Significant Q4 Transactions

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1 QUARTERLY DIALOGUE QUARTERLY DIALOGUE FOURTH QUARTER 2010 FOURTH QUARTER 2010 For additional information, contact the NCA Healthcare investment banking team: Edward R. Casas, MD Senior Managing Director Head of Navigant Capital Advisors 847/ Gregory Hagood Managing Director Investment Banking Practice Area Leader 404/ Michael Lane Managing Director 312/ Matthew M. Caine, CFA Director 404/ Kim Brady Managing Director 847/ Neil Luria Managing Director 216/ S. Waite Popejoy Director 404/ Jerry Chang Director, Valuation Services 404/ The NCA Quarterly Dialogue contains news, statistics, and trends impacting select companies within the sector. Analysis is further organized to include: (i) Alternate Site, (ii) Diagnostic Services, (iii) Distribution, (iv) Equipment & Supplies, (v) Information Technology, (vi) Hospital Providers, (vii) Long Term Care & Senior Living, and (viii) Managed Care companies. Significant Q4 Transactions December 30, 2010 McKesson Corporation (NYSE:MCK), a healthcare services and IT company, completed its acquisition of US Oncology for approximately $2.2 billion. December 13, 2010 HCP, Inc. (NYSE: HCP) signed a definitive agreement to acquire the real estate assets of Manor Care, Inc. for $6.1 billion. Manor Care, Inc., Real Estate Assets comprises 338 post acute, skilled nursing and assisted living facilities. December 12, 2010 Thermo Fisher Scientific, Inc. (NYSE: TMO) entered into an agreement to acquire Dionex Corp. (NasdaqGS: DNEX) for $2.1 billion. Dionex Corporation designs, manufactures, markets, and services analytical instrumentation. December 1, 2010 Laboratory Corporation of America Holdings (NYSE: LH) completed its acquisition of Genzyme Genetics, a business unit of Genzyme Corp. (NASDAQ: GENZ), for $925 million. November 18, 2010 Cardinal Health (NYSE: CAH) announced plans to acquire Kinray, Inc. for $1.3 billion. November 17, 2010 St. Jude Medical Inc. (NYSE: STJ) signed a definitive agreement to acquire AGA Medical Holdings, Inc. (NasdaqGS: AGAM) for $1.1 billion. November 12, 2010 Community Health Systems, Inc. (NYSE: CYH) made an offer to acquire Tenet Healthcare Corp. (NYSE: THC) for $2.9 billion. Tenet Healthcare Corp. operates general acute care hospitals and related healthcare facilities. November 1, 2010 St. Davidʹs Healthcare Partnership, LP acquired substantially all of the assets of Heart Hospital of Austin from MedCath Corporation (Nasdaq: MDTH) and its physician partners for gross proceeds of approximately $40 million. October 21, 2010 Ventas Inc. (NYSE: VTR) signed a definitive agreement to acquire Atria Senior Living Group, Inc. $3.1 billion. October 1, 2010 VHS Of Phoenix Inc. / Vanguard Health Systems acquired the assets of Arizona Heart Hospital, LLC from MedCath Corp. (NasdaqGS: MDTH) and physician investors for gross proceeds of approximately $34 million. October 1, 2010 Avera McKennan acquired Sioux Falls Hospital Management, Inc. from MedCath Corp. (NasdaqGS:MDTH) for approximately $20 million. Sioux Falls Hospital Management, Inc. was the indirect owner of a one third ownership interest which held management rights in Avera Heart Hospital of South Dakota. RESTRUCTURING MERGERS, ACQUISITIONS & DIVESTITURES PRIVATE PLACEMENTS VALUATION Realizing Value Delivering Results Atlanta Chicago New York San Francisco Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

2 December 31, 2010 To The Friends and Clients of Navigant Capital Advisors ( NCA ): We are pleased to share with compliments our Quarterly Dialogue for Q The healthcare industry posted $206.5 billion in deals consisting of 913 transactions, according to preliminary figures from Irving Levin Associates and was the second most active sector in the overall 2010 M&A market (energy and power was the most active M&A market in 2010). The NCA hospital provider and long term care universe both outperformed the S&P 500 with returns in excess of 15% versus returns of the S&P 500 of approximately 13%. The three largest sectors in terms of M&A dollar volume were biotechnology with $56.0 billion, medical devices with $41.5 billion and pharmaceuticals with $38.1 billion. There were sizable volumes of deal activity in facility based sectors with hospitals generating $17.4 billion and long term care posting $11.7 billion in M&A for the year. A few of the more notable transactions announced during the quarter include: HCP, Inc. s (NYSE: HCP) agreement to acquire the real estate assets of Manor Care, Inc. for $6.1 billion; Ventas Inc. s (NYSE: VTR) definitive agreement to acquire Atria Senior Living Group, Inc. for $3.1 billion; Community Health Systems, Inc. s (NYSE: CYH) offer to acquire Tenet Healthcare Corp. (NYSE: THC) for $2.9 billion; McKesson Corporation s (NYSE:MCK) acquisition of US Oncology for approximately $2.2 billion; Thermo Fisher Scientific, Inc. s (NYSE: TMO) agreement to acquire Dionex Corp. (NasdaqGS: DNEX) for $2.1 billion; Cardinal Health s (NYSE: CAH) agreement to acquire Kinray, Inc. for $1.3 billion; and St. Jude Medical Inc. s (NYSE: STJ) agreement to acquire AGA Medical Holdings, Inc. (NasdaqGS: AGAM) for $1.1 billion. The long term care sector is poised to continue its strong deal volumes into 2011 largely due to the increasing cost of compliance. With the new requirements enacted through the Patient Protection and Affordable Care Act, skilled nursing facilities (and possibly assisted living facilities in the future) will see compliance costs rise, making it difficult for smaller independent facilities to absorb and more attractive to merge with larger regional or national chains. Aging facilities, low interest rates, aging baby boomers and increasing valuations will also likely contribute to increased M&A deal volume in the sector into Hospitals are also likely to see continued strong M&A activity going forward as hospitals consolidate to improve bargaining positions with vendors, capture market share and increase cost efficiencies. Additionally, this sector will adjust to provide services based on the population shift highlighted by the new U.S. Census data. We continue to work closely with our extensive Navigant Consulting National Healthcare Practice to provide investment banking services to a wide array of healthcare firms and investors. The industry leading Healthcare Practice provides a great resource for our clients. We welcome your comments and hope that you continue to find our Quarterly Dialogue informative. Matt Caine, CFA Michael Lane Director Managing Director Navigant Capital Advisors Navigant Capital Advisors [email protected] [email protected] (404) (312) Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

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4 Navigant Consulting s Healthcare Practice Contacts: Dave Zito Leader, Healthcare Practice [email protected] David Burik Providers [email protected] Catherine Sreckovich Payers [email protected] Eduardo Schur Life Sciences [email protected] Kevin Cornish Healthcare Litigation [email protected] Navigant Consulting s Healthcare practice assists organizations throughout the continuum of care: providers, payers and life science companies. We help clients achieve profitable growth, operate efficiently, deploy capital effectively, and proactively manage risk. Our clients include hospitals, health systems, physician practices, health plans, managed care organizations, pharmaceutical companies, biotech companies, medical device manufacturers, state and federal government agencies, corporate legal departments and law firms. We have established a robust practice comprised of professionals who include hospital, health plan and healthcare financing program executives as well as CPAs, PhDs, MDs, RNs, PharmDs, and other clinical professionals. We are committed to working with clients to deliver successful and sustainable solutions. Services for Providers Healthcare providers face challenges from multiple directions, including rising costs, declining reimbursement, increased regulation and decreased financial stability. Our professionals bring together operational, strategic and physician integration capabilities to help position clients for success. Our services include: Strategy Facilities and real estate solutions Performance improvement Revenue cycle Supply chain Services for Payers The Navigant team is uniquely positioned in that we assist and have experience with payers of all types state, federal, commercial and international to address complex pricing and reimbursement challenges, develop new programs, and manage existing programs. Our services include: Policy evaluation and implementation Financing alternatives Actuarial analyses and support Payment system design, development and implementation Process transformation and improvement initiatives Organization change management Product development and assessment Operational support Compliance monitoring Services for Life Sciences Navigant s Life Sciences practice serves pharmaceutical, bio technology and medical device companies. Our team of life sciences experts helps clients worldwide identify, plan, launch and sustain a wide range of medical products, from blockbuster drugs to specialty pharmaceuticals to niche medical devices. Our services include: Brand/marketing strategy Forecasting and modeling Licensing and partnering strategy Managed markets strategy New product planning Business planning excellence Advocacy planning

5 HEALTHCARE SERVICES QUARTERLY DIALOGUE Fourth Quarter 2010 Navigant s Perspective: 1 Healthcare Reform and Beyond: New Realities for the New Normal Market Summary 5 Healthcare Industry Stock Market Value Index 7 NCA Universe 8 Public Company Equity Market Value Analysis Alternate Site 11 Diagnostic Services 13 Healthcare Distributors 17 Healthcare Equipment and Supplies 20 Healthcare Information Technology 23 Hospital Providers 26 Long Term Care / Senior Living 30 Managed Care 34 Healthcare Industry Transactions 36 Distressed Market Indicators 40 Notes / Subscription Form Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses. NCA gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. NCA makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. (Officers, directors and employees of Navigant Consulting, Inc. and its subsidiaries may have positions in the securities of the companies discussed.) This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. NCA or its affiliates may from time to time provide investment banking or related services to these companies. Like all NCA employees, the authors of this publication receive compensation that is affected by overall firm profitability.

