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For Immediate Release

Waud Capital Partners Completes Sale of Hospitalists Management Group to AEA Investors

Chicago, Illinois, April 30, 2010 Waud Capital Partners (WCP) today announced the sale of its portfolio company, Hospitalists Management Group (HMG or the Company), to AEA Investors LP, a global private equity firm. Since WCP acquired the business in 2006, HMG has nearly quadrupled its revenue and cash flow, making it one of the largest and fastest-growing hospitalist companies in the U.S. Having achieved its five-year financial and operational investment objectives in just over three years, WCP determined it was an appropriate time to pursue a sale of the business to realize the substantial value that had been created. WCP believes HMG is well-positioned to build upon its impressive growth trajectory and continue to deliver outstanding returns for its investors. Accordingly, WCP elected to rollover a portion of its sale proceeds to invest alongside AEA Investors and HMG management.

WCP has been a tremendous partner during this transformational period for HMG. Together we built infrastructure, added key members to the management team and executed a comprehensive strategic plan, all positioning the Company for the remarkable growth and operating improvements HMG has achieved over the last three years. We greatly appreciate WCPs contributions and are excited they will continue to be a meaningful investor in HMG going forward, said Dr. Stephen Houff, Founder, President and Chief Executive Officer of HMG.

The sale of HMG represents a tremendous outcome for our investors, said David Neighbours, Partner of WCP. WCPs investment in HMG confirms the effectiveness of our strategy of identifying lower middle-market companies in attractive industry niches and investing in management and infrastructure to position these businesses to create value through growth and operating improvements. We believe the hospitalist market remains attractive, given the opportunity for organic growth and industry consolidation, and are excited to continue as an investor alongside AEA Investors and HMG management.

WCP acquired a majority stake in HMG in September 2006 from Emergency Medicine Physicians, a large emergency room staffing business and HMGs former parent company. HMG is a leading outsourced provider of comprehensive hospitalist physician programs to hospitals across the U.S. Hospitalists are physicians whose primary focus is managing and driving the care of hospitalized patients. Through its contracted customer relationships, HMG helps its hospital partners improve clinical outcomes, reduce average length of stay, increase patient satisfaction, achieve higher revenue and realize greater efficiencies through the application of best practices and quality management. Harris Williams & Co. served as the advisor to HMG and WCP on the transaction.

About Waud Capital Partners

WCP is a leading middle market private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle market growth equity investments, industry consolidations, buyouts and recapitalizations. The firm seeks to invest $10 million to $100 million in private companies in the following four areas: healthcare services, business and consumer services, specialty distribution and value-added industrial businesses. Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million.

For additional information on WCP, visit the firms website at www.waudcapital.com.

For Further Information:
David Neighbours, Partner
Waud Capital Partners
300 North LaSalle Street, Suite 4900
Chicago, IL 60654
Tel: (312) 676-8400

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