FOR IMMEDIATE RELEASE

Triumph HealthCare to Acquire Memorial Hermann Continuing Care

Long Term Acute Care Hospital Operations

The areas largest provider of long term acute expands its Houston presence with

Memorial Hermann affiliation.

(Houston, Texas/June 5, 2007) Triumph HealthCare, Houston’s largest provider of long-term acute care (LTAC), and Memorial Hermann, Texas’ largest not-for-profit healthcare system, today announced that Triumph will acquire Memorial Hermann Continuing Care Corporation’s LTAC operations. The deal, expected to close July 1, will further solidify Triumph HealthCare as the market leader in long-term acute care. Triumph and Memorial Hermann will also establish an affiliation under which the parties will work together on several fronts. Triumph will operate eleven hospitals in the Houston metropolitan area, totaling 769 beds.

“Both Memorial Hermann and Triumph provide full geographic coverage in the metropolitan area and have similarly aligned commitments to quality in healthcare. An affiliation between the two organizations made sense,” stated Charles Allen, CEO for Triumph HealthCare.

“We entered into the long term acute care business to meet a need in the community and we have provided this specialized care for a number of years,” said Dan Wolterman, Memorial Hermann president & CEO. “Recent changes in regulations have made it increasingly difficult for us to compete effectively. We are confident Triumph can offer the community high-quality LTAC care going forward.”

Allen explained, “An LTAC hospital has an average length of stay of more than 25 days compared with the five- to seven-day length of stay in a general hospital. Triumph’s hospitals specialize in providing services to medically-complex patients for whom the general acute care hospital is no longer the most appropriate or cost-effective setting.” Triumph will work closely with Memorial Hermann to ensure that patients requiring extended hospitalizations receive the highest quality of care.

Historically, Memorial Hermann Continuing Care operated 201 LTAC beds at three of its acute care hospital campuses.  The Memorial Hermann subsidiary had recently consolidated two of its operations at the new Memorial Hermann Westside campus, located at Beltway 8 and Westview.  Triumph plans to continue to operate 66 beds, including an eight-bed ICU, at this location through a lease agreement with Memorial Hermann, which will retain the property.  The third Memorial Hermann LTAC operation, adjacent to Memorial Hermann Northwest, will close.

“We anticipate a very smooth transition with no reduction of workforce at the hospitals. Triumph will begin immediate interviews and job fairs to provide Continuing Care employees with available employment options,” stated Allen. Triumph HealthCare is the third largest provider nationally of LTAC with twenty-one facilities in six states. “As a Houston based company, this makes the acquisition and affiliation even more exciting,” Allen added.

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