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10 Market Summary Major Equity Market Indices % Change From Index 12/31/ Months Ago 1 Year Ago 2 Years Ago 3 Months Ago 1 Year Ago 2 Years Ago Dow Jones Industrial 11, , , , % 11.0% 31.9% NASDAQ Composite 2, , , , % 16.9% 68.2% Russell % 25.3% 56.9% S&P 500 1, , , % 12.8% 39.2% Wilshire , , , , % 15.6% 46.2% S&P Healthcare Index % 0.7% 17.9% Relative Performance (%) Dow Jones Industrial Average (^DJI) NASDAQ Composite (^COMP) Russell 2000 (^RUT) S&P 500 Index (^SPX) Wilshire S&P Healthcare (^HCX) 60.0 Page 5 of 45

11 Market Summary (cont.) Benchmark Interest Rates Interest Rate 12/31/ Year Ago Prime Rate 3.25% 3.25% 1 Month Libor 0.26% 0.23% 3 Month Libor 0.30% 0.25% 6 Month Libor 0.46% 0.43% 12 Month Libor 0.78% 0.98% 2 Year Treasury 0.59% 1.14% 10 Year Treasury 3.31% 3.84% 30 Year Treasury 4.35% 4.64% Interest Rates (% Yield) LIBOR - 3 months U.S. Treasury - 10 years Term Treasury YTM Interest Rate Spreads AA Corporate BBB Corporate BB Corporate B Corporate Spread Spread Spread Spread YTM (BPS) YTM (BPS) YTM (BPS) YTM (BPS) 3 Month 0.16% 0.62% % % % Month 0.23% 0.72% % % % Year 0.64% 1.39% % % % Year 2.03% 2.94% % % % Year 3.42% 4.33% % % % Year 4.35% 5.28% % % % 463 Page 6 of 45

12 Healthcare Industry Stock Market Value Index S&P Healthcare Index vs. the Dow Jones Industrial Average during the last 12 months Relative Performance (%) Dow Jones Industrial Average (^DJI) S&P Healthcare Index (^HCX) S&P Healthcare Index vs. the Nasdaq Composite during the last 12 months Relative Performance (%) NASDAQ Composite (^COMP) S&P Healthcare Index (^HCX) S&P Healthcare Index vs. the S&P 500 during the last 12 months Relative Performance (%) S&P 500 Index (^SPX) S&P Healthcare Index (^HCX) Page 7 of 45

13 NCA Universe Public Company Equity Market Value Analysis Market Capitalizations % Change Segments/Companies Ticker as of 12/31/2010 ($mm) 3 Month 6 Month 12 Month Alternate Site: Amedisys Inc. AMED % 22.5% 28.4% AmSurg Corp. AMSG % 17.6% 4.0% DaVita, Inc. DVA 6, % 4.1% 12.5% Fresenius Medical Care AG & Co. KGAA DB:FME 13, % 0.3% 18.8% Gentiva He alth Services Inc. NasdaqGS:GTIV % 12.6% 0.4% Integramed America Inc. INMD % 5.8% 46.2% IPC The Hospitalist Company, Inc. IPCM % 55.8% 18.2% Lincare Holdings Inc. LNCR 2, % 18.9% 3.5% Rehabcare Group Inc. RHB % 9.3% 21.2% Diagnostic Services: Alliance He a lthca re Services, Inc. AIQ % 5.1% 24.4% Bio Reference Laboratories Inc. BRLI % 0.1% 14.1% Laboratory Corp. of America Holdings LH 8, % 13.7% 12.5% Pharmaceutical Product Development Inc. PPDI 3, % 7.1% 16.5% Quest Diagnostics Inc. DGX 9, % 2.5% 17.8% RadNet, Inc. RDNT % 19.7% 41.3% Healthcare Distributors: AmerisourceBergen Corporation ABC 9, % 5.1% 25.3% Cardinal He alth, Inc. CAH 13, % 9.9% 14.3% He nry Schein Inc. HSIC 5, % 12.9% 19.0% McKesson Corporation MCK 17, % 2.0% 6.3% MedcoHealth Solutions Inc. MHS 26, % 3.3% 14.7% Omnicare Inc. OCR 2, % 3.3% 2.0% Owens & Minor Inc. OMI 1, % 4.1% 3.7% PSS World Medical Inc. PSSI 1, % 3.3% 7.4% Stericycle, Inc. SRCL 6, % 24.7% 48.9% Thermo Fisher Scientific, Inc. TMO 22, % 9.3% 13.0% Healthcare Equipment and Supplies: Abbott Laboratories ABT 74, % 2.6% 11.3% Baxter International Inc. BAX 29, % 21.1% 16.6% Becton, Dickinson and Company BDX 19, % 21.2% 2.3% Boston Scientific Corporation BSX 11, % 30.8% 15.4% CardioNet, Inc. BEAT % 14.2% 20.0% Johnson & Johnson JNJ 169, % 4.3% 4.4% Medtronic, Inc. MDT 39, % 1.4% 18.0% Siemens AG SIE 81, % 25.8% 45.2% St. Jude Medical Inc. STJ 14, % 24.2% 19.1% Page 8 of 45

14 NCA Universe Public Company Equity Market Value Analysis (cont.) Market Capitalizations % Change Segments/Companies Ticker as of 12/31/2010 ($mm) 3 Month 6 Month 12 Month Healthcare Information Technology: Allscripts He a lthcare Solutions, Inc. MDRX 3, % 52.8% 22.8% athenahealth, Inc. ATHN 1, % 62.4% 7.9% Cerner Corp. CERN 7, % 25.8% 16.6% Computer Programs & Systems Inc. CPSI % 14.4% 1.6% HMS Holdings Corp. HMSY 1, % 21.3% 39.2% icad Inc. ICAD % 28.9% 10.6% MedAssets, Inc. MDAS 1, % 11.1% 2.3% Omnicell Inc. OMCL % 25.3% 27.7% Quality Systems Inc. QSII 2, % 20.6% 12.4% SXC He alth Solutions, Corp. SXC 2, % 8.2% 50.9% Vital Images Inc. VTAL % 6.4% 8.0% WebMD He a lth Corp. WBMD 3, % 23.0% NA Hospital Providers: Community He alth Systems, Inc. CYH 3, % 7.8% 4.5% He alth Management Associates Inc. HMA 2, % 22.9% 32.4% Lifepoint Hospitals Inc. LPNT 1, % 11.6% 8.7% Tenet He a lthcare Corp. THC 3, % 54.6% 25.3% Universal He alth Services Inc. UHS 4, % 14.0% 40.7% Long Term Care / Senior Living: Advocat Inc. AVCA % 7.4% 31.1% Brookdale Senior Living Inc. BKD 2, % 44.1% 19.6% Capital Senior Living Corp. CSU % 35.1% 32.7% Emeritus Corp. ESC % 33.9% 16.6% The Ensign Group, Inc. ENSG % 50.9% 63.0% Kindre d He althca re Inc. KND % 43.1% 0.5% National He a lthcare Corp. NHC % 32.6% 27.1% Skille d He althcare Group, Inc. SKH % 32.4% 22.0% Sun He a lthcare Group Inc. SUNH N/A N/A N/A Sunrise Senior Living Inc. SRZ % 97.5% 84.7% Managed Care: Aetna Inc. AET 12, % 8.9% 11.2% CIGNA Corporation CI 9, % 15.6% 3.0% Coventry He alth Care Inc. CVH 3, % 49.9% 9.1% Express Scripts Inc. ESRX 28, % 10.5% 20.0% He alth Ne t Inc. HNT 2, % 7.7% 7.7% Humana Inc. HUM 9, % 18.5% 23.6% MedcoHealth Solutions Inc. MHS 26, % 3.3% 14.7% Unitedhealth Group, Inc. UNH 39, % 23.0% 12.1% WellPoint Inc. WLP 22, % 7.1% 16.2% Page 9 of 45

15 NCA Universe Public Company Equity Market Value Analysis (cont.) Relative Performance (%) Alternate Site Diagnostic Services Distributors Equipment & Supplies Information Technology Hospital Providers Long-Term Care / Senior Living Managed Care S&P 500 Index (^SPX) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% NCA Universe - Index Returns Alternate Site Diagnostic Services Distributors Equipment & Supplies Information Technology Hospital Providers 5.0% 0.0% Long-Term Care / Senior Living Managed Care -5.0% 3-Month Return 6-Month Return 12-Month Return Page 10 of 45

16 Alternate Site Relative Price Chart Alternate Site NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Alternate Site Amedisys Inc. AMED $ $64.28 $22.82 $972.4 $1, x 4.0x 4.6x AmSurg Corp. AMSG , x 4.2x 4.7x DaVita, Inc. DVA , , x 8.3x 10.3x Fresenius Medical Care AG & Co. KGAA DB:FME , , x 7.3x 9.2x Gentiva Health Services Inc. GTIV , x 10.6x 11.9x Integramed America Inc. INMD x 4.0x 6.8x IPC The Hospitalist Company, Inc. IPCM x 14.8x 15.9x Lincare Holdings Inc. LNCR , , x 6.6x 8.9x Rehabcare Group Inc. RHB , x 7.1x 8.9x High 1.77x 14.8x 15.9x Low 0.28x 4.0x 4.6x Mean 1.23x 7.4x 9.0x Median 1.45x 7.1x 8.9x Page 11 of 45

17 Alternate Site (cont.) Fourth Quarter 2010 News December 30, 2010 Hanger Orthopedic Group, Inc. (NYSE: HGR), a provider of orthotic and prosthetic patient care services, completed its previously announced offer to exchange all of its outstanding $200 million aggregate principal amount of 7 1/8% Senior Notes due 2018 for new 7 1/8% Senior Notes due 2018 that have been registered under the Securities Act of All of the outstanding Senior Notes due 2018 were tendered in the exchange offer, which expired on December 28, December 24, 2010 Sverica International and John V. Capotorto acquired The Center for Wound Healing, Inc. (OTCBB: CFWH) from Bison Capital Asset Management, LLC and other shareholders for approximately $15 million. The Center for Wound Healing, Inc. develops and manages wound care centers. December 22, 2010 Chicago Growth Partners acquired Advanced Pain Management Holdings from Excellere Partners. Golub Capital provided $27 million of capital in the form of senior subordinated notes and an equity co investment in support of the acquisition of Advanced Pain Management. Advanced Pain Management provides minimally invasive, diagnostic, and therapeutic services to enable patients to restore function and relieve pain. December 22, 2010 AccentCare, Inc. acquired Guardian Home Care, Inc., a provider of home healthcare services, from Texas Home Health, Inc. The financial terms of the deal were not disclosed. October 1, 2010 DaVita Inc. (NYSE: DVA), a provider of kidney care, signed a new $3 billion senior secured credit agreement. The credit agreement establishes a $250 million senior secured revolving loan facility maturing in October 2015, a $1 billion senior secured term loan A facility maturing in October 2015 and a $1.75 billion senior secured term loan B facility maturing in October Page 12 of 45

18 Alternate Site (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Fresenius Medical Care AG & Co. KGAA $11,921.9 Rehabcare Group Inc. 56.0% DaVita, Inc. 6,366.2 Gentiva Health Services Inc. 20.7% Lincare Holdings Inc. 1,652.9 IPC The Hospitalist Company, Inc. 17.4% Amedisys Inc. 1,645.5 Amedisys Inc. 13.6% Gentiva Health Services Inc. 1,292.1 Integramed America Inc. 10.2% Rehabcare Group Inc. 1,258.8 Fresenius Medical Care AG & Co. KGAA 9.0% AmSurg Corp AmSurg Corp. 7.4% IPC The Hospitalist Company, Inc DaVita, Inc. 6.1% Integramed America Inc Lincare Holdings Inc. 6.0% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) AmSurg Corp. 32.2% AmSurg Corp. 35.8% Lincare Holdings Inc. 19.8% Lincare Holdings Inc. 20.5% Fresenius Medical Care AG & Co. KGAA 15.7% Fresenius Medical Care AG & Co. KGAA 19.9% DaVita, Inc. 15.3% DaVita, Inc. 18.9% Amedisys Inc. 13.8% Amedisys Inc. 15.7% Gentiva Health Services Inc. 11.6% Gentiva Health Services Inc. 13.0% IPC The Hospitalist Company, Inc. 10.6% IPC The Hospitalist Company, Inc. 11.3% Rehabcare Group Inc. 9.0% Rehabcare Group Inc. 11.2% Integramed America Inc. 4.1% Integramed America Inc. 7.0% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) IPC The Hospitalist Company, Inc. 0.0% IPC The Hospitalist Company, Inc. 0.0x Integramed America Inc. 16.0% Amedisys Inc. 0.7x Amedisys Inc. 18.5% Integramed America Inc. 1.0x AmSurg Corp. 29.5% AmSurg Corp. 1.2x Lincare Holdings Inc. 32.8% Lincare Holdings Inc. 1.5x Fresenius Medical Care AG & Co. KGAA 44.3% Fresenius Medical Care AG & Co. KGAA 2.5x Rehabcare Group Inc. 45.0% DaVita, Inc. 2.8x DaVita, Inc. 55.1% Rehabcare Group Inc. 2.9x Gentiva Health Services Inc. 63.5% Gentiva Health Services Inc. 6.4x Page 13 of 45

