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PSA HealthCare Announces Agreement to Acquire Select Pediatric Assets of Maternal Child Health, Inc.

Posted on: Friday, 9 February 2007, 09:01 CST

Pediatric Services of America, Inc., d/b/a PSA HealthCare (Nasdaq: PSAI) announced today that it has signed an agreement to acquire select pediatric assets of Maternal Child Health, Inc. ("MCH"). The acquisition includes MCH's pediatric nursing business in the Illinois, Texas and Pennsylvania markets. PSA currently does business in the Chicago, Houston and Pittsburgh markets. The MCH operations located in the Corpus Christi and McAllen Texas markets will be operated on a stand alone basis. The purchase price is approximately $4,000,000 in cash with MCH retaining its accounts receivable. MCH's pediatric net revenue for the trailing twelve months totals approximately $12.4 million. The Company expects to close the transaction in the next few weeks.

President and CEO Daniel J. Kohl commented, "We are very excited by the opportunity to acquire the MCH pediatric assets in Illinois, Texas and Pennsylvania. These are markets where we already operate and the ability to gain market density in these states is very attractive to us."

In addition, the Company announced that it has abandoned the previously announced Advanced Pediatric Care, Inc. transaction due to the seller's inability to provide unencumbered title to their assets.

PSA provides comprehensive pediatric home health care services through a network of 54 branch offices in 18 states, including satellite offices and branch office start-ups. Through these offices, PSA provides a combination of services, including pediatric private duty nursing (PDN) and pediatric day treatment centers (PPECs). Additional information on PSAI may be found on the Company's website at http://www.psahealthcare.com.

NOTE: This press release contains certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to future financial performance of Pediatric Services of America, Inc. (the "Company"). When used in this press release, the words "may,""targets,""goal,""could,""should,""would,""believe,""feel,""expects,""confident,""anticipate,""estimate,""intend,""plan,""potential" and similar expressions may be indicative of forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company's control. The Company cautions that various factors, including the factors described hereunder and those discussed in the Company's other filings with the Securities and Exchange Commission, as well as general economic conditions, industry trends, the Company's anticipated uses of the proceeds from the sale of its Respiratory and Pharmacy Businesses, the Company's ability to assimilate and manage previously acquired field operations, collect accounts receivable, including receivables related to acquired businesses and receivables under appeal, hire and retain qualified personnel and comply with and respond to billing requirements issues, including those related to the Company's billing and collection system, nurse shortages, competitive bidding, HIPAA regulations, adverse litigation, workers' compensation losses, availability and cost of medical malpractice insurance and any potential reduced state funding levels and nursing hours authorized by Medicaid program, , could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements of the Company made by or on behalf of the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all of such factors. Further, management cannot assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Source: Business Wire

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