INVESTOR OVERVIEW

1

• INVESTOR OVERVIEW
• November 2006

2
Safe Harbor Statement

• Statements in this presentation are
  forward-looking statements as that term is
  defined in the Private Securities Litigation
  Reform Act of 1995. These forward-looking
  statements are based on current expectations that
  could be affected by risks and uncertainties from
  time to time in Assured Pharmacy, Incs reports
  to the Securities and Exchange Commission, which
  include Assured Pharmacy, Incs Annual Report on
  Form 10-K.

3
Snap Shot

• Assured Pharmacy is a specialty pharmacy with
  expertise in dispensing controlled pain
  medication

Ticker Symbol
OTC BB APHY Organized
2003 - reverse merger / 2005
reorganization Headquarters
Irvine, CA Employees
26 Shares Outstanding/F.D.
52 mil / 74 mil Warrants Avg strike
price0.60 19 mil Insider Stock Ownership
(F.D.) 25.18 52 Week Hi/Low
0.25 - 0.59 Market Cap
21mil
Fiscal year end December 31 Revenue
2006E / 2007E 8.5mil /
20.0mil Earnings 2006E / 2007E
(1.9)mil / 1.1mil EPS FY2006E / 2007E
(0.3) / 0.03 (F.D.) (as of 9/30/06) Cash
Equivalents 0.4mil Accounts
Receivable 1.1mil Inventory
0.4mil Long Term
Debt None NOL
15mil
Current Footprint as of June 2006 5 pharmacies
opened 15 planned over next 3 years Riverside,
CA Santa Ana, CA Seattle, WA Portland, OR
Cedar Hills, OR Current patients served 1,700
household 6,500 Scripts and re-authorizations
filled YTD 23,400
Recent Events October 2006 Sixth Pharmacy
is preparing to open July 2006 Marketing
and Brand Awareness Campaign launched
July 2006 Launches Durable Medical Equipment
Line June 2006 Fifth Assured Pharmacy
is opened May 2006 Haresh Sheth Appointed
COO Eric Mutter Named CTO March 31, 2006
Began to offer custom compounded prescriptions
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Industry Overview

• The US market for prescription pain medication is
  estimated to be over 100 billion annually,
  according to a 2006 Nelson survey, the fastest
  growing segment of the health care industry.
• The American Pain Society, the National Chronic
  Pain Outreach Association and the American
  Academy of Pain management determined that there
  are over 50 million people suffering from chronic
  pain in the U.S. An estimated 7 million cannot
  relieve their pain without opiods (narcotics).
• The sale of controlled pain medication has become
  increasingly challenging. Both physicians and
  pharmacists face a high level of scrutiny from
  the Drug Enforcement Agency, requiring a maze of
  recordkeeping both to control the drugs, and to
  provide an audit trail on the use of these drugs.
  
• The pharmacies have reacted by retrenching from
  the controlled pain medication market, ordering
  supplies only as needed. The industrys top pain
  medication, Oxycontin, is no longer stocked by
  most pharmacies Result Patient must wait days
  to pick up medication.
• Patients using opiods during treatment are likely
  to require medications more frequently and for a
  longer period of time than patients in most other
  medical categories. Todays sophisticated
  treatments of chronic pain and terminal disease
  require cocktails of drugs thereby increasing
  the number of prescriptions per patient.

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Mission
To capitalize on a pharmacy model focused on
chronic pain management by providing the patient
with a materially better prescription process
Traditional pharmacies are set up as retail
stores catering to the masses in need of
temporary and periodic medication. Assured
pharmacy focuses on chronic recurring patient
needs of controlled medication Offering
patients faster relief of their pain as well as
security and convenience by
1. enabling the patient to obtain pain
medication from a convenient and understanding
pharmacy staffed with pharmacists and
professionals experienced to deal with pain
medications and pain patients. 2. streaming
the frustrating process for phone-in
authorization for non-class II medications as
well as handling new prescriptions requests.
On-site inventory of pain medication to provide
rapid service free home delivery. 3.
maintaining detailed records of individual
patients medicines, including pain
prescriptions, always checking for the
possibility of negative drug-to-drug
reactions. 4. establishing one-on-one
relationship with patients pharmacist initiated
monthly outgoing phone call advising patient of
the timing of medication refills. 5. offering
one-stop pain-centric services including
compounding capabilities and durable medical
equipment.
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Business Strategy

• Target patients with a highly focused marketing
  and branding campaign which includes direct
  marketing materials to increase communities
  awareness of Assured Pharmacy product offerings
  and services.
• Target physicians specializing in pain
  management, neurology, psychiatry, oncology and
  orthopedics and patients with long-term acute,
  chronic and terminal pain. Offer free
  prescribing software to doctors.
• Carry required inventory of pain medications to
  be able to fill patient prescriptions without
  delay and provide topical compounding drugs.
• Generate revenue from the sale of pain-centric
  and ancillary pharmaceuticals, products and
  services.
• Expansion focused within densely populated
  medical communities. Pharmacies are highly
  service oriented and responsive to pain
  management patients requirements for
  prescription accuracy, availability and privacy.
  