19 Diagnostic Services Relative Price Chart Diagnostic Services NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Diagnostic Services Alliance, Inc. AIQ $ $5.98 $3.32 $224.0 $ x 5.3x 17.8x Bio Reference Laboratories Inc. BRLI x 10.6x 13.2x Laboratory Corp. of America Holdings LH , , x 8.9x 10.3x Pharmaceutical Product Development Inc. PPDI , , x 12.4x 17.8x Quest Diagnostics Inc. DGX , , x 7.6x 9.0x RadNet, Inc. RDNT x 6.5x 15.8x High 2.10x 12.4x 17.8x Low 1.12x 5.3x 9.0x Mean 1.62x 8.5x 14.0x Median 1.63x 8.2x 14.5x Page 14 of 45

20 Diagnostic Services (cont.) Fourth Quarter 2010 News December 23, 2010 Behrman Capital through its Behrman Capital IV, L.P. acquired Atherotech, Inc., a cardiodiagnostic company. Financial terms of the transaction were not disclosed. December 16, 2010 Gen Probe Inc. (NasdaqGS: GPRO) acquired GTI Diagnostics, Inc. from The Riverside Company and individual investors for $53 million. GTI Diagnostics, Inc. develops, manufactures, markets and sells medical diagnostic assays for transplantation, blood bank, and coagulation laboratories for diagnoses, blood typing, and antibody identification applications. December 16, 2010 Therapy Partners acquired Rehabilitex, Inc., a provider of rehabilitation care services. The financial terms of the transaction were undisclosed. December 10, 2010 Radiation Therapy Services Inc. is offering to exchange $310 million of registered 9.875% Senior Subordinated Notes due 2017, for $310 million of unregistered Senior Subordinated Notes due Radiation Therapy Services Holdings, Inc., through its subsidiaries, develops and operates radiation therapy centers that provide radiation treatment services to cancer patients. December 3, 2010 Opto Circuits (India) Ltd. (BSE: ) acquired Cardiac Science Corporation (NasdaqGM: CSCX) for approximately $55 million. Cardiac Science Corporation develops, manufactures, and markets diagnostic and therapeutic cardiology products. November 18, 2010 Sekisui Medical Co. Ltd. agreed to acquire substantially all of the assets of Genzyme Diagnostics from Genzyme Corp. (NasdaqGS: GENZ) for approximately $270 million. Genzyme Diagnostics manufactures intermediates for diagnostic manufacturers and clinical laboratories. The company s product offering comprises diagnostic intermediates/critical raw materials, finished reagent kits that are used in clinical chemistry analyzers, and point of care rapid tests. November 8, 2010 Sonic Healthcare Ltd. (ASX: SHL) acquired CBLPath, Inc. from Galen Partners and other investors for approximately $120 million. CBLPath, Inc. provides anatomic pathology and molecular diagnostic laboratory services. The company offers breast, dermato, endocrine, gastrointestinal, head and neck, hemato, ophthalmic, podiatric, and uro pathology diagnoses. October 22, 2010 GE Healthcare Ltd. acquired Clarient, Inc. (NasdaqCM: CLRT) from Oak Investment Partners XII, L.P., a fund of Oak Investment Partners, Safeguard Scientifics, Inc. (NYSE: SFE) and other investors for approximately $450 million. Clarient, Inc., together with its subsidiaries, provides oncology diagnostic services to community pathologists, oncologists, biopharmaceutical companies, and researchers. October 20, 2010 Quest Diagnostics Incorporated (NYSE: DGX), a provider of diagnostic testing, information and services, announced that its Board of Directors increased the companyʹs share repurchase authorization by $250 million. During the first three quarters of 2010, the company repurchased approximately 15 million shares of common stock for $750 million, fully utilizing its previous authorization, which was granted in January, The company had approximately 170 million shares outstanding as of September 30, Page 15 of 45

21 Diagnostic Services (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Quest Diagnostics Inc. $7,393.2 Bio Reference Laboratories Inc. 26.3% Laboratory Corp. of America Holdings 4,873.6 Laboratory Corp. of America Holdings 4.8% Pharmaceutical Product Development Inc. 1,439.5 RadNet, Inc. 2.9% RadNet, Inc Pharmaceutical Product Development Inc. 1.3% Alliance, Inc Quest Diagnostics Inc. 0.2% Bio Reference Laboratories Inc Alliance, Inc. 6.1% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Laboratory Corp. of America Holdings 20.3% Alliance, Inc. 31.1% Quest Diagnostics Inc. 18.2% Laboratory Corp. of America Holdings 23.7% Bio Reference Laboratories Inc. 10.6% Quest Diagnostics Inc. 21.7% Pharmaceutical Product Development Inc. 10.5% RadNet, Inc. 17.2% Alliance, Inc. 9.2% Pharmaceutical Product Development Inc. 15.2% RadNet, Inc. 7.1% Bio Reference Laboratories Inc. 13.0% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Pharmaceutical Product Development Inc. 0.0% Pharmaceutical Product Development Inc. 0.0x Bio Reference Laboratories Inc. 19.8% Bio Reference Laboratories Inc. 0.6x Laboratory Corp. of America Holdings 37.1% Laboratory Corp. of America Holdings 1.2x Quest Diagnostics Inc. 44.9% Quest Diagnostics Inc. 2.0x Alliance, Inc. 94.0% Alliance, Inc. 4.4x RadNet, Inc % RadNet, Inc. 5.6x Page 16 of 45

22 Healthcare Distributors Relative Price Chart Distributors NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Distributors AmerisourceBergen Corporation ABC $ $34.72 $25.66 $9,429.0 $9, x 7.7x 8.4x Cardinal Health, Inc. CAH , , x 7.6x 9.0x Henry Schein Inc. HSIC , , x 10.2x 12.1x McKesson Corporation MCK , , x 7.0x 8.4x MedcoHealth Solutions Inc. MHS , , x 10.4x 12.4x Omnicare Inc. OCR , , x 7.3x 9.5x Owens & Minor Inc. OMI , , x 8.2x 9.3x PSS World Medical Inc. PSSI , , x 9.1x 11.2x Stericycle, Inc. SRCL , , x 18.8x 21.3x Thermo Fisher Scientific, Inc. TMO , , x 11.0x 17.5x High 5.81x 18.8x 21.3x Low 0.12x 7.0x 8.4x Mean 1.14x 9.7x 11.9x Median 0.59x 8.6x 10.3x Page 17 of 45

23 Healthcare Distributors (cont.) Fourth Quarter 2010 News December 21, 2010 Thermo Fisher Scientific, Inc. (NYSE: TMO) acquired TKA Wasseraufbereitungssysteme GmbH. TKA Wasseraufbereitungssysteme GmbH provides laboratory water purification systems. Financial terms of the transaction were not disclosed. December 16, 2010 Omnicare, Inc. (NYSE:OCR) announced the expiration and final results of its previously announced offer to purchase up to $525 million aggregate principal amount of its 3.25% Convertible Senior Debentures due 2035 at a purchase price equal to $950 per $1,000 of the principal amount. Pursuant to the offer, approximately $748 million aggregate principal amount of the debentures were validly tendered and not withdrawn and Omnicare accepted for payment $525 million aggregate principal amount of such debentures. November 30, 2010 Thermo Fisher Scientific, Inc. (NYSE: TMO) signed a definitive agreement to acquire Lomb Scientific Pty. Ltd. from Anacacia Capital Pty Limited and other shareholders. The financial terms of the deal were not disclosed. Lomb Scientific Pty., Ltd. offers laboratory consumables, chemicals, and instrumentation to the scientific community, serving science laboratories, universities, hospitals, pathology, and research companies. November 19, 2010 PSS World Medical, Inc. (Nasdaq: PSSI) signed an agreement to acquire Linear Solutions, Inc. Linear Medical Solutions Inc., a healthcare services company, provides ancillary revenue solutions for physician practices. Financial terms of the transaction were not disclosed. October 14, 2010 Henry Schein, Inc. (Nasdaq: HSIC), a provider of healthcare products and services to office based practitioners, announced an agreement to acquire Provet Holdings Limited (ASX: PVT), Australasiaʹs largest distributor of veterinary products. Page 18 of 45

24 Healthcare Distributors (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) McKesson Corporation $109,899.0 Stericycle, Inc. 19.4% Cardinal Health, Inc. 98,159.6 Henry Schein Inc. 15.1% AmerisourceBergen Corporation 77,954.0 MedcoHealth Solutions Inc. 11.8% MedcoHealth Solutions Inc. 64,283.3 Thermo Fisher Scientific, Inc. 9.4% Thermo Fisher Scientific, Inc. 10,847.0 AmerisourceBergen Corporation 8.6% Owens & Minor Inc. 8,093.9 McKesson Corporation 2.6% Henry Schein Inc. 7,289.3 Owens & Minor Inc. 1.7% Omnicare Inc. 6,127.5 Cardinal Health, Inc. 0.8% PSS World Medical Inc. 1,974.7 Omnicare Inc. 1.2% Stericycle, Inc. 1,359.4 PSS World Medical Inc. 3.4% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Stericycle, Inc. 27.2% Stericycle, Inc. 30.9% Thermo Fisher Scientific, Inc. 12.2% Thermo Fisher Scientific, Inc. 19.5% Omnicare Inc. 8.3% Omnicare Inc. 10.8% Henry Schein Inc. 7.2% Henry Schein Inc. 8.6% PSS World Medical Inc. 6.3% PSS World Medical Inc. 7.8% MedcoHealth Solutions Inc. 3.8% MedcoHealth Solutions Inc. 4.5% Owens & Minor Inc. 2.6% Owens & Minor Inc. 2.9% McKesson Corporation 1.8% McKesson Corporation 2.2% Cardinal Health, Inc. 1.4% Cardinal Health, Inc. 1.7% AmerisourceBergen Corporation 1.4% AmerisourceBergen Corporation 1.5% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Thermo Fisher Scientific, Inc. 12.3% Owens & Minor Inc. 0.9x Henry Schein Inc. 18.6% McKesson Corporation 0.9x Owens & Minor Inc. 19.9% Henry Schein Inc. 1.0x McKesson Corporation 25.1% Thermo Fisher Scientific, Inc. 1.0x Cardinal Health, Inc. 29.0% AmerisourceBergen Corporation 1.1x AmerisourceBergen Corporation 31.3% PSS World Medical Inc. 1.3x PSS World Medical Inc. 32.5% Cardinal Health, Inc. 1.3x Omnicare Inc. 36.8% MedcoHealth Solutions Inc. 1.7x Stericycle, Inc. 48.0% Stericycle, Inc. 2.3x MedcoHealth Solutions Inc. 53.0% Omnicare Inc. 3.3x Page 19 of 45

