Healthcare & Life Sciences Industry Update

Healthcare & Life Sciences Industry Update April 2013

Member FINRA/SIPC

www.harriswilliams.com What We’ve Been Reading April 2013

• On April 2, CMS announced that the National Medicare Advantage Growth Rate would be increased 3.3% for 2014. Previously, CMS was widely expected to announce a reduction of 2.2%. The change was a result of intense lobbying by major insurers since February, when the proposed cuts first surfaced. The industry was able to gather signatures from a group of over 160 bipartisan congressional representatives, underscoring the difficulty in obtaining meaningful cuts to Medicare. On the news, the shares of major publicly traded insurers rose, especially shares of Humana and UnitedHealth, who have more Medicare Advantage exposure than peers. The Wall Street Journal published an article which discusses this change in course by CMS and gives additional color on implications for future attempts to reign in government healthcare entitlements (a subscription to The Wall Street Journal Online may be required).

• As part of the passage of the Patient Protection and Affordable Care Act (“PPACA”) in 2010, states were required to implement healthcare exchanges where small businesses could purchase health insurance plans for its employees. These Small Business Health Options Programs (“SHOP” exchanges) were intended to provide multiple health insurance options to small businesses. On April 1, the Obama administration announced that the program would be delayed until 2015 (from 2014) and that initially, small businesses in the majority of states would have only one health plan option. An article in The New York Times discusses the issues around this delay as the provision of affordable health insurance to the employees of small businesses was a major selling point for the PPACA.

• USA Today published an article highlighting a study conducted by the Society of Actuaries (“SOA”) that found medical claims costs would rise 32% on average under the PPACA. These costs are largely driven by the restrictions under the new act that prevent insurers from discriminating against high risk populations when making insurance policies available. Because some states already have existing restrictions, the cost impacts will vary widely from state to state. The article gives additional color into how the study was complied and discusses in greater detail the findings from the SOA.

1 Equity Trading Overview April 2013

Median TEV/ Median TEV/ Key Trading Number of Average Sector Enterprise Change in Stock Price LTM Multiples Forward Mulitples Companies Statistics Value ($ mm) 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA (detail begins Clinical Laboratories 3 $7,784 (2.2%) (1.0%) 1.6x 7.5x 1.6x 7.6x Contract Pharma Manufacturing 5 1,087 17.6% 81.9% 1.5x 11.2x 1.6x 9.1x on page 6) Contract Research Organizations 5 2,223 30.1% 49.1% 1.6x 13.0x 1.4x 11.1x Disease Management 2 3,385 28.0% 33.0% 1.6x 11.2x 1.5x 8.8x Emergency Services 1 2,516 29.2% 62.6% 3.0x 9.5x 2.7x 9.0x Health Care Staffing 4 1,441 27.7% 59.5% 1.2x 14.1x 1.0x 11.7x HMO - Medical 10 16,920 12.1% (6.6%) 0.4x 6.5x 0.4x 6.3x

Support Services Information Services 11 2,729 15.1% (5.0%) 3.2x 16.8x 2.9x 11.4x Specialty Managed Care 2 2,113 22.1% 16.3% 0.8x 6.6x 0.8x NA

Payer, Provider, & Pharmacy Specialty Pharmacy Management 5 16,956 11.9% 17.0% 0.8x 9.9x 0.8x 8.8x Dental Products 3 29,108 15.8% 20.2% 2.6x 14.6x 2.5x 12.4x Durable Medical Equipment 5 1,908 0.4% (13.2%) 1.1x 8.1x 1.0x 7.4x Life Sciences Tools 3 15,962 23.6% 23.3% 2.6x 10.3x 2.5x 9.4x

Devices Medical Devices and Products 14 38,611 14.1% 18.8% 2.6x 10.3x 2.6x 9.8x Products & Medical / Surgical / Dental Supplies 6 11,683 14.2% 18.3% 0.2x 9.2x 0.2x 8.8x Acute-Care Hospitals 6 15,505 39.2% 81.7% 1.2x 7.4x 1.0x 7.2x Assisted Living 6 2,316 22.8% 53.7% 2.2x 13.6x 2.0x 13.0x Diagnostic Imaging 3 2,865 12.9% 4.5% 1.4x 6.3x 1.4x 5.6x Dialysis Services 2 21,895 4.5% 17.3% 2.4x 11.4x 1.7x 8.1x Home Care / Hospice 6 645 4.7% 19.6% 0.6x 6.2x 0.6x 7.1x Long-Term Care 3 1,222 (0.2%) 16.5% 0.9x 5.9x 0.8x 5.7x Physician Practice Management 3 2,051 13.6% 20.2% 2.0x 10.8x 1.7x 10.2x

Psychiatric Hospitals / Management 3 2,895 12.0% 16.3% 0.3x 5.9x 0.3x 6.3x Provider-Based Services Provider-Based Surgicenters / Rehabilitation 4 2,341 6.3% 18.6% 1.7x 7.5x 1.6x 7.4x Payer, Provider, & Pharmacy Support Services 48 $5,715 19.2% 30.7% 1.6x 10.6x 1.5x 9.3x Products & Devices 31 $19,455 13.6% 13.5% 1.8x 10.5x 1.8x 9.6x Provider-Based Services 36 $5,748 12.9% 27.6% 1.4x 8.3x 1.2x 7.8x HW&Co. HCLS Composite Index 115 $8,590 15.6% 25.9% 1.6x 9.7x 1.4x 8.8x S&P 500 11.9% 11.6%

Public Company Contract Pharma Manufacturing Sector Acute-Care Hospitals Emergency Services Performance Health Care Staffing (12-month % Assisted Living Contract Research Organizations change in stock Disease Management price) HW&Co. HCLS Composite Index Life Sciences Tools Physician Practice Management Dental Products Home Care / Hospice Medical Devices and Products Surgicenters / Rehabilitation Medical / Surgical / Dental Supplies Dialysis Services Specialty Pharmacy Management Long-Term Care Psychiatric Hospitals / Management Specialty Managed Care S&P 500 Diagnostic Imaging Clinical Laboratories Information Services HMO - Medical Durable Medical Equipment

(30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 2 Equity Markets Overview April 2013

