Healthcare & Life Sciences Update

Healthcare & Life Sciences Industry Update December 2012

Member FINRA/SIPC

www.harriswilliams.com What We’ve Been Reading December 2012

• An article in the New York Times by Robert Pear gives some very useful information around the tax increases that will be taking effect in January as part of the ACA. With the general media mostly focused on the fiscal cliff and the impending rises in capital gains and dividend taxes, many affluent Americans have overlooked the additional taxes they will be hit with in order to fund health reform. The article goes into some detail on the payroll, investment and income taxes that are expected to generate more than $300 billion in tax revenues over the next 10 years with 85% coming from the top 1% of taxpayers.

• In order to save costs, California is currently experimenting with a program by which a large group of disabled Medicaid enrollees have been moved out of traditional fee-for- service coverage into managed care plans outsourced to commercial insurers. According to an article by Mary Carey and Sarah Varney at Medcity News, this program is being closely watched by both industry and the federal government ahead of the shift of 2 million Medicare/Medcaid dual eligibles into managed care as required by the ACA. California is expecting to save $663 million as part of the program but there is significant concern that the standard of care for these patients will suffer.

• The Supreme Court is set to consider the legality of settlements between branded and generic pharmaceutical companies sometimes called “Pay for Delay” settlements, according to an article in the Wall Street Journal. These involve a branded manufacturer settling a patent litigation with a generic manufacturer by effectively making a payment in return for a delay in the release of the generic. The FTC alleges that “Pay for Delay” costs consumers $3.5 billion dollars annually. The Journal article goes into some depth in discussing this topic, which is currently a major focus of the FTC. Note: a subscription to the Wall Street Journal online is required to view this article.

1 Equity Trading Overview December 2012

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 $7,834 (3.2%) (1.3%) 1.7x 7.9x 1.7x 7.8x Contract Pharma Manufacturing 5 915 10.0% 58.8% 1.3x 12.0x 1.5x 11.1x on page 6) Contract Research Organizations 5 1,801 19.4% 61.0% 1.4x 10.1x 1.3x 9.5x Disease Management 2 3,032 1.2% 22.6% 1.5x 7.9x 1.5x 8.5x Emergency Services 1 1,935 (5.8%) 35.2% 2.3x 7.7x 2.3x 7.8x Health Care Staffing 4 1,173 11.6% 59.4% 1.0x 13.4x 0.9x 11.7x HMO - Medical 11 13,848 1.6% 11.5% 0.4x 6.0x 0.4x 6.6x

Support Services Information Services 11 2,194 2.8% 7.2% 2.9x 13.1x 2.9x 10.7x Specialty Managed Care 2 1,568 (2.8%) (12.4%) 0.7x 5.3x 0.7x NA

Payer, Provider, & Pharmacy Specialty Pharmacy Management 5 16,649 13.2% 14.5% 0.6x 10.1x 0.8x 9.3x Dental Products 4 18,965 4.5% 18.5% 2.5x 11.4x 2.5x 10.3x Durable Medical Equipment 4 2,542 2.9% 1.1% 1.4x 7.1x 1.3x 8.1x Life Sciences Tools 3 13,701 3.4% 3.9% 2.2x 8.6x 2.2x 8.0x

Devices Medical Devices and Products 14 37,645 2.0% 13.0% 2.5x 9.4x 2.5x 8.8x Products & Medical / Surgical / Dental Supplies 6 10,237 3.9% 13.3% 0.2x 7.6x 0.2x 7.4x Acute-Care Hospitals 6 13,287 10.1% 21.1% 0.9x 6.4x 0.9x 6.6x Assisted Living 7 1,742 12.7% 64.4% 1.9x 10.8x 1.7x 8.7x Diagnostic Imaging 3 2,761 (7.5%) 1.6% 1.4x 5.5x 1.6x 8.0x Dialysis Services 2 23,566 3.8% 21.2% 2.2x 10.5x 2.1x 10.2x Home Care / Hospice 6 593 (1.4%) 36.0% 0.5x 6.0x 0.5x 6.1x Long-Term Care 3 1,159 (3.2%) 7.4% 0.8x 5.8x 0.8x 5.3x Physician Practice Management 3 1,719 (4.9%) 2.0% 1.7x 8.7x 1.6x 9.8x

