Home Business Information

Mass merchants a threat in tools, flooring, lawn and garden

Even as the industry's retailers look to expand beyond traditional product categories that have defined them, mass merchants continue make selective forays into the home improvement field.

Wal-Mart, which already sells more home improvement-related merchandise than any retailer other than Home Depot and Lowe's, continued to expand its commitment within a range of categories. Early this year the world's largest retailer stated that it would phase in 112 skus of Stanley hand tools, mechanics tools and tool boxes at all 2,600 of its discount stores and super centers in the United States. As part of the deal, Wal-Mart agreed to discontinue its line of private-labeled carpenters' and mechanics' hand tools.

Wal-Mart also launched a 12-store, mid-summer test of the sale of General Electric refrigerators, ranges, freezers, dishwashers, washing machines and dryers as well as over-the-range microwaves, thereby joining Home Depot, which rolled out its own program to 300 stores last spring; and Lowe's and Sears in the already competitive appliance category. At the same time, the retailer's Sam's Club division reached an agreement with Maytag to expand the 463-unit membership club's appliance inventory.

Perhaps Wal-Mart's most interesting move on home improvement came online, not in its stores. In the fall, the retailer snatched up financially challenged e-tailer HomeWarehouse.com and folded it into its own stand-alone online component, Wal-Mart.com. HomeWarehouse, which was in business for one year, offered a core assortment of hardlines in addition to how-to information and project advice.

Kmart, meanwhile, exacted a more measured approach toward selling home improvement products. In targeting its core customers -- time-pressed mothers -- the retailer expanded its proprietary relationship with Martha Stewart's line of Everyday products while cutting back on peripheral departments, such as hardware and tools. Among the expanded offerings were 650 Everyday Kitchen Collection products and Stewart's Everyday Garden product line, which includes outdoor decor items, seeds, plants, tools and patio furniture. Included among the various new items offered are premium roses, trellises, shepherd's hooks, steppingstones, wind chimes as well as yard ornaments.

New York Health Care, Inc. (OTC Pink Sheets: BBAL) announced today that it has entered into an agreement with an investment banking firm to act as exclusive placement agent with respect to a private offering of its common stock and warrants to accredited investors. Under the terms of the proposed offering, the Company will seek to raise up to $6 million through an offering of common stock and warrants at a minimum per unit price of $1.00. The net proceeds of the offering would be used to fund the capital requirements of The BioBalance Corporation, a wholly-owned subsidiary of the Company. The proposed offering is subject to the satisfaction of a number of conditions, including the execution by the Company a definitive agreement for the divestiture of its home healthcare business.

The Company also announced that it has executed a letter of intent with executive officers of New York Health Care for the acquisition of its home healthcare business, subject to corporate and regulatory approval, including stockholder approval, obtaining an acceptable fairness opinion and receipt by the Company of at least $4 million to finance its remaining operations.

In discussions with various funding sources, the Company determined that it needed to move forward as an independent entity and a pure play in the pharmaceutical space. Since the January 2003 merger, the Company's BioBalance subsidiary continues to make progress in the regulatory and clinical areas.

BioBalance's President, Mr. Dennis O'Donnell stated, "Since the Company's future is based on developing the patented technologies owned by BioBalance, we are making these changes to better focus on the potential of PROBACTRIX(TM) and other products in our pipeline." He added, "We are obviously pleased with this proposed financing which would allow us to move forward on achieving the key milestones that we previously announced."

The engagement agreement is subject to the satisfactory completion of a due diligence review by the placement agent and is terminable by either party on 30 days notice. There can be no assurance that the engagement letter will not be terminated by the placement agent, or that the Company will make the proposed private offering, or that if the offering is made the Company will be able raise sufficient funds to finance its ongoing operations. There can be no assurance that a definitive agreement to divest the home healthcare business will be entered into or that any such transaction will be consummated.

Axis Communications, the market leader in network video and print servers, today announced the AXIS OfficeBasic USB Wireless print server. With the introduction of the new print server, Axis is fulfilling demand within the small office/home office (SOHO) market for an easy-to-use, cost-effective solution for sharing printers across a Wireless Local Area Network (WLAN).

