867963--9/8/2010--UNITED_AMERICAN_HEALTHCARE

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Quality problems with our processes, products and services could harm our reputation for producing high quality products and erode our competitive advantage. If we experience decreasing prices for our products and services and we are unable to reduce our expenses, our results of operations will suffer. Because a significant portion of our revenue comes from a few large customers and customers in the San Francisco Bay Area, any decrease in sales to these customers could harm our operating results. We have limited contractual relationships with our customers and, as a result, our customers may unilaterally reduce the purchase of our products. If our customers fail to obtain, or experience significant delays in obtaining, FDA clearances or approvals to commercially distribute their products, our ability to sell our services could suffer. We may face competition from, and we may be unable to compete successfully against, new entrants and established companies with greater resources. If we do not respond to changes in technology, our manufacturing processes may become obsolete and we may experience reduced sales and lose customers. Our business is subject to risks associated with a single manufacturing facility. Our business is subject to risks associated with manufacturing processes. We may expand into new markets or new products and our expansion may not be successful. We may selectively pursue acquisitions in the future, but, because of the uncertainty involved, we may not be able to identify suitable acquisition candidates and may not successfully integrate acquired businesses into our business and operations. We are continuing to integrate Pulse Systems, which also entails risk. Our inability to access additional capital could have a negative impact on our growth strategy. We are subject to a variety of environmental, health and safety laws that could be costly for us to comply with, and we could incur liability if we fail to comply with such laws or if we are responsible for releases of contaminants to the environment. Infringement claims regarding patents or other intellectual property rights by third parties could result in an adverse impact on our operations, and could be costly and distracting to management. Our earnings and financial condition could suffer if we or our customers become subject to product liability claims or recalls. We may also be required to spend significant time and money responding to investigations or requests for information related to end-products of our customers. A substantial amount of our assets represents goodwill, and our earnings will be reduced if our goodwill becomes impaired. Our business may suffer if we are unable to recruit and retain senior management and experienced engineers and management personnel that we need to compete in the medical device industry. We depend on outside suppliers and subcontractors, and our production and reputation could be harmed if they are unable to meet our quality and volume requirements and alternative sources are not available. Prior to its acquisition by the Company, Pulse Systems was not subject to requirements to test its internal control over financial reporting. If such controls are ineffective, it could have a significant and adverse effect on our business and reputation. Our operating results may fluctuate, which may make it difficult to forecast our future performance. Risks Related to Our Industry We may not be able to grow our business if the trend by medical device companies to outsource their manufacturing activities does not continue or if our customers decide to manufacture internally products that we currently provide. We and our customers are subject to various regulations, as well as political, economic and regulatory changes in the healthcare industry or otherwise, that could force us to modify how we price our components, manufacturing capabilities and services and could harm our business. The recently enacted Affordable Healthcare for America Act includes provisions that may adversely affect our business and results of operations, including an excise tax on the sales of most medical devices. Our business is indirectly subject to healthcare industry cost containment measures and other industry trends affecting pricing that could result in reduced sales of or prices for our products. Consolidation in the healthcare industry could have an adverse effect on our revenues and results of operations. Inability to obtain sufficient quantities of raw materials could cause delays in our production. Risks Relating to Financing Activities Capital markets have experienced a significant period of dislocation and instability, which has had and could continue to have a negative impact on the availability and cost of capital. Credit market developments may reduce availability under our credit agreement. Pulse and UAHC are subject to a number of restrictive debt covenants which may restrict our business and financing activities. Risks Relating to Our Common Stock Our common stock may continue to be volatile and could decline substantially. We have recently been delisted from the Nasdaq Capital Market and there is a limited trading volume for our common stock on the OTCQB. Our articles of incorporation, our bylaws and Michigan law contain provisions that could discourage another company from acquiring us and may prevent attempts by our shareholders to replace or remove our current management. Our common stock may be subject to penny stock rules, which make it more difficult for you to dispose of your shares. We do not anticipate paying any cash dividends. We may need additional capital, and the sale of additional shares or other equity securities could result in additional dilution to our stockholders. Risks Related to Our Prior Healthcare Management Business If we are unable to estimate incurred but not reported medical benefits expense accurately, that could affect our reported financial results.

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867963--9/8/2010--UNITED_AMERICAN_HEALTHCARE_CORP