25 Healthcare Equipment and Supplies Relative Price Chart Equipment & Supplies NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Equipment and Supplies Abbott Laboratories ABT $ ,545.8 $56.79 $44.59 $74,060.0 $89, x 9.9x 13.9x Baxter International Inc. BAX , , x 9.1x 11.2x Becton, Dickinson and Company BDX , , x 8.7x 11.4x Boston Scientific Corporation BSX , , , x 8.9x 15.7x CardioNet, Inc. BEAT x NM NM Johnson & Johnson JNJ , , , x 8.2x 9.7x Medtronic, Inc. MDT , , , x 8.2x 9.5x Siemens AG SIE , , x 8.1x 11.4x St. Jude Medical Inc. STJ , , x 9.8x 11.4x High 3.14x 9.9x 15.7x Low 0.57x 8.1x 9.5x Mean 2.23x 8.9x 11.8x Median 2.53x 8.8x 11.4x Page 20 of 45

26 Healthcare Equipment and Supplies (cont.) Fourth Quarter 2010 News December 28, 2010 CAIRE, Inc. acquired SeQual Technologies, Inc. from First Analysis Corporation, Ascension Health Ventures, LLC, Seneca Health Partners, Dunrath Capital, Inc. and other shareholders for $60 million. SeQual Technologies, Inc. develops medical oxygen systems, and provides medical oxygen concentrators and devices that separate oxygen from air to provide supplemental breathing oxygen for individuals with chronic lung diseases. December 15, 2010 icad Inc. (NasdaqCM: ICAD) signed a definitive agreement to acquire Xoft, Inc. for approximately $53 million. Xoft, Inc. develops electronic brachytherapy (ebx) systems for radiation oncology applications. December 14, 2010 JZ Capital Partners Limited (LSE: JZCP) sold its stake in GHW Holdings Inc. for approximately $30 million. GHW Holdings, Inc. manufactures and distributes orthodontic products. December 13, 2010 Endologix Inc. (NasdaqGM: ELGX) acquired Nellix Endovascular, Inc. from a group of investors for approximately $68 million. Nellix Endovascular, Inc. is a medical device company that develops endograft products for treatment of abdominal aortic aneurysms and thoracic aortic aneurysms. November 22, 2010 Medtronic, Inc. (NYSE: MDT) signed a merger agreement to acquire the remaining 89% stake in Ardian, Inc. from Advanced Technology Ventures, Split Rock Partners, LLC, Morgenthaler, Emergent Medical Partners and other shareholders for approximately $710 million. Ardian, Inc., a medical device company, develops catheter based treatment for diseases related to sympathetic hyperactivity, including hypertension, chronic kidney disease, metabolic syndrome, and heart failure. November 19, 2010 Boston Scientific Corporation (NYSE: BSX) signed a definitive merger agreement to acquire the remaining 86% stake in Sadra Medical, Inc. from a group of investors for approximately $390 million. Sadra Medical, Inc. is a medical device company that develops new therapies for the treatment of aortic valve disease and offers transcatheter aortic valve replacement systems. November 5, 2010 CardioNet, Inc. (NasdaqGM: BEAT) entered into a definitive merger agreement to acquire Biotel Inc. (OTCBB: BTEL) for $11 million. Biotel, Inc., through its subsidiaries, engages in the development, manufacture, testing, and marketing of medical devices and related software products. November 4, 2010 Nexus Dx, Inc. acquired International Technidyne Corporation from Thoratec Corp. (NasdaqGS: THOR) for $55 million. International Technidyne Corporation develops, manufactures, and markets point of care hemostasis management products for use in hospitals, physicianʹs offices, and the home. October 28, 2010 Stryker Corp. (NYSE: SYK) signed a definitive agreement to acquire the Neurovascular division from Boston Scientific Corporation (NYSE: BSX) for $1.5 billion. The transaction subsequently closed on January 3, Boston Scientific Corporation s Neurovascular Division provides patients and physicians with devices for the treatment of neurovascular disease which includes detachable coils, stents, microcatheters, and guidewires. Page 21 of 45

27 Healthcare Equipment and Supplies (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Siemens AG $75,978.0 Abbott Laboratories 13.6% Johnson & Johnson 62,494.0 St. Jude Medical Inc. 8.8% Abbott Laboratories 33,989.0 Becton, Dickinson and Company 5.5% Medtronic, Inc. 15,723.0 Baxter International Inc. 4.8% Baxter International Inc. 12,815.0 Medtronic, Inc. 4.2% Boston Scientific Corporation 7,883.0 Johnson & Johnson 3.2% Becton, Dickinson and Company 7,372.3 Siemens AG 0.9% St. Jude Medical Inc. 5,017.8 Boston Scientific Corporation 2.8% CardioNet, Inc CardioNet, Inc. 12.1% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Medtronic, Inc. 31.2% Medtronic, Inc. 36.3% St. Jude Medical Inc. 27.6% St. Jude Medical Inc. 32.3% Johnson & Johnson 26.6% Johnson & Johnson 31.2% Becton, Dickinson and Company 22.8% Becton, Dickinson and Company 29.6% Baxter International Inc. 21.8% Abbott Laboratories 28.4% Abbott Laboratories 21.2% Baxter International Inc. 27.1% Boston Scientific Corporation 13.7% Boston Scientific Corporation 24.0% Siemens AG 9.5% Siemens AG 13.4% CardioNet, Inc. 15.4% CardioNet, Inc. 5.6% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) CardioNet, Inc. 0.0% CardioNet, Inc. 0.0x Johnson & Johnson 18.0% Johnson & Johnson 0.6x Becton, Dickinson and Company 23.8% Becton, Dickinson and Company 0.8x St. Jude Medical Inc. 32.2% St. Jude Medical Inc. 1.2x Boston Scientific Corporation 35.4% Baxter International Inc. 1.4x Siemens AG 40.6% Medtronic, Inc. 1.8x Medtronic, Inc. 41.6% Abbott Laboratories 1.9x Baxter International Inc. 41.9% Siemens AG 2.0x Abbott Laboratories 46.6% Boston Scientific Corporation 3.2x Page 22 of 45

28 Healthcare Information Technology Relative Price Chart Information Technology NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Healthcare Information Technology Allscripts Healthcare Solutions, Inc. MDRX , , x 32.0x 38.4x athenahealth, Inc. ATHN , , x 44.3x NM Cerner Corp. CERN , , x 15.6x 21.2x Computer Programs & Systems Inc. CPSI x 16.0x 17.1x HMS Holdings Corp. HMSY , , x 21.8x 26.9x icad Inc. ICAD x NM NM MedAssets, Inc. MDAS , , x 12.5x 21.0x Omnicell Inc. OMCL x 17.3x 34.8x Quality Systems Inc. QSII , , x 20.9x 22.4x SXC Health Solutions, Corp. SXC , , x 19.3x 22.5x Vital Images Inc. VTAL x NM NM WebMD Health Corp. WBMD , , x 26.4x 31.2x High 6.10x 44.3x 38.4x Low 1.18x 12.5x 17.1x Mean 3.75x 22.6x 26.2x Median 3.82x 20.1x 22.5x Page 23 of 45

29 Healthcare Information Technology (cont.) Fourth Quarter 2010 News December 30, 2010 HEALTHCAREfirst Inc. acquired CareFacts, Inc. The financial terms of the deal were not disclosed. CareFacts Information Systems, Inc. develops software solutions for home care and the hospice industry. December 22, 2010 Dell Inc. (NasdaqGS: DELL) agreed to acquire InSiteOne, Inc. from Allegra Partners, Primus Capital Funds and others. The financial terms of the transaction were not disclosed. InSiteOne, Inc. provides medical data archiving, storage, and disaster recovery solutions to the healthcare industry. December 7, 2010 Aetna Inc. (NYSE: AET) entered into an agreement to acquire Medicity, Inc. for approximately $500 million. The transaction subsequently closed January 3, Medicity Inc. develops enterprise class software applications and data integration solutions for the healthcare market. November 30, 2010 MD On Line, Inc. acquired Healthware Solutions, LLC. The financial terms of the deal were not disclosed. Healthware Solutions, LLC develops software to access medical records for medical practices. November 17, 2010 CompuGroup Holding USA, Inc. entered into an agreement to acquire HealthPort LLC for $18 million. HealthPort LLC provides practice management software, electronic health records, and revenue cycle management services to doctors in physician practices, community health centers, and hospitals. November 1, 2010 MedLink International, Inc. (OTCBB: MLKN.A) acquired substantially all of the assets of MedAppz LLC for approximately $8 million. MedAppz, LLC provides an integrated suite of software for ambulatory care medical practice for scheduling, HER, and billing. October 29, 2010 Conjoin Group and Actis Capital, LLP acquired PHNS, Inc. from Ferrer Freeman & Company, LLC, Richard Kneipper and other shareholders for $250 million. PHNS, Inc., a hospital services company, provides information technology and business process solutions for hospitals, healthcare providers, and other businesses. Page 24 of 45

30 Healthcare Information Technology (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) SXC Health Solutions, Corp. $1,864.8 SXC Health Solutions, Corp. 44.8% Cerner Corp athenahealth, Inc. 33.9% Allscripts Healthcare Solutions, Inc HMS Holdings Corp. 31.0% WebMD Health Corp Allscripts Healthcare Solutions, Inc. 28.5% MedAssets, Inc WebMD Health Corp. 22.8% Quality Systems Inc Quality Systems Inc. 17.9% HMS Holdings Corp MedAssets, Inc. 15.4% athenahealth, Inc Computer Programs & Systems Inc. 14.2% Omnicell Inc Cerner Corp. 8.7% Computer Programs & Systems Inc Omnicell Inc. 0.5% Vital Images Inc Vital Images Inc. 0.9% icad Inc icad Inc. 10.3% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Quality Systems Inc. 25.4% MedAssets, Inc. 28.5% HMS Holdings Corp. 22.7% HMS Holdings Corp. 28.0% Cerner Corp. 19.2% Quality Systems Inc. 27.2% WebMD Health Corp. 17.7% Cerner Corp. 26.1% Computer Programs & Systems Inc. 17.0% WebMD Health Corp. 21.0% MedAssets, Inc. 17.0% Computer Programs & Systems Inc. 18.4% Allscripts Healthcare Solutions, Inc. 14.8% Allscripts Healthcare Solutions, Inc. 17.8% athenahealth, Inc. 8.6% athenahealth, Inc. 12.9% SXC Health Solutions, Corp. 5.2% Omnicell Inc. 7.6% Omnicell Inc. 3.8% SXC Health Solutions, Corp. 6.1% Vital Images Inc. 6.1% Vital Images Inc. 0.7% icad Inc. 11.1% icad Inc. 4.7% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Computer Programs & Systems Inc. 0.0% Computer Programs & Systems Inc. 0.0x HMS Holdings Corp. 0.0% HMS Holdings Corp. 0.0x icad Inc. 0.0% icad Inc. 0.0x Omnicell Inc. 0.0% Omnicell Inc. 0.0x Quality Systems Inc. 0.0% Quality Systems Inc. 0.0x SXC Health Solutions, Corp. 0.0% SXC Health Solutions, Corp. 0.0x Vital Images Inc. 0.0% Vital Images Inc. 0.0x Allscripts Healthcare Solutions, Inc. 0.3% Allscripts Healthcare Solutions, Inc. 0.0x Cerner Corp. 6.2% Cerner Corp. 0.3x athenahealth, Inc. 6.6% athenahealth, Inc. 0.4x WebMD Health Corp. 11.5% WebMD Health Corp. 0.8x MedAssets, Inc. 27.9% MedAssets, Inc. 1.7x Page 25 of 45

