For Immediate Release

Regency Hospital Company Completes Debt Financing

Alpharetta, Georgia, August 2004–Regency Hospital Company (“Regency” or “the Company”), an owner and operator of Long Term Acute Care (“LTAC”) hospitals which treat medically complex patients who have suffered recent catastrophic illness or injury and require an extended length of stay in an acute care environment, today announced it has completed a senior debt financing in the amount of $17 million with GE Healthcare Financial Services, a business unit of GE Commercial Finance. The facility is in the form of a $15 million Revolving Credit Facility and a $2 million Senior Term Loan. The proceeds of the financing will be used to support the Company's future growth and for general corporate purposes.

Commenting on the financing, Rod Laughlin, President and CEO of Regency Hospital Company, offered, “We are excited to have reached an important milestone in Regency’s history. This financing will help fund our Company’s growth while also providing us additional resources to continue to provide industry-leading service to our patients.” Morris Estes, Vice President of GE Healthcare Financial Services, added, “We are delighted to have been selected as Regency’s lending partner and look forward to working with the Company and Waud Capital Partners (“WCP”) as they seek to build upon Regency’s previous success and open additional hospital locations.”

Regency was formed by WCP and management to develop and operate LTACs throughout the United States. Founded in 1993, Waud Capital Partners, L.L.C. is a private equity investment firm that partners with management to acquire or develop outstanding middle market businesses. WCP invests in a broad range of companies and industries with strong growth characteristics. More information about the firm can be found at

For more information contact:
Gene Winters,
Chief Financial Officer
Regency Hospital Company
30000 Mill Creek Avenue, Suite 250
Alpharetta, GA 30022

Reeve Waud, Founder and Managing Partner
Waud Capital Partners, L.L.C.
560 Oakwood Avenue, Suite 203
Lake Forest, IL 60045