Healthcare & 160 Life Sciences Industry Stock 45.9% 140 Performance 33.6%

26.3% 120

100

40 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index

Top 25 Equity Gross Proceeds Closing Date Filing Date Issuer Ticker Transaction Type ($mm) Offerings 03/04/13 01/19/12 Jazz Pharmaceuticals PLC JAZZ Follow-On $314.4 (by proceeds) 03/12/13 03/11/13 Emeritus Corp ESC Follow-On 247.6 03/08/13 03/07/13 Pharmacyclics Inc PCYC Follow-On 207.2 03/12/13 12/09/10 Heartware International Inc HIN Follow-On 149.1 03/05/13 03/05/13 Warner Chilcott PLC WCRX Follow-On 146.1 03/22/13 03/22/13 WP Prism Inc - IPO 100.0 03/08/13 03/08/13 Chimerix Inc CMRX IPO 85.4 03/08/13 03/08/13 Omthera Pharmaceuticals Inc OMTH IPO 75.1 03/27/13 03/27/13 Array Biopharma Inc ARRY Follow-On 75.0 03/27/13 03/27/13 Zogenix Inc ZGNX Follow-On 75.0 03/19/13 02/11/13 Tetraphase Pharmaceuticals Inc TTPH IPO 75.0 03/07/13 02/26/13 Hyperion Therapeutics Inc HPTX Follow-On 68.6 03/20/13 11/06/12 Enanta Pharmaceuticals Inc ENTA IPO 64.4 03/29/13 03/29/13 Durata Therapeutics Inc DRTX Follow-On 57.5 03/20/13 03/20/13 Aratana Therapeutics Inc PETX IPO 57.5 03/29/13 03/29/13 Dynavax Technologies Corp DVAX Follow-On 50.0 03/14/13 01/25/13 TherapeuticsMD Inc TXMD Follow-On 50.0 03/13/13 03/13/13 Delcath Systems Inc DCTH Follow-On 50.0 03/11/13 03/11/13 Idera Pharmaceuticals Inc IDRA Follow-On 40.0 03/19/13 08/24/11 Cardiovascular Systems Inc CSII Follow-On 35.2 03/14/13 12/14/11 Cerus Corp CERS Follow-On 35.0 03/12/13 03/12/13 OvaScience Inc OVSC Follow-On 35.0 03/15/13 03/15/13 Hansen Medical Inc HNSN Follow-On 25.0 03/07/13 03/07/13 PolyMedix Inc PYMX Follow-On 25.0 03/15/13 03/15/13 Cactus Ventures Inc CTVN Follow-On 23.6

3 M&A Overview April 2013

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Healthcare & Announced Target Buyer 3/20/2013 Micron Technologies, Inc. Arlington Capital Partners Life Sciences 300 22 3/19/2013 Gamma Medica-Ideas, Inc., LumaGEM Psilos Group 18 3/19/2013 Atlantis Healthcare Group Puerto Rico, Inc. ICV Partners 16 3/18/2013 LABOTIX Automation, Inc Cerner Corporation

M&A __ 19 18 3/17/2013 Palomar Medical Technologies Inc. Cynosure, Inc. 250 13 13 18 20 3/6/2013 Althea Technologies, Inc. Ajinomoto Co., Inc. 17 11 12 3/5/2013 Legacy Rehabilitation and Living The Ensign Group, Inc. 16 3/4/2013 Meridian Medical Management The Gores Group LLC 200 3/4/2013 ClinStar, LLC PRA International, Inc.

150 291 279 267 255 256 242 245 236 LTM Deal Statistics 225 229 221

Number Number Transactionsof 219 100 200 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $100.1 956 2.18x 10.3x 50 Note: Transactions based on publicly available information 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

PEG Acquirer Strategic Acquirer

Healthcare & Announced Healthcare & Life Sciences Transactions Median Healthcare & Life Sciences Transaction Multiples

Life Sciences $500 1200 21x 4.0x M&A Trends $450 1000 18x 3.5x

$400

EV / LTM Revenue Multiple Revenue EV LTM /

Number of of Transactions Number __ $350 15.2x 3.0x 800 15x $300 12.8x 2.5x 10.9x 12x 11.1x $250 600 10.0x 2.0x $200 $194.1 9x $174.6 7.7x 1.5x $141.4 400 $150 6x $110.6 $101.6 1.0x $100 __

200 __

EV /LTM EV EBITDA Multiple 3x $50 0.5x $13.6 AggregateTransaction Value in($ billions) $0 0 0x 0.0x 2008 2009 2010 2011 2012 2013 YTD 2008 2009 2010 2011 2012 2013 YTD

Aggregate Deal Value # of deals TEV / LTM EBITDA TEV / LTM Sales

Announced PEG Investments by Segment (Last 3 Years) PEG Investments and Exits

Private Equity HC&LS Industry Number of 160 Segment Companies M&A Activity 139 Biotechnology 5 140

Healthcare Technology 19 ' 120 120 Healthcare Distributors 8 113 Healthcare Equipment 26 100 94 95 Healthcare Facilities 31 Healthcare Services 63 79 80 80 69 71 Healthcare Supplies 8 65 65 60 62 TransactionVolume 58 Life Sciences Tools & Services 13 60 50 Managed Healthcare 6 49 40 40 42 Pharmaceuticals 18 40 27 22 20 16

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Number of Investments Number of Exits

4 Debt Markets Overview April 2013

Key Credit Quarterly Healthcare Loan Volume Average Spread on Healthcare Loans

$24 Statistics L + 500

___ $21 __ L + 400 $18

$15 L + 300 $12

$9 L + 200

$6 Average Spread Over LIBOR Over Spread Average L + 100

$3 Loan VolumeLoan Quarter by ($ billions)in $0 L + 0 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 2007 2008 2009 2010 2011 2012 2013YTD

Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional

Credit Statistics Average Secondary Spread

L + 1000

6.0x 2007 2008 2009 2010 2011 2012 2013YTD __ L + 800

__ 4.0x L + 600

L + 400

2.0x EBITDA Multiple EBITDA

L + 200 Average Spread Over Over LIBOR Spread Average

0.0x L + 0 Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest1

(1) Not available for 2013YTD.

Top 20 Recent Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread 03/27/13 Aetna Inc Hospital and medical service plans $2,000 Revolver/Line >= 1 Yr. A- / Baa1 L+ 90 Healthcare & 03/27/13 Alere Inc Diagnostic substances 1,358 Term Loan B B- / B3 L+ 325 Life Sciences 03/19/13 NBTY Inc Pharmaceutical preparations 1,508 Term Loan B B / NR L+ 250 Debt Offerings 03/20/13 Health Management Associates General medical & surgical hospitals 1,400 Term Loan B B- / B3 N/A 03/19/13 Hologic Inc, Hologic Inc X-ray apparatus and tubes 1,000 Term Loan A BB / B2 N/A (by deal amount) 03/19/13 Hologic Inc, Hologic Inc X-ray apparatus and tubes 300 Revolver/Line >= 1 Yr. BB / B2 N/A 03/11/13 Vanguard Health Systems General medical & surgical hospitals 1,093 Term Loan B CCC+ / Ba2 L+ 275 03/04/13 Mylan Inc Pharmaceutical preparations 1,000 Bridge Loan BBB- / Baa3 L+ 175 03/19/13 DJO Finance Surgical appliances and supplies 100 Revolver/Line >= 1 Yr. CCC+ / Caa1 N/A 03/19/13 DJO Finance Surgical appliances and supplies 862 Term Loan B CCC+ / Caa1 L+ 375 03/25/13 Biogen Idec Biological products exc. diagnostic 750 Revolver/Line >= 1 Yr. BBB+ / Baa2 L+ 125 03/13/13 One Call Medical Offices & clinics of medical doctors 425 Term Loan B B+ / Ba3 L+ 425 03/11/13 Harlan Laboratories Inc Medical and hospital equipment 20 Revolver/Line >= 1 Yr. B- / B1 L+ 550 03/11/13 Harlan Laboratories Inc Medical and hospital equipment 200 Term Loan B B- / B1 L+ 550 03/11/13 Harlan Laboratories Inc Medical and hospital equipment 85 Term Loan B- / B1 L+ 1000 03/15/13 RegionalCare Hospital Partners Offices of health practitioners 291 Term Loan B B / B2 L+ 575 03/25/13 Mallinckrodt Group Inc Surgical and medical instruments 250 Revolver/Line >= 1 Yr. NR / NR L+ 150 03/28/13 Joerns Healthcare Inc Medical and hospital equipment 110 Term Loan NR / NR N/A 03/28/13 Joerns Healthcare Inc Medical and hospital equipment 119 Term Loan B NR / NR N/A 03/28/13 Joerns Healthcare Inc Medical and hospital equipment 20 Revolver/Line >= 1 Yr. NR / NR N/A

