London & Pacific Inks Profit-Sharing Agreement with Hotel Management Firm

Also Secures Exclusive Right to Acquire Firm
EL SEGUNDO, Calif.--(Business Wire)--
LONDON & PACIFIC HEALTHCARE, INC. (PINK SHEETS: LDPH) (FRANKFURT: EGU) ("London
& Pacific" or the "Company"), the international advisory and management
specialist, today announced that it has entered into a strategic relationship
with Harrell Hospitality Group, LLC ("Harrell Hospitality"), an established
hotel management and investment firm, whereby the parties will finance, acquire
and manage hotel properties, and specialized hospitality projects.

London & Pacific is expanding its management and finance expertise into the
hospitality sector in order to capitalize on profits and returns through access
to assets which are lucrative, although under-valued in today`s economy, in the
specialty hospitality, senior housing and assisted living sectors.

Dallas-based Harrell Hospitality is an award-winning hotel management firm with
a growing portfolio of hotel management contracts, adept at the development,
repositioning, acquisition, and disposition of franchised and independent hotel
properties in the United States.

Under the terms of the agreement, London & Pacific will be primarily responsible
for fundraising initiatives while Harrell Hospitality will perform the
selection, acquisition, development and ongoing management of the hotel
properties.

The parties have an income sharing arrangement in regard to the profits of the
London & Pacific subsidiary that will spearhead these hospitality initiatives,
as well as the fees earned by Harrell Hospitality under the terms of the
management agreements of any London & Pacific hotels.

Also, under the terms of the contract, London & Pacific has an exclusive option
to acquire all outstanding shares of Harrell Hospitality at any time within four
years of entering into the agreement.

In consideration of the profits and exclusive rights assigned to London &
Pacific, the Company will issue five million ordinary shares of London & Pacific
stock. Upon the parties` joint acquisition of additional hotels or management
contracts, London & Pacific will grant an additional 2.5 million common shares
to Harrell Hospitality, for each of the next two hotels or management contracts
acquired. Any London & Pacific shares granted to Harrell Hospitality will be
held in trust for a period of 27 months, treated as restricted stock during such
time.

In the unlikely event no hotel properties or management contracts are secured by
London & Pacific within 27 months of the date of the contract between the
parties, then the option to acquire Harrell Hospitality will expire and all
London & Pacific shares shall be immediately returned by Harrell Hospitality to
London & Pacific.

Stuart Bruck, Chairman and CEO of London & Pacific, stated, "We are pleased with
the structure of this deal, and the strategic partnership it provides, for our
foray into the hospitality industry sector. Harrell Hospitality is a respected
hotel management company with a proven track record of successful turnarounds.
We are looking forward to working with Harrell Hospitality to capitalize on the
many undervalued hospitality assets available in today`s economic environment.
Harrell`s know-how and track-record provide us with the means to identify,
evaluate, manage, and turn around attractive high-value hospitality deals which
can create significant added cash-generation, profitability and returns for our
Company. In addition to hotel and condominium projects, London & Pacific is
focused on the burgeoning senior housing and assisted living markets which we
have viewed over the years from the vantage point of our healthcare expertise."

Harrell Hospitality is one of less than 20 independent management companies
franchised by Marriott International to manage its full service hotels in the
USA. It is also approved by Hilton, Starwood, Intercontinental, Radisson, and
several other large franchise organizations. Harrell Hospitality has significant
major property renovation experience, totaling in excess of $50 million,
including over $18 million the past two years.

Chief Executive Officer of Harrell Hospitality, Mr. Paul Barham, stated, "This
partnership is a big step forward in the expansion of our hotel management
business. We are confident of London & Pacific`s ability to raise capital and
negotiate favorable business transactions in this economic environment."

Harrell Hospitality`s executives have managed over 100 hotels, consisting of
more than 30,000 rooms. Properties currently under Harrell`s management include
the Biltmore Hotel & Suites in Santa Clara, California, the Santa Ynez Valley
Marriott in Buellton, California, and the Crowne Plaza Colorado Springs,
Colorado Springs, Colorado.

About London & Pacific Healthcare, Inc.:

With offices in Los Angeles, London and Mumbai, London & Pacific Healthcare,
Inc. is an international advisory and management specialist. The Company`s
website address is www.lphealthcare.com.

About Harrell Hospitality Group, LLC

Harrell Hospitality is a privately-held company, based in Dallas, Texas, with
offices in London, which develops, invests in and operates hotels. Harrell
Hospitality is approved by most major USA franchise companies and is recognized
as a hands-on operator whose operations focus on its guests, associates,
investors and partners. Additional information about the company may be obtained
at www.harrellhospitality.com.

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934. The information in this news release includes
certain forward-looking statements that are based upon assumptions that in the
future may prove not to have been accurate and are subject to significant risks
and uncertainties, including statements as to the future performance of the
company. Although the Company believes that the expectations reflected in its
forward-looking statements are reasonable, it can give no assurance that such
expectations or any of its forward-looking statements will prove to be correct.
Factors that could cause results to differ include, but are not limited to,
successful performance of internal plans, product development acceptance, and
the impact of competitive services and pricing and general economic risks and
uncertainties.

Acadia Group, Inc.
Dana M. Smith, Investor Relations
801-816-2568
ir@acadiagrp.com

Copyright Business Wire 2009