COMPANY OVERVIEWCOMPANY OVERVIEW

Adult Day Care Health Services Registered brand of Care Brands

Systems, Inc., St. Louis, MO

Adult Day Care Health Services Registered brand of Care Brands

Systems, Inc., St. Louis, MO

COMPANY OVERVIEW, cont.COMPANY OVERVIEW, cont.

Local centers, national launch 2008 Licensing opportunities for local market Strong management team, relevant

experience . . . .

Local centers, national launch 2008 Licensing opportunities for local market Strong management team, relevant

experience . . . .

Mike Noto, PresidentMike Noto, President

30+ years management, sales and marketing

President, real estate investment firm

Founder/EVP Sales & Marketing, WAN Technologies – Inc. 500 #96 Fastest Growth

Branch/National Accounts Manager, MCI Telecommunications

30+ years management, sales and marketing

President, real estate investment firm

Founder/EVP Sales & Marketing, WAN Technologies – Inc. 500 #96 Fastest Growth

Branch/National Accounts Manager, MCI Telecommunications

Dan Ricci, Director Clinical ServicesDan Ricci, Director Clinical Services

20+ years experience health management

Masters, Clinical Social Work Masters, Divinity Fellow, Medical Social

Psychiatry Practical therapy experience Co-authored 2 books and

contributor to numerous publications

20+ years experience health management

Masters, Clinical Social Work Masters, Divinity Fellow, Medical Social

Psychiatry Practical therapy experience Co-authored 2 books and

contributor to numerous publications

Helen Ferreri, Director Medical ServicesHelen Ferreri, Director Medical Services

15 years practical experience in hospital, community & primary care management

RN & Holistic Nursing Associate

Director and management experience, Adult Day Care

Training and recruiting experience

15 years practical experience in hospital, community & primary care management

RN & Holistic Nursing Associate

Director and management experience, Adult Day Care

Training and recruiting experience

Rick Forrestal, VP MarketingRick Forrestal, VP Marketing

30+ years marketing, advertising, promotion, PR and media

President, 3 promotion and ad agencies

Extensive national client experience

Expertise in non-traditional media exposure

Strong creative skills

30+ years marketing, advertising, promotion, PR and media

President, 3 promotion and ad agencies

Extensive national client experience

Expertise in non-traditional media exposure

Strong creative skills

Chris MacLellanDirector of Operations

Chris MacLellanDirector of Operations

20+ years experience adult care/administrator

Director, Elder Care Ministry

Academic Dean Geriatric Social Worker Patient Care Manager Seniors Real Estate

Specialist (SRES) BA, Family Services MA, Theology

20+ years experience adult care/administrator

Director, Elder Care Ministry

Academic Dean Geriatric Social Worker Patient Care Manager Seniors Real Estate

Specialist (SRES) BA, Family Services MA, Theology

Care ClubSMCare ClubSM

Adult Day Health Care Centers Trained specialists providing day care Safe, supportive “family” environment Social, recreational, and health related

services

Adult Day Health Care Centers Trained specialists providing day care Safe, supportive “family” environment Social, recreational, and health related

services

Care ClubSMCare ClubSM

Planned program of activities Nutritious daytime meals and snacks Daily, Monday-Saturday, 7:00am-

6:00pm RN or CNA/CMT on staff Caring “point of difference”

Planned program of activities Nutritious daytime meals and snacks Daily, Monday-Saturday, 7:00am-

6:00pm RN or CNA/CMT on staff Caring “point of difference”

Mission StatementMission StatementTo provide quality, credentialed day care to our clients

in a responsible, caring and loving environment, and a respite to the family ‘caregiver’ so they feel comfortable that their loved one will receive personalized health services and social activities in a family environment on a daily basis.

To provide quality, credentialed day care to our clients in a responsible, caring and loving environment, and a respite to the family ‘caregiver’ so they feel comfortable that their loved one will receive personalized health services and social activities in a family environment on a daily basis.

