Exhibit 99.1 PHC, INC. REVISED FINANCIAL INFORMATION FISCAL YEAR 2006 AND FOURTH QUARTER FOR IMMEDIATE RELEASE Company Contact: Investor Relations Contact: __________________ ____________________________ PHC, Inc. Hayden Communications, Inc. Bruce A. Shear Matt Hayden or Brett Maas 978-536-2777 843-272-4653 In preparation of the Company's annual report on 10-K the Company found a miscalculation in the deferred tax asset which resulted in an increase in deferred tax benefit and related increases in total assets, stockholders equity and net income of $213,447 resulting in increased earnings per share of $.01. Key Financial Indicators (all numbers in thousands, except per-share amounts) Increase Q4 2006 Q4 2005 (decrease) % Change _______ _______ __________ _________ Consolidated revenues $10,412 $9,273 $1,139 12.3% Patient care revenues $ 7,391 $7,191 $ 200 2.8% Pharmaceutical study revenues $ 1,886 $1,125 $ 761 67.6% Contract support service revenues $ 1,135 $ 957 $ 178 18.6% Income from operations $ 921 $1,040 $ (119) (11.4%) Net Income $ 2,364 $1,091 $1,273 116.7% Earnings per share - Basic $ 0.13 $ 0.06 $ 0.07 116.7% Earnings per share - Diluted $ 0.12 $ 0.06 $ 0.06 100.0% (all numbers in thousands, except per-share amounts) Increase FY 2006 FY 2005 (decrease) % Change _______ _______ __________ _________ Consolidated revenues $38,013 $34,063 $3,950 11.6% Patient care revenues $27,862 $26,087 $1,775 6.8% Pharmaceutical study revenues $ 5,799 $ 4,509 $1,290 28.6% Contract support service revenues $ 4,352 $ 3,467 $ 885 25.5% Income from operations $ 3,184 $ 3,587 $( 403) (11.2%) Net Income $ 4,045 $ 3,156 $ 889 28.2% Earnings per share - Basic $ 0.22 $ 0.18 $ 0.04 22.2% Earnings per share - Diluted $ 0.21 $ 0.17 $ 0.04 23.5% Net income for the three months was $2.4 million, or $0.12 per fully diluted share (based on 19.2 million fully diluted shares) compared to net income of $1.0 million, or $0.06 per fully diluted share (based on 18.3 million shares) for the fourth quarter last year. The Company's income tax benefit was $1.5 million, or $.08 per share, for the quarter, versus $171,892 in the fourth quarter last year due to the recognition of the Company's net operating loss carry-forward at June 30, 2006. The Company's balance sheet reported a current ratio of 2.1:1 on June 30, 2006. Stockholders' equity increased 47.8 percent to $135 million on June 30, 2006 from $9.1 million on June 30, 2005. -- 4 -- About Pioneer Behavioral Health Pioneer Behavioral Health operates companies that provide inpatient and outpatient behavioral health care services, clinical research, and Internet-and telephonic-based referral services. The Companies contract with national insurance companies, government payors, and major transportation and gaming companies, among others, to provide such services. For more information, please visit www.phc-inc.com or www.haydenir.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. -- 5 --