Press Release

New Unit Expected to Generate $2 Million in Annual Revenue and Bring Hospital to ProfitabilityPEABODY, Mass., Mar 04, 2010 (BUSINESS WIRE) -- PHC, Inc., d/b/a Pioneer Behavioral Health (NYSE Amex: PHC), "Pioneer" or (the "Company"), a leading provider of inpatient and outpatient behavioral health services, announced today that it opened a ten-bed adolescent unit at its Seven Hills Behavioral Institute (SHBI) in Henderson, Nevada. The Hospital provides psychiatric, alcohol and drug addiction treatment for adolescents and adults. The new Unit is expected to generate $2 million in annual revenue and make SHBI profitable.

"We are excited to open this new unit at SHBI, as there is a significant need to provide treatment services to adolescents with alcohol and drug problems," said Bruce A. Shear, Pioneer's president and CEO. "We are already treating in excess of ten patients per day at other hospitals through our current contracts and will no longer need to buy as many beds from other providers. Most importantly, it will make SHBI profitable even before receiving CMS certification, and will allow us to continue to serve our customers in the manner they have come to expect."

About PHC d/b/a Pioneer Behavioral Health

PHC, Inc., d/b/a Pioneer Behavioral Health, is a national healthcare Company providing behavioral health services in five states, including substance abuse treatment facilities in Utah and Virginia, and inpatient and outpatient psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and telephonic-based referral services that includes employee assistance programs and critical incident services. Contracted services with government agencies, national insurance companies, and major transportation and gaming companies cover more than one million individuals. Pioneer helps people gain and maintain physical, spiritual and emotional health through delivering the highest quality, most culturally responsive and compassionate behavioral health care programs and services. For more information, visit www.phc-inc.com.

Statement under the Private Securities Litigation Reform Act of 1995

This press release may include "forward-looking statements" that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the Company's annual report on Form 10-K for the most recently ended fiscal year.

SOURCE: PHC, Inc.

PHC, Inc.
Bruce A. Shear, 978-536-2777
President & CEO
or
Investor Relations:
CEOcast, Inc.
Dan Schustack, 212-732-4300