DALLAS, July 31 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC:CRDT) (BULLETIN BOARD: CRDT) , a leading U.S. provider of healthcare staffing services, today announced that it has entered into a non-binding letter of intent to merge with Caregiver Services, Inc. ("CSI"), a leading provider of in-home assisted living and supplemental staffing services throughout Florida. Under terms of the letter, CSI will merge into a wholly owned subsidiary of Crdentia and CSI shareholders will receive Crdentia common stock. CSI will be provided representation on Crdentia's Board of Directors and CSI's Chief Executive Officer, Alan Soderquist, will also join Crdentia's executive management team. Upon closing of the transaction, the parties contemplate that shareholders of CSI will own approximately 60% of Crdentia's outstanding common stock, subject to an adjustment of up to 5% up or down based upon an agreed upon formula to be calculated after issuance of the audited 2006 year-end financial statements of each entity. The completion of the proposed transaction is subject to the execution of a definitive agreement and approval of the Board of Directors of both Crdentia and CSI, along with approval by the shareholders of CSI. The parties have also agreed to enter into an exclusivity agreement regarding the proposed transaction for a period of 30 days. On a pro forma basis, the combined company is expected to generate over $100 million in annual revenues and operating income of between $5 and $7 million. CSI is one of the largest providers of private duty nurse staffing services in Florida, where favorable demographic trends and a preference among seniors to live in the region offer strong and growing demand. In Florida, CSI operates as a nurse registry whereby contracted caregivers are placed with clients to provide assistance with activities of daily living. While the majority of CSI's business comes from in-home care services that enable seniors to live independently in their homes, CSI also provides temporary nurse staffing solutions for facilities-based settings as well as supplemental staffing for hospice providers. CSI was founded in 2000 and generated 2005 annual revenues of approximately $43 million. "I am extremely pleased to announce Crdentia's letter of intent to merge with CSI, which will enable Crdentia to fulfill a long standing goal of attaining the critical mass necessary to be a stronger competitor in the healthcare staffing industry," said Crdentia's Chairman and Chief Executive Officer James D. Durham. "We also believe that the combined company will have the requisite size and customer base to achieve positive cash flow from operations, which will give Crdentia the financial strength to execute our business plan of expanding our multidimensional approach to healthcare staffing services to new markets across the country. The completion of this merger will represent an important operational and strategic milestone for our Company." Alan Soderquist, CEO of CSI, commented, "We are very excited about teaming-up with a company like Crdentia, which is growing rapidly and becoming an important competitor in healthcare staffing on a national scale. CSI's market leadership in Florida coupled with Crdentia's very strong market presence in Texas and Arizona provides the combined company with a unique opportunity to take advantage of the demographic trends in healthcare. We look forward to joining forces with Crdentia to expand our reach and satisfy the large and growing market demand for staffing services, while improving the overall level of healthcare delivery in the communities we serve." About Crdentia Corp. Crdentia Corp. is one of the nation's leading providers of healthcare staffing services. Crdentia seeks to capitalize on an opportunity that currently exists in the healthcare industry by targeting the critical nursing and allied shortage issue. There are many small, private companies that are addressing the rapidly expanding needs of the healthcare industry. Unfortunately, due to their relatively small capitalization, they are unable to maximize their potential, obtain outside capital or expand. By consolidating well-run small private companies into a larger public entity, Crdentia intends to facilitate access to capital, the acquisition of technology, providing greater diversity of client services and expanded distribution that, in turn, drive internal growth. For more information, visit http://www.crdentia.com/. Forward-Looking Statements Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-KSB, Forms 10-QSB, and other filings with the Securities and Exchange Commission. Such risk factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company's management team, members of which have other business interests; the ability to successfully implement the Company's business plan; the ability to continue as a going concern; the ability to fund the Company's business and acquisition strategy; the growth of the temporary healthcare professional staffing business; difficulty in managing operations of acquired businesses; uncertainty in government regulation of the healthcare industry; and the limited public market for the Company's common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. AT THE COMPANY: AT FINANCIAL RELATIONS BOARD: James D. Durham Lasse Glassen Chairman and CEO 310-854-8313 972-850-0780 DATASOURCE: Crdentia Corp. CONTACT: James D. Durham, Chairman and CEO of Crdentia Corp., +1-972-850-0780; or Lasse Glassen, +1-310-854-8313, , for Crdentia Corp. Web site: http://www.crdentia.com/

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