"As increasing numbers of small business and home office users look to wireless technology for enhanced connectivity and convenience, Axis continues to lead the market by adding wireless functionality to its line of print servers," said Fredrik Nilsson, general manager of Axis Communications. "As a principal global supplier of network print servers, Axis is proud to maintain an edge in the industry and offer the benefit of user-friendly, cost effective wireless print servers."

Excluding host-based printers, the AXIS OfficeBasic USB Wireless print server connects to any printer that has a USB port, enabling the printer to be easily shared among computer users. The print server's wireless capability allows for flexible placement of printers in a small office or home network and easy printing from any computer within the network.

Combining easy installation, a small form factor and multilingual support, the AXIS OfficeBasic USB Wireless print server is one of the most user-friendly solutions available on the market today. It allows first time users to install and operate the system with no assistance.

YourPay today announces an in-depth product offering of a guide to making a profit in the adult internet industry.

According to Jay Vine, president of YourPaySite.com, "More and more people these days are looking to self-employment and entrepreneurship due to unpredictable business cycles, changing markets, and downsizing of companies." But the question is: how do you get started and sustain a profitable business?

There is one industry that has proven to be recession proof and is booming no matter what is going on with the economy -- the online adult entertainment industry.

In an article released in December 2003 in CNN.com titled "Sex sells, especially to Web surfers," Sean Kaldor, an analyst with Nielsen/NetRatings, comments on the growth of the adult industry. According to Kaldor, "It's an enormous business ... There's a lot of money to be made." He estimates that 34 million visited adult sites in August -- about one in four Internet users in the United States.

With so much money-making potential in the adult internet market, how can the average Joe get started when they don't know anything about this industry?

YourPaySite.com offers tools and knowledge on how to get started and make profits in the adult internet industry. With years of experience running adult-oriented companies such as , YourPaySite.com have created an affordable turnkey service that makes it easy to earn cash in the deeply mystified adult industry. Their goal is to guide users to the fast-track through all the potential money pits associated with teaching yourself how to earn cash.

YourPaySite.com provides customers with an adult website design, a unique domain name, all credit card billing needs, marketing information and full customer support. The adult website taps into an enormous library of XXX content, a $250,000 commodity: offering users of the site access to a combined library of over 100,000 pictures, 5,000 movies, webcams, erotic stories and more. YourPaySite.com customers are paid every two weeks by check, and the entire business is discreet for customer privacy.

Here are a few tools YourPaySite.com offers:

--100's of XXX domain names to choose

--up to 5 FREE email accounts (matching your domain name)

--$250,000 worth of X-rated web content (updated daily)

--full support (email & toll free#) for you & your customers

--marketing information/tools

--access to accounting and sales statistics in real time

Jay Vine, president of YourPaySite.com, started out as an adult webmaster looking to make some extra money. He has worked in the adult industry for over eight years now, six of those years spent developing YourPaysite.com to be an affordable home-business opportunity.

Vine stated: "I quickly realized just how many people are out there looking for adult entertainment EVERY NIGHT! After recognizing the profits that can be generated from the adult industry, I decided to create an opportunity to build an even larger business that provides others like me the chance to profit from this extremely lucrative industry. Combining my empire of resources and years of experience, the YPS program is the only opportunity that shows you how to realistically earn $6,000/month from adult websites."

Tweeter Home Entertainment Group, Inc. (Nasdaq: TWTR) today announced its plan to discontinue operations at six Bang & Olufsen locations.

On Friday, September 24, 2004, Tweeter Home Entertainment Group, Inc.'s Board of Directors voted unanimously to discontinue the operations of six of its "Bang & Olufsen" branded retail stores. The stores were acquired as part of the acquisition of Sound Advice Inc. in August 2001 and operate under a franchisee agreement.

The Company has transferred inventory and its rights with respect to two locations on September 28, 2004, and expects to transfer inventory and its rights with respect to two other locations in October 2004. In addition, the Company's leases at two locations have been terminated. The landlords at these locations have received financial consideration in exchange for their agreement to terminate the leases. One of these locations was closed on September 26, 2004 and the other location will be closed on December 31, 2004.

