Prospect Medical Holdings Confirms Receipt of AMEX Letter Conditionally Accepting...

Prospect Medical Holdings Confirms Receipt of AMEX Letter Conditionally Accepting Prospect's Compliance Plan and Extending the Compliance Plan Period

CULVER CITY, Calif.--(Business Wire)--
Prospect Medical Holdings, Inc. (AMEX: PZZ) ("Prospect" or "the
Company"), which manages the medical care of approximately 240,000 HMO
enrollees and operates four community hospitals in southern
California, today announced that on May 8, 2008 it received a notice
from the AMEX indicating that the AMEX has conditionally accepted the
Company's plan for regaining compliance with the exchange's continued
listing requirements and has extended the compliance period to July
28, 2008.

Prospect currently is not in compliance with Sections 134 and 1101
of the AMEX Company Guide, specifically, by not having timely filed
with the Securities and Exchange Commission its Form 10-K for the
fiscal year ended September 30, 2007 and its Form 10-Q for the quarter
ended December 31, 2007. The Company also will not be ready to file
its Form 10-Q for the quarter ended March 31, 2008 by the May 15, 2008
due date.

As announced on May 7, 2008, Prospect has substantially completed
the work necessary to file its Form 10-K for the fiscal year ended
September 30, 2007 and Form 10-Q for the quarter ended December 31,
2007. The Company anticipates filing both of these documents with the
SEC once matters pertaining to the Company's lenders and independent
auditors (as previously disclosed) have been concluded.

As previously announced, Prospect has submitted to the AMEX the
Company's plan for regaining compliance with the AMEX's continued
listing requirements. The AMEX's May 8 letter notified Prospect that,
based on a review of the information provided by the Company, the AMEX
has determined that, in accordance with Section 1009 of the AMEX
Company Guide, Prospect has made a reasonable demonstration of its
ability to regain compliance with the continued listing standards by
the end of the plan period, which AMEX has determined to be no later
than July 28, 2008. The AMEX further stated that, at this time, it is
prepared to continue the listing of Prospect subject to Prospect
meeting certain terms and conditions. At the end of the plan period,
Prospect must be in compliance with the applicable SEC filing
requirements and corresponding AMEX listing requirements. Failure to
regain such compliance within this time may result in the AMEX
initiating delisting proceedings against Prospect. Prospect management
continues to believe that it will be able to comply with the AMEX's
requirements and deadlines.

ABOUT THE COMPANY

Prospect Medical Holdings operates four community-based hospitals
in the greater Los Angeles area and manages the medical care of
individuals enrolled in HMO plans in Southern California, through a
network of over 9,000 specialist and primary care physicians.

This press release contains forward-looking statements. Additional
written or oral forward-looking statements may be made by Prospect
from time to time, in filings with the Securities and Exchange
Commission, or otherwise. Statements contained herein that are not
historical facts are forward-looking statements. Investors are
cautioned that forward-looking statements, including the statements
regarding anticipated or expected results, involve risks and
uncertainties which may affect the Company's business and prospects,
including those outlined in Prospect's Form 10-K filed on December 28,
2006, its Form 10-Q filed on August 20, 2007, as well as risks and
uncertainties arising from Prospect's acquisition of Alta and ProMed,
the debt incurred by Prospect in connection with those acquisitions,
the resolution of current negotiations regarding covenant waivers and
credit agreement amendments, and the ability of the Company to regain
compliance with the AMEX's continued listing requirements. Any
forward-looking statements contained in this press release represent
our estimates only as of the date hereof, or as of such earlier dates
as are indicated, and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update
forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so, even if our estimates
change.

Prospect Medical Holdings, Inc.
Linda Hodges, 714-796-4271
Executive Vice President
Linda.hodges@prospectmedical.com
or
Investor Relations Counsel:
The Equity Group Inc.
Devin Sullivan, 212-836-9608
dsullivan@equityny.com

Copyright Business Wire 2008