INDIANAPOLIS, July 5 /PRNewswire-FirstCall/ -- Standard Management Corporation ("Standard Management" or the "Company") (OTC:SMANOTC:SMANP), an Indianapolis-based provider of pharmaceuticals to long-term care and infusion therapy patients, today announced that it had received tenders of 1,112,341 shares or 53.7% of its outstanding 10.25% Trust Preferred Securities issued by its subsidiary SMAN Capital Trust I, in exchange for 6 shares of its common stock for each trust security ($10 liquidation amount per trust security) or 6,674,046 shares of Standard Management common stock by the expiration date of June 30, 2006 for the Offer to Exchange. In total the Company increased equity by $11.1 million, while eliminating an equal amount of debt. (Logo: http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO ) Mr. Ronald D. Hunter, Chairman, President and Chief Executive Officer of Standard Management stated, "The positive response to this exchange offer was an important strategic part of our immediate and long-term capitalization plans. As a result of this transaction our capital base is strengthened due to the increase in equity and a significant reduction in our outstanding debt and its related interest obligations." Hunter continued, "The Company will now be positioned to attract additional capital in the debt and equity markets enhancing the completion of the Company's immediate acquisition plans." Standard Management, headquartered in Indianapolis, Indiana, is taking its vision for the future of healthcare nationally. Current regional pharmacies are located in Seattle, Washington; Nashville, Tennessee; New Castle, Indiana; and Indianapolis, Indiana. According to Mr. Hunter, "Our regional acquisition strategy is what distinguishes us in the marketplace. Our organizational development and expertise of our executive teams defines our unique position in the healthcare industry." This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933. The use of the words "believe," "expect," "anticipate," "intend," "may," "estimate," "could," "plans," and other similar expressions, or the negations thereof, generally identify forward-looking statements. Forward-looking statements in this press release include, without limitation, statements relating to the exchange offer. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which could cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include, but are not limited to, investor interest in receiving shares of our common stock in exchange for their trust securities, general market and economic conditions and other factors, including our operating performance and overall stock market performance. Additional risks are detailed in the Offer to Exchange under the heading "Risk Factors." We caution you that, while forward-looking statements reflect our good faith beliefs, these statements are not guarantees of future performance. In addition, we disclaim any obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future events or otherwise, except as required by law. Standard Management is a holding company headquartered in Indianapolis, Indiana. Information about the Company can be obtained by calling the Investor Relations Department at (317) 574-5221 or via the Internet at http://www.sman.com/ . http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO http://photoarchive.ap.org/ DATASOURCE: Standard Management Corporation CONTACT: Michael B. Berry, Investor Relations of Standard Management Corporation, +1-317-574-5221 Web site: http://www.sman.com/

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