5 Healthcare & Life Sciences Trading Statistics April 2013

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $13.83 6.1% 15.8% $16.87 $10.53 $1,327 $105 $41 $1,390 $256 $89 $78 Dec-12 Dec-12 $334 $116 $108 5.4x 15.7x 4.2x 12.0x Cambrex Corporation. 12.79 13.2% 81.9% 14.33 5.87 384 64 24 424 277 58 36 Dec-12 Dec-12 305 69 43 1.5x 7.6x 1.4x 6.2x Integrated Biopharma Inc. 0.20 17.6% 788.9% 0.33 0.02 4 15 0 19 31 (1) (1) Dec-12 Jun-12 NA NA NA 0.6x NM NA NA Patheon Inc. 4.09 22.1% 90.2% 4.14 1.75 572 590 55 1,106 809 98 57 Jan-13 Oct-12 1,023 142 82 1.4x 11.3x 1.1x 7.8x West Pharmaceutical Services, Inc. 64.94 20.0% 52.2% 65.47 39.30 2,248 420 162 2,494 1,266 220 143 Dec-12 Dec-12 1,376 241 159 2.0x 11.1x 1.8x 10.4x Number of Companies 5 Median: 17.6% 81.9% Total $4,534 $1,087 $2,639 $3,037 1.5x 11.2x 1.6x 9.1x Mean: 15.8% 205.8% $1,087 2.2x 11.4x 2.1x 9.1x

Contract Research Organizations Albany Molecular Research Inc. $10.51 99.1% 266.2% $11.44 $2.25 $329 $8 $23 $314 $227 $31 $14 Dec-12 Dec-12 $250 $40 $24 1.4x 10.1x 1.3x 7.8x Charles River Laboratories International, Inc. 44.27 20.0% 23.4% 46.90 31.48 2,133 667 110 2,685 1,130 257 176 Dec-12 Dec-12 1,177 277 203 2.4x 10.5x 2.3x 9.7x Covance Inc. 74.32 30.1% 55.9% 74.61 44.19 4,147 320 493 3,974 2,181 303 189 Dec-12 Dec-12 2,343 344 220 1.8x 13.1x 1.7x 11.6x ICON Public Limited Company 32.29 17.1% 49.1% 33.07 20.02 1,947 0 114 1,756 1,115 116 74 Dec-12 Dec-12 1,278 159 115 1.6x 15.1x 1.4x 11.1x PAREXEL International Corporation 39.54 35.4% 43.2% 39.75 23.75 2,299 382 204 2,384 1,565 183 117 Dec-12 Jun-12 1,705 206 136 1.5x 13.0x 1.4x 11.6x Number of Companies 5 Median: 30.1% 49.1% Total $10,855 $2,223 $6,217 $6,753 1.6x 13.0x 1.4x 11.1x Mean: 40.3% 87.6% $2,223 1.7x 12.4x 1.6x 10.3x

Disease Management Alere Inc. $25.53 39.0% 1.4% $26.50 $17.13 $2,073 $3,709 $328 $6,061 $2,819 $594 $137 Dec-12 Dec-12 $2,937 $659 $518 2.2x 10.0x 2.1x 9.2x Healthways Inc. 12.25 17.1% 64.7% 13.24 6.21 418 293 2 709 677 58 31 Dec-12 Dec-12 727 85 30 1.0x 12.3x 1.0x 8.4x Number of Companies 2 Median: 28.0% 33.0% Total $2,491 $3,385 $3,496 $3,664 1.6x 11.2x 1.5x 8.8x Mean: 28.0% 33.0% $3,385 1.6x 11.2x 1.5x 8.8x

Emergency Services Air Methods Corp. $48.24 29.2% 62.6% $50.61 $26.97 $1,872 $648 $4 $2,516 $851 $264 $181 Dec-12 Dec-12 $939 $281 $192 3.0x 9.5x 2.7x 9.0x Number of Companies 1 Median: 29.2% 62.6% Total $1,872 $2,516 $851 $939 3.0x 9.5x 2.7x 9.0x Mean: 29.2% 62.6% $2,516 3.0x 9.5x 2.7x 9.0x

Health Care Staffing AMN Healthcare Services Inc. $15.83 39.1% 159.1% $15.94 $5.45 $726 $159 $6 $879 $954 $67 $53 Dec-12 Dec-12 $1,020 $76 $61 0.9x 13.0x 0.9x 11.5x Cross Country Healthcare, Inc. 5.31 11.8% 5.4% 6.23 3.80 167 34 10 191 443 3 (6) Dec-12 Dec-12 455 13 5 0.4x 60.3x 0.4x 14.3x On Assignment Inc. 25.31 29.4% 45.1% 26.09 14.48 1,344 427 27 1,743 1,240 128 103 Dec-12 Dec-12 1,630 159 123 1.4x 13.6x 1.1x 10.9x Team Health Holdings, Inc. 36.38 25.9% 73.9% 37.15 19.90 2,474 518 41 2,951 2,069 202 157 Dec-12 Dec-12 2,360 246 191 1.4x 14.6x 1.3x 12.0x Number of Companies 4 Median: 27.7% 59.5% Total $4,711 $1,441 $4,705 $5,465 1.2x 14.1x 1.0x 11.7x Mean: 26.6% 70.9% $1,441 1.0x 25.4x 0.9x 12.2x

As of March 31, 2013 6 Healthcare & Life Sciences Trading Statistics April 2013

Payer, Provider, & Pharmacy Support Services

Stock Price Total Lastest Twelve Months Equity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 3/28/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $51.13 12.2% 9.9% $51.73 $34.58 $16,771 $6,528 $2,579 $20,720 $36,596 $3,522 $3,072 Dec-12 Dec-12 $39,715 $3,334 $2,977 0.6x 5.9x 0.5x 6.2x Cigna Corp. 62.37 18.0% 32.5% 63.19 39.01 17,899 5,200 2,978 20,235 29,119 3,224 2,875 Dec-12 Dec-12 32,052 3,367 2,842 0.7x 6.3x 0.6x 6.0x Coventry Health Care Inc. 47.03 5.8% 44.0% 47.31 27.72 6,330 1,585 1,399 6,517 14,154 928 808 Dec-12 Dec-12 14,770 830 706 0.5x 7.0x 0.4x 7.9x Health Net, Inc. 28.62 19.6% (24.6%) 41.22 16.65 2,268 499 340 2,427 11,289 132 101 Dec-12 Dec-12 11,450 311 304 0.2x 18.4x 0.2x 7.8x Humana Inc. 69.11 2.4% (22.0%) 93.36 59.92 10,969 2,935 1,306 12,598 39,126 2,354 2,016 Dec-12 Dec-12 41,158 2,484 2,154 0.3x 5.4x 0.3x 5.1x UnitedHealth Group Incorporated 57.21 6.2% 3.2% 60.75 50.32 58,636 16,754 8,406 69,105 110,618 10,151 9,254 Dec-12 Dec-12 123,669 10,667 9,573 0.6x 6.8x 0.6x 6.5x WellPoint Inc. 66.23 10.6% (5.4%) 74.73 52.52 20,136 15,543 2,485 33,194 61,712 5,387 4,646 Dec-12 Dec-12 71,773 4,514 4,010 0.5x 6.2x 0.5x 7.4x Number of Companies 7 Median: 10.6% 3.2% Total $133,009 $23,542 $302,613 $334,586 0.5x 6.3x 0.5x 6.5x Mean: 10.7% 5.4% $23,542 0.5x 8.0x 0.4x 6.7x