Psychiatric Hospitals / Management 3 2,388 12.6% 12.1% 0.3x 6.0x 0.4x 5.9x Provider-Based Services Provider-Based Surgicenters / Rehabilitation 4 2,107 (1.3%) 27.3% 1.5x 7.1x 1.5x 7.3x Payer, Provider, & Pharmacy Support Services 49 $5,095 4.8% 25.7% 1.4x 9.3x 1.4x 9.2x Products & Devices 31 $16,618 3.3% 9.9% 1.8x 8.8x 1.7x 8.5x Provider-Based Services 37 $5,480 2.3% 21.4% 1.2x 7.4x 1.2x 7.5x HW&Co. HCLS Composite Index 117 $7,640 3.6% 20.8% 1.4x 8.5x 1.4x 8.4x S&P 500 1.2% 13.6%

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

(30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2 Equity Markets Overview December 2012

Healthcare & 160 Life Sciences Industry Stock Performance 140 34.8% 29.3% 24.8% 120

100

40 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 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 11/20/12 11/20/12 Neurocrine Biosciences Inc NBIX Follow-On $150.0 (by proceeds) 11/02/12 11/02/12 NuPathe Inc PATH Follow-On 145.2 11/09/12 11/23/11 Array Biopharma Inc ARRY Follow-On 75.6 11/16/12 10/01/12 Cynosure Inc CYNO Follow-On 75.4 11/06/12 11/06/12 Enanta Pharmaceuticals Inc ENTA IPO 69.0 11/08/12 11/08/12 Achillion Pharmaceuticals Inc ACHN Follow-On 50.0 11/30/12 11/14/12 Supernus Pharmaceuticals Inc SUPN Follow-On 48.0 11/13/12 05/09/12 MAKO Surgical Corp MAKO Follow-On 46.0 11/16/12 11/16/12 Patheon Inc PTI Follow-On 30.0 11/27/12 01/31/12 BioDelivery Sciences Intl Inc BDSI Follow-On 28.6 11/04/12 11/04/12 MEI Pharma Inc MEIP Follow-On 27.5 11/08/12 11/08/12 Anthera Pharmaceuticals Inc ANTH Follow-On 25.0 11/26/12 11/26/12 Chelsea Therpeutics Intl Ltd CHTP Follow-On 20.0 11/02/12 11/02/12 Lpath Inc LPTN Follow-On 20.0 11/30/12 11/30/12 Kips Bay Medical Inc KIPS Follow-On 18.2 11/27/12 11/27/12 Arno Therapeutics Inc LRRI Convertible 12.7 11/13/12 11/13/12 Arrayit Diagnostics Inc NA IPO 10.8 11/20/12 11/20/12 Novelos Therapeutics Inc NVLT Follow-On 10.0 11/27/12 11/27/12 TherapeuticsMD Inc TXMD Follow-On 7.1 11/09/12 11/09/12 Idera Pharmaceuticals Inc IDP Convertible 7.0 11/29/12 06/22/11 Rexahn Pharmaceuticals Inc RNN Follow-On 6.6 11/13/12 11/13/12 Advaxis Inc ADXS Follow-On 4.3 11/16/12 05/13/11 AspenBio Pharma Inc APPY Follow-On 4.1 11/07/12 02/13/12 Atossa Genetics Inc ATOS IPO 4.0 11/21/12 11/21/12 TrovaGene Inc TROV Follow-On 3.8

3 M&A Overview December 2012

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Healthcare & Announced Target Buyer 11/28/2012 Healthpoint, Ltd. Smith & Nephew plc Life Sciences 300 11/8/2012 Fortitech, Inc. Royal DSM N.V. 17 18 11/14/2012 Arcadia Solutions, LLC Ferrer Freeman & Company, LLC 16 11/8/2012 EpiCept Corporation Immune Pharmaceuticals Ltd.

