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OnCURE Medical Corp. Amends Its Credit Facility With Merrill Lynch Capital to $125 Million & Expands Its California Network By Adding Coastal Radiation Oncology Medical Group

Posted on: Friday, 17 February 2006, 15:00 CST

OnCURE Medical Corp. ("OnCURE"), a leading provider of outpatient radiation therapy services, today announced that it amended its Senior Secured Credit facility with Merrill Lynch Capital and added a Subordinated Credit facility with MCG Capital and Ares Capital for a total of $125 million. The proceeds were used to refinance OnCURE's debt, acquire the outstanding stock of Coastal Radiation Oncology Medical Group, Inc. ("Coastal"), and to provide capital for additional acquisitions and working capital.

"We are very pleased to complete this $125 million financing with Merrill Lynch Capital, MCG Capital, Ares Capital, ING, and others in the syndicate. OnCURE now has the foundation for a commitment for capital with these relationships to execute its strategy for growth and for additional potential acquisitions," said Richard Zehner, OnCURE's Chief Executive Officer.

Coastal has been in practice since 1968, and owns eight centers in California in the cities of Salinas, San Luis Obispo, Santa Maria, Templeton, Ventura, Thousand Oaks, Westlake Village, and Simi Valley.

Dr. Shyam Paryani, Chairman of the OnCURE Board of Directors, stated, "We are excited about this transaction as Coastal is one of the premier radiation oncology medical groups in the country. This brings together two leading radiation oncology companies with similar clinical standards of excellence with respect to fighting cancer."

Dr. Jonathan Stella, the President of Coastal, added, "This combination of the two organizations is a natural extension of both companies' growth strategies and market presence. The Coastal physicians will continue to provide quality care to patients in their communities, while associating with OnCURE for expert support resources."

"With the addition of these centers to our existing network, OnCURE is now the largest freestanding provider of radiation therapy services in the State of California, and it ensures our continued commitment to expand our regional networks of radiation centers in association with quality doctors," said Jeffrey Goffman, President & Founder of OnCURE.

About OnCURE

OnCURE, headquartered in Newport Beach, California, owns, operates and manages 28 radiation centers, and other mobile HDR & PET CT units, all located in California and Florida. The Company believes they are one of the largest operators of freestanding radiation centers in the country. OnCURE's centers provide treatment areas and equipment for radiation therapy and diagnostic radiology, including IMRT, CT, and PET. OnCURE does not own physician practices nor does it maintain any control over the provision of medical services at its centers. OnCURE does, however, provide capital, technology, and management expertise to its affiliated physician groups, including clinical management, billing and collection, data warehousing, accounting, compliance and other administrative services. OnCURE is associated with a Medical Advisory Board comprised of all of the radiation oncologists whom provide medical services to the OnCURE facilities. Currently there are approximately 50 physicians on the Medical Advisory Board, and in addition, OnCURE has approximately 350 employees. For more information on OnCURE, please visit our web site at www.OnCURE.com.

OnCURE is a privately held company whose shareholders include Crossbow Ventures, Halpern Denny & Co. and MedEquity Capital, LLC.

About Crossbow Ventures: (www.crossbowventures.com)

Crossbow Ventures is a private equity investment firm founded by a former executive of Merrill Lynch Capital, and is based in Palm Beach, Florida. The firm has more than $170 million committed capital concentrated on lead investments located in the Southeast U.S. in Telecommunications, Information Technology, Life Sciences / Healthcare, and Financial Services sectors.

About Halpern, Denny & Co.: (www.halperndenny.com)

Halpern, Denny & Co. is a private equity investment firm founded by former executives of Bain & Company and Bain Capital. Based in Boston, the firm has more than $600 million committed capital to back strong management teams focused on driving their companies to leadership positions in their respective industries. Areas of investment focus include healthcare, media, distribution and consumer.

About MedEquity Capital, LLC: (www.medequity.com)

MedEquity Capital, LLC is a Wellesley, Massachusetts based private equity firm that provides expansion capital to emerging healthcare-related companies.

Forward-Looking Statements

Statements in this Press Release that are not historical facts constitute "forward-looking statements." Any statements contained herein which are not historical facts or which contain the words "anticipate,""believe,""continue,""estimate,""expect,""intend,""may,""should," and similar expressions are intended to identify forward-looking statements. Such statements reflect the current view of OnCURE with respect to future events and are subject to certain risks, uncertainties and assumptions, including, but not limited to, the risk that OnCURE may not be able to implement its growth strategy in the intended manner, including the ability to identify, finance, complete and integrate acquisitions and joint venture opportunities, risks regarding currently unforeseen competitive pressures and risks affecting OnCURE's industry, such as increased regulatory compliance and changes in regulatory requirements, changes in payor reimbursement levels and the development of additional alternative treatment modalities and technological changes. Should one or more of those risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Source: Business Wire

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