For Immediate Release

Waud Capital Partners Completes Sale of Medical Holdings, Inc. to MP TotalCare

Lake Forest, Illinois, October 14, 2003–Waud Capital Partners today announced the sale of its portfolio company, Medical Holdings, Inc. (“DS Medical” or the “Company”), to MP TotalCare, Inc., a specialty distributor of pharmaceutical and medical supplies to patients with chronic conditions. MP TotalCare, Inc. is owned by Charterhouse Group International, Inc., a New York-based private equity firm. As a result of the sale, Waud Capital Partners achieved an annualized gross internal rate of return on its investment in the Company of nearly 40%, or approximately 3.5 times its investment. As of October 14, 2003, Waud Capital Partners’ 1998 fund has achieved an annualized gross internal rate of return, including realized and unrealized investments, of 33%.

Waud Capital Partners founded Medical Holdings, Inc. in 1999 in partnership with the Company’s senior management by acquiring the business from its founder. DS Medical is a service-oriented supplier of consumable and durable medical products to customers with chronic conditions, including paralysis and diabetes. Since Waud Capital Partners acquired the business in 1999, DS Medical has more than doubled its revenue and cash flow by increasing its customer base, broadening its product and service offerings and expanding its geographic presence around the country.

“We were fortunate to partner with a supportive and like-minded investor,” said Vance Wall, President and CEO of DS Medical. “Waud Capital Partners proved invaluable to us as a resource during this important part of the Company’s history. Together we grew the business organically and by acquisition and were able to maximize value for our shareholders. Looking forward, we are very excited about continuing our growth as a part of the MP TotalCare family.”

“This realization is consistent with our strategy of partnering with experienced management teams to acquire growing middle market companies with strong fundamentals,” said Reeve Waud, Founder and Managing Partner of Waud Capital Partners. “As part of our industry-focused approach to investing, we identified the specialty medical products industry as one that met our investment parameters and approached the founder of DS Medical directly. Not only was the investment one that allowed us to apply our operational skills to create significant value for our customers, employees and shareholders, but we had a tremendous amount of fun working with our operating partners. We’re particularly proud that twenty employees shared in the Company’s financial success through the incentive equity award program we established.”

About Waud Capital Partners, L.L.C.
Waud Capital Partners, L.L.C. is a private equity investment firm founded in 1993 that partners with outstanding managers to invest in middle market buyouts, recapitalizations, industry consolidations and growth equity investments. The firm seeks to invest $5 million to $30 million in manufacturing, distribution and services businesses with enterprise values between $10 million and $100 million. To date, Waud Capital Partners has successfully acquired over thirty businesses in a wide range of industries, including adhesives, alarm monitoring, automotive components, coatings, consumer products, lighting, publishing, sealants and specialty hospitals. The firm is backed by a number of institutions, including Citigroup, Middlebury College, SunAmerica, Travelers Property Casualty Corp. and the University of Chicago Hospitals, among others.

For more information contact:
Waud Capital Partners, L.L.C.
560 Oakwood Avenue, Suite 203
Lake Forest, Illinois 60045
Tel: 847-604-9550
Fax: 847-604-9554
www.waudcapital.com

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