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For Immediate Release

Waud Capital Partners Completes Sale of Regency Hospital Company to Select Medical Group

Chicago, Illinois, September 2, 2010 – Waud Capital Partners (“WCP”) has completed the sale of its portfolio company, Regency Hospital Company (“Regency” or the “Company”), to Select Medical Group (NYSE:SEM), a leading operator of specialty hospitals and outpatient rehabilitation clinics in the United States, for $210 million, including certain liabilities. Since its founding in 2001 by WCP and industry executive Rod Laughlin, Regency has grown organically through de novo development to become one of the leading providers in the long-term acute care hospital (“LTAC”) industry. Today, Regency operates 23 hospitals in nine states and generates more than $350 million of revenue.

“This sale represents a great outcome for our investors,” said Reeve Waud, Founder and Managing Partner of WCP. “Given all the hard work that went into building the Company, the sale of Regency to Select is especially rewarding.”

“Since joining the Company in 2007, I have been extremely proud of the high-quality care Regency provides to its patients,” said Bill Anderson, Chief Executive Officer of Regency. “Under Select’s ownership, I expect Regency’s hospitals to continue to deliver leading patient outcomes and strong operating results. I have greatly enjoyed working with WCP and all of Regency’s employees.”

“I am proud of what we accomplished at Regency,” said Rod Laughlin, co-founder of the Company. “WCP has been a tremendous partner in the development and implementation of Regency’s strategic plan and the firm’s support has been invaluable throughout the investment.”

“Regency is a tremendous example of how WCP’s investment strategy works well in the middle market,” said David Neighbours, Partner of WCP. “By partnering with experienced operators in an attractive healthcare niche, we successfully built a market-leading business of significant scale.”

Regency is a leading developer and operator of LTAC hospitals, specialized intensive care facilities that treat critically-ill patients who require intensive intervention over an extended period of time. Due to the seriousness or complexity of their medical conditions, LTAC patients have an average length of stay of 25 days or longer.

Jefferies & Company, Inc. and Kirkland & Ellis LLP served as advisors to Regency and WCP on the sale.

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 firm’s website at www.waudcapital.com.

For Further Information:
Reeve Waud, Managing Partner
Email: rwaud@waudcapital.com

David Neighbours, Partner
Email: dneighbours@waudcapital.com

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