M&A __ 18 19 11/8/2012 Vessix Vascular, Inc. Boston Scientific Corporation 250 13 13 18 20 11/6/2012 Harbor Health Systems, LLC One Call Care Management, Inc. 17 11 12 11/6/2012 Sage Products, Inc. Madison Dearborn Partners, LLC 11/5/2012 Heartland Dental Care, Inc. Teachers' Private Capital 200 12 11/5/2012 Milliman Care Guidelines LLC The Hearst Corporation 11/1/2012 Nurse On Call, Inc. Emeritus Corp.

150 278 279 267 255 256 242 245 236 LTM Deal Statistics 225 229 221

Number Number Transactionsof 219 Aggregate Number Median Transaction Multiples 100 187 Value ($bn) of Deals TEV/Rev TEV/EBITDA $112.2 984 2.19x 11.0x 50 Note: Transactions based on publicly available information 0 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

PEG Acquirer Strategic Acquirer

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

Life Sciences $500 1400 21x 4.0x M&A Trends $450 1200 18x 3.5x

$400 $389.4

EV / LTM Revenue Multiple Revenue EV LTM /

Number of of Transactions Number __ 1000 15.5x 15.2x 3.0x $350 15x $300 12.8x 2.5x 800 11.1x 12x 11.0x $250 2.0x $194.1 600 9x $200 7.7x $174.6 1.5x $141.4 $150 $110.6 400 6x 1.0x $100 $99.0 __

200 __

EV /LTM EV EBITDA Multiple 3x $50 0.5x

AggregateTransaction Value in($ billions) $0 0 0x 0.0x 2007 2008 2009 2010 2011 2012 YTD 2007 2008 2009 2010 2011 2012 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 140 Segment Companies 124 M&A Activity 120 Biotechnology 5 120 113

Healthcare Technology 19 ' Healthcare Distributors 9 100 94 95 Healthcare Equipment 24 79 80 Healthcare Facilities 36 80 69 71 Healthcare Services 62 65 62 Healthcare Supplies 8 58 60 60 55 Life Sciences Tools & Services 11 TransactionVolume 49 50 Managed Healthcare 6 40 40 42 40 Pharmaceuticals 19 31 27 23 20

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD Number of Investments Number of Exits

4 Debt Markets Overview December 2012

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 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 2006 2007 2008 2009 2010 2011 2012 YTD Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional

Credit Statistics Average Secondary Spread

L + 1000 6.0x

2006 2007 2008 2009 2010 2011 2012YTD __ 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 Interest

Top 20 Recent Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread 11/16/12 UnitedHealth Group Inc Hospital and medical service plans $3,000 Bridge Loan A / A3 L+ 100 Healthcare & 11/01/12 DaVita Inc Kidney dialysis centers 1,650 Term Loan B B / B2 L+ 300 Life Sciences 11/01/12 DaVita Inc Kidney dialysis centers 1,350 Term Loan A B / B2 L+ 250 Debt Offerings 11/06/12 Kinetic Concepts, Kinetic Concepts Electromedical equipment 1,622 Term Loan C CCC+ / Caa1 L+ 425 11/06/12 Kinetic Concepts, Kinetic Concepts Electromedical equipment 401 Term Loan C CCC+ / Caa1 L+ 450 (by deal amount) 11/06/12 Kinetic Concepts, Kinetic Concepts Electromedical equipment 323 Term Loan C CCC+ / Caa1 L+ 375 11/20/12 Ardent Medical Services Inc General medical & surgical hospitals 725 Term Loan B B+ / B1 L+ 525 11/20/12 Ardent Medical Services Inc General medical & surgical hospitals 175 Term Loan B+ / B1 L+ 950 11/20/12 Ardent Medical Services Inc General medical & surgical hospitals 120 Revolver/Line >= 1 Yr. B+ / B1 N/A 11/14/12 Adventist Health Systems General medical & surgical hospitals 1,000 Revolver/Line >= 1 Yr. NR / NR L+ 70 11/19/12 Mednax Inc, Mednax Inc Offices & clinics of medical doctors 800 Revolver/Line >= 1 Yr. NR / NR L+ 113 11/20/12 Perrigo Co, Perrigo Co Pharmaceutical preparations 400 Revolver/Line >= 1 Yr. NR / NR L+ 105 11/20/12 Perrigo Co, Perrigo Co Pharmaceutical preparations 725 Term Loan A NR / NR L+ 125 11/29/12 CHG Healthcare Services Health and allied services 475 Term Loan B B / B1 L+ 375 11/29/12 CHG Healthcare Services Health and allied services 190 Term Loan B / Caa1 L+ 775 11/29/12 CHG Healthcare Services Health and allied services 100 Revolver/Line >= 1 Yr. B / B1 N/A 11/01/12 ConvaTec Ltd Surgical appliances and supplies 689 Term Loan B B+ / Ba3 L+ 400 11/01/12 Team Health Inc Offices of health practitioners 275 Term Loan A BB / Ba3 L+ 175 11/01/12 Team Health Inc Offices of health practitioners 250 Revolver/Line >= 1 Yr. BB / Ba3 L+ 175 11/14/12 Biomet Inc Surgical appliances and supplies 500 Revolver/Line >= 1 Yr. B- / B3 L+ 225

