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WCP Announces Acquisition of Sterling Reference Laboratories

Launches Toxicology Services Platform Company

Chicago, IL, April 24, 2012 – Waud Capital Partners ("WCP" or "Waud Capital"), a leading middle-market private equity firm, today announced that it has partnered with veteran healthcare executives David Lowenberg and Sue Sommer in its acquisition of Sterling Reference Laboratories ("Sterling" or the "Company"). Sterling will serve as the platform investment in WCP's effort to build an industry-leading toxicology services company serving criminal justice, substance abuse, medication monitoring and employment testing clients nationwide. In connection with the transaction, WCP has made a substantial capital commitment to support Sterling's future growth.

Established in 2002 and headquartered in Tacoma, Washington, Sterling is a CLIA and SAMHSA-certified, full-service laboratory that provides both forensic and clinical toxicology services. Today, the Company serves customers in end markets across the United States, including criminal justice, substance abuse, employment and pain management.

"We are excited to have partnered with Waud Capital Partners. Waud Capital has established an impressive track record in healthcare services and we believe their understanding of the toxicology services market, coupled with their fresh perspective, will allow us to accelerate the growth of Sterling," commented Evans Calas, Co-Founder of Sterling.

"WCP has been actively exploring investment opportunities in the multi-billion dollar toxicology services market for some time. Through our evaluation, we believe there is a substantial growth opportunity for those providers with a differentiated value proposition that is complemented by a full suite of services and we believe Sterling provides an excellent foundation in that regard," said Matt Clary, Partner at WCP.

David Lowenberg joins Sterling as its Chairman along with Sue Sommer, who will serve as President. Mr. Lowenberg and Ms. Sommer previously worked together at Express Scripts, Inc. for more than a decade. Mr. Lowenberg retired as a senior executive of Express Scripts in 2008, having served as the company's Chief Operating Officer and as Chief Executive Officer of CuraScript, one of the company's business units. Ms. Sommer joins Sterling most recently from UnitedHealth Group where she served as Vice President of both Intersegment Management and Medicare Solutions. Prior to her tenure at UnitedHealth, Ms. Sommer served as Senior Vice President of Strategic Business Development at CuraScript.

"Sue and I are thrilled to be joining Sterling and the existing management team, who have built a strong, compliance-focused business with a reputation for excellent customer service. As a SAMHSA-certified laboratory, Sterling is well-positioned to continue to serve the demands of regulated markets, but also positioned to leverage Sterling's high quality operations to better serve customers across all market segments," added David Lowenberg, Chairman of Sterling.

About Sterling Reference Laboratories

Established in 2002 and headquartered in Tacoma, Washington, Sterling is a leading regional provider of drugs-of-abuse laboratory testing and related products and services used to screen, diagnose and treat individuals undergoing medical or professional treatment programs, criminal justice proceedings or employment checks. Sterling maintains the highest possible quality certifications, including Substance Abuse and Mental Health Services Administration ("SAMHSA"), Clinical Laboratory Improvement Amendments ("CLIA"), College of American Pathologists ("CAP") and numerous State licenses. In particular, Sterling is one of only 33 laboratories in the United States to maintain SAMHSA certification to provide testing for regulated state and federal agencies.

For additional information on Sterling, visit www.sterlingreflabs.com.

About Waud Capital Partners

Waud Capital Partners is a private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle market growth equity investments, buyouts, industry consolidations 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. The firm has completed more than 100 acquisitions since its founding and currently has approximately $1 billion of capital under management.

For additional information on WCP, visit the firm's website at www.waudcapital.com.

For Further Information:
Matt Clary, Partner
Waud Capital Partners

David Lowenberg, Chairman
Sterling Reference Laboratories

For Media Inquiries:
Jen Dowd, Vice President
BackBay Communications

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