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Assured Facilities
8
Unit Economics

• Assured pharmacy will locate its facilities in
  heavily populated communities.
• Facilities average 800 - 1,200 sq. ft. Pharmacies
  are staffed with one pharmacist, one technician
  and 1-3 support personnel.
• The average Assured patient receives
  approximately 3.5 scripts per doctor visit versus
  national average of 1.8 scripts per doctor visit.
• Average revenue per script 130.00.
• Average patient generates revenues of 5,300 per
  year.
• Average investment to open a pharmacy is 50,000
  - 75,000 plus an additional 50,000 of initial
  inventory.
• Each store is projected to be cash flow positive
  after nine months of operations, and on average
  breaks even at 50 scripts/day with maturity at
  approximately 150 scripts/day.
• At maturity, a each pharmacy is expected to
  generate annual
• Revenue - 5.1 million Total Op Exp
  - 420,000
• Gross
  Margin 25 EBITDA - 855,000

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Barriers to Entry/Competition

• Governmental Regulation and Approvals
• State Board of Pharmacy
• Federal Drug enforcement agency and
• Substance license to dispense Schedule 2 drugs
• First to Market and Branding
• Direct Pain Management-focused Specialty Pharmacy
  Competition is limited. Secondary competition
  includes national, regional and local drugstore
  and food store with in-house pharmacy operations.

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Leadership

• Robert Delvecchio Chief Executive Officer
  (February 2005)
• Appointed to the Board of Directors in March
  2005. Previously Mr. DelVecchio was Chief
  Executive Officer and President of Brockington
  Securities, Inc, a broker-dealer which is a
  member of NASD.
• Haresh Sheth Chief Operating Officer (May 2006)
  
• Appointed to the Board of Directors in December
  2005. Previously Group Financial Officer of
  Mosaic Capital Advisors LLC since 2004.
  President of Janus Finance Corp. since 1991.
  Engineering graduate of West Virginia University.
• Richard Falcone Chairman, Board of Directors
  (2004)
• CEO of Tasker Products. Previously Mr.
  Falcone was CFO of the A Consulting Team, Inc.,
  an IT service company (2001-2006). Mr. Falcone
  has been CFO of Netgrocer.com and Bed, Bath and
  Beyond. Mr. Falcone joined Tiffany Company as
  audit manager, Director of Financial Control, and
  Director of Internal Finance and Operations.
  Previously he was with PriceWatterhouseCoopers
  Co.
• James Manfredonia Member, Board of Directors
  (2004)
• Since 2002, Mr. Manfredonia has been
  running equity trading at Bear Stearns. He is
  currently Chairman of the NYSE Upstairs Traders
  Advisory Committee and a member of the Market
  Performance of the NYSE. Prior to Bear Stearns,
  Mr. Manfredonia managed the listed trading desk
  at Merrill Lynch for 10 years. He was the
  founder general partner of a hedge
  fund/broker-dealer, Blair Manfredonia Ltd.
  Partners. Mr. Manfredonia worked at Lehman
  Brothers, Salomon Brothers and Drexel Burnham.

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Milestones Accomplished

• Reorganized Business Operating Cost Initiatives
  Human Resource Improvement Renegotiated
  Wholesaler Relationship Secured Financing.
• Developed a detailed Business Plan with
  accountability base business structure
  Implemented business systems and process
  methodologies.
• Renegotiated ownership with TAPG in the northwest
  pharmacies from 75/25 to 94.75/5.25.
• Broadened medical specialty reach requiring pain
  treatment to include oncology, neurology and
  psychiatry.
• Established PatientCentric Marketing Plan.
  Engaged Rainmaker Sun to initiate aggressive
  Branding/Awareness Campaign.
• Expanded Product Offering Compounding and
  Durable Medical Equipment.
• Reestablished Store Opening Campaign - After 2
  years, first store opened in June 2006.
• Achieved average quarter-to-quarter revenue
  growth over the last five quarters of 25.

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Quarterly Script Count
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Quarterly Revenues
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Financial Summary(As of September 30, 2006)

• Cash. 0.4m
• Current Assets2.1m
• Total Assets... 2.5m
• Total Current Liabilities2.8m
• Total LT Obligations . ..0.5m
• NOL.15m

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Capital Structure
Bringing faster relief for those in chronic pain
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Performance Targets - 2007

• For the fiscal year ending December 2007,
  projected revenue - 21MM (approx. 150 increased
  compounded over past three years)
• Revenue growth is fueled by
• a. Continued maturation of existing pharmacies
• b. New store openings 5 new pharmacies
  planned during 2007
• c. New products and services contributing -
  Compounding and Durable Medical Equip.
  (launched during Q2 2006)
• d. Expanded marketing/branding campaign as
  well as active investor focus
• e.
  Increase company sales-force from 2 to 6
• Target Margins
• Gross Margin 27 vs 25 as of June
  2006
• Net Income Margin 11
• Management financial goals
• Cash flow Breakeven by end of first quarter
  January 2007
• Profitability by end of first quarter January
  2007
• Debt free as of September 2006 financing
• Additions to senior management and Board of
  Directors

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Risks

• Future additional regulations regarding record
  keeping, patient identity and usage verification,
  and inventory control of Class 2 drugs
• Success of marketing strategy
• Availability of licensed personnel with
  sufficient experience in pain medications to
  operate pharmacies
• Availability of suitable pharmacy locations
• Security risk of inventorying controlled
  substances and having personnel working with
  these drugs
• Additional competition

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Investment Summary

• Assured Pharmacy has completed a two-year
  sweeping corporate overhaul. The new business
  model is capable of generating high growth, high
  recurring revenues and superior margins.
• Strong opportunities for growth
• expanding of the number of pharmacies
• -- 17 yearly growth in the number of
  prescriptions since 1998
• -- additional products and services
• Barriers to entry and limited Competition in the
  pain prescription market
• Margin expansion opportunities
• Continued Industry Consolidation - WAG purchase
  of Medmark(6/06) and RAD to acquire Eckerd,
  Brooks (8/06)

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Thank You
For more information, please visit our website at
www.assuredpharmacy.com