systems. Allarae is also involved with the implementation of a
comprehensive family software system for live tracking and monitoring
of personal health indicators.

Lobeck has developed several innovative products including a
proprietary, intelligent blood glucose meter and a range of personal
screening tests for pregnancy, ovulation, female menopause and colon
cancer. These will be integrated with the new Allarae software. Lobeck
is actively focusing on the distribution of all products and further
development of its global distribution channels. Under the new
arrangement, Lobeck will manufacture all products in Switzerland for
both companies.

Together the two companies will launch several innovative new
products and services this year and in the future. A few include tests
for very early cancer detection and monitoring, a system for strep
throat detection, prostate PSA screening and flu virus screening. FDA
and CE approval has already been obtained for several tests which are
ready for immediate global sale under the worldwide protected brand
name "MediSmart of Switzerland(R)."

In order to manage the venture, a jointly owned subsidiary is
being established in Nevada along with a sales office in Dallas,
Texas. The Nevada operation will be responsible for distribution in
North America as well as for management of the FDA approval process.
Under the main provisions of the agreement, Allarae will make
available a comprehensive software system for test result tracking and
monitoring under the "MediSmart of Switzerland(R)" brand. The software
will integrate all the test kits and medical devices into a central
data vault and tracking network, thereby creating a unique,
first-to-market international offering. These new products, among
others, will be presented at the world's leading medical trade fair
MEDICA in November 2008 in Dusseldorf, Germany.

Mr. Phillip Matteis, Allarae's CEO, said today, "This is a
hallmark agreement for both companies. It is very important that
families and individuals have the tools available to find out if they
have any major health conditions at the earliest possible time. Health
problems such as cancer can go undetected for years until it is too
late for a favorable outcome. The combined growing line of kits and
software will bring affordable solutions to an international market
like never before. Because of today's complex healthcare environment,
everyone must take personal responsibility to monitor their health on
a regular basis."

By combining Allarae and Lobeck products under the joint alliance
and distribution umbrella, both companies will realize an enriched
product offering, including multi-national data on health, and a
unique opportunity worldwide. The management team believes that this
will be a significant driver for increased shareholder value and
strong revenue in both companies.

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

This release includes forward-looking statements intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by phrases such as ALHI or its
management "believes," "expects," "anticipates," "foresees,"
"forecasts," "estimates" or other words or phrases of similar import.
Similarly, statements in this release that describe the Company's
business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those in
forward-looking statements.

New corporate Website: www.allarae.com

Allarae HealthCare, Inc.
Investor Relations
Paradise Capital Group
Jason DeOliveira, 561-305-2848

Copyright Business Wire 2008