October 10, 2012 at 16:28 PM EDT
GREENESTONE IMPLEMENTING 'BUILD & BUY' GROWTH STRATEGY TO CAPITALIZE ON HUGE OPPORTUNITY IN BEHAVIORAL TREATMENT

GreeneStone Healthcare Corporation (OTCBB: GRST) (“GreeneStone” or “the Company”) announces that it will expand its addiction treatment facilities through a 'build & buy' growth strategy to take advantage of the green field opportunity in Canada and the ever growing demand in the US in the underserviced mental healthcare sector. GreeneStone aims to expand from its current 36-bed treatment capacity up to 300 beds over the next twenty four months. In the process, the company aims to expand its current revenue run rate of $7 million plus to nearly $90 million. Management has currently identified several potential acquisition opportunities in both the US and Canada, several of which include underperforming operations in the US and Canada and/or others that provide unique opportunity for profitable expansion.

GreeneStone is employing a 'build & buy' strategy in its growth plan. The company has established a successful 'build' track record. GreeneStone Muskoka was founded by converting a resort property into a first-class residential addiction treatment facility. The Company’s outpatient and aftercare treatment facility, GreeneStone Yorkville, successfully launched operations after the company identified and secured the property and hired the clinical team. The 'buy' portion of the expansion strategy is intended to expand the company's breadth of services, currently consisting of inpatient addiction treatment, outpatient and aftercare service, and endoscopy procedures, along with eating disorders for which facilities have been secured and are in the process of being launched.

The company's revenue generating capacity for treatment beds is currently in the range of $600 to $1000 per day per bed. Once GreeneStone's next two clinics are opened, the company's bed capacity will expand to 118 from its current 36-bed level, which would result in the company growing its revenues from the current $7 million annualized run rate to over $35 million. The revenue potential from expansion is considerable given the wide open playing field in Canada, and North America. Recent M&A activity in the sector has produced valuations for facilities in excess of $1,000,000 per bed, which would result in significant valuation expansion potential for the company and strong positioning in the current behavioral treatment sector.

“With awareness of mental health growing in North America, the healthcare market is only beginning to wake up to the serious need for service and the opportunity for companies to carve out an attractive niche in the sector. Rapidly building out bed capacity and related services is essential to establishing that positioning. Typical 300-500 bed players in this space have revenue run rates in excess of $100 million from those operations. We are highly active with our expansion strategy now and expect to be busy for quite some time in order to reach what we consider to be the sweet spot in terms of bed capacity starting at the 300 bed level,” commented Shawn Leon, CEO of GreeneStone Healthcare Corp.

GreeneStone is a new company in the behavioral treatment sector in Canada, an industry that has been well developed in the US but remains in its early evolutionary stages in Canada. With increased interest from private equity acquirers in recent history, the behavioral treatment sector has moved away from the periphery. Acquirers like Bain Capital and Elements Behavioral have clearly demonstrated the attractiveness of companies that can execute on the operational side in this underserviced market.

Follow GreeneStone Healthcare Corp. and the company's activities at the following Facebook sites:

GreeneStone Muskoka: https://www.facebook.com/pages/GreeneStone-Muskoka/510641255628356

GreeneStone Yorkville: https://www.facebook.com/pages/GreeneStone-Yorkville/452197614820117

About GreeneStone Healthcare Corporation

GreeneStone Healthcare Corporation (OTCBB: GRST) is a provider of mental health services, specializing in the areas of addiction treatment, eating disorders, nutrition and weight loss, and executive healthcare. GreeneStone is among the many nascent healthcare companies re-defining the healthcare space for the modern economy, which include Roche Holding Ltd. (OTCQB: RHHBY), Sarepta Therapeutics Inc. (NASDAQ: SRPT), Nektar Therapeutics (NASDAQ: NKTR), Celldex Therapeutics, Inc. (NASDAQ: CLDX), Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN), Zogenix, Inc. (NASDAQ: ZGNX). The company operates medical and healthcare clinics in Ontario, Canada, serving a North American and international clientele. GreeneStone’s clinics meet several ends: (1) GreeneStone adds overflow capacity to an increasingly stretched public healthcare system in Canada, (2) GreeneStone mental health clinics provide private alternatives to publicly available but highly underserviced healthcare subsectors, and (3) GreeneStone meets newly developing healthcare needs undisturbed by the public/private market, such as eating disorders. The company is headquartered in Toronto, Canada.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as “expect,” “plan,” “will,” “may,” “anticipate,” “believe,” “should,” “intend,” “estimate,” and variations of such words. Forward-looking statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, those risks and uncertainties contained in this press release and those identified in the periodic reports that the company files with the Securities and Exchange Commission (the “SEC”) pursuant to the Exchange Act.

Investor information and email sign-up:

http://www.greenestoneinvestor.com

Contacts:

GreeneStone Healthcare
Shawn Leon, (416) 222-5501
investor@greenestoneinvestor.com
www.greenestoneinvestor.com
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