Joe McGuire, Senior Vice-President and Chief Financial Officer, said, "We estimate that the major exit costs and impairment charges related to the discontinued operations will be the write off of the remaining net book value of tangible assets, the impairment of open box/demo inventory and lease termination fees. The Company anticipates the total exit costs and impairment charges related to the discontinued operations to be approximately $2,400,000 to $2,600,000."

Jeffrey Stone, President and CEO, said, "As Tweeter worked through its turnaround strategy the last twenty-four months, it became apparent that having six uniquely different stores in our fleet just didn't make sense for us. Since we could not focus on them, they were a financial drain on the company. We have worked in partnership with our friends at Bang & Olufsen to transfer the majority of the leases to new entities who will have a greater ability than we did to drive this business."

Stone concluded, "We estimate that exiting this business will add $500,000 - $1,000,000 in operating profit to our income statement in FY05."

Bang & Olufsen America, Inc., a fully owned subsidiary of Bang & Olufsen A/S of Struer Denmark, currently operates 58 individual store locations (both corporately and independently owned) throughout North America and posted a 15% gain in retail sales for the fiscal year ended in May 2004. "In this niche, high-end market, we have learned we are more successful focusing on our core business and brand. We are now implementing a shift in our retail distribution strategy with the addition and transition to independently owned B&O branded stores," states Michael Aagaard Andersen, President of Bang & Olufsen America Inc. "We have enjoyed working with Tweeter over the past years and are proud to have done business with such a well respected business partner."

Tweeter Home Entertainment Group, Inc. (Nasdaq: TWTR) was founded in 1972 by current Chairman Sandy Bloomberg. Based in Canton, Massachusetts, the company is a national specialty consumer electronics retailer providing audio and video solutions for the home and car.

The company's fiscal 2003 revenues were $787 million. Tweeter has been named a "Consumer Electronics Retailer of the Year" by Audio-Video International every year since 1979 and was named one of the "100 Fastest Growing Companies" by Fortune in 2002. Tweeter Home Entertainment Group, Inc. now operates 177 stores under the Tweeter, HiFi Buys, Sound Advice, Bang & Olufsen, Electronic Interiors, Showcase Home Entertainment, Hillcrest High Fidelity and NOW! AudioVideo names in the New England, Texas, Southern California, Mid-Atlantic, Chicago, Southeast, Florida and Phoenix markets. The company employs more than 3,700 associates.

Catching up on news that affects homebased business owners

If you run a busy home-based business, it's not easy to keep up with what's going on in your community - let alone what other homebased entrepreneurs are doing across the country. To keep you up to date, we've assembled a collection of notable home-based business happenings.

* THE WINNERS IS . . .

Midwest MicroSystems, a homebased software development firm in Ainsworth, Nebraska, recently became the eighth Cornhusker-state small business ever to win a Small Business Innovation Research (SBIR) grant from the U.S. Department of Agriculture. The $55,000 SBIR grant will be used to explore the feasibility of creating a telework model in rural communities.

"People in the city can usually find a job, particularly in Nebraska, because unemployment is so low, but if you're living 30 to 40 miles from a town with a population of 2,000, you don't have that opportunity," says Jim Lowe, founder of Midwest MicroSystems, which began in 1993 with a ranch management software program. Lowe plans to create a database of rural people interested in telework and companies that may have jobs for them.

* IN THE ZONE

The cities of Minneapolis and Austin, Texas, recently revised their home business zoning codes. The nine-month review of codes in Austin started as a move to overhaul the entire zoning system, but as various factions got involved, it was decided to simply amend the definition of a home business and add a list of prohibited businesses. Minneapolis amended and expanded its zoning code to clarify the definition of a home business and set standards on how a homebased business should operate. In both cities, officials took action in response to what they saw as the changing nature of the American workplace, as well as to find ways to resolve complaints. For more information on either code change, call the city's zoning commission.

* LEARNING CURVE

The National Home-Based Virtual Center will offer its first Internet workshop this month. Offered by the Home-Based Business Project at the University of Wisconsin, Whitewater, in conjunction with Wisconsin Small Business Development Centers, this experimental course is targeted at people considering opening a day-care business and offers a five-part program to anyone who can access the Internet.

The workshop consists of offline workbook exercises and live online discussions. Participants develop a feasibility plan, evaluate their business suitability and determine whether there is a market for the service. For more information, call (608) 263-7794.

