PSAI Pediatric Services OF America (MM)

Pediatric Services of America, Inc., d/b/a PSA Healthcare (Nasdaq: PSAI) today announced that Robert P. Pinkas and Joel R. Kimbrough have been nominated to serve as Directors on PSA�s Board of Directors. The nominations of Mr. Pinkas, 53, and Mr. Kimbrough, 48, will be voted on at the Company�s annual meeting of stockholders, which will be held on February 6, 2007. If elected, Mr. Pinkas and Mr. Kimbrough�s terms would expire at the 2010 meeting. If Mr. Pinkas and Mr. Kimbrough�s nominations are voted in favor of by the shareholders, PSA�s Board of Directors would stand at seven members, six of whom would be independent. Following the Company�s annual meeting, Michael E. Axelrod will succeed Edward K. Wissing as Non-Executive Chairman. Mr. Wissing�s term will expire at the upcoming annual meeting of stockholders and he will not stand for re-election. Mr. Wissing had served as Non-Executive Chairman from December 2002 until August of 2004, at which time he assumed the position of interim President and CEO, and his independent status was lost for a three year period following his time as interim CEO. �I would like to extend my sincerest thanks to the shareholders of PSA for their support over the past 5 years,� said Mr. Wissing. �It has been a pleasure serving on your behalf and I am highly confident that the Company will be in very capable hands with Michael as Non-Executive Chairman. With Michael�s Board leadership and a highly-skilled senior management team in place, I believe PSA is well-positioned and poised for growth within its core competency of pediatric nursing.� �Ed has provided PSA with invaluable industry expertise over the years, and took on the challenging role of interim President and CEO at a point in the Company�s history where his leadership was greatly needed,� said Daniel J. Kohl, President and CEO of PSA. �On behalf of everyone at PSA, I would like to extend my sincerest thanks to Ed for his dedicated service to the Company.� Mr. Axelrod has served as a director since 2001 and currently functions as Chairman of PSA�s Nominating/Corporate Governance Committee and is also a member of the Company�s Audit Committee. He is currently Chief Operating Officer of Intelligent Medical Solutions, LLC, a developer and provider of web-based physician-patient communication software, and the President of The Axelrod Group, LLC, a business consulting firm. Previously, Mr. Axelrod practiced law with the firm of Cohen Pollock Merlin Axelrod & Small, P.C., from 1982 to 1994. His primary focus was on business law and transactions, with an emphasis on the healthcare industry. Mr. Pinkas has been a Director of the Company since 1989 and is currently the Chairman of the Compensation Committee and also sits on PSA�s Nominating/Corporate Governance Committee. If re-elected, he will retain these posts. Mr. Pinkas is the Managing General Partner of Brantley Partners, a private equity organization, of which he was the founding partner in 1987. Since the acquisition of Accredo Health, Inc. by Medco Health Solutions, Inc. (NYSE: MHS) in August, 2005, Mr. Kimbrough has served as the Senior Vice President for the Specialty Segment of Medco. He is responsible for all aspects of financial forecasting, budgeting and reporting, as well as, all of the managed care contracting and employer/payer sales and contracting interface. Previously, Mr. Kimbrough served as Senior Vice President and Chief Financial Officer and Treasurer of Accredo Health, Inc. from 1996 until Accredo was acquired by Medco. �I am excited over the possibility of Michael assuming an expanded role on PSA�s Board, the continuing contribution of Bob Pinkas and by the prospect of welcoming Joel,� said Mr. Kohl. �Michael�s experience within healthcare, and his strategic perspective have been valuable as we�ve sharpened our business focus. Bob Pinkas has a long history with the Company and his healthcare experience, especially as it relates to financial transactions, is certain to be critical in our efforts to grow our PDN and PPEC segments. Additionally, we would be fortunate to have the opportunity to leverage Joel�s experience as the CFO of a home care company that achieved significant growth, both organically and via acquisition, during his tenure.� PSAI provides comprehensive pediatric home health care services through a network of 54 branch offices in 18 states, including satellite offices and branch office start-ups. Through these offices PSAI provides a combination of services, including pediatric private duty nursing and pediatric day treatment centers (PPECs). Additional information on PSAI may be found on the Company's website at http://www.psahealthcare.com. NOTE: This press release contains certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to future financial performance of Pediatric Services of America, Inc. (the �Company�). When used in this press release, the words �may,� �targets,� �goal,� �could,� �should,� �would,� �believe,� �feel,� �expects,� �confident,� �anticipate,� �estimate,� �intend,� �plan,� �potential� and similar expressions may be indicative of forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company�s control. The Company cautions that various factors, including the factors described hereunder and those discussed in the Company�s other filings with the Securities and Exchange Commission, as well as general economic conditions, industry trends, the Company's anticipated uses of the proceeds from the sale of its Respiratory and Pharmacy Businesses, the Company's ability to assimilate and manage previously acquired field operations, collect accounts receivable, including receivables related to acquired businesses and receivables under appeal, hire and retain qualified personnel and comply with and respond to billing requirements issues, including those related to the Company�s billing and collection system, nurse shortages, competitive bidding, HIPAA regulations, adverse litigation, workers� compensation losses, availability and cost of medical malpractice insurance and any potential reduced state funding levels and nursing hours authorized by Medicaid program, , could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements of the Company made by or on behalf of the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all of such factors. Further, management cannot assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.