Care ClubSM VisionCare ClubSM Vision Develop, implement & maintain

support processes for licensed operators assuring: Local, state, federal requirements are met Technical & operational support for site

implementation Experienced corporate administrators Community involvement, marketing support Safety, protection and care for the rights of

senior participants Profitable return on site operation

Develop, implement & maintain support processes for licensed operators assuring: Local, state, federal requirements are met Technical & operational support for site

implementation Experienced corporate administrators Community involvement, marketing support Safety, protection and care for the rights of

senior participants Profitable return on site operation

Consistent corporate branding Slogan defines our point-of-difference Quality media, collateral, e-marketing Differentiates us from our competition

Consistent corporate branding Slogan defines our point-of-difference Quality media, collateral, e-marketing Differentiates us from our competition

The NeedThe Need

America is aging! Population age 65 to

double by 2030 72 million seniors by

2030. Unmet need for senior

adult day care. 1 of 4 households cares

for aging adult. Life expectancy

increasing annually.

America is aging! Population age 65 to

double by 2030 72 million seniors by

2030. Unmet need for senior

adult day care. 1 of 4 households cares

for aging adult. Life expectancy

increasing annually.

Demand Is IncreasingDemand Is Increasing

By 2030 seniors will be 20% of U.S. population (70+ million)

Oldest “boomers” are now entering 60s Live-at-home seniors show a dramatic increase Caregiver children can’t afford to remain home

for elderly loved one care Businesses lose millions $ annually due to lost

worker timeSource: U.S. Census Bureau

By 2030 seniors will be 20% of U.S. population (70+ million)

Oldest “boomers” are now entering 60s Live-at-home seniors show a dramatic increase Caregiver children can’t afford to remain home

for elderly loved one care Businesses lose millions $ annually due to lost

worker timeSource: U.S. Census Bureau

Shortage of Adult Day Services in Most U.S. Counties

Shortage of Adult Day Services in Most U.S. Counties

Current # Adult Day Centers: 3,407 Estimated Centers Needed Nationwide: 8,520 60% of U.S. Counties Are Underserved

Source: National Program Partners In Caregiving, Grant Study

Current # Adult Day Centers: 3,407 Estimated Centers Needed Nationwide: 8,520 60% of U.S. Counties Are Underserved

Source: National Program Partners In Caregiving, Grant Study

Increased Awareness For Need Of Adult Day Care

Increased Awareness For Need Of Adult Day Care

55% of adult day care clients live with adult child or spouse

Need for expanded variety of services, including caregivers

Increased public awareness of need for adult day care services

Increased knowledge for new center investors regarding predictors of success

Source: Wake Forest University School of Medicine

55% of adult day care clients live with adult child or spouse

Need for expanded variety of services, including caregivers

Increased public awareness of need for adult day care services

Increased knowledge for new center investors regarding predictors of success

Source: Wake Forest University School of Medicine

Health Care Costs SkyrocketingHealth Care Costs Skyrocketing

Last 5 years costs have increased over 10% per year (3x the rate of inflation)

Consequence : 57 million can’t keep up with their medical bills and 43 million are insured!

Retirement assets are in jeopardy for many

Last 5 years costs have increased over 10% per year (3x the rate of inflation)

Consequence : 57 million can’t keep up with their medical bills and 43 million are insured!

Retirement assets are in jeopardy for many

Senior Care Costs Are OUT OF CONTROL

Senior Care Costs Are OUT OF CONTROL

Nursing Home Care : $82,000 per year Assisted Living Care : $37,000 per year

(not covered by Medicaid) Adult Day Care : $10,000 - $15,000 per

year (Medicaid pays)

Source: AARP

Nursing Home Care : $82,000 per year Assisted Living Care : $37,000 per year

(not covered by Medicaid) Adult Day Care : $10,000 - $15,000 per

year (Medicaid pays)

Source: AARP

Adult Day Care OptionAdult Day Care Option

Best alternative, cost effective solution Less guilt on caregiver More quality time with parent or spouse Flexible scheduling Postpones nursing home commitment Best alternative to nursing home care

before it’s needed

Best alternative, cost effective solution Less guilt on caregiver More quality time with parent or spouse Flexible scheduling Postpones nursing home commitment Best alternative to nursing home care

before it’s needed

Entrepreneur Magazine (6/2008)Entrepreneur Magazine (6/2008)

“Not enough elderly day care centers to accommodate the growing need”

“Adult day services are one of the Top 10 fastest growing businesses in the U.S.”

“The Adult Day Care industry is one of the best-kept secrets around.”

“Not enough elderly day care centers to accommodate the growing need”

“Adult day services are one of the Top 10 fastest growing businesses in the U.S.”