Government: Centene Corp. 44.04 11.9% (7.7%) 50.98 24.26 2,306 539 844 2,002 8,704 92 37 Dec-12 Dec-12 10,363 311 245 0.2x 21.9x 0.2x 6.4x Molina Healthcare, Inc. 30.87 16.7% (8.5%) 35.37 17.63 1,400 263 796 868 6,029 78 35 Dec-12 Dec-12 7,058 234 149 0.1x 11.1x 0.1x 3.7x WellCare Health Plans, Inc. 57.96 20.7% (17.0%) 74.41 44.75 2,505 135 1,100 1,539 7,409 317 301 Dec-12 Dec-12 8,938 386 351 0.2x 4.9x 0.2x 4.0x Number of Companies 3 Median: 16.7% (8.5%) Total $6,211 $1,470 $22,141 $26,360 0.2x 11.1x 0.2x 4.0x Mean: 16.4% (11.1%) $1,470 0.2x 12.6x 0.2x 4.7x

Information Services Data/Analytics: Accelrys Inc. $9.76 7.8% 23.4% $9.97 $7.44 $543 $0 $73 $443 $163 $12 ($11) Dec-12 Dec-12 $187 $37 $27 2.7x 37.0x 2.4x 12.0x National Research Corp. 57.81 9.4% 37.5% 61.58 41.00 399 13 8 404 86 27 23 Dec-12 Dec-12 99 32 27 4.7x 14.7x 4.1x 12.8x Number of Companies 2 Median: 8.6% 30.5% Total $942 $424 $249 $286 3.7x 25.9x 3.2x 12.4x Mean: 8.6% 30.5% $424 3.7x 25.9x 3.2x 12.4x

eHealth: WebMD Health Corp. 24.32 68.7% (5.6%) 25.85 13.13 1,192 800 992 1,000 470 23 (0) Dec-12 Dec-12 $448 $75 $44 2.1x 43.1x NA NA Number of Companies 1 Median: 68.7% (5.6%) Total $1,192 $1,000 $470 $448 2.1x 43.1x NA NA Mean: 68.7% (5.6%) $1,000 2.1x 43.1x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $13.59 47.9% (21.2%) $17.00 $8.84 $2,399 $444 $104 $2,739 $1,446 $124 $38 Dec-12 Dec-12 $1,512 $283 $187 1.9x 22.0x 1.8x 9.7x athenahealth, Inc. 97.04 33.8% 29.9% 99.79 56.33 3,526 0 155 3,333 422 51 31 Dec-12 Dec-12 546 113 81 7.9x 65.3x 6.1x 29.4x Cerner Corporation 94.74 24.5% 25.0% 94.92 67.64 16,315 196 317 15,474 2,610 713 572 Dec-12 Dec-12 3,013 972 740 5.9x 21.7x 5.1x 15.9x Computer Programs & Systems Inc. 54.11 9.0% (5.0%) 61.90 44.95 600 0 9 580 183 44 41 Dec-12 Dec-12 200 54 50 3.2x 13.0x 2.9x 10.8x HMS Holdings Corp. 27.15 7.1% (14.5%) 37.19 18.50 2,363 333 135 2,561 474 152 97 Dec-12 Dec-12 570 175 113 5.4x 16.8x 4.5x 14.7x MedAssets, Inc. 19.25 15.1% 47.6% 19.99 10.73 1,145 894 14 2,025 640 195 92 Dec-12 Dec-12 680 221 94 3.2x 10.4x 3.0x 9.2x Merge Healthcare Incorporated 2.89 18.0% (50.9%) 5.96 2.20 270 250 35 484 249 31 12 Dec-12 Dec-12 265 59 30 1.9x 15.6x 1.8x 8.1x Quality Systems Inc. 18.27 5.9% (58.5%) 44.19 15.04 1,088 0 102 981 458 108 95 Dec-12 Mar-12 467 120 97 2.1x 9.1x 2.1x 8.2x Number of Companies 8 Median: 16.5% (9.8%) Total $1,754 $3,522 $466 $558 3.2x 16.2x 2.9x 10.2x Mean: 16.5% (9.8%) $2,293 3.2x 16.2x 2.9x 10.2x

As of March 31, 2013 7 Healthcare & Life Sciences Trading Statistics April 2013

Payer, Provider, & Pharmacy Support Services

Specialty Pharmacy Management BioScrip Inc. $12.71 20.9% 90.8% $12.92 $6.14 $725 $226 $62 $889 $663 $34 $22 Dec-12 Dec-12 $839 $67 $44 1.3x 26.4x 1.1x 13.2x Express Scripts Holding Company 57.62 8.9% 6.9% 66.06 49.79 47,246 15,915 2,794 60,378 93,858 5,275 3,540 Dec-12 Dec-12 100,931 6,678 6,316 0.6x 11.4x 0.6x 9.0x Catamaran Corporation 53.83 15.3% 48.8% 59.00 36.13 11,061 1,173 371 11,863 9,940 412 269 Dec-12 Dec-12 14,511 675 449 1.2x 28.9x 0.8x 17.6x Omnicare Inc. 40.72 15.0% 20.0% 40.90 29.24 4,261 2,058 454 5,840 6,160 700 564 Dec-12 Dec-12 6,148 683 570 0.9x 8.3x 0.9x 8.5x PharMerica Corporation 14.00 0.6% 14.0% 15.42 9.03 414 316 12 717 1,833 104 73 Dec-12 Dec-12 1,663 114 80 0.4x 6.9x 0.4x 6.3x Number of Companies 5 Median: 11.9% 17.0% Total $63,706 $16,956 $112,454 $124,092 0.8x 9.9x 0.8x 8.8x Mean: 11.3% 32.9% $16,956 0.8x 13.3x 0.8x 9.3x

As of March 31, 2013 8 Healthcare & Life Sciences Trading Statistics April 2013

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. 35.22 24.9% 4.0% 35.28 24.69 2,125 350 108 2,367 1,682 291 195 Dec-12 Sep-12 1,757 318 191 1.4x 8.1x 1.3x 7.4x Invacare Corporation 13.05 (18.2%) (23.2%) 18.27 12.81 416 235 39 613 1,455 69 31 Dec-12 Dec-12 1,345 NA 37 0.4x 8.9x 0.5x NA Prism Medical Ltd. 5.27 0.4% (13.2%) 6.55 4.85 44 12 1 54 76 7 5 Nov-12 Nov-12 94 12 NA 0.7x 7.9x 0.6x 4.6x ResMed Inc. 46.36 13.3% 49.7% 48.47 29.70 6,652 301 958 5,995 1,437 420 340 Dec-12 Jun-12 1,520 454 372 4.2x 14.3x 3.9x 13.2x Rotech Healthcare Inc. 0.13 (74.3%) (90.6%) 1.39 0.09 3 525 19 509 466 75 9 Sep-12 Dec-11 NA NA NA 1.1x 6.8x NA NA Number of Companies 5 Median: 0.4% (13.2%) Total $9,241 $1,908 $5,116 $4,716 1.1x 8.1x 1.0x 7.4x Mean: (10.8%) (14.7%) $1,908 1.6x 9.2x 1.6x 8.4x

