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- Union Dental Holdings, Inc. (OTCBB:UDHI) Dr. George Green, President and CEO, issued the following letter to shareholders. Dear Fellow Shareholders, During the latter part of 2005, we achieved several significant milestones as we accelerated our business plan. We successfully expanded our network of dentists, increased our revenues, heightened our media exposure, added to our technology offering, and strengthened our balance sheet. While we still have a great deal to accomplish in 2006, in my view, the Company is ideally positioned to achieve our aggressive goals and objectives. Network Expansion This year started with a very promising announcement as Union Dental reported that it doubled the network of dentists in two months. The Company bolstered its dental provider number from 450 dentists / specialists to over 1,100. Adding 68 new dental locations in California & Nevada was of great significance to Union Dental as the addition of these dental providers is another milestone in the Company's history. Third Quarter & Nine Months Ended September 30, 2005 For the three months ended September 30, 2005, Union Dental reported revenues of $499,035, which represented an increase of 23% over the same period last year. In addition, for the nine months ended September 30, 2005, the Company reported revenues of $1,623,596, which represented an increase of 48% over the same period last year. Media Exposure Union Dental was a feature story in the December 1st, 2005 issue of Managed Dental Care. Within the article, an excellent summary was provided of the Company's recent accomplishments including the pursuit of a national contract with the Communications Workers of America (CWA). The article also discussed our initiatives with union representatives in other industries as we pursue the expansion of the Company's dental networks. Technology On December 13, 2005, Union Dental was proud to announce the completion and implementation of the HIPPA (Portability and Accountability Act 1996) compliant Web Link Solutions. The Solution processes "on-line" and "real time" eligibility verification, claims submission and claims adjudication in a single pass environment. The proven solutions reduce medical, dental, operational and administrative costs for both payers and providers and are now HIPPA compliant. Financing Recently, we announced the completion of a $960,000 Senior Note with the Dutchess Private Equities. This financing was of crucial importance as it will provide the required funding to enable the Company to secure our primary objective, the national contract with the CWA. This financing was another milestone in our Company's history. We intend to build a national network of dentists to service this CWA contract. Our management team believes that the Company is truly dynamic in its market niche. During the past three months, we have been extremely productive as demonstrated by the issuance of numerous and significant press releases. In closing, I would like to thank you for your support of our Company and we will continue to strive to build shareholder value as we pursue our aggressive business plans. Dr. George Green President & CEO Union Dental Holdings, Inc. This press release is available on the company's official online Investor Relations HUB for all investor questions, answers and discussion within a monitored environment. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time. About Union Dental Holdings, Inc., Direct Dental Services, Inc. and Union Dental Corp. Direct Dental Services (DDS) and Union Dental Corp. (UDC) are wholly-owned subsidiaries and provide dentists with "areas of exclusivity" to participate with various unions including the Communications Workers of America ("CWA") and International Brotherhood of Electrical Workers (IBEW) Dental Networks. Union Dental Corp. receives annual management fees from the dentists in exchange for practicing in these "areas of exclusivity" where CWA and IBEW members use the dentists' services. DDS/UDC has contracts with CWA & IBEW Local Unions to provide a dental network utilizing the members existing insurance policy. The dentists in the Dental Network provide services in the areas for union members, as well as existing patients in exchange for an annual management fee. The network of dentists accepts payment from union insurance plans for services rendered as payment in full, with certain procedures requiring a small out-of-pocket co-payment from the union member patient. In addition, Union Dental Corp. acquired the assets of an existing dental practice (excluding the patient list) and successfully integrated those assets into its existing practice which has been servicing patients for 17 years in Coral Springs, Florida. UDC and DDS are wholly owned subsidiaries of Union Dental Holdings, Inc. Website - http://www.uniondental.com "Safe-Harbor" Statement Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.