* ON THE BOOKS

National: Congressman Bob Weygand (D-RI) recently introduced legislation in the House of Representatives to modernize the home office tax deduction. Called the Home Office Equality Act of 1997, the proposed bill would allow administrative, operational or managerial tasks to qualify a home office as the principal place of business and would not require homebased business owners to meet with clients in their homes.

Weygand purposely introduced legislation that deals only with the deduction, unlike proposals introduced by Rep. James Talent (R-MO) and Sen. Christopher Bond (R-MO). Weygand believes introducing the single-subject bill will strengthen its chance for passage. He estimates his bill trims $1.1 billion from federal tax coffers across five years, while the Bond and Talent proposals are projected to slice away $8.3 billion over five years.

Arizona: Governor Fife Symington has signed legislation regarding the status of independent contractors. The Employment Security: Independent Contractors law says that if the IRS determines an individual is not an employee (and not entitled to unemployment benefits), the state's Department of Employment Security (DES) can't retroactively say the opposite, particularly if DES officials have inspected wage records and did not require a designation change.

BeInSync Survey Finds Employees Are Often Stranded Without Important Files And Use Inadequate Workarounds, Such as Emailing Documents to Themselves, To Gain Access To Files

More than 50 percent of small business employees have been stranded without access to an important file or document and more than 50 percent have used inadequate workarounds, such as email, to access critical data while at home or on the go. These findings are among the results of a new survey conducted for BeInSync by online market research firm InsightExpress. The survey, which sought to explore the effects of the increased mobility of small business employees, reveals data access is a significant pain point for small business employees.

Key findings of the BeInSync survey included:

--The majority of small business employees polled have been stranded without an important file or email at one time or another.

--Approximately 50 percent of respondents indicated that being able to work from home or from the road is important to them.

--Approximately 50 percent of respondents with PCs at home and at the office have sent themselves an email as a workaround to the data access problem.

--The most used workarounds to the data access problem include: USB drives (24%); Online storage (11%); Online backup (11%); Desktop Streaming Applications (8%); and VPNs (5%).

--A third of the respondents indicated it is important for them to be able to share files with others in their line of work.

"Even in 21st the century, we still find people attempting to send themselves documents via email in order to overcome the problem of working from multiple PCs or from multiple locations," said Tal Barnoach, CEO of BeInSync. "The good news is that this problem is easily avoidable with new technologies that facilitate ubiquitous data access for small business employees at minimal cost and with no threat to security."

BeInSync recently introduced a new solution to the data access problem that enables individuals, time-strapped mobile professionals and cost-conscious small businesses to work from multiple computers in multiple locations more efficiently. Recently winning high praise from publications, such as the Financial Times, Small Business Computing and PC Magazine, BeInSync 1.0 leverages peer-to-peer technology to seamlessly synchronize files and emails among multiple computers to ensure a user's data is always in sync, accessible and easily shared. BeInSync reports thousands of downloads of the software since its launch in mid-August. The software is immediately available for free download.

HP (NYSE:HPQ) (Nasdaq:HPQ) today announced an extended lineup of products and services designed to help the full range of its customers address their unique technology security threats.

By building security into its broad portfolio of products, HP is proactively assisting in the defense against the increasing rise in technology-based attacks on consumers, small and mid-size businesses (SMBs), enterprises and public sector customers.

In recognition of International Computer Security Day, HP has joined with industry leaders and channel partners to deliver a host of new security solutions, including:

--an expanded PC Security initiative to raise consumer awareness of security issues and help them protect and clean their systems;

--a range of products and online tools with built-in security features to help shield small and mid-size businesses; and

--new services to help enterprises and public sector customers proactively mitigate security risks.

"While anyone who connects to the Internet shares some common threats from worms and viruses, as technology becomes more complex and widespread, we have seen a rapid increase in threat velocity, meaning that it's more difficult for consumers and administrators to protect their systems," said Tony Redmond, vice president and chief technology officer, HP Services. "With our focused investment in security technology backed up with terrific partnerships, HP is in the unique position of being able to innovate for all of our customer bases. We want security features to be built in - not bolted on - to proactively help defend all types of technology environments, from a home PC to a data center."