Life Sciences Tools Agilent Technologies Inc. $41.97 5.4% (5.9%) $45.66 $35.32 $14,570 $2,361 $2,450 $14,484 $6,903 $1,401 $1,083 Jan-13 Oct-12 $7,030 $1,538 $1,298 2.1x 10.3x 2.1x 9.4x Becton, Dickinson and Company 95.61 23.6% 23.3% 95.73 71.56 18,545 4,170 1,917 20,201 7,777 2,125 1,618 Dec-12 Sep-12 8,005 2,150 1,605 2.6x 9.5x 2.5x 9.4x Life Technologies Corporation 64.63 33.5% 33.2% 65.84 39.73 11,049 2,414 256 13,202 3,799 1,199 800 Dec-12 Dec-12 3,927 1,401 1,153 3.5x 11.0x 3.4x 9.4x Number of Companies 3 Median: 23.6% 23.3% Total $44,163 $15,962 $18,478 $18,962 2.6x 10.3x 2.5x 9.4x Mean: 20.8% 16.9% $15,962 2.7x 10.3x 2.6x 9.4x

Medical Devices and Products Abbott Laboratories $35.32 (45.2%) (42.2%) $72.47 $31.64 $55,476 $20,476 $10,802 $60,871 $39,874 $11,595 $8,812 Dec-12 Dec-12 $22,735 $5,471 $3,840 1.5x 5.2x 2.7x 11.1x ArthroCare Corporation 34.76 3.0% 28.0% 36.99 24.13 975 0 219 837 368 95 74 Dec-12 Dec-12 380 94 71 2.3x 8.8x 2.2x 8.9x Baxter International Inc. 72.64 10.7% 21.9% 72.74 48.98 39,472 5,930 3,270 42,172 14,190 3,958 3,246 Dec-12 Dec-12 15,540 4,216 3,451 3.0x 10.7x 2.7x 10.0x Boston Scientific Corporation 7.81 40.0% 29.3% 7.85 4.79 10,546 4,256 207 14,595 7,249 1,638 955 Dec-12 Dec-12 7,197 1,657 904 2.0x 8.9x 2.0x 8.8x CR Bard Inc. 100.78 5.0% 1.8% 108.31 93.69 8,288 1,410 896 8,802 2,958 943 814 Dec-12 Dec-12 3,062 896 757 3.0x 9.3x 2.9x 9.8x Danaher Corp. 62.15 13.0% 13.5% 62.90 49.18 42,899 5,343 1,679 46,631 18,260 4,058 3,218 Dec-12 Dec-12 19,138 4,210 3,355 2.6x 11.3x 2.4x 11.1x Hanger, Inc. 31.53 15.4% 44.5% 32.03 20.43 1,089 521 19 1,591 986 165 131 Dec-12 Dec-12 1,070 185 146 1.6x 9.6x 1.5x 8.6x Hologic Inc. 22.60 13.5% 3.5% 23.96 16.18 6,050 5,036 718 10,368 2,161 720 323 Dec-12 Sep-12 2,625 1,044 833 4.8x 14.4x 3.9x 9.9x Hospira Inc. 32.83 7.0% (13.2%) 38.00 28.62 5,430 1,736 772 6,394 4,092 383 155 Dec-12 Dec-12 4,100 652 480 1.6x 15.3x 1.6x 9.8x Johnson & Johnson 81.53 17.3% 24.2% 81.59 61.71 228,042 16,165 14,911 223,118 67,224 21,098 17,432 Dec-12 Dec-12 71,234 22,839 18,863 3.3x 10.6x 3.1x 9.8x Medtronic, Inc. 46.96 15.2% 19.1% 47.41 35.67 47,608 11,492 1,298 56,636 16,427 5,449 4,639 Jan-13 Apr-12 16,526 6,016 5,191 3.4x 10.4x 3.4x 9.4x Stryker Corporation 65.24 19.8% 18.5% 66.92 49.43 24,604 1,762 1,395 22,081 8,657 2,161 1,884 Dec-12 Dec-12 8,993 2,636 2,171 2.6x 10.2x 2.5x 8.4x Thermo Fisher Scientific, Inc. 76.49 21.6% 35.3% 78.04 48.14 27,355 7,124 851 33,624 12,510 2,616 1,633 Dec-12 Dec-12 12,970 2,820 2,519 2.7x 12.9x 2.6x 11.9x Zimmer Holdings, Inc. 75.22 14.8% 18.2% 76.75 57.46 12,573 1,821 884 12,843 4,472 1,677 1,319 Dec-12 Dec-12 4,611 1,759 1,392 2.9x 7.7x 2.8x 7.3x Number of Companies 14 Median: 14.1% 18.8% Total $510,408 $38,611 $199,428 $190,181 2.6x 10.3x 2.6x 9.8x Mean: 10.8% 14.5% $38,611 2.7x 10.4x 2.6x 9.6x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $51.45 20.2% 31.7% $52.15 $35.48 $11,918 $1,396 $417 $12,896 $80,644 $1,429 $1,276 Dec-12 Sep-12 $86,367 $1,424 $1,258 0.2x 9.0x 0.1x 9.1x Cardinal Health, Inc. 41.62 2.2% (3.0%) 47.23 36.91 14,187 2,897 2,255 14,829 104,803 2,290 1,945 Dec-12 Jun-12 100,668 2,314 1,988 0.1x 6.5x 0.1x 6.4x Henry Schein, Inc. 92.55 15.7% 21.4% 92.66 71.97 8,105 533 122 8,954 8,940 759 634 Dec-12 Dec-12 9,523 801 678 1.0x 11.7x 0.9x 11.2x McKesson Corporation 107.96 12.6% 22.4% 111.55 84.65 25,143 4,479 2,726 26,896 123,534 2,846 2,275 Dec-12 Mar-12 123,728 3,132 2,623 0.2x 9.4x 0.2x 8.6x Owens & Minor Inc. 32.56 16.1% 8.0% 32.75 26.97 2,061 215 98 2,179 8,908 247 208 Dec-12 Dec-12 9,195 266 213 0.2x 8.8x 0.2x 8.2x Patterson Companies, Inc. 38.04 12.4% 15.2% 38.25 30.82 4,040 775 472 4,343 3,609 398 353 Jan-13 Apr-12 3,642 402 356 1.2x 10.9x 1.2x 10.8x Number of Companies 6 Median: 14.2% 18.3% Total $65,453 $11,683 $330,438 $333,123 0.2x 9.2x 0.2x 8.8x Mean: 13.2% 15.9% $11,683 0.5x 9.4x 0.5x 9.0x