5 Healthcare & Life Sciences Trading Statistics December 2012

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc . $13.49 01%0.1% 25.4% $16.87 $9.47 $1,287 $104 $38 $1,353 $227 $79 $69 Sep-12 Dec-11 $254 $92 $83 60x6.0x 17.1x 53x5.3x 14.8x Cambrex Corporation. 10.97 (11.0%) 58.8% 14.33 5.87 325 69 34 361 274 56 34 Sep-12 Dec-11 275 NA 35 1.3x 6.7x 1.3x NA Integrated Biopharma Inc. 0.22 10.0% 400.0% 0.33 0.02 5 14 0 18 34 (0) (1) Sep-12 Jun-12 NA NA NA 0.5x NM NA NA Patheon Inc. 3.69 33.3% 221.3% 3.99 1.09 478 317 35 762 721 52 9 Jul-12 Oct-11 742 69 22 1.0x 14.5x 1.0x 11.1x West Pharmaceutical Services, Inc. 54.03 14.0% 40.2% 54.99 35.88 1,844 401 143 2,080 1,240 215 140 Sep-12 Dec-11 1,257 216 136 1.7x 9.4x 1.7x 9.6x Number of Companies 5 Median: 10.0% 58.8% Total $3,938 $915 $2,496 $2,527 1.3x 12.0x 1.5x 11.1x Mean: 9.3% 149.1% $915 2.1x 11.9x 2.3x 11.8x

Contract Research Organizations Albany Molecular Research Inc. $4.86 46.8% 112.2% $4.97 $2.21 $150 $8 $16 $143 $206 $18 $0 Sep-12 Dec-11 $216 $29 $12 0.7x 7.9x 0.7x 4.9x Charles River Laboratories International, Inc. 38.37 5.8% 35.3% 41.64 25.52 1,863 669 83 2,444 1,140 274 193 Sep-12 Dec-11 1,133 266 197 2.1x 8.9x 2.2x 9.2x Covance Inc. 57.01 19.4% 24.2% 57.97 42.02 3,120 340 441 3,019 2,151 298 187 Sep-12 Dec-11 2,163 305 196 1.4x 10.1x 1.4x 9.9x ICON Public Limited Company 27.59 20.8% 62.2% 28.06 15.57 1,656 0 119 1,476 1,057 99 56 Sep-12 Dec-11 1,100 115 72 1.4x 14.9x 1.3x 12.8x PAREXEL International Corporation 32.29 13.3% 61.0% 33.13 18.74 1,899 274 223 1,924 1,477 175 109 Sep-12 Jun-12 1,649 203 137 1.3x 11.0x 1.2x 9.5x Number of Companies 5 Median: 19.4% 61.0% Total $8,689 $1,801 $6,031 $6,261 1.4x 10.1x 1.3x 9.5x Mean: 21.2% 59.0% $1,801 1.4x 10.6x 1.3x 9.3x