The National Cyber Security Alliance, the Department of Homeland Security's designated resource for computer safety information, has found that consumers are largely unaware of the rising security threats they face. And, according to a recent IDC report, the dynamics of security threats and protection strategy vary widely among companies of different sizes.

"Home computer users, small businesses and large enterprises share similar risks when using the Internet," said Matthew Moynahan, vice president, consumer products and solutions, Symantec. "A combination of education on best computing practices that can thwart phishing, fraud and identity theft schemes and integrated security applications that are constantly updated will provide the multi-layer protection to enable all users to take advantage of the power and benefits of the Internet."

(Detailed information about the HP security solutions described below for each customer segment is available in an online press kit at www.hp.com/go/securitynews.)

Safeguarding home PCs

To help consumers defend their PCs, protect their privacy and keep their systems running smoothly, HP is launching its PC Security initiative.

Key elements of the initiative include:

--Dedicated, online security support with one-hour e-mail response time and real-time chat available for no additional charge;

--Virus alert classes held via phone during virus outbreaks for no additional charge; and

--An HP Help and Support Center with performance and security diagnostic software installed on notebooks.

Additional components of the PC Security initiative include awareness and education campaigns, a new PC security website with access to security tools, support and information, and special sales promotions for anti-virus and spyware protection software.

HP has conducted proactive outreach to more than 9 million customers and included a security brochure in the box of every notebook it sells in the United States. HP also provides service alerts to notify consumers of critical security information. The combination of the awareness campaign with the release of Microsoft Windows(R) Service Pack 2 has helped reduce security-related calls to HP's technical support agents by 20 percent from July to October.

Simple security blueprint and new solutions help protect SMB customers HP also unveiled its "layers of security" blueprint, a simple approach to help channel partners and customers easily understand the many levels of protection needed to better protect their small and mid-size businesses before security breaches occur, from threats such as viruses and spyware, spam, intrusion and outdated security.

The blueprint is the realization of one of the primary elements of HP's Smart Office initiative to provide SMB customers with simple, more reliable technology that enhances security. HP and its channel partners are helping SMB customers secure their technology, so they can stay focused on their business.

HP has identified six essential layers of security that help SMBs at every level of exposure, from the server to the PC. Along with its security industry partners, HP is adding new solutions to the existing SMB security portfolio at each layer:

--At the most basic two layers -- physical and data security -- HP is helping customers prevent unauthorized access to and corruption of their data with the expansion of the HP ProtectTools embedded hardware and software portfolio. HP ProtectTools security features help provide protection against unauthorized access to desktops, notebooks, workstations and thin clients, as well as the new HP iPAQ Pocket PC hx2000 series.

DURING the past month, my staff has been working with a small design company based in New York. Last week we were surprised to find out that each member of the company's team is located in a different state. Up until this point, the employees gave us the impression that they were all working in the same office space.

The design firm has set up a seamless process for virtual work by following the golden rule for work at a distance: Make it as easy as possible for the people who do business with you.

What this really means is that your business partners shouldn't have to work any harder to get things done just because your team isn't located in one place. Clients or collaborators should need to track only one phone number and e-mail address for the people they need to reach and should be able to get quick responses to questions.

Because the best jobs and talent aren't always right around the corner, home-based businesses often have to be flexible enough to work virtually. If you're in this position, it pays to set up processes to help remote work go as smoothly as possible.

Here are some steps you can take to maintain professionalism while working with clients or collaborators in separate offices or across the globe.

* Be ready to teleconference. Successful virtual work requires that you create the illusion of unity. This can be hard to do unless your team can be brought together easily via phone. If your phone system does not allow for multiparty conferencing, use dial-in conference centers to hold meetings.

* Share an e-mail domain. One tactic the design company used was to set up e-mail aliases using its business domain name for each remote team member. This meant that all the e-mail communications we received appeared as though they originated at the company's headquarters. To set up aliases for remote workers, talk to your Web host.

* Use a flexible faxing solution. New Web-based communication services make it easy to fax to and from an e-mail box. This removes the need for you to 'refax' incoming documents to the right virtual worker and ensures that remote team members receive information in a timely manner.