As of March 31, 2013 9 Healthcare & Life Sciences Trading Statistics April 2013

Provider-Based Services

Stock Price Total Lastest Twelve Months Equity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 3/28/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) Acute-Care Hospitals Community Health Systems, Inc. $47.39 58.3% 113.9% $48.01 $20.71 $4,275 $9,723 $388 $14,043 $13,029 $1,845 $1,220 Dec-12 Dec-12 $13,579 $2,012 $1,224 1.1x 7.4x 1.0x 7.0x Health Management Associates Inc. 12.87 43.6% 93.8% 13.00 5.92 3,311 3,652 59 6,799 5,878 972 614 Dec-12 Dec-12 7,035 981 613 1.2x 7.0x 1.0x 6.9x HCA Holdings, Inc. 40.63 34.8% 69.6% 40.92 22.95 18,086 29,359 705 48,004 33,013 6,498 4,819 Dec-12 Dec-12 37,877 6,399 4,689 1.5x 7.3x 1.3x 7.5x Lifepoint Hospitals Inc. 48.46 30.9% 23.9% 48.79 34.32 2,275 1,726 85 3,968 3,392 537 324 Dec-12 Dec-12 4,337 556 330 1.2x 7.4x 0.9x 7.1x Tenet Healthcare Corp. 47.58 51.9% 129.2% 48.25 17.24 4,959 5,252 364 9,938 9,119 1,200 770 Dec-12 Dec-12 10,526 1,356 887 1.1x 8.3x 0.9x 7.3x Universal Health Services Inc. 63.87 34.8% 53.5% 65.00 36.90 6,242 3,771 23 10,276 6,961 1,286 977 Dec-12 Dec-12 7,940 1,256 925 1.5x 8.0x 1.3x 8.2x Number of Companies 6 Median: 39.2% 81.7% Total $39,147 $15,505 $71,392 $81,293 1.2x 7.4x 1.0x 7.2x Mean: 42.4% 80.6% $15,505 1.2x 7.6x 1.1x 7.3x

Assisted Living Assisted Living Concepts Inc. $11.89 28.3% (27.8%) $20.33 $6.93 $276 $182 $10 $446 $228 $41 $16 Dec-12 Dec-12 $232 $36 $26 2.0x 11.0x 1.9x 12.3x Brookdale Senior Living Inc. 27.88 14.7% 51.4% 29.92 14.99 3,422 2,681 69 6,034 2,445 375 122 Dec-12 Dec-12 2,832 411 149 2.5x 16.3x 2.1x 14.7x Capital Senior Living Corp. 26.43 45.3% 187.9% 27.90 8.79 725 406 19 1,111 306 50 15 Dec-12 Dec-12 360 70 28 3.6x 22.4x 3.1x 15.8x Emeritus Corp. 27.79 17.3% 55.9% 30.95 14.24 1,278 4,019 60 5,246 1,388 252 105 Dec-12 Dec-12 1,872 384 183 3.8x 20.8x 2.8x 13.7x Five Star Quality Care Inc. 6.69 32.5% 100.9% 6.72 2.98 323 64 25 352 1,224 46 21 Dec-12 Dec-12 1,453 55 30 0.3x 7.6x 0.2x 6.4x Skilled Healthcare Group, Inc. 6.57 8.1% (13.2%) 8.41 4.97 258 449 2 705 873 99 73 Dec-12 Dec-12 888 102 76 0.8x 7.0x 0.8x 6.9x Number of Companies 6 Median: 22.8% 53.7% Total $6,281 $2,316 $6,464 $7,638 2.2x 13.6x 2.0x 13.0x Mean: 24.3% 59.2% $2,316 2.2x 14.2x 1.8x 11.6x

Diagnostic Imaging Alliance Healthcare Services, Inc. $7.77 22.4% 6.4% $9.30 $3.61 $81 $559 $40 $648 $472 $148 $53 Dec-12 Dec-12 $464 $137 NA 1.4x 4.3x 1.4x 4.7x RadNet, Inc. 2.80 12.9% (14.9%) 3.53 2.13 109 582 0 692 647 104 46 Dec-12 Dec-12 678 123 56 1.1x 6.3x 1.0x 5.6x Varian Medical Systems Inc. 72.00 3.4% 4.5% 75.78 52.90 7,856 206 755 7,255 2,860 674 610 Dec-12 Sep-12 3,044 702 637 2.5x 10.8x 2.4x 10.3x Number of Companies 3 Median: 12.9% 4.5% Total $8,046 $2,865 $3,979 $4,186 1.4x 6.3x 1.4x 5.6x Mean: 12.9% (1.3%) $2,865 1.7x 7.1x 1.6x 6.9x

Dialysis Services DaVita HealthCare Partners Inc. $118.59 8.0% 34.4% $124.29 $77.81 $12,511 $8,573 $534 $21,289 $8,186 $1,741 $1,397 Dec-12 Dec-12 $11,286 $2,373 $1,853 2.6x 12.1x 1.9x 9.0x Fresenius Medical Care AG & Co. KGAA 52.75 0.9% 0.2% 60.24 47.98 16,142 8,305 688 22,501 14,081 2,768 2,165 Dec-12 Dec-12 14,713 3,084 2,434 2.1x 10.7x 1.5x 7.3x Number of Companies 2 Median: 4.5% 17.3% Total $28,654 $21,895 $22,267 $25,999 2.4x 11.4x 1.7x 8.1x Mean: 4.5% 17.3% $21,895 2.4x 11.4x 1.7x 8.1x

Home Care / Hospice Addus HomeCare Corporation $13.19 84.0% 175.4% $14.07 $3.57 $143 $16 $2 $157 $244 $18 $15 Dec-12 Dec-12 $253 $17 $15 0.6x 8.9x 0.6x 9.1x Almost Family Inc. 20.43 1.8% (20.0%) 26.87 17.87 191 1 26 166 349 31 29 Dec-12 Dec-12 351 29 25 0.5x 5.3x 0.5x 5.8x Amedisys Inc. 11.12 (1.9%) (21.6%) 15.95 9.51 349 103 15 439 1,488 90 50 Dec-12 Dec-12 1,443 78 37 0.3x 4.8x 0.3x 5.6x Gentiva Health Services Inc. 10.82 7.1% 23.7% 12.90 5.13 334 935 207 1,064 1,713 183 156 Dec-12 Dec-12 1,705 162 139 0.6x 5.9x 0.6x 6.6x LHC Group, Inc. 21.50 2.3% 15.5% 22.86 15.69 378 20 10 403 626 63 55 Dec-12 Dec-12 674 53 46 0.6x 6.4x 0.6x 7.6x Chemed Corp. 79.98 19.3% 25.9% 80.68 54.06 1,533 175 70 1,638 1,430 181 158 Dec-12 Dec-12 1,486 205 167 1.1x 9.1x 1.1x 8.0x Number of Companies 6 Median: 4.7% 19.6% Total $342 $645 $1,028 $1,058 0.6x 6.2x 0.6x 7.1x Mean: 18.8% 33.1% $645 0.6x 6.7x 0.6x 7.1x

