Southern Home Medical Inc (SHOM)

[Damnsammit]

11/15/2011 Shareholders Letter [Read!]

As we stated in our 3rd Quarter press release, management will do a monthly shareholder letters and post it on the Company website. Management will attempt to accommodate legitimate callers and emails of any questions that may come in, and as a result the Company would like to address the following topics of interest.

In the Company's press release dated October 13th, 2011, Southern Home Medical announced its decision to suspend the pending acquisition/merger. The decision was primarily made due to the D.C. group's pending litigation. Management continues to have the highest regard for the leadership of their company but have decided that it would be best to move forward until they have successfully completed their internal issues.

Regarding our audit, Scott & Company's total cost for the PCAOB audits being performed will be in the range of $85,000. They were not the most expensive quote that we received however, while comparing the quality of people and leadership as well as price, Scott & Company was the obvious choice. Scott & Company will be prepared to finish and release the audit once they have been paid in full. Currently the company has been paying them from its cash flow from operations.

There is a pending Summons and Complaint from Scenic Marketing Group, LLC (managed by partner Frank Moody; Frank Moody is also associated with Orchid Marketing LLC; and Lily Marketing Group LLC; and Watchit Technologies, Inc., (WTCT) formerly Evans Systems, Inc.; and, prior to reverse merger with Vapor Technologies, Inc., Green Bridge Technologies International, Inc., (GRBT) formerly Directview Technology Group, Inc. (DVWG) formerly Homeland Integrated Security Systems, Inc. (HISS) formerly Second Colonial Mining and Engineering Services, Inc.; and The Resourcing Solutions Group, Inc. (RSGX) formerly Pacel
Corp., and CenterCede Services, Inc., CenterCede Insurance Services, Inc., CenterCede Business Protection Services, Inc.): This Summons and Complaint is dated back to July 1,2006. SHOM does not agree with this action and has involved corporate attorneys for a complete defense. Our company has no more intentions of doing business with Frank Moody, his companies or affiliates. Copies of the answers, counterclaims, and third party complaint flled by SHOM attorneys are available by request.

Jerry Overcash was asked to resign from the Board of SHOM based on a conflict of interest due to nondisclosure of his direct affiliation with Frank Moody.

David Koran has been asked to join the SHOM Board. More information to follow regarding this appointment in future communications.

SHOM continues to encourage shareholders to call or email with questions and concerns personally to our office. We will always try to give answers as quickly as possible. Because we get many calls that we understand are solicitations, but claim they are shareholders, we must still follow-up, thus delaying some response to certain questions.

Currently, to date, as the President and CEO of SHOM, I have never sold any of my Company shares and if I ever intend to sell my Company shares, I will disclose this information to the public and our shareholders.

2011 3rd Quarter Share Information is below; as well as: http://www.otcmarkets.com/stock/s/lOmiquote
http://www.southemhomemedical.com

Outstanding Share Count
Common 221,740,396
Preferred A 19,827,000
Preferred C 18,557,250

Authorized Share Count
Common 1,000,000,000
Preferred A 25,000,000
Preferred C 25,000,000

We continue to have success with Apnea Rx (www.apnearx.net). Respi-Care and Encore Medical Staffing (www.encoremedicalstaffing.com) divisions as the financials through 2011 indicate. Encore currently maintains offices in SC, TN, GA, MD & PA, with the newest being in Savannah, GA. Franchising opportunities with Encore will continue expanding territories throughout the US and will allow local and regional partners to service staffing needs in their general areas.

Seeking merger/acquisition/interested buyer candidates will allow Southern Home to develop and grow a footprint into areas of staffing, consolidated business services, medical products, and facilities.

In conclusion, I am always proud of our staff and management teams constantly facing the known and unknowns that go on behind the scene. Each day they provide our shareholders a value that is unseen and not often noticed or recognized. We will continue to fight the issue from the past until the past is gone, so SHOM can continue to move forward with decisions that are in the best interest of the shareholders.

Jeff Sarvis
President & CEO