31 Hospital Providers Relative Price Chart Hospital Providers NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Hospital Providers Community Health Systems, Inc. CYH $ $42.30 $25.63 $3, , x 7.4x 11.3x Health Management Associates Inc. HMA , , x 7.4x 11.4x Lifepoint Hospitals Inc. LPNT , , x 6.5x 9.5x Tenet Healthcare Corp. THC , , x 7.4x 12.2x Universal Health Services Inc. UHS , , x 7.5x 10.6x High 1.08x 7.5x 12.2x Low 0.80x 6.5x 9.5x Mean 0.99x 7.2x 11.0x Median 1.03x 7.4x 11.3x Page 26 of 45

32 Hospital Providers (cont.) Fourth Quarter 2010 News December 31, 2010 Ascend Health Corporation acquired Behavioral Hospital of Bellaire and Mayhill Hospital. Financial terms of the transaction were not disclosed. Ascend Health Corporation operates behavioral health facilities for children, adolescents, adults, and seniors. December 29, 2010 Ark Holdings, Inc., an owner and operator of 35 post acute care hospitals which offer long term healthcare services, acquired 18 skilled nursing facilities located in South Carolina, North Carolina and Georgia. The financial terms of the transaction were undisclosed. December 21, 2010 Medical Properties Trust Inc. (NYSE: MPW) agreed to acquire three longterm acute care hospital facilities for approximately $100 million. The three facilities include Triumph Hospital Clear Lake (110 beds), Triumph Hospital Tomball (75 beds), and Northland Long Term Acute Care Hospital (35 beds). December 21, 2010 Phoebe Putney Memorial Hospital, Inc. offered to acquire Palmyra Medical Center from HCA, Inc. for approximately $200 million. Palmyra Park Hospital, Inc. operates as a healthcare facility in Southwest Georgia. December 15, 2010 Vanguard Health Systems signed a definitive agreement to acquire Holy Cross Hospital. Holy Cross Hospital operates as a not for profit healthcare facility serving the residents of Chicago. It offers emergency care, inpatient, outpatient, and surgical services, as well as primary care services at affiliate locations. The financial terms of the transaction were undisclosed. December 10, 2010 Grubb & Ellis Healthcare REIT II, Inc. acquired Humble Surgical Hospital, LLC for $13 million. Humble Surgical Hospital, LLC operates as a multi specialty surgical hospital. It offers surgical services in the areas of ENT, orthopedics, ophthalmology, podiatry, plastics, pain management, chiropractics, spine, and gastroenterology. November 18, 2010 North Country Health Services ( NCHS ), based in Bemidji, MN, and Sanford Health, based in Fargo, ND and Sioux Falls, SD, announced the NCHS Board of Trustees has signed a Letter of Intent to combine the two entities to create a new, integrated health care delivery system. The financial terms of the transaction were not disclosed. Non profit Sanford Health has 30 hospitals and more than 18,000 employees the largest employer in North and South Dakota. NCHS is an acute care hospital with approximately 80 beds. November 17, 2010 Prime, Inc. acquired Alvarado Hospital Medical Center, Inc. from Plymouth Health LLC for $40 million. Alvarado Hospital Medical Center, Inc. operates a general acute hospital in California. Page 27 of 45

33 Hospital Providers (cont.) Fourth Quarter 2010 News November 5, 2010 Methodist Healthcare System of San Antonio Ltd., LLP entered into a definitive agreement to acquire substantially all of the assets of Heart Hospital of San Antonio, LP from MedCath Corp. (NasdaqGS: MDTH) and its physician investors for gross proceeds of approximately $78.5 million. The transaction subsequently closed on January 3, November 2, 2010 MedCath Partners, LLC sold its 27% stake in Southwest Arizona Heart and Vascular Center, LLC for approximately $7 million to Yuma based partner physicians. Southwest Arizona Heart and Vascular Center, LLC provides cardiac catheterization lab services to Yuma Regional Medical Center in Yuma, Arizona. November 1, 2010 St. Davidʹs Healthcare Partnership, LP acquired substantially all of the assets of Heart Hospital of Austin from MedCath Corporation (Nasdaq: MDTH) and its physician partners for gross proceeds of approximately $40 million. October 1, 2010 VHS Of Phoenix Inc./ Vanguard Health Systems acquired substantially all of the assets of Arizona Heart Hospital, LLC from MedCath Corp. (NasdaqGS: MDTH) and physician investors for gross proceeds of approximately $34 million. October 1, Avera McKennan acquired Sioux Falls Hospital Management, Inc. from MedCath Corp. (NasdaqGS:MDTH) for approximately $20 million. Sioux Falls Hospital Management, Inc. was the indirect owner of a one third ownership interest which held management rights in Avera Heart Hospital of South Dakota. Page 28 of 45

34 Hospital Providers (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Community Health Systems, Inc. $12,674.9 Health Management Associates Inc. 11.0% Tenet Healthcare Corp. 9,165.0 Lifepoint Hospitals Inc. 9.2% Universal Health Services Inc. 5,299.9 Community Health Systems, Inc. 7.4% Health Management Associates Inc. 5,002.2 Universal Health Services Inc. 2.9% Lifepoint Hospitals Inc. 3,156.0 Tenet Healthcare Corp. 2.6% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) Lifepoint Hospitals Inc. 11.1% Lifepoint Hospitals Inc. 16.2% Universal Health Services Inc. 9.7% Health Management Associates Inc. 14.5% Health Management Associates Inc. 9.5% Universal Health Services Inc. 13.8% Community Health Systems, Inc. 8.8% Community Health Systems, Inc. 13.5% Tenet Healthcare Corp. 6.5% Tenet Healthcare Corp. 10.8% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Universal Health Services Inc. 31.7% Universal Health Services Inc. 1.4x Lifepoint Hospitals Inc. 45.2% Lifepoint Hospitals Inc. 3.1x Tenet Healthcare Corp. 69.7% Tenet Healthcare Corp. 4.1x Community Health Systems, Inc. 78.8% Health Management Associates Inc. 4.5x Health Management Associates Inc. 87.4% Community Health Systems, Inc. 5.4x Page 29 of 45

35 Long Term Care / Senior Living Relative Price Chart Long-Term Care / Senior Living NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Long Term Care / Senior Living Advocat Inc. AVCA x 4.0x 8.1x Brookdale Senior Living Inc. BKD , , x 14.3x NM Capital Senior Living Corp. CSU x 10.6x 19.3x Emeritus Corp. ESC , x 16.7x NM The Ensign Group, Inc. ENSG x 6.8x 8.3x Kindred Healthcare Inc. KND x 4.1x 10.9x National Healthcare Corp. NHC x 8.7x 13.1x Skilled Healthcare Group, Inc. SKH x 7.9x 10.1x Sun Healthcare Group Inc. SUNH x 5.2x 8.7x Sunrise Senior Living Inc. SRZ x NM NM High 2.54x 16.7x 19.3x Low 0.16x 4.0x 8.1x Mean 1.06x 8.7x 11.2x Median 0.98x 7.9x 10.1x Page 30 of 45

36 Long Term Care / Senior Living (cont.) Fourth Quarter 2010 News December 31, 2010 The Ensign Group, Inc. (NasdaqGS: ENSG), a provider of nursing and rehabilitative care services, announced a private placement of a promissory note for gross proceeds of $35 million. December 29, 2010 Solamor Hospice, Inc. acquired Countryside Hospice Care, Inc. from High Street Capital and other shareholders. The financial terms of the transaction were undisclosed. December 22, 2010 Health Care REIT Inc. (NYSE: HCN) signed a definitive agreement to acquire Spring Meadows communities from Capital Senior Living Corp. (NYSE: CSU) and Senior Housing Partners II, L.P., a fund managed by Prudential Real Estate Investors. Capital Senior Living will receive $17 million as a consideration of the transaction. December 20, 2010 Healthcare Trust of America, Inc. completed the acquisition of a portfolio of four long term acute care hospitals in Georgia, Texas and Florida for approximately $100 million. The facilities cover an area of 217,710 rentable square feet and consist of 209 licensed beds. December 8, 2010 Sunrise Senior Living Investments, Inc., an owner and operator of assisted living facilities, and CNL Income Partners, LP entered into a purchase and sale agreement to acquire 29 senior living facilities from U.S. Assisted Living Facilities III, Inc. and Sunrise Senior Living Investments, Inc. for approximately $260 million. December 6, 2010 SZR US Investments, Inc. acquired an interest in 56 senior living facilities from Sunrise Senior Living Investments, Inc. for $38 million. November 1, 2010 Assisted Living Concepts Inc. (NYSE: ALC) acquired nine senior living residences from HCP, Inc. (NYSE: HCP) for approximately $28 million. The asset comprises 365 units and seven residences located in Texas and New Jersey. October 20, 2010 Continuum Care Holdings, Inc. signed a letter of intent to acquire Green Acres Nursing and Rehabilitation Center from Adams County. The financial terms of the transaction were undisclosed. Green Acres Nursing & Rehabilitation Center operates as a nursing home and is based in Gettysburg, Pennsylvania. October 19, 2010 Benchmark Assisted Living, LLC agreed to acquire Edgehill Continuing Care Retirement Community, Inc. from Stamford Hospital. The financial terms of the deal were not disclosed. Edgehill Continuing Care Retirement Community, Inc. provides retirement community and care for life services. October 18, 2010 LTC Properties Inc. (NYSE:LTC) signed three purchase agreements to acquire four assisted living properties totaling 241 units in Mississippi and Florida for almost $30 million. LTC Properties, Inc. operates as a healthcare real estate investment trust. Page 31 of 45

