Contact:
Wayne Schellhammer
Chairman & Chief Executive Officer
American CareSource Holdings, Inc.
Tel. 972-871-7912

American CareSource Holdings, Inc. Closes $7.3 Million in Private Placement

IRVING, TX--(BUSINESS WIRE)--February 17, 2006--American CareSource Holdings,
Inc. (OTCBB: ACSH.OB - News) a healthcare services company today announced that
it has raised $7.3 million in gross proceeds from the sale of common stock to
institutional and accredited investors.

The company sold approximately 1.46 million shares of common stock for $5.00 per
share in a private placement to institutional and other accredited investors for
which it paid commissions of $585,280 to a placement agent and issued a warrant
to purchase approximately 117,000 shares of common stock. The net proceeds from
the sale will be used for working capital and debt repayment.

The securities offered and sold in this private placement were sold in reliance
on an exemption from the registration requirements of the Securities Act of
1933, as amended (the "Securities Act"). The securities have not been registered
under the Securities Act or any state securities laws and the securities may not
be offered or sold absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable state securities
laws. In connection with the offering, American CareSource Holdings, Inc. has
agreed, subject to certain terms and conditions, to file a registration
statement under the Securities Act covering the resale of the shares purchased
and the shares issuable upon exercise of the warrant by the placement agent.

This press release does not and will not constitute an offer to sell or the
solicitation of an offer to buy shares or warrants

About American CareSource Holdings, Inc.:

American CareSource Holdings, Inc., the first national, publicly traded
ancillary care benefit management company, is a comprehensive ancillary care
service provider offering a national network of more than 20,000 ancillary
providers. American CareSource Holdings, Inc.'s ancillary network management
provides a complete outsourced solution for a wide variety of healthcare payors
and plan sponsors including self-insured employers, indemnity insurers, PPOs,
HMOs, third party administrators and both the Federal and local governments.
Through its product offerings, American CareSource Holdings, Inc. offers its
clients substantial discounts on services rendered through its network of
ancillary care providers in more than 30 service categories.



Any statements that are not historical facts contained in this release are
forward-looking statements. It is possible that the assumptions made by
management for purposes of such statements may not materialize. Actual results
may differ materially from those projected or implied in any forward-looking
statements. Such statements may involve risks and uncertainties, including but
not limited to those relating to product demand, pricing, market acceptance, the
effect of economic conditions, and intellectual property rights, and the outcome
of competitive products, risks in product development, the results of financing
effort, the ability to complete transactions, and other risks identified in this
release, and the Securities and Exchange Commission filings of American
CareSource Holdings, Inc.