PRESS RELEASE                 Source: Integrated Healthcare Holdings Inc.

INTEGRATED HEALTHCARE HOLDINGS ANNOUNCES NEW INVESTMENT AND FINANCIAL SUPPORT
AGREEMENTS

Thursday September 30, 5:28 pm ET

COSTA MESA, Calif.--(BUSINESS WIRE)--Sept. 30, 2004--Integrated Healthcare
Holdings Inc. (OTCBB:IHCH - News) today announced that it has entered into
agreements with Dr. Kali P. Chaudhuri of Hemet, Calif., involving a new
investment in Integrated Healthcare Holdings Inc. ("IHHI" or the "Company") and
financial support to enable IHHI to acquire hospitals and healthcare facilities
from Tenet Healthcare Corp. as part of its business plan. The following material
terms have been agreed to by the Company with Dr. Chaudhuri:

      o     Dr. Chaudhuri will invest $500,000 in IHHI in the form of a
            Convertible Secured Promissory Note, and may provide additional
            financing directly to the Company as needed;

      o     Dr. Chaudhuri will loan $10 million to IHHI to be used by IHHI as a
            good faith deposit towards the Company's proposed acquisition of
            hospitals from Tenet;

      o     Dr. Chaudhuri will provide a personal guaranty of up to $10 million
            to cover Tenet's post-closing liability on a lease for the Chapman
            Hospital that the Company proposes to acquire from Tenet. If the
            Company acquires the Chapman Hospital, it will assign to Dr.
            Chaudhuri the underlying lease and operating assets relating to the
            hospital;

      o     Dr. Chaudhuri will have an option to acquire all of the real estate
            which IHHI acquires from Tenet for $5 million, and will assume the
            underlying debt and other obligations relating to the real estate;

      o     The Convertible Secured Promissory Note will be initially
            convertible into 160 million shares of IHHI's Common Stock, or 88.8%
            of the Company's outstanding shares after giving effect to the new
            issuance (and possibly an additional 10 million shares if additional
            financing is provided to the Company); and

      o     Dr. Chaudhuri will receive pre-emptive rights to participate in
            additional issuances of Company shares, and receive piggyback
            registration rights relating to his stock.


In addition, Dr. Chaudhuri and the Company have agreed in principle to work
together in the future to acquire other hospitals and healthcare facilities.
According to Bruce Mogel, CEO of IHHI, "This transaction will provide us with
the financing and liquidity to proceed with the acquisitions that are at the
heart of our business plan. We are pleased to be working with a financing
partner with such knowledge and depth in the hospital and healthcare industry."

About Integrated Healthcare Holdings Inc.

Integrated Healthcare Holdings is a publicly traded company based in Costa Mesa.
IHHI's management, CEO Bruce Mogel, President Larry B. Anderson, and CFO James
T. Ligon, lead a team of healthcare professionals skilled in the management and
operation of successful acute care hospitals. In addition, Andrew Weiss assists
the Company as Vice President of Human Resources and Chief Labor Counsel.

The above discussion of the Company's agreements with Dr. Chaudhuri are of a
summary nature only, and are qualified by reference to the full text of these
agreements, copies of which will be filed by the Company with the Securities and
Exchange Commission.

This press release contains forward-looking statements. Forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those discussed or projected.
Statements in this press release regarding the business of Integrated Healthcare
Holdings, Inc., which are not historical in nature, are "forward-looking
statements" that involve risks and uncertainties. Although we believe that the
expectations reflected in such forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to have been correct. Actual
results may differ materially from those anticipated, estimated, or projected in
the forward-looking statements due to risks and uncertainties, including those
discussed in our Annual Report on Form 10-KSB under the caption "Risk Factors."
Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of their dates.

Contact:
Integrated Healthcare Holdings Inc.
Larry B. Anderson, 714-434-9191
Fax: 714-434-9505

Source: Integrated Healthcare Holdings Inc.