New Hampshire Health Care Company Announces Acquisition

WASHINGTON, D.C. - (June 1, 2006) Eric F. Rieseberg, President of Specialty Hospitals of America, LLC (SHA), a health care management corporation with headquarters in Portsmouth, N.H., announced an agreement to purchase Hadley Memorial Hospital (Washington, D.C.) from Doctors Community Healthcare.

The addition of the 144-bed Hadley facility marks SHA's second acquisition in one year and establishes the young company's position in the emerging field of long term acute care.

Founded in 2002 with a vision to fulfill a growing need for longer term stay patients with highly acute, medically complex conditions, SHA is on the vanguard of a new paradigm in health care. "Our mission is to create medical facilities where doctors and staff concentrate on and develop extraordinary expertise in specialty areas and provide the highest levels of nursing care," explains Rieseberg, adding, "we are not trying to be all things to all people, we are providing highly specialized care and rehabilitation so that patients can maximize their level of independence before being transferred home or to the next appropriate care facility."

The combined operation of Specialty Hospital of Washington and Hadley Memorial Hospital will make SHA the largest provider of LTACH services in Washington, D.C., with revenues approaching $100 million annually. Current programs of medical excellence being targeted include cardiopulmonary/ventilator care, wound care and medically complex patient management. LTACH facilities receive patients who are discharged from acute care hospitals and surgical centers when they have a need for on-going high level care. "We target our services to serve our local short-term acute care hospitals, because when we provide best possible outcomes from the patients they discharge to our hospitals, it allows the acute care hospitals to provide more and better services to their communities, and the patient receives the best, most specific care possible," said Rieseberg.

SHA has offices in Portsmouth, N.H. and is operated by a management team which includes cofounders Jim Rappaport, Chairman; Eric F. Rieseberg, President; Robert Rummler Sr., Chief Investment Officer and Frank Wilich, Chief Development Officer. Rieseberg and Wilich, residents of the N.H. seacoast area, have decades of experience in hospital operation and the medical supply field. Rummler has over thirty-five years of investment banking and entrepreneurial experience, extensive merger and acquisition experience and has participated as a principal in five start-ups. Rappaport is a principal in New Boston Fund, the real estate development firm (www.newbostonfund.com), and in addition to his role as Chairman of SHA he has many business, political and charitable interests including the Dana- Farber Cancer Institute, Children's Hospital and the Roxbury Latin School.

SHA is currently pursuing additional acquisitions and development opportunities in other states, and the company projects that any state that encourages the establishment of LTACH facilities will improve its ability to care for Medicare and Medicaid patients due to the operating efficiencies this new health care model provides. Sylvio Dupuis, O.D. former New Hampshire Commissioner for Health and Human Services and past hospital CEO, is an enthusiastic supporter of the LTACH concept and the way SHA is proceeding in this new field, "It's not often that you are able to improve patient care and reduce costs at the same time, but the way SHA is going about it shows that it can be done. This concept is working elsewhere in the country and I think there are great possibilities for SHA to expand right here in New Hampshire."

Additional information on SHA is available online at www.specialty-hospitals.com.