37 Long Term Care / Senior Living (cont.) Fourth Quarter 2010 News October 14, 2010 Keystone Senior LLC acquired a 27 facility portfolio of assisted living properties. The financial terms of the deal were not disclosed. The 27 facility portfolio of assisted living properties offers senior living facilities in Wisconsin and Minnesota. October 1, 2010 Radius Management Services purchased six Massachusetts skilled nursing facilities from Health Care REIT. The properties total 837 skilled nursing beds and 27 assistedliving units that averaged an occupancy rate of 92 percent and sold for $88.5 million, or $102,500 per bed. October 1, 2010 Wilkinson Group sold a Tennessee facility consisting of 59 assisted living units, 42 independent living units and 15 memory care units to a Florida based real estate investment company for $8.5 million, or $72,300 per unit. Page 32 of 45

38 Long Term Care / Senior Living (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Kindred Healthcare Inc. $4,294.2 The Ensign Group, Inc. 20.0% Brookdale Senior Living Inc. 2,170.4 Advocat Inc. 10.2% Sun Healthcare Group Inc. 1,898.3 Brookdale Senior Living Inc. 9.0% Sunrise Senior Living Inc. 1,455.9 Emeritus Corp. 8.0% Emeritus Corp Capital Senior Living Corp. 4.9% Skilled Healthcare Group, Inc National Healthcare Corp. 4.9% National Healthcare Corp Skilled Healthcare Group, Inc. 4.5% The Ensign Group, Inc Sunrise Senior Living Inc. 1.5% Advocat Inc Kindred Healthcare Inc. 1.4% Capital Senior Living Corp Sun Healthcare Group Inc. 1.3% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) The Ensign Group, Inc. 11.3% Brookdale Senior Living Inc. 16.3% Skilled Healthcare Group, Inc. 11.0% Capital Senior Living Corp. 15.3% Capital Senior Living Corp. 8.4% Emeritus Corp. 15.2% National Healthcare Corp. 7.8% Skilled Healthcare Group, Inc. 14.1% Emeritus Corp. 5.8% The Ensign Group, Inc. 13.9% Sun Healthcare Group Inc. 3.8% National Healthcare Corp. 11.7% Brookdale Senior Living Inc. 3.0% Sun Healthcare Group Inc. 6.3% Advocat Inc. 2.0% Sunrise Senior Living Inc. 4.6% Sunrise Senior Living Inc. 1.9% Kindred Healthcare Inc. 4.6% Kindred Healthcare Inc. 1.7% Advocat Inc. 4.0% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) National Healthcare Corp. 1.8% National Healthcare Corp. 0.1x Kindred Healthcare Inc. 14.1% Kindred Healthcare Inc. 0.8x The Ensign Group, Inc. 33.3% The Ensign Group, Inc. 1.2x Sun Healthcare Group Inc. 38.8% Advocat Inc. 2.0x Advocat Inc. 48.7% Sun Healthcare Group Inc. 3.7x Capital Senior Living Corp. 52.3% Sunrise Senior Living Inc. 4.0x Skilled Healthcare Group, Inc. 67.2% Skilled Healthcare Group, Inc. 4.9x Brookdale Senior Living Inc. 70.7% Capital Senior Living Corp. 5.8x Sunrise Senior Living Inc. 75.4% Brookdale Senior Living Inc. 7.2x Emeritus Corp. 85.0% Emeritus Corp. 11.1x Page 33 of 45

39 Managed Care Relative Price Chart Managed Care NASDAQ Composite (^COMP) S&P 500 Index (^SPX) Valuation Metrics Recent Shares Market Enterprise Last Twelve Months Stock Price Outstanding 52 Week 52 Week Capitalization Value EV/ EV/ EV/ Company Ticker (12/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT Managed Care Aetna Inc. AET , , x 4.7x 5.4x CIGNA Corporation CI , , x 5.3x 5.7x Coventry Health Care Inc. CVH , , x 3.6x 4.0x Express Scripts Inc. ESRX , , x 14.3x 15.8x Health Net Inc. HNT , , x 6.6x 7.2x Humana Inc. HUM , , x 3.5x 4.0x MedcoHealth Solutions Inc. MHS , , x 10.4x 12.4x Unitedhealth Group, Inc. UNH , , , x 4.6x 5.2x WellPoint Inc. WLP , , x 5.6x 6.3x High 0.73x 14.3x 15.8x Low 0.19x 3.5x 4.0x Mean 0.43x 6.5x 7.3x Median 0.44x 5.3x 5.7x Page 34 of 45

40 Managed Care (cont.) Fourth Quarter 2010 News December 21, 2010 Humana Inc. (NYSE: HUM) acquired Concentra Inc. from Welsh, Carson, Anderson & Stowe, Ferrer Freeman & Company, LLC and other shareholders for approximately $790 million in cash. Concentra, Inc., a healthcare company, provides occupational medicine, urgent care, physical therapy, and health and wellness services for workers and families. November 11, 2010 IPC The Hospitalist Company, Inc. (NasdaqGS: IPCM) acquired Zenith Hospitalists, LLP. The financial terms of the transaction were not disclosed. Zenith Hospitalists, LLP owns and operates a medical practice organization. October 26, 2010 Munich Health North America, Inc. agreed to acquire Windsor Health Group, Inc. from Pharos Capital Group, LLC and other shareholders for approximately $130 million. Windsor Health Group, Inc. is a managed healthcare company that operates government sponsored health plans. Page 35 of 45

41 Managed Care (cont.) Benchmarking SIZE (Revenue in $mm) HISTORICAL GROWTH (Annual Revenue) Unitedhealth Group, Inc. $91,909.0 Express Scripts Inc. 90.2% MedcoHealth Solutions Inc. 64,283.3 MedcoHealth Solutions Inc. 11.8% WellPoint Inc. 59,408.1 CIGNA Corporation 10.0% Express Scripts Inc. 41,902.6 Humana Inc. 7.6% Aetna Inc. 34,462.3 Unitedhealth Group, Inc. 7.1% Humana Inc. 33,151.0 Aetna Inc. 2.1% CIGNA Corporation 20,460.0 WellPoint Inc. 2.7% Health Net Inc. 14,050.2 Coventry Health Care Inc. 10.8% Coventry Health Care Inc. 12,004.8 Health Net Inc. 11.0% PROFITABILITY PROFITABILITY (EBIT Margin %) (EBITDA Margin %) CIGNA Corporation 9.7% CIGNA Corporation 10.6% Unitedhealth Group, Inc. 8.3% Aetna Inc. 9.3% WellPoint Inc. 8.1% WellPoint Inc. 9.1% Aetna Inc. 8.1% Unitedhealth Group, Inc. 9.1% Coventry Health Care Inc. 7.8% Coventry Health Care Inc. 8.8% Humana Inc. 6.3% Humana Inc. 7.1% Express Scripts Inc. 4.7% Express Scripts Inc. 5.1% MedcoHealth Solutions Inc. 3.8% MedcoHealth Solutions Inc. 4.5% Health Net Inc. 2.6% Health Net Inc. 2.9% LEVERAGE (Debt/Capitalization) LEVERAGE (Total Debt/EBITDA) Humana Inc. 21.9% Humana Inc. 0.8x Health Net Inc. 22.7% Express Scripts Inc. 1.2x Coventry Health Care Inc. 28.3% Health Net Inc. 1.2x WellPoint Inc. 28.9% Unitedhealth Group, Inc. 1.3x Unitedhealth Group, Inc. 30.1% CIGNA Corporation 1.3x CIGNA Corporation 30.6% Aetna Inc. 1.4x Aetna Inc. 31.6% Coventry Health Care Inc. 1.5x Express Scripts Inc. 43.6% MedcoHealth Solutions Inc. 1.7x MedcoHealth Solutions Inc. 53.0% WellPoint Inc. 1.8x Page 36 of 45

