BBAL New York Health Care Inc (CE)

The third sentence of the first graf should read: According to Khandaker Partners Analyst, JianJin (MsFin, CFA Lev -I), "BioBalance Probactrix(R) has great potential in IBS market which could prove to be a home run for the company." (sted: According to Khandaker Partners Analyst, Andrew Gaw, CFA, ...) The corrected release reads as follows: Khandaker Partners & Co., a Wall Street independent research and advisory firm specializing in small cap and emerging growth companies, announced today that it has initiated research coverage on BioBalance Corporation ("BioBalance"), a wholly-owned subsidiary of New York Health Care, Inc. (the "Company")(OTCBB:BBAL). The report indicates that BioBalance received FDA approval to begin phase II clinical trials for Probactrix(R), its lead product candidate. According to Khandaker Partners Analyst, JianJin (MsFin, CFA Lev -I), "BioBalance Probactrix(R) has great potential in IBS market which could prove to be a home run for the company." A copy of the report can be obtained by emailing rripatti@khandaker.com Probactrix is a patented strain of non-pathogenic E.coli M-17 that was originally isolated from the intestinal microflora of a healthy volunteer. One mechanism of action is believed to work by selective displacement of pathogenic bacteria in the digestive tract and preventing their re-colonization, restoring a healthy balance of intestinal flora without the potential negative consequences of antibiotic use. The active ingredient in Probactrix has a long history of use for a variety of gastrointestinal conditions, which has been well documented in foreign studies. About Khandaker Partners Khandaker Partners & Co. (Khandaker) is dedicated exclusively in the emerging growth sectors of healthcare, information technology and energy. Khandaker identifies firms with near term and long term opportunities. The cost of enrollment in our one year micro-cap research portfolio (US$24,000) is paid by the company to support the various research activities. www.khandakerpartners.com About BioBalance Corporation BioBalance is a biopharmaceutical company focused on the development of innovative treatments for GI disorders that are poorly addressed by current therapies. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), Crohn's disease, ulcerative colitis, C. difficile infections and antibiotic-associated diarrhea. New York Health Care, Inc. (the "Company") and BioBalance completed a business combination on January 2, 2003, accounted for as a "reverse acquisition," in which BioBalance became a wholly-owned subsidiary of the Company. BioBalance's lead product, Probactrix(R), recently received FDA approval to begin phase II clinical trials for pouchitis. Additional information on BioBalance is located on the BioBalance website at www.biobalance.com. Forward-Looking Statements: All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of BioBalance products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation.