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Exhibit 99.1
 For Immediate Release: Arcadia Resources Announces Record Revenues for the First Quarter of Fiscal 2007
and Filing of Form 10-Q
 SOUTHFIELD, MI: August 7, 2006 Arcadia Resources, Inc. (AMEX: KAD), announced today its
financial results for its first fiscal quarter ended June 30, 2006 with record revenues of $37.6
million and a net loss of $158,000, compared to revenues of $30.7 million and a net loss of $1.25
million for the same period of the prior year. For the quarters ended June 30, 2006 and 2005, the
Company reported net losses per share of $0.00 and $0.02, respectively. John E. Elliott II,
Chairman and CEO of Arcadia Resources, Inc. said, We are pleased with our results for the quarter
and the strides we have made toward achieving profitability and further defining our business
offerings.Revenues for the quarter ended June 30, 2006 increased 22% to a record $37.6 million compared to
revenues of $30.7 million for the quarter ended June 30, 2005. Revenues for the quarter ended June
30, 2006 increased 10% compared to revenues of $34.2 million for the quarter ended March 31, 2006.
The increase in revenues from year to year was attributed primarily to internal growth of 9.3%
coupled with the assimilation and integration of acquisitions completed after March 31, 2005. The
Company completed an acquisition on June 30, 2006 and another on July 12, 2006 which represent
additional combined annual revenues of approximately $11 million.The Companys consolidated gross profit margin was 35.1% for the quarter ended June 30, 2006
compared to 32.2% for the quarter ended June 30, 2005. The Companys acquisitions and expansion
into pharmacy and durable medical equipment operations began in May 2004, the mail-order catalog
operation was added in May 2005 and the retail store concept was initiated in September 2005.
These changes have and are expected to continue to drive changes to the consolidated gross profit
margin of the Company.The Company is organized into three separate divisions: Services, which represents home health care
and staffing related services; Products, which includes home respiratory care and durable medical
equipment and related services; and Retail, which consists of retail sites within six Sears stores
and a home health care-oriented mail-order catalog. The Services Division revenues for the
quarter ended June 30, 2006 were $29.9 million and yielded a gross margin of 26.6% compared to
$26.8 million at a gross margin of 27.4% for the quarter ended June 30, 2005. The Products
Division revenues for the quarter ended June 30, 2006 were $6.7 million at a gross margin of 70%
compared to revenues for the quarter ended June 30, 2005 of $3.5 million at a gross margin of 69%.
Cost of sales for Services are primarily employee costs, while cost of sales for Products and
Retail represents the cost of products and medications sold to patients and supplies used in the
delivery of other rental products and services to patients, including the related depreciation of
the equipment rented to patients. The components of the Retail Division were acquired or opened
during the year ended March 31, 2006 and generated revenues of $1.0 million for the quarter ended
June 30, 2006 compared to $460,000 for the quarter ended June 30, 2005, at a 57% gross margin for
both periods.Earnings before interest, income taxes, depreciation and amortization (EBITDA) were $1.3 million
for the quarter ended June 30, 2006 compared to $242,000 for the quarter ended June 30, 2005. The
presentation below bridges from Net Loss to EBITDA and is presented as a supplemental performance
measure and is not intended as an alternative to net income or any other measure calculated in
accordance with generally accepted accounting principles. Further, EBITDA may not be comparable to
similarly titled measures used by other companies. Management has chosen to present the table
below to enable the reader to more readily understand the Companys EBITDA measurement due to the
requirement to classify the depreciation and amortization related to certain revenue-producing
fixed assets as a component of cost of
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      Reconciliation of EBITDA to Net Loss:
(in thousands)
 Quarter Ended
    
    
    Quarter EndedJune 30, 2006
    
    
    June 30, 2005Net Loss
    
    $
    (158
    )
    
    $
    (1,251
    )Add back: Income tax expense
    
    
    39
    
    
    
    60Add back: Debt Discount Amortization
    
    
    
    
    
    
    424Add back: Interest Expense
    
    
    405
    
    
    
    474Depreciation and Amortization
    
    
    1,022
    
    
    
    535EBITDA
    
    $
    1,308
    
    
    $
    242
   http://www.ArcadiaResourcesInc.com http://www.sec.gov
 About Arcadia Resources, Inc.
 www.arcadiahomehealth.com www.arcadiaresourcesinc.com
 Contact:
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      Any statements contained in this release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21A of the Securities Exchange Act of 1934, as amended, if applicable to the Company, and otherwise
within the meaning of court opinions construing such forward-looking statements. The Company claims
all safe harbor and other legal protections provided to it by law for all of its forward-looking
statements. Forward-looking statements involve known and unknown risks, estimates, uncertainties
and other factors, which could cause actual financial or operating results, performances or
achievements expressed or implied by such forward-looking statements not to occur or be realized,
including our estimates of consumer demand for retail store health clinic services, required
capital investment, build-out schedules, competition, and other factors. Actual results may differ
materially from those anticipated or implied in the forward-looking statements, which speak only as
of the date hereof. Additional information that could materially affect the Company may be found in
the Companys filings with the Securities and Exchange Commission. The Company disclaims any
obligation to update or alter its forward-looking statements, except as may be required by law.
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