Disease Management Alere Inc. $18.50 (0.5%) (20.9%) $27.22 $17.13 $1,496 $3,600 $302 $5,402 $2,714 $607 $167 Sep-12 Dec-11 $2,782 $601 $484 2.0x 8.7x 1.9x 9.0x Healthways Inc. 10.82 2.9% 66.2% 11.96 6.12 367 297 3 662 682 94 43 Sep-12 Dec-11 677 82 31 1.0x 7.1x 1.0x 8.0x Number of Companies 2 Median: 1.2% 22.6% Total $1,863 $3,032 $3,396 $3,459 1.5x 7.9x 1.5x 8.5x Mean: 12%1.2% 22.6% $3,032 15x1.5x 79x7.9x 15x1.5x 85x8.5x

Emergency Services Air Methods Corp. $109.17 (5.8%) 35.2% $124.19 $77.23 $1,409 $530 $4 $1,935 $828 $251 $168 Sep-12 Dec-11 $838 $249 $165 2.3x 7.7x 2.3x 7.8x Number of Companies 1 Median: (5.8%) 35.2% Total $1,409 $1,935 $828 $838 2.3x 7.7x 2.3x 7.8x Mean: (5.8%) 35.2% $1,935 2.3x 7.7x 2.3x 7.8x

Health Care Staffing AMN Healthcare Services Inc. $10.93 34.6% 138.1% $11.32 $3.86 $485 $174 $4 $677 $928 $64 $49 Sep-12 Dec-11 $947 $67 $52 0.7x 10.6x 0.7x 10.2x Cross Country Healthcare, Inc. 4.01 0.0% (22.4%) 6.73 3.80 124 35 5 151 507 10 1 Sep-12 Dec-11 510 9 (2) 0.3x 14.7x 0.3x 16.0x On Assignment Inc. 19.93 23.2% 91.3% 20.93 10.05 1,047 440 14 1,472 1,000 103 89 Sep-12 Dec-11 1,226 124 106 1.5x 14.3x 1.2x 11.8x Team Health Holdings, Inc. 27.99 (2.4%) 27.5% 30.00 19.73 1,886 511 7 2,389 1,986 192 151 Sep-12 Dec-11 2,196 205 146 1.2x 12.4x 1.1x 11.6x Number of Companies 4 Median: 11.6% 59.4% Total $3,542 $1,173 $4,421 $4,879 1.0x 13.4x 0.9x 11.7x Mean: 13.9% 58.6% $1,173 0.9x 13.0x 0.8x 12.4x

As of November 30, 2012 6 Healthcare & Life Sciences Trading Statistics December 2012

Payer, Provider, & Pharmacy Support Services

Stock Price Total Lastest Twelve Months Eqqyuity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name %Ch% Change 52 W eek Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 11/30/2012 3 mos. 12 mos. High LowValue Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $43.19 11.3% 3.3% $51.14 $34.58 $14,451 $4,686 $638 $18,498 $35,240 $3,607 $3,148 Sep-12 Dec-11 $35,476 $3,297 $2,788 0.5x 5.1x 0.5x 5.6x Cigna Corp. 52.27 14.4% 18.2% 53.75 39.01 14,943 5,224 2,236 17,931 27,073 3,009 2,697 Sep-12 Dec-11 28,858 3,139 2,642 0.7x 6.0x 0.6x 5.7x Coventry Health Care Inc. 43.68 4.8% 36.8% 44.26 27.72 5,875 1,585 1,262 6,198 13,830 893 771 Sep-12 Dec-11 14,112 820 675 0.4x 6.9x 0.4x 7.6x Health Net, Inc. 23.55 1.6% (24.4%) 41.22 16.65 1,914 499 313 2,100 11,645 176 145 Sep-12 Dec-11 11,204 163 151 0.2x 11.9x 0.2x 12.9x Humana Inc. 65.41 (5.1%) (26.2%) 96.46 59.92 10,349 1,893 1,363 10,879 38,625 2,363 2,047 Sep-12 Dec-11 39,317 2,351 2,048 0.3x 4.6x 0.3x 4.6x UnitedHealth Group Incorporated 54.39 (0.5%) 11.5% 60.75 47.63 55,559 12,998 8,916 59,641 107,765 10,079 9,227 Sep-12 Dec-11 109,770 10,461 9,1100.6x5.9x0.5x5.7x WellPoint Inc. 55.90 (7.5%) (20.8%) 74.73 52.52 16,974 14,289 2,442 28,821 61,493 5,110 4,383 Sep-12 Dec-11 60,876 4,339 3,952 0.5x 5.6x 0.5x 6.6x Number of Companies 7 Median: 1.6% 3.3% Total $120,066 $20,581 $295,671 $299,612 0.5x 5.9x 0.5x 5.7x Mean: 2.7% (0.2%) $20,581 0.4x 6.6x 0.4x 7.0x

