Preliminary Net Sales

The Company announced preliminary fourth quarter net sales of $4.2 million,up 200% compared to net sales of $1.4 million reported for the same periodin fiscal 2007 and up 75% compared to net sales of $2.4 million reportedfor the quarter ended June 30, 2008. Preliminary net sales for fiscal 2008were $9.6 million, up 223% compared to $3.0 million for fiscal 2007.

Mark Libratore, CEO, stated, "We are extremely pleased with the significantincrease in net sales during the fourth quarter and for fiscal 2008. Welook forward to reporting our full audited fiscal 2008 results inconnection with the filing of our Annual Report on Form 10-K for fiscal2008."

The Company has not completed the preparation of its financial statementsfor fiscal 2008 and additional details with respect to 2008 results ofoperations are not yet available. The Company plans to release fourthquarter and full fiscal year 2008 actual results after the completion ofits annual audit.

Financing

The note issued in the financing bears interest at 3% per annum and isinitially convertible into 3,333,334 shares of the Company's common stockat an initial conversion price of $0.75 per share and matures in October2010. The warrants have a term of three years and are exercisable into anaggregate of 1,166,667 shares of the Company's common stock at an initialexercise price of $1.25 per share. The note and the warrants containstandard anti-dilution protection, included "weighted average"anti-dilution provisions.

The Company intends to use the approximately $2.2 million of net proceedsof the offering, after the payment of expenses and commissions, to increaseits advertising and sales efforts and for working capital needs. LadenburgThalmann & Co. Inc. acted as the sole placement agent and financial advisorto the Company.

Mark Libratore, CEO, stated: "We are very pleased to have obtained what weconsider substantial funding on favorable terms considering the currentfinancial conditions. We continue to grow rapidly and fully expect ourgrowth to continue quarter over quarter going forward. We have achievedstrong repeat sales due to the demand created by our customers who havechronic diseases and lifetime medical supply requirements. Due to the factthat our payment comes largely from third party payors,out-of-pocket costs to our customers are minimized which makes it easierfor our customers to re-order."

The notes, the warrants, the shares of common stock issuable uponconversion of the notes, and the shares of common stock issuable uponexercise of the warrants have not been registered under the Securities Actof 1933, as amended, and may not be offered or sold in the United Statesabsent registration under the Securities Act and applicable statesecurities laws or an applicable exemption from those registrationrequirements.The Company has granted certain registration rights to the investors butdoes not have any current requirement to file a registration statement withthe United States Securities and Exchange Commission covering the sharesissuable upon conversion of the notes and upon exercise of the warrants.

This press release does not constitute an offer to sell or the solicitationof an offer to buy nor will there be any sale of these securities in anystate or jurisdiction in which such offer, solicitation or sale would beunlawful prior to registration or qualification under the securities lawsof such state or jurisdiction.

The Company will file a Current Report on Form 8-K with the Securities andExchange Commission describing in more detail the terms of the privateplacement.

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About Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply,Inc., established the Liberator brand as a leading nationaldirect-to-consumer provider of quality medical supplies toMedicare-eligible seniors. An Exemplary Provider(TM) accredited by TheCompliance Team, its unique combination of marketing, industry expertiseand customer service has demonstrated success over a broad spectrum ofchronic conditions. Liberator is recognized for offering a simple, reliableway to purchase medical supplies needed on a regular, ongoing, repeat-orderbasis, with the convenience of direct billing to Medicare and privateinsurance. Approximately 75% of its revenue comes from supplying productsto meet the rapidly growing requirements of general medical supplies,personal mobility aids, diabetes, urological, ostomy and mastectomypatients. Liberator communicates with patients and their doctors on aregular basis regarding prescriptions and supplies. Customers may purchaseby phone, mail or internet, with repeat orders confirmed with the customerand shipped when needed.

Safe Harbor Statement

The preliminary net sales results contained in this news release aresubject to finalization in connection with the preparation of our AnnualReport on Form 10-K for the fiscal year ended September 30, 2008. Thisrelease also contains "forward-looking statements" made pursuant to thesafe harbor provisions of the Private Securities Litigation Reform Act of1995, such as our preliminary net sales information. Forward-lookingstatements include statements with respect to our beliefs, plans,objectives, goals, expectations, anticipations, assumptions, estimates,intentions, and future performance, and involve known and unknown risks,uncertainties and other factors, which may be beyond our control, and whichmay cause our actual results, performance or achievements to be materiallydifferent from future results, performance or achievements expressed orimplied by such forward-looking statements. All statements other thanstatements of historical fact are statements that could be forward-lookingstatements. These forward-looking statements may not be realized due to avariety of factors, including, without limitation, the Company's need toraise equity capital and its ability to obtain equity financing onacceptable terms, if at all, regulatory limitations on the medical industryin general, working capital constraints, fluctuations in customer demandand commitments, fluctuation in quarterly results, introduction of newservices and products, commercial acceptance and viability of new servicesand products, pricing and competition, reliance upon subcontractors andvendors, the timing of new technology and product introductions, the riskof early obsolescence of our products, and the other factors listed under"Risk Factors" in our annual report on Form 10-KSB for the fiscal yearended September 30, 2008 and our other filings with the Securities andExchange Commission. Further, Liberator Holdings is a development stagecompany that operates in an industry sector where securities values arehighly volatile and may be influenced by economic and other factors beyondthe Company's control, such as announcements and product development bycompeting product and service providers. We assume no obligation to updatethe information contained in this news release.

Contacts:Liberator Medical Holdings, Inc.Mark LibratorePresident & CEO772-287-2414investors@liberatormedical.comInvestor Relations ContactGerald Kieft or Ryan AudinWall Street Resources, Inc.772-219-7525LiberatorIR@wallstreetresources.nethttp://www.wallstreetresources.net