PainCare Holdings Inc.

Orlando - On March 15, 2006 PainCare announced it would restate all of its historical financial statements. The time periods included the five full fiscal years ending December 31, 2000 to December 31, 2004 and the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005. Shareholders reacted by filing a class action lawsuit against PainCare for allegedly violating federal securities laws by issuing a series of material misrepresentations to the market that artificially inflated the price of PainCare securities. The case was filed in US District Court for the Middle of Florida, Orlando division, on behalf of shareholders who bought common stock and securities of PainCare between August 27, 2002, and March 15, 2006. PainCare Holdings has reached an agreement in principle to settle the pending shareholder derivative lawsuit filed in connection with a restatement of financials earlier this year. (Oct-12-06) [ORLANDO BUSINESS JOURNAL: PAINCARE]