* Talk in terms of "we." The language used during phone calls and in written correspondence can subtlety reinforce the unity of a work group. When you need to give a client confidence in a sprawling team, underscore how well you work together with phrases such as "we look forward to reviewing the documents with you" and "the team enjoyed working on this project." Needless to say, these statements should not be used to deceive anyone about how your team operates, as it's important to be honest about your virtual setup when it comes up.

* Get to know your team members. Nothing illuminates a scattered and inefficient team more than a lack of personal rapport. Find out about major events that are happening in the lives of the people you work with, and keep track of important details like the names of their family members. Knowing these personal tidbits will underscore the cohesiveness of your work group to outsiders who take part in your conversations.

* Find face time. Even if you work in different locations, it's important to meet periodically with remote customers and workers face to-face. Use this time to discuss new work, to brainstorm new approaches to projects, and to reconnect personally.

Alice Bredin is author of the "Virtual Office Survival Handbook" (John Wiley & Sons) and a nationally syndicated columnist.

Working Effectively While Keeping Relaxed Summer Hours

A few weeks ago I decided to close our offices on Fridays during the summer as a way to thank my employees for their hard work over the past year. A few staff members were skeptical that we'd be able to run the business as effectively with the reduced schedule, but my instincts told me we could.

As I expected, we're handling close to the same volume of work in for days as we did in five. How? The enticement of an extra day off each week encouraged us to adjust our work habits so they're as efficient as possible. Remember the last time you went away for a vacation? Somehow, you managed to handle all your work priorities b fore you left. My team has taken the same approach to cutting the workweek by a day.

Here are some ideas for how to take advantage of the potential scheduling flexibility that home-based work affords.

* Take a day off. If you run a home-based business, moving to a four-day workweek may be a matter of managing time more efficiently. If your schedule is truly booked, consider working longer days during the rest of the week to account for the day you'll be gone. If you telecommute, you may need to discuss logistics with your manager to make sure that working four long days instead of five traditional ones won't make anyone else's job more difficult.

* Work a half-day. If taking a full day away is impossible, working one or two half days each week may be appealing. To figure out the best way to juggle this change, identify the hours that you receive the most contact from vendors, clients or co-workers, and make yourself available during this period. This may mean starting your day around 10:30 a.m. and ending it at 4 p.m.

Prosidio(TM) introduced today, at the International Consumer Electronics Show in Las Vegas, MyPhoto(TM) 3, the world's first PC application to publish Phlog(TM) albums -- online photo blogs of digital photos. Prosidio's unique technology makes it easy to publish entire photo web sites with dozens of pictures in a matter of minutes -- to the most popular web servers. Now, for the first time, photos and all of the descriptive content in an album can be downloaded with a simple click on the Phlogo(TM) that appears on each page. MyPhoto is available immediately for $49.95 U.S. through Prosidio's online store (http://www.prosidio.com/).

"MyPhoto brings unprecedented freedom to everyone who owns a digital camera," said Douglas Kryzan, co-founder of Prosidio, Inc. "Almost anyone taking digital photographs will tell you that they feel that their photos are trapped -- inside the camera or on their desktop computer. Today, MyPhoto changes all that, making it easy to publish and share the high-resolution photos you just uploaded from a camera with your friends and family thousands of miles away, just minutes later. And they can then print those same, high-resolution photos on their home printer."

MyPhoto is the first product to make use of new Phlog publishing technology which enables photo albums to be published to the web and their contents immediately downloaded -- including full-resolution, original images suitable for printing. Key features include:

--Entire photo albums can be published to the web in as few as three clicks, no web authoring required

--High-resolution Phlog albums can be instantly imported from the web to personal photo libraries

--Automatic announcement of new albums using an integrated email engine

--Built-in networking technology eliminates the need for costly and complicated file transfer applications

--Customized layouts ranging from contemporary to professional make it easy to personalize Phlog albums

--Compatible with the widest range of FTP and web hosting sites, no special servers or tools required

"Our user's enthusiasm for the power that MyPhoto brings has us tremendously excited," said Christopher Kryzan, co-founder of Prosidio. "We are finding that Phlog technology is essential wherever digital photos are taken. MyPhoto will be used not only in the home, but also by small businesses, clubs and teams, event organizers and participants."