Long-Term Care The Ensign Group, Inc. $33.40 21.0% 23.6% $33.70 $23.40 $727 $211 $41 $893 $825 $122 $93 Dec-12 Dec-12 $915 $145 $114 1.1x 7.3x 1.0x 6.2x Kindred Healthcare Inc. 10.53 (0.2%) 16.5% 12.76 7.60 561 1,660 50 2,122 6,181 434 233 Dec-12 Dec-12 5,884 410 215 0.3x 4.9x 0.4x 5.2x National Healthcare Corp. 45.72 (1.0%) 0.1% 50.17 40.75 646 10 67 653 742 96 66 Dec-12 Dec-12 803 NA NA 0.9x 5.9x 0.8x NA Number of Companies 3 Median: (0.2%) 16.5% Total $1,934 $1,222 $7,748 $7,602 0.9x 5.9x 0.8x 5.7x Mean: 6.6% 13.4% $1,222 0.8x 6.1x 0.7x 5.7x

As of March 31, 2013 10 Healthcare & Life Sciences Trading Statistics April 2013

Provider-Based Services

Specialty: MEDNAX, Inc. 89.63 12.9% 20.2% 89.98 59.24 4,395 144 21 4,512 1,817 420 390 Dec-12 Dec-12 2,139 489 455 2.5x 10.7x 2.1x 9.2x Number of Companies 1 Median: 12.9% 20.2% Total $4,395 $4,512 $1,817 $2,139 2.5x 10.7x 2.1x 9.2x Mean: 12.9% 20.2% $4,512 2.5x 10.7x 2.1x 9.2x

Dental: Birner Dental Management Services Inc. $16.36 35.5% 30.1% $23.03 $16.21 $42 $6 $1 $47 $62 $4 $1 Dec-12 Dec-12 NA NA NA 0.8x 10.9x NA NA Number of Companies 1 Median: 35.5% 30.1% Total $42 $47 $62 $0 0.8x 10.9x NA NA Mean: 35.5% 30.1% $47 0.8x 10.9x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $47.57 (8.1%) (0.8%) $56.58 $40.24 $1,285 $0 $189 $982 $3,207 $221 $189 Dec-12 Dec-12 $3,435 $243 $171 0.3x 4.5x 0.3x 4.0x Providence Service Corp. 18.49 12.0% 16.3% 20.09 9.56 238 130 56 319 1,106 44 29 Dec-12 Dec-12 1,135 51 35 0.3x 7.3x 0.3x 6.3x Universal Health Services Inc. 63.87 34.8% 53.5% 65.00 36.90 6,242 3,771 23 10,276 6,961 1,286 977 Dec-12 Dec-12 7,940 1,256 925 1.5x 8.0x 1.3x 8.2x Number of Companies 3 Median: 12.0% 16.3% Total $7,765 $2,895 $11,275 $12,510 0.3x 5.9x 0.3x 6.3x Mean: 12.9% 23.0% $2,895 0.5x 4.9x 0.6x 6.2x

Surgicenters / Rehabilitation Surgery Centers: AmSurg Corp. $33.64 12.6% 21.4% $33.78 $25.00 $1,081 $638 $46 $2,150 $929 $311 $281 Dec-12 Dec-12 $1,072 $359 $325 2.3x 6.9x 2.0x 6.0x Number of Companies 1 Median: 12.6% 21.4% Total $1,081 $2,150 $929 $1,072 2.3x 6.9x 2.0x 6.0x Mean: 12.6% 21.4% $2,150 2.3x 6.9x 2.0x 6.0x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $26.37 27.5% 28.0% $26.40 $18.44 $2,542 $1,254 $133 $4,117 $2,162 $497 $415 Dec-12 Dec-12 $2,244 $520 $429 1.9x 8.1x 1.8x 7.9x Select Medical Holdings Corporation 9.00 (3.0%) 10.4% 14.89 6.94 1,262 1,488 40 2,749 2,910 400 337 Dec-12 Dec-12 2,995 397 328 0.9x 6.7x 0.9x 6.9x US Physical Therapy Inc. 26.85 0.1% 15.8% 28.40 22.40 324 18 12 348 247 43 38 Dec-12 Dec-12 258 37 39 1.4x 8.0x 1.3x 9.4x Number of Companies 3 Median: 0.1% 15.8% Total $4,128 $2,405 $5,319 $5,498 1.4x 8.0x 1.3x 7.9x Mean: 8.2% 18.1% $2,405 1.4x 7.6x 1.4x 8.1x

