FOR IMMEDIATE RELEASE

MHA Announces Equity Investment From

GTCR Golder Rauner, LLC 

Florham Park, NJ (August 2, 2004) -- Managed Health Care Associates, Inc. (MHA), the nation’s leading alternate site Group Purchasing Organization (GPO), announced today that it has concluded an equity recapitalization lead by GTCR Golder Rauner, LLC (GTCR).  Based in Chicago, IL, GTCR is a leading private equity investment firm and manages more than $6 billion of equity capital in a wide variety of industries, including several healthcare related businesses. 

Under the terms of the transaction, GTCR becomes MHA’s majority investor.  The agreement provides liquidity to MHA’s current investors and adds significant capital for expansion and acquisition.  Advent International, MHA’s previous majority investor, will remain a minority investor and retain a position on the MHA board of directors.   

Douglas Present, MHA’s CEO, has been named chairman of MHA’s board of directors, and Stephen Andrew, MHA’s CFO and COO will also be joining MHA’s board.  Both Present and Andrew will retain their current executive positions and all of MHA’s management and account teams will remain intact.  

“This transaction marks the end of one phase in our company’s development and the beginning of a new and even better opportunity,” said Doug Present, MHA’s chairman and CEO.  “With the help of our loyal customers, and our manufacturer and wholesaler partners, we have been able to achieve tremendous growth over the last three years.  The GTCR investment provides the capital required to accelerate our growth plans within the alternate site GPO market, as well as develop the necessary tools and systems to continue providing superior customer service to all of MHA’s membership.” 

Steve Andrew, MHA’s CFO and COO commented, “We have been very fortunate to have had such a strong working relationship with Advent International over the years.  GTCR is now the perfect partner to assist us in continuing to grow our business.  The active support of two of the nation’s leading private equity funds on our board leaves us well positioned to accomplish our larger objectives.” 

“GTCR is excited about the opportunity to partner with MHA, the market leader in a high-growth, niche industry,” said GTCR Senior Principal Joe Nolan.  “MHA’s strong client focus has allowed them to build the premier company in the space, generate outstanding performance over the last three years, and create a clear path to continued success.” 

“Partnering with Doug, Steve, Ray and Terri is an excellent fit with GTCR’s strategy of backing exceptional management teams.  MHA provides us with a significant entry into the long-term and alternate-care pharmaceutical supply chain and the GPO industry in general, where we see tremendous opportunity for internal growth and selective niche acquisitions,” added GTCR’s Dean Mihas.  

David Mussafer, managing director for Advent International and MHA’s outgoing chairman of the board, stated, “MHA’s management team has done an outstanding job for Advent.  We are very pleased with the results that have been achieved thus far and we are looking forward to our continued involvement with the company”. 

About Managed Health Care Associates

Managed Health Care Associates, (MHA) is a nationwide group purchasing organization in the long-term, alternate-care and acute care markets and provides its members contracted prices on over 550,000 line items.  Last year MHA members purchased more than $4 billion worth of pharmaceuticals, medical/surgical, dietary, laboratory and capital equipment.  For more information, visit www.mhainc.com          

About GTCR Golder Rauner, LLC
Founded in 1980, GTCR Golder Rauner is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to build leading companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries. For more information, visit www.gtcr.com.

About Advent International
Advent International is one of the world’s largest private equity firms, with $6 billion in cumulative capital raised and offices in 13 countries across North America, Europe, Latin America and Asia Pacific. Since its founding in 1984, Advent has been committed to helping management teams build successful businesses by applying its industry expertise, international resources and local market knowledge. Over 130 of Advent’s portfolio companies have completed IPOs on major stock exchanges worldwide. Its portfolio companies have raised more than $10 billion through public equity and debt offerings. For more information, visit www.adventinternational.com.

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