42 Healthcare Industry Transactions * Closed Fourth Quarter 2010 Enterprise Closed Date Target Buyer Sector Value ($mm) 12/31/2010 Progressive Medical, Inc. Progressive Enterprises Holdings, Inc Managed Healthcare - 12/31/2010 Behavioral Hospital of Bellaire, LLC and Denton Ascend Health Corporation Hospitals and Healthcare Centers - 12/31/2010 Physicians Automated Laboratory, Inc. Sonic Healthcare USA, Inc. Medical Laboratory Services - 12/30/2010 CareFacts Information Systems, Inc. HEALTHCAREfirst Inc. Health Care Technology - 12/29/2010 Countryside Hospice Care, Inc. Solamor Hospice, Inc. Hospitals and Healthcare Centers - 12/29/2010 Moongang, Inc. U.S. Healthw orks, Inc. Hospitals and Healthcare Centers - 12/29/ Skilled Nursing Facilities Located in South Ark Holdings, Inc. Assisted Living Facilities and Services - 12/28/2010 Midw est Hospital Care LLC and Midw est IPC The Hospitalist Company, Inc. Managed Healthcare - 12/24/2010 ZyloMed Corporation Accentus Inc. Health Care Technology $ /23/2010 Atherotech, Inc. Behrman Capital Medical Laboratory Services - 12/22/2010 Sector 10, Inc. Prior to Reverse Merger With Sector 10, Inc. Healthcare Equipment and Supplies - 12/22/2010 Six Clinic Physical Therapy group in Mid Atlantic US Physical Therapy Inc. (NasdaqGS:USPH) Hospitals and Healthcare Centers $5.7 12/22/2010 Advanced Pain Management, S.C. Chicago Grow th Partners Hospitals and Healthcare Centers - 12/16/2010 Rehabilitex, Inc. Wallace Management Corporation Hospitals and Healthcare Centers - 12/16/2010 Dayton Medical Imaging North and Dayton Kettering Adventist Healthcare Medical Laboratory Services - 12/16/2010 GTI Diagnostics, Inc. Gen-Probe Inc. (NasdaqGS:GPRO) Healthcare Equipment and Supplies $ /15/2010 Xoft, Inc. icad Inc. (NasdaqCM:ICAD) Healthcare Equipment and Supplies $ /15/2010 Incept BioSystems, Inc. Origio a/s (OB:ORO) Healthcare Equipment and Supplies $1.1 12/15/2010 Technology Imaging Services, Inc. International Isotopes Inc. (OTCBB:INIS); Healthcare Distributors - 12/14/2010 The Medipharm Manufacturing Group Torque Medical Holdings, LLC Healthcare Equipment and Supplies - 12/14/2010 NEOdontics International, Inc. The Riverside Company Healthcare Equipment and Supplies - 12/14/2010 Olufunke Odetunde MD PA Unity Family Clinic PA Hospitals and Healthcare Centers - 12/14/2010 GHW Holdings, Inc. - Healthcare Equipment and Supplies $ /10/2010 ACI Medical Devices, Inc. The Pritzker Group Healthcare Equipment and Supplies - 12/10/2010 Humble Surgical Hospital, LLC Grubb & Ellis Healthcare REIT II, Inc. Hospitals and Healthcare Centers $ /09/2010 icare Academic LLC Lippincott Williams & Wilkins, Inc. Health Care Technology - 12/09/2010 Alliance Home Care, Complex Mobility Business United Seating & Mobility, LLC Healthcare Distributors - 12/08/2010 Cambridge Research & Instrumentation, Inc. Caliper Life Sciences, Inc. (NasdaqGS:CALP) Healthcare Equipment and Supplies $ /08/2010 The Racers Edge, Inc. MicroHoldings US, Inc. (OTCPK:MCHU) Healthcare Equipment and Supplies - 12/08/ Senior Living Facilities Sunrise Senior Living Investments, Inc.; CNL Assisted Living Facilities and Services $ /07/2010 Stonecrest Imaging Shelbyville, LLC Jew ish Hospital Services, Inc. Hospitals and Healthcare Centers - 12/07/2010 Small Bone Innovations, Inc., Shoulder-Related Fx Solutions S.A.S. Healthcare Equipment and Supplies - 12/07/2010 Medicity Inc. Aetna Inc. (NYSE:AET) Health Care Technology $ /06/2010 Peminic, Inc. Verge Solutions, LLC Health Care Technology - 12/06/2010 Image Solutions, Inc. Computer Sciences Corporation (NYSE:CSC) Health Care Technology - 12/06/2010 Prematics, Inc. NaviNet, Inc. Health Care Technology - 12/06/2010 Synergistic Resources, LLC General Cannabis, Inc. (OTCPK:CANA) Hospitals and Healthcare Centers - 12/06/2010 Health Care Realty of Macon, L.P. and Health National Healthcare Corp. Assisted Living Facilities and Services - 12/06/2010 Vertical*i, Inc. I-Nova SA Health Care Technology - 12/02/2010 SeQual Technologies, Inc. CAIRE, Inc. Healthcare Equipment and Supplies $ /02/2010 RL Properties, Inc. New Life Lodge Hospitals and Healthcare Centers - 12/02/2010 Encompass TSS, LLC Hill-Rom TSS, Inc. Healthcare Distributors - 12/01/2010 Glade Valley Nursing & Rehabilitation Center, Genesis HealthCare Corporation Hospitals and Healthcare Centers - 12/01/2010 Tw o Tennessee Nursing Centers Signature Health Care, LLC Assisted Living Facilities and Services - 12/01/2010 Senior Living Management Corp., Three National Health Investors Inc. (NYSE:NHI) Assisted Living Facilities and Services $ /01/2010 Adventist Healthcare, Inc., Five Nursing Genesis HealthCare Corporation Assisted Living Facilities and Services - 12/01/2010 Tw o Communities of 321 units in Florida and a Emeritus Corp. (NYSE:ESC) Assisted Living Facilities and Services $ /01/2010 Colonial Manors of Oakland, Iow a, Inc. Oakland Healthcare Management, LLC Assisted Living Facilities and Services - 11/30/2010 Manning Family Healthcare Clinic, P.C. Manning Regional Healthcare Center Hospitals and Healthcare Centers - 11/30/2010 Healthw are Solutions, LLC MD On-Line, Inc. Health Care Technology - 11/30/2010 The HealthONE Cancer Care at Thornton Presbyterian/St. Luke's Medical Center Hospitals and Healthcare Centers - 11/29/2010 Pharmacy OneSource, Inc. Wolters Kluw er Health, Inc. Health Care Technology - 11/29/2010 PGxHealth LLC, Familion Business Transgenomic Inc. (OTCBB:TBIO) Medical Laboratory Services $ /27/2010 SquareOne, Inc. Ostial Corporation Healthcare Equipment and Supplies - 11/24/2010 GeneGo, Inc. Thomson Reuters Corporation (TSX:TRI) Health Care Technology - 11/22/2010 Ardian, Inc. Medtronic, Inc. (NYSE:MDT) Healthcare Equipment and Supplies $ /22/2010 Advanced Urogynecology & Pelvic Surgery, Inc. The Christ Hospital Corporation Hospitals and Healthcare Centers - 11/19/2010 Wichita Clinic, Pa Via Christi Health Inc. Hospitals and Healthcare Centers - 11/19/2010 Virginia Imaging Center, LLC Insight Health Services Holdings Corp. Medical Laboratory Services - 11/19/2010 Sadra Medical, Inc. Boston Scientific Corporation (NYSE:BSX) Healthcare Equipment and Supplies $ /19/2010 Concentra, Inc. Humana Inc. (NYSE:HUM) Hospitals and Healthcare Centers $ /19/2010 Sunrise Floral Vale Senior Living L.P. Cornerstone Healthcare Plus REIT Inc. Assisted Living Facilities and Services $4.5 11/19/2010 Tetrad Corporation Sound Technology, Inc. Healthcare Equipment and Supplies - 11/18/2010 Alamo Hospice Hospice Partners of Texas, LLC Hospitals and Healthcare Centers - 11/17/2010 Alvarado Hospital Medical Center, Inc. Prime, Inc. Hospitals and Healthcare Centers $40.0 * Includes transactions occurring within segments of the NCA Universe Page 37 of 45

43 Healthcare Industry Transactions * Closed Fourth Quarter 2010 (cont.) Enterprise Closed Date Target Buyer Sector Value ($mm) 11/16/2010 Miller Technical Services Miller Manufacturing Company, Inc. Healthcare Equipment and Supplies - 11/16/2010 Medline DiaMed, LLC Medline Industries, Inc. Healthcare Distributors - 11/16/2010 FlexSite Diagnostics, Inc. Geonostics, Inc. Healthcare Equipment and Supplies - 11/15/2010 Three Rivers Holdings, LLC Tisport, LLC Healthcare Equipment and Supplies - 11/13/2010 The Sexual Recovery Institute, Inc. Elements Behavioral Health, Inc. Hospitals and Healthcare Centers - 11/11/2010 Zenith Hospitalists, LLP IPC The Hospitalist Company, Inc. Managed Healthcare - 11/10/2010 Eastern Carolina Internal Medicine, Pa CarolinaEast Health System Managed Healthcare $8.7 11/08/2010 CBLPath, Inc. Sonic Healthcare Ltd. (ASX:SHL) Medical Laboratory Services $ /05/2010 The Anspach Effort, Inc. Synthes Inc. (SWX:SYST) Healthcare Equipment and Supplies - 11/05/2010 Heart Hospital Of San Antonio, LP Methodist Healthcare System Of San Antonio Hospitals and Healthcare Centers $ /05/2010 Biotel Inc. CardioNet, Inc. (NasdaqGM:BEAT) Healthcare Equipment and Supplies $9.8 11/05/2010 TestSource Inc. Call24, Inc. Health Care Technology - 11/05/2010 Statcorp, Inc., Disposable and Reusable Blood OSI Optoelectronics, Inc. Healthcare Equipment and Supplies $3.6 11/04/2010 Mountain Trace Nursing Center AdCare Health Systems Inc. (AMEX:ADK) Assisted Living Facilities and Services $6.1 11/04/2010 International Technidyne Corporation Nexus Dx, Inc. Healthcare Equipment and Supplies $ /04/2010 RWF, LLC Medicalis Corporation Health Care Technology - 11/04/2010 Renal Advantage, Inc. Liberty Dialysis, LLC Medical Laboratory Services - 11/03/2010 Windsor Lake Healthcare, Inc. The Ensign Group, Inc. (NasdaqGS:ENSG) Assisted Living Facilities and Services - 11/03/2010 Sunw est Management, Inc., River Rock Lodge Oxford Development Holdings, LLC Assisted Living Facilities and Services $3.0 11/03/2010 Widex Hearing Aid Co. Inc. Widex A/S Healthcare Equipment and Supplies - 11/02/2010 Foley Carrier Services, Inc. BirdDog Solutions, Inc. Medical Laboratory Services - 11/02/2010 Salter Labs RoundTable Healthcare Management, LLC; Healthcare Equipment and Supplies - 11/02/2010 Southw est Arizona Heart and Vascular Center, - Medical Laboratory Services $ /01/2010 Mobility Plus, Inc. Cherokee Nation Businesses, LLC Healthcare Distributors - 11/01/2010 MedAppz, LLC MedLink International, Inc. (OTCBB:MLKN.A) Health Care Technology $7.7 11/01/2010 Villa Del Sol Haw keye Care Center of Marshalltow n, LLC Assisted Living Facilities and Services - 10/31/2010 Comfort Medical Supply, LLC Private Equity Capital Corp. Healthcare Equipment and Supplies - 10/31/2010 Softscope Medical Technologies, Inc. FUJIFILM Optical Devices U.S.A., Inc. Healthcare Equipment and Supplies - 10/31/2010 Tw elve Oaks Medical Center, Sharpstow n - Hospitals and Healthcare Centers $3.0 10/29/2010 PHNS, Inc. Actis Capital, LLP; Conjoin Group Health Care Technology $ /28/2010 Boston Scientific Corporation, Neurovascular Stryker Corp. (NYSE:SYK) Healthcare Equipment and Supplies $1, /28/2010 EZ Concept Surgical Device Corporation Wright Medical Group Inc. (NasdaqGS:WMGI) Healthcare Equipment and Supplies - 10/27/2010 Sibley Memorial Hospital The Johns Hopkins Hospital Assisted Living Facilities and Services - 10/27/2010 ASML US, Inc., Richmond Optics Facility Zygo Corp. (NasdaqGS:ZIGO) Healthcare Equipment and Supplies - 10/27/2010 UroMatrix Medical Systems Pos-T-Vac, Inc. Healthcare Equipment and Supplies - 10/27/2010 Nellix Endovascular, Inc. Endologix Inc. (NasdaqGM:ELGX) Healthcare Equipment and Supplies $ /26/2010 Windsor Health Group, Inc. Munich Health North America, Inc. Managed Healthcare $ /26/2010 Progressive Healthcare, LLC Vibra Healthcare, LLC Hospitals and Healthcare Centers - 10/25/2010 Urgent Cares of America, Inc. Comvest Investment Partners Hospitals and Healthcare Centers - 10/24/ ,000-Square Foot Nursing Home - Assisted Living Facilities and Services - 10/22/2010 Clarient, Inc. GE Healthcare Ltd. Medical Laboratory Services $ /21/2010 VisualMED Clinical Solutions Corp., Imaging Greenw ay Medical Technologies, Inc. Health Care Technology - 10/20/2010 CooperSurgical, Inc., Meditron Nexcore Technology, Inc. Healthcare Equipment and Supplies - 10/20/2010 Radius Medical Technologies, Inc., Snare Vascular Solutions Inc. (NasdaqGM:VASC) Healthcare Equipment and Supplies $7.5 10/20/2010 Ingenix, Inc., P&C Medical Bill Review Business Mitchell International, Inc. Health Care Technology - 10/19/2010 Cardiac Science Corporation Opto Circuits (India) Ltd. (BSE:532391) Healthcare Equipment and Supplies $ /18/2010 The Bellettini West Living, LLC Assisted Living Facilities and Services - 10/15/2010 Springstone, Inc. Welsh, Carson, Anderson & Stow e Hospitals and Healthcare Centers - 10/15/2010 CLRS Technology, Inc. Solta Medical, Inc. (NasdaqGS:SLTM) Healthcare Equipment and Supplies $1.1 10/15/2010 AGA Medical Holdings, Inc. St. Jude Medical Inc. (NYSE:STJ) Healthcare Equipment and Supplies $1, /14/ Facility Portfolio of Assisted Living Properties Keystone Senior, LLC Assisted Living Facilities and Services - 10/14/2010 Post- Acute Medical Associates and The IPC The Hospitalist Company, Inc. Managed Healthcare - 10/14/2010 NovaVision, Inc. Fountainhead Capital Management Ltd.; Vycor Healthcare Equipment and Supplies $0.9 10/12/2010 Data Innovations, Inc. Battery Ventures Health Care Technology - 10/11/2010 Nine Senior Living Residences Assisted Living Concepts Inc. (NYSE:ALC) Assisted Living Facilities and Services $ /08/2010 Doctors Laboratory, Inc. Triad Laboratory Alliance, LLC Medical Laboratory Services - 10/06/2010 BTHC XV, Inc., Prior to Reverse Merger w ith BTHC XV, Inc. Assisted Living Facilities and Services - 10/06/2010 Gambro AB, Water Treatment Products Mar Cor Purification, Inc. Healthcare Equipment and Supplies $ /06/2010 Spine Smith, LP, Cequence Cervical Plate Pioneer Surgical Technology, Inc. Healthcare Equipment and Supplies - 10/06/2010 ASD Management, Madison Medical Plaza The Rendina Companies, Inc. Hospitals and Healthcare Centers $8.5 10/06/2010 Milford Assisted Living, LLC Ontario Teachers' Pension Plan Assisted Living Facilities and Services - 10/05/2010 Micromedics, Inc. Nordson Corporation (NasdaqGS:NDSN) Healthcare Equipment and Supplies - 10/05/2010 Olathe Medical Services, Inc, Olathe Concentra, Inc. Hospitals and Healthcare Centers - 10/05/2010 City Place Surgery Center LLC Meridian Surgical Partners, LLC Hospitals and Healthcare Centers - 10/05/2010 InSight Health Services Holdings Corp., Seven - Medical Laboratory Services - 10/05/2010 The Center For Wound Healing, Inc. Sverica International Hospitals and Healthcare Centers $ /04/2010 La Siena and Villa Hermosa Communities Senior Resource Group, LLC Assisted Living Facilities and Services - 10/01/2010 FORE Transcriptions USA Inc. imedx, Inc. Health Care Technology - 10/01/2010 Fifty Six Senior Living Facilities in the United SZR US Investments, Inc. Assisted Living Facilities and Services - * Includes transactions occurring within segments of the NCA Universe Page 38 of 45