Free LucidLink Wireless Client software now available from Interlink Networks simplifies wireless connectivity for home office and small business users. The software makes it easier to work wirelessly by eliminating technical terminology, intelligently detecting setup problems, and allowing the same client to be used on office networks and public hotspots as well as any business network utilizing the LucidLink Wireless Security program. The new LucidLink Wi-Fi client can be downloaded to any Windows XP or Windows 2000 PC from www.LucidLink.com.

Designed from the ground up for small business environments, the LucidLink client solves an array of problems that have faced wireless users in the setup process and in connecting to different wireless networks. Benefits include:

--Intelligent detection of security settings, eliminating the need for users to make technical decisions during the connection process. The software also alerts users to incompatible settings or network problems and provides instructions for resolving them, ensuring that users can establish connectivity rather than being left to wonder what is wrong.

--Protection against Evil Twin attacks by hackers who use rogue access points to lure unsuspecting users into connectivity and thereby compromise network security. The LucidLink client blocks these attacks by detecting changes in security settings and alerting users before the connection process begins.

--No switching of clients for different networks, eliminating extra steps and time required to find and configure the appropriate client on one's PC. The LucidLink client can connect to an office network, a public hotspot, or a business network running LucidLink Wireless Security.

In addition to being offered as a free stand-alone utility, the LucidLink Wireless Client is available as part of the new version 2.2 of LucidLink Wireless Security, a plug-and-play wireless security solution that enables businesses with up to 250 wireless users to protect themselves against hackers simply and affordably without the need for technical expertise.

LucidLink Wireless Security delivers the same 802.1X, WPA-enterprise, and 802.11i standards-based security used by Fortune 2000 companies, yet all operations require only one or two clicks. The application intelligently configures the correct setup options for the leading 802.1X-compatible access points and wireless cards without the need for manual intervention; enrolls both permanent and guest users with two clicks; and automatically recognizes, connects and secures authorized users every time they boot up their PCs without extra steps like password entry.

It is priced at $449 for a 10-user license, with volume pricing for 25, 50, 100 and 250 users.

"Wireless computing continues to be a challenge to consumers, despite the convenience of being able to get online anywhere without having to plug in," said Mike Klein, CEO of Interlink Networks. "Our LucidLink Wireless Client is specifically designed to simplify the process of signing on, moving from your home network to your local coffee shop or your office, and troubleshooting when you can't get a connection. We are providing the software free of charge to demonstrate how easy wireless connectivity should be."

New York Health Care, Inc. (the "Company") (OTC: BBAL) announced today the closing of the asset sale for the Company's New Jersey home healthcare business to Accredited Health Services, Inc. ("Accredited"), a wholly owned subsidiary of National Home Health Care Corp., for $3 million. Revenues for the New Jersey business were approximately $6.7 million in 2004.

Dennis O'Donnell, CEO of the Company and its BioBalance Corporation subsidiary, said, "We are pleased to have closed this transaction with Accredited so quickly, and can now turn our efforts to sell the remaining portion of our home healthcare business."

About New York Health Care and The BioBalance Corporation

Acquired by New York Health Care in January 2003, The BioBalance Corporation operates as a wholly owned subsidiary. The Company's common stock trades under the symbol BBAL.PK. BioBalance is a specialty pharmaceutical company focused on the development of novel treatments for various gastrointestinal (GI) disorders that are poorly addressed by current therapies via accelerated regulatory pathways. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), inflammatory bowel disease and diarrhea caused by antibiotics, chemotherapy or AIDS. Additional information regarding BioBalance is available on the BioBalance website at www.biobalancecorp.com.

SAFE HARBOR STATEMENT In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future events, financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, satisfaction of regulatory and other approvals and conditions necessary to market PROBACTRIX®, the Company's ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by the Company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, the risk factors set forth and cautionary statements made in the Company's 2004 Annual Report on Form 10-K, its latest quarterly report on Form 10-Q and current reports on Form 8-K.

Consulting For Strategic Growth I, Ltd. ("CFSG") provides The BioBalance Corporation with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG's receipt of cash compensation from BioBalance, CFSG may choose to purchase the common stock of New York Health Care, Inc. and thereafter sell those shares at any time it deems appropriate to do so.