As of March 31, 2013 11 M&A Detail April 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 3/29/2013 Cardiac Science Corporation, Diagnostic Cardiac Science Corporation Mortara Instrument, Inc. $21.0 - - - No Healthcare & Cardiology Product Line Except Certain Assets Life Sciences 3/27/2013 Boise Intensive Care Hospital, Inc. LifeCare Holdings, Inc. Vibra Healthcare, LLC - - - - No 3/26/2013 Apricus Pharmaceuticals USA, Inc., Rights and Apricus Pharmaceuticals USA, Inc. Biocodex, Inc. $1.5 - - - No M&A Information, Property and Inventory related to Totect 3/26/2013 Novartis AG, Cardioxane Novartis AG (SWX:NOVN) Clinigen Group Plc (AIM:CLIN) $33.0 2.8x - - No 3/26/2013 Maxiom Consulting Group, Inc. - Collaborative Consulting, LLC - - - - No 3/26/2013 Champlain Valley Physicians Hospital Medical Champlain Valley Physicians American Renal Associates LLC - - - - No Center, Inc., H.K. Freedman Renal Center Hospital Medical Center, Inc. 3/25/2013 SARcode Bioscience, Inc. Alta Partners LP; Rho Capital Shire plc (LSE:SHP) $160.0 - - - Yes Partners, Inc.; Sofinnova Ventures, Inc.; Clarus Ventures, LLC 3/25/2013 Doctors Express, Inc. Immediate Clinic, LLC American Family Care, Inc. - - - - No 3/22/2013 KL Crane & Associates and MD EMR Systems - Scientific Technologies Corporation - - - - No 3/22/2013 SAGE Labs, Inc. Sigma-Aldrich Corporation - - - - - No (NasdaqGS:SIAL) 3/21/2013 13 Senior Housing And Care Properties Located RSF REIT V, Inc.; SP Advisors, MPG Healthcare L.P. $141.7 24.0x - 62.2x No In North Carolina, Pennsylvania And Virginia LLC; SP Healthcare Investors, LLC 3/20/2013 Micron Technologies, Inc. - Arlington Capital Partners - - - - Yes 3/19/2013 Obagi Medical Products, Inc. Eagle Asset Management, Inc.; Valeant Pharmaceuticals International $323.5 2.7x 15.6x 16.9x No (NasdaqGS:OMPI) Royce & Associates, LLC; Paradigm Capital Management, Inc.; BlackRock Advisors, LLC 3/19/2013 Gamma Medica-Ideas, Inc., LumaGEM Gamma Medica-Ideas, Inc. Psilos Group - - - - Yes Molecular Breast Imaging Business 3/19/2013 Atlantis Healthcare Group Puerto Rico, Inc. - ICV Partners - - - - Yes 3/18/2013 Claimsnet.com Inc. (OTCPK:CLAI) McKesson Corporation TransCoastal Corporation - - - - No (NYSE:MCK); Elmira United Corporation 3/18/2013 LABOTIX Automation, Inc - Cerner Corporation - - - - No (NasdaqGS:CERN) 3/17/2013 Palomar Medical Technologies Inc. Broadwood Capital, Inc. Cynosure, Inc. (NasdaqGS:CYNO) $208.9 2.6x - - No (NasdaqGS:PMTI) 3/15/2013 InVision Human Services Inc. - Long Run Childrens Learning Center - - - - No 3/15/2013 Methodist University Hospital, Skilled Nursing Methodist University Hospital Signature Health Care, LLC - - - - No Unit 3/14/2013 Bayer HealthCare AG, Berlex Labs Site in Bayer HealthCare AG Joinn Laboratories (China) Co., Ltd. - - - - No Richmond 3/14/2013 MedVend, LLC - Medbox, Inc. (OTCPK:MDBX) - - - - No 3/13/2013 Naturewell Inc. Prior to Reverse Merger with - Naturewell Inc. (OTCPK:NAWL) - - - - No Brazil Interactive Media, Inc. 3/12/2013 Appature Inc. Madrona Venture Group; Ignition IMS Health Incorporated - - - - Yes Partners; Founder's Co-op 3/12/2013 Flexible Stenting Solutions, Inc. Burrill Venture Capital; Goodman Cordis Corporation - - - - Yes Co., Ltd. (JASDAQ:7535); GBP Capital 3/12/2013 VertiFlex, Inc., Certain Non-Core Assets VertiFlex, Inc. Stryker Corporation (NYSE:SYK) - - - - No Relating To Spinal Implants 3/11/2013 LM Pharmacy Solutions - Patient Home Monitoring Corp. - - - - No (TSXV:PHM) 3/11/2013 Premier Living By Warden, LLC ------No 3/11/2013 New Eastwood Care & Rehabilitation Center Signature Health Care, LLC Tryko Partners, LLC $6.3 - - - Yes 3/11/2013 NaviNet, Inc., 3,400 Navinet EMR and PM NaviNet, Inc. CureMD Corporation - - - - No Providers 3/10/2013 64% stake in Vedantra Pharmaceuticals, 50% in Access BridgeGap Ventures Clal Biotechnology Industries - - - - Yes Mnemosyne Pharmaceuticals and 49% in (TASE:CBI) eXithera Pharma 3/9/2013 Advanced Access Pharmacy Services, LLC - The PAWS Pet Company, Inc - - - - No (OTCPK:PAWS) 3/8/2013 Greer Laboratories, Inc. Raymond James Capital, Inc. Ares Life Sciences SA - - - - Yes 3/7/2013 Vista Hospital of Dallas, L.P. Vista Land And Equipment LLC RCR Healthcare LLC $5.1 - - - No 3/6/2013 Althea Technologies, Inc. Telegraph Hill Partners; Hercules Ajinomoto Co., Inc. (TSE:2802) $175.0 3.3x - - Yes Technology Growth Capital, Inc. (NYSE:HTGC) 3/6/2013 Applied Bioprocess Containers, LLC - Saint-Gobain Performance Plastics - - - - No Corporation 3/6/2013 Sedgwick And Chanute And Council Grove SeniorTrust of Florida, Inc. Diversicare Healthcare Services Inc. $15.5 0.6x - - No And Larned And Haysville HealthCares (NasdaqCM:DVCR) 3/6/2013 Senior Living Community in Nebraska - Capital Senior Living Corp. $6.7 - - - No (NYSE:CSU) 3/6/2013 Delaware Diagnostic Group, LLC - Tri-State Imaging Consultants LLC - - - - No

12 M&A Detail April 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 3/6/2013 Strategic Dental Management Corp. - - $0.3 40.9x - - No Healthcare & 3/5/2013 Jardogs, LLC Springfield Clinic Allscripts Healthcare Solutions, Inc. - - - - No Life Sciences (NasdaqGS:MDRX) 3/5/2013 Legacy Rehabilitation and Living - The Ensign Group, Inc. - - - - No M&A (NasdaqGS:ENSG) 3/5/2013 Rosewood Terrace and Heartsworth House Craig County Medical Services Corp - $3.5 - - - No (Continued) Assisted Living Center and Heartsworth Senior Suites 3/4/2013 Bell Hospital - Lifepoint Hospitals Inc. - - - - No (NasdaqGS:LPNT) 3/4/2013 Meridian Medical Management GE Healthcare Inc. The Gores Group LLC - - - - Yes 3/4/2013 ClinStar, LLC - PRA International, Inc. - - - - No 3/4/2013 Lighthouse Practice Management Group, Inc. - Yodle Inc. - - - - No 3/2/2013 Clark & Daughtrey Medical Group, P.A. - Lakeland Regional Medical Center, - - - - No Inc. 3/1/2013 Coliseum Convalescent and Rehabilitation - Virginia Health Services, Inc. - - - - No Center 3/1/2013 Opko Health, Inc., RNAi Related Assets Opko Health, Inc. (NYSE:OPK) RXi Pharmaceuticals Corporation $57.3 - - - No (OTCPK:RXII) 3/1/2013 Radiant Development Radiant Research, Inc. Accelovance, Inc. - - - - No 3/1/2013 Baxano, Inc. Affinity Capital ; CMEA Capital; TranS1, Inc. (NasdaqGM:TSON) $23.6 2.5x - - No Prospect Venture ; Three Arch; Kaiser Permanente; Pinnacle Ventures; Kearny Venture 3/1/2013 North American Bioextracts and Biocell - Abattis Bioceuticals Corp. - - - - No Laboratories, Inc. (OTCPK:ATTB.F) 3/1/2013 Texas Children's Pediatrics Grand Parkway - Texas Children's Pediatric Associates - - - - No

Turner Bredrup James Clark Todd Morris Contacts Managing Director Managing Director Managing Director [email protected] [email protected] [email protected] +1 (804) 915-0110 +1 (804) 915-0119 +1 (415) 217-3412

Cheairs Porter Andy Dixon Geoff Smith Managing Director Director Director [email protected] [email protected] [email protected] +1 (804) 915-0130 +1 (415) 217-3419 +1 (804) 915-0195

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13 1001 Haxall Point Sources: 9th Floor Capital IQ. Richmond, VA 23219 Thomson Financial. Phone: +1 (804) 648-0072 S&P. Fax: +1 (804) 648-0073 Reuters. Bloomberg. Irving Levin Associates. 575 Market Street 31st Floor Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the San Francisco, CA 94105 Phone: +1 (415) 288-4260 advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an Fax: +1 (415) 288-4269 unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Two International Place Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA 24th Floor and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Services Authority (FRN Boston, MA 02110 #540892). Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd Phone: +1 (617) 482-7501 conduct business. Fax: +1 (617) 482-7503 THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD- 63 Brook Street PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY London, W1K 4HS WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS Phone: +44 20 7518 8900 Fax: +44 20 7526 2187 OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS 222 South Ninth Street Suite 3350 PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT +1 (804) 648-0072. Minneapolis, MN 55402 Phone: +1 (612) 359-2700 The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is Fax: +1 (612) 359-2701 not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris 1900 East 9th Street Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such 20th Floor information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, Cleveland, OH 44114 Phone: +1 (216) 689-2400 have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have Fax: +1 (216) 689-2401 provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections 1600 Market Street in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments 21st Floor discussed in this report may not be suitable for all investors, and investors must make their own investment decisions Philadelphia, PA 19103 using their own independent advisors as they believe necessary and based upon their specific financial situations and Phone: +1 (267) 675-5900 investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may Fax: +1 (267) 675-5901 be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.