44 Healthcare Industry Transactions * (continued) Announced Transactions Number of Transactions Announced # of Deals Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Value of Transactions Announced 12,000 10,000 8,000 $ in Millions 6,000 4,000 2,000 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 * Includes transactions occurring within segments of the NCA Universe Page 39 of 45

45 General Distressed Market Indicators Business Bankruptcy Filings 18,000 16,000 14,000 12,000 10,000 8,000 6,000 Bankruptcy Reform Chapter 7 Business bankruptcy filings totaled 58,322 in the 12 month period ending September 30, 2010, down 0.7% from the 58,721 business bankruptcies filed during the previous year. 4,000 2,000 Chapter 11 0 Chapter 12/13 Source: Federal Judiciary U.S. Speculative Grade Default Rate Versus Distressed Credit Ratio According to S&P, as 2010 came to a close, the economic recovery has been progressing, albeit at a steady crawl, and credit market indicators in the U.S. appear to be slowly improving, as well. As a result, the U.S. speculative grade corporate default rate has fallen to 3.35% its lowest point in two years. Source: Standard and Poor s U.S. Distressed Debt Monitor, December 20, 2010 Page 40 of 45

46 Distribution of Standard and Poor s Distress Ratio by Industry Source: Standard and Poor s U.S. Distressed Debt Monitor, December 20, 2010 Institutional Loans That Have Defaulted During 4Q10 Issuer Industry Deal Date Default Date Bankruptcy Date Total Initial Amount Initial Institutional Amount Local Insight Yellow Pages Printing & Publishing Apr-08 Nov-10 $ 365 $ 335 American Media Printing & Publishing Jan-06 Nov-10 $ 510 $ 450 Source: Standard & Poor s LCD 4Q10 Institutional Loan Default Quarterly Review Page 41 of 45

47 Healthcare Distressed News Fourth Quarter 2010 December 28, 2010 Millenium Holding Group Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Nevada, Las Vegas. The debtor listed liabilities worth $7.4 million. The unsecured creditors include Connelly, Roberts & McGivney, LLC, Envision Capital LLC, Friedman & Maguire, P.C., Fusion Capital Fund II, LLC, Gusrae, Kaplan, Bruno & Nusbaum PLLC, Mendoza Berger & Company, LLP, NVESTrain, Runyon Architects and Associates, Stout Risius Ross, Inc. and Sutura, Inc. December 21, 2010 CNS Response, Inc. filed its 10 K for the period ending Sep 30, In this report its auditor, Cacciamatta Accountancy Corporation, gave an unqualified opinion expressing doubt that the company can continue as a going concern. December 21, 2010 Diabetes America, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The debtor listed assets and liabilities both in the range of $10 million to $50 million. December 17, 2010 Cardima, Inc. filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Court for the Northern District of California. The debtor listed its assets at $0.65 million and liabilities at $1.02 million. The largest unsecured creditors of the debtor are Stellartech Research Corporation, SurModics Inc., Wedbush Securities Inc., Wells Fargo Insurance, Inc., Lippert/Heilshorn & Associates, Inc., PMB Helin Donovan, LLP, Centurion Sterilization Services, American Stock Transfer & Trust Company, LLC, HealthLink Europe BV, and Peridot Corporation. December 13, 2010 Mammatech Corp. filed its 10 K for the period ending Aug 31, In this report its auditor, Stark Winter Schenkein & Co, LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. December 10, 2010 Insight Health Services Holdings Corp. filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of New York. The debtor listed its assets at $140.1 million and liabilities at million. November 15, 2010 Truewest Corp. filed its 10 K for the period ending Sep 30, In this report its auditor, S. W. Hatfield & Associates, gave an unqualified opinion expressing doubt that the company can continue as a going concern. November 12, 2010 A group of petitioning creditors filed an involuntary petition against CMI Holding Company, Inc. to liquidate under Chapter 7 on U.S. Bankruptcy Court in the Northern District of Texas. The total claim amount of the petitioning creditors is $0.87 million. November 1, 2010 InVivo Therapeutics Holdings Corp. filed its 8 K for the period ending Dec 31, In this report its auditor, Wolf & Company, P.C., gave an unqualified opinion expressing doubt that the company can continue as a going concern. October 13, 2010 Imaging Diagnostic Systems Inc. filed its 10 K for the period ending Jun 30, In this report its auditor, Sherb & Co., LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. Page 42 of 45

48 Healthcare Distressed News Fourth Quarter 2010 (cont.) October 13, 2010 imedicor, Inc. filed its 10 K for the period ending Jun 30, In this report its auditor, Demetrius & Company, LLC, gave an unqualified opinion expressing doubt that the company can continue as a going concern. October 13, 2010 Golden Century Resources Ltd. filed its 10 K for the period ending Jun 30, In this report its auditor, Manning Elliott, gave an unqualified opinion expressing doubt that the company can continue as a going concern. October 12, 2010 Escalon Medical Corp. filed its 10 K for the period ending Jun 30, In this report its auditor, Mayer Hoffman McCann P.C., gave an unqualified opinion expressing doubt that the company can continue as a going concern. October 1, 2010 Unitron Hearing, Inc. and Phonak, LLC filed an involuntary petition against Astrum Hearing Solutions, LLC for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa. The total claim amount against Astrum Hearing Solutions is $0.75 million. Page 43 of 45

49 Notes Certain industry participants were excluded from this newsletter due to either a lack of trading volume, a lack of available financial information, a bankruptcy filing or a change in their business plan. Enterprise Value (EV) = Common equity value + preferred equity + debt cash & short term investments. EBITDA = Earnings before interest, taxes, depreciation and amortization. EBIT = Earnings before interest and taxes. YTM = Yield to Maturity. EV multiples are based on the book value of the companies debt and not current trading volume. The numbers presented in this report have been adjusted to exclude non recurring and extraordinary items, net of taxes. NA = Not available. Sources: Capital IQ, Bloomberg, company 10 K, 10 Q and 8 K SEC filings, annual reports and press releases. Any public companies chosen for the NCA Universe are companies commonly used for industry information to show performance within a sector. They do not include all public companies that could be categorized within the sector and were not created as benchmarks; they do not imply benchmarking and do not constitute recommendations for a particular security and/or sector. The charts and graphs used in this report have been compiled by Navigant Capital Advisors solely for purposes of illustration. Subscription Form Please add my name to the Quarterly Dialogue distribution list Please remove my name from the Quarterly Dialogue distribution list Please correct my information on the Quarterly Dialogue distribution list Name Title Company Address City, State, Zip Phone E mail Please fax this completed form to Gia Lewis at (404) Page 44 of 45

50 For further information on any of our services, please contact one of the following: Investment Banking» Merger, acquisition and divestiture advisory services» Transaction structuring and execution» Institutional debt and equity private placements» Corporate development services, including strategy formulation and target identification» Capital markets advisory services Contact Edward Casas at or Restructuring» Capital & Operating Restructuring» Distressed Asset Sales & Recapitalizations» Bankruptcy Advisory Support» Interim & Crisis Management» Creditor Rights Advisory Services Contact Edward Casas at or Valuation» Financial & Regulatory Reporting» Fairness / Solvency Opinions» Tax (IRC Section 382, 338, 280g, etc.)» Fresh Start Accounting Contact Richard Hitt at or [email protected] Financial Risk Management» Credit Risk» Market Risk» Asset / Liability & Interest Rate Risk» Operations Risk Contact Edward Casas at or [email protected] About Navigant Capital Advisors Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. (NYSE: NCI). Navigant Capital Advisors serves the investment banking and private equity, restructuring and valuation needs of companies, private equity groups, lenders and other creditor constituencies. The firm arranges private placements of debt and equity, advises on mergers and acquisitions, as well as initiates divestitures for the owners of businesses across a broad range of industries. The firm also represents borrowers, secured lenders and other creditor constituencies in connection with financial and operating restructurings. Finally, we provide transactional valuations, fairness opinions and other financial reporting and compliance services to companies and their boards. Offices Atlanta, GA* Austin, TX Baltimore, MD Boston, MA Burlington, MA Chicago, IL* Dallas, TX Denver, CO Detroit, MI Fairfield, CT Hong Kong Houston, TX Irvine, CA Lawrenceville, NJ Los Angeles, CA Miami, FL Montreal, Quebec New York, NY* Ottawa, Ontario Palo Alto, CA Philadelphia, PA Phoenix, AZ Pittsburgh, PA Princeton, NJ Quebec City, Quebec Rancho Cordova, CA Sacramento, CA San Francisco, CA Seattle, WA Shanghai Singapore Skokie, IL* Tampa, FL Toronto, Ontario United Kingdom Vienna, VA Washington, DC Westbury, NY *Broker-dealer offices registered with FINRA. Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses. Page 45 of 45