American CareSource Holdings Signs New Client Agreement With JMS and Associates, Inc.

American CareSource to Provide Ancillary Care Services to Key JMS Client, Insurance Design Administrators

DALLAS, TX--(Marketwire - September 29, 2008) -

American CareSource Holdings, Inc. (NASDAQ: ANCI) announced today that it has signed a new client service contract with JMS and Associates, Inc., to provide a full range of ancillary care services, initially to one of JMS' key clients, Insurance Design Administrators (IDA). JMS provides Business Process Outsourcing (BPO) solutions including Paper Claim Conversion Services to TPAs, HMOs, PPOs, Health Plans, MHOs and Cost Containment organizations supporting the Health Claim Payor industry. IDA is a recognized, national leader in the design and administration of self-funded health benefits plans for employers and government agencies across the United States and is a subsidiary of UHY, one of the world's leading business advisory, consulting and accounting networks.

Under the agreement with JMS, American CareSource will make available its full complement of ancillary care services to IDA's clients through a network of ancillary care providers. American CareSource expects to realize an estimated $1 - $2 million in additional annual revenue once the agreement is fully implemented.

Commenting on today's news, David S. Boone, Chief Executive Officer of American CareSource, stated, "We are delighted to be working with JMS and IDA -- one of the firm's most important clients. The contract with JMS serves to expand our penetration of the all-important TPA market, a key segment of the healthcare industry. By providing our affordable ancillary healthcare benefits to IDA, a leading company in the field of self-funded health benefits plans, we will help to enhance their focus of offering high quality services. IDA's strong presence across the United States, and in particular, the Northeast, will also allow us to gain a foothold in this all important market. Over time, we look forward to expanding our relationship with JMS in order to provide our services to additional clients across the United States."

Frank Gigliotti, Chief Executive Officer of JMS, stated, "For over 30 years, JMS has been assisting its clients in the healthcare industry -- including TPAs -- to meet the challenges of document conversion and information management, while increasing efficiencies and reducing operating costs. By making American CareSource's ancillary care services available to our clients, we are providing yet another value-added solution to counter rising health care costs."

Paul Sabina, President of IDA, added, "Our agreement with American CareSource enables us to proactively respond to the continuous changes in the healthcare industry. With access to their nationwide ancillary benefits network we have the flexibility to design unique coverage options to help each client meet their individual health benefits goal."

About Ancillary Healthcare Services

American CareSource provides ancillary healthcare services through its network that offers cost effective alternatives to physician and hospital-based services. This market is estimated at $574 billion, and has grown to 30% of total national health expenditures. These providers offer services in over 30 categories, including laboratories, dialysis centers, free-standing diagnostic imaging centers, non-hospital surgery centers, as well as durable medical equipment such as orthotics and prosthetics, and others.

About American CareSource Holdings, Inc.

American CareSource Holdings, the first national, publicly traded ancillary care network services company offers a comprehensive national network of approximately 2,500 ancillary service providers at over 25,000 sites. The Company's ancillary network and 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 federal and local governments. For additional information, please visit www.anci-care.com.

About JMS and Associates, Inc.

JMS and Associates, Inc. (JMS) is a Michigan based corporation doing business for over 30 years with its headquarters located in Farmington Hills, Michigan. BPO Services are provided and supported by over 300 personnel worldwide that perform most back-office services and include paper scanning and EDI claim conversion services, claim repricing, claim examining, provider maintenance, and eligibility maintenance services. Stateside processing centers are located in both Michigan and California and additional Sales and Professional Support personnel are located in the Boston, Massachusetts, Phoenix, Arizona, and Los Angeles, California regions. Alternative offshore processing services are provided through operational centers located in both China and India that offer additional cost processing reductions, high quality, quick turn-around, and are blended with a stateside project management and operations team providing the highest level of customer satisfaction. Secured online systems provide image hosting and retrieval for both paper and EDI claims and other document types. For more information visit www.jmsassoc.com.

About Insurance Design Administrators

Insurance Design Administrators (IDA) was founded in 1981, and is now the largest independent TPA in New Jersey, providing service to companies and governments covering more than 125,000 member lives. IDA designs cost-savings programs for any size firm or government employer. The Company services clients with 50 employees to 5,000 employees whether they are all located in one area or spread over several states. IDA has become a recognized national leader in designing and administering self-funded health benefits plans for employers. For more information visit www.idatpa.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by American CareSource Holdings, Inc. 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 further 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 ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.