“The Adult Day Care industry is one of the best-kept secrets around.”

Turnkey ImplementationTurnkey Implementation

Upon application and approval, Care Club operator agreement authorizes 1 or more retail club location(s), including:

Care Club corporate management team Supervision, training, implementation Staffing, applications, quality assurance

Upon application and approval, Care Club operator agreement authorizes 1 or more retail club location(s), including:

Care Club corporate management team Supervision, training, implementation Staffing, applications, quality assurance

Care Club Services ProvidedCare Club Services Provided

Site selection, demographics Zoning, site leasing or purchase Licensing/application process Design, floor plan management Staffing and training support Complete policy, procedures, and operating

manual, including state regulations Accounting procedures & software

Site selection, demographics Zoning, site leasing or purchase Licensing/application process Design, floor plan management Staffing and training support Complete policy, procedures, and operating

manual, including state regulations Accounting procedures & software

Care Club Services (Cont’d)Care Club Services (Cont’d)

Budgeting and billing process Computer and software procedures Reporting requirements Marketing/Advertising/Publicity New business generation Community tie-ins, links with social

service providers, local PR, newsletters

Budgeting and billing process Computer and software procedures Reporting requirements Marketing/Advertising/Publicity New business generation Community tie-ins, links with social

service providers, local PR, newsletters

Care Club Services (Cont’d)Care Club Services (Cont’d)

Catering and meal service contracts Nursing, health & medical guidelines Medical services training Service partner contacts (transportation,

podiatrist, hair, massage, etc.) Quality assurance

Catering and meal service contracts Nursing, health & medical guidelines Medical services training Service partner contacts (transportation,

podiatrist, hair, massage, etc.) Quality assurance

Participant Pay OptionsParticipant Pay Options

Fees range from $50 to $70 a day Private health & LTC insurance pays %

for licensed, registered facilities Private pay if not eligible Medicaid and VA benefits apply A la carte pricing for additional services

Fees range from $50 to $70 a day Private health & LTC insurance pays %

for licensed, registered facilities Private pay if not eligible Medicaid and VA benefits apply A la carte pricing for additional services

Benefits/ValueBenefits/Value

CLUB OPERATOR – Turnkey implementation and support of

highest quality club operation, with total support and experienced professional management team.

Tremendous profit and growth opportunity.

CLUB OPERATOR – Turnkey implementation and support of

highest quality club operation, with total support and experienced professional management team.

Tremendous profit and growth opportunity.

Benefits/ValueBenefits/Value

CLUB MEMBER – Highest quality, well planned day care, in comfortable “family oriented” professionally staffed facility.

Most variety and diversity of services to keep member mentally, physically and socially involved.

CLUB MEMBER – Highest quality, well planned day care, in comfortable “family oriented” professionally staffed facility.

Most variety and diversity of services to keep member mentally, physically and socially involved.

Benefits/ValueBenefits/Value

MEMBER CAREGIVER - Peace of mind and respite of caring,

comprehensive support of club member.

Value added a la carte direct services available to make care giver’s life easier/fuller -- e.g. laundry, pet sitting, meal preparation, legal help, etc.

MEMBER CAREGIVER - Peace of mind and respite of caring,

comprehensive support of club member.

Value added a la carte direct services available to make care giver’s life easier/fuller -- e.g. laundry, pet sitting, meal preparation, legal help, etc.

Competitive AdvantageCompetitive Advantage

No other provider offers “caring, family environment” PLUS Caregiver support

Total services, second to none Great branding, quality positioning Most experienced management team and

training expertise Most complete marketing support Tailored to local operator/neighborhood

No other provider offers “caring, family environment” PLUS Caregiver support

Total services, second to none Great branding, quality positioning Most experienced management team and

training expertise Most complete marketing support Tailored to local operator/neighborhood

Advertising/MarketingAdvertising/Marketing

Local market PR and publicity, awareness Direct mail and handouts to local business Church tie-ins, social support groups VA contact and association Hospitals, health centers, pharmacies Specialized physician groups Select local print media Site Day Care newsletter bulletins

Local market PR and publicity, awareness Direct mail and handouts to local business Church tie-ins, social support groups VA contact and association Hospitals, health centers, pharmacies Specialized physician groups Select local print media Site Day Care newsletter bulletins