Government: AMERIGROUP Corporation $91.82 1.1% 60.6% $91.86 $52.79 $4,702 $478 $786 $4,393 $8,095 $276 $253 Sep-12 Dec-11 $8,855 $344 $288 0.5x 15.9x 0.5x 12.8x Centene Corp. 43.91 8.0% 13.4% 50.98 24.26 2,267 395 797 1,859 7,815 127 72 Sep-12 Dec-11 8,568 179 121 0.2x 14.7x 0.2x 10.4x Molina Healthcare, Inc. 27.84 14.4% 27.4% 36.83 17.63 1,297 262 715 843 5,757 79 30 Sep-12 Dec-11 6,019 61 (4) 0.1x 10.7x 0.1x 13.8x WellCare Health Plans, Inc. 48.27 (14.7%) (17.4%) 74.41 45.29 2,085 139 1,062 1,162 7,021 362 344 Sep-12 Dec-11 7,282 381 350 0.2x 3.2x 0.2x 3.1x Number of Companies 4 Median: 4.6% 20.4% Total $10,351 $2,064 $28,688 $30,725 0.2x 12.7x 0.2x 11.6x Mean: 22%2.2% 21.0% $2,064 03x0.3x 11.1x 03x0.3x 10.0x

Information Services Data/Analytics: Accelrys Inc. $8.81 14.4% 23.6% $9.59 $6.36 $490 $0 $93 $349 $158 $15 ($8) Sep-12 Dec-11 $167 $34 $24 2.2x 23.5x 2.1x 10.4x National Research Corp. 53.78 8.4% 59.9% 58.23 32.11 369 13 15 367 84 27 22 Sep-12 Dec-11 87 28 23 4.4x 13.5x 4.2x 13.3x Number of Companies 2 Median: 11.4% 41.7% Total $859 $358 $242 $253 3.3x 18.5x 3.2x 11.8x Mean: 11.4% 41.7% $358 3.3x 18.5x 3.2x 11.8x

eHealth: WebMD Health Corp. 14.05 (()5.1%) (()61.2%) 40.24 13.13 689 800 969 519 488 40 24 Sep-12 Dec-11 $462 $65 (()$9) 1.1x 13.1x NA NA Number of Companies 1 Median: (5.1%) (61.2%) Total $689 $519 $488 $462 1.1x 13.1x NA NA Mean: (5.1%) (61.2%) $519 1.1x 13.1x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $11.12 6.4% (42.9%) $21.66 $8.84 $1,907 $462 $94 $2,275 $1,484 $227 $133 Sep-12 Dec-11 $1,466 $283 $198 1.5x 10.0x 1.6x 8.0x athenahealth, Inc. 63.69 (27.4%) 7.2% 97.37 40.79 2,310 0 112 2,130 398 50 28 Sep-12 Dec-11 423 89 62 5.3x 42.6x 5.0x 24.0x Cerner Corporation 77.22 5.1% 26.6% 88.32 55.69 13,248 197 288 12,406 2,518 687 549 Sep-12 Dec-11 2,650 819 570 4.9x 18.0x 4.7x 15.2x Computer Programs & Systems Inc. 50.07 (1.4%) 10.3% 64.00 44.95 555 0 6 531 178 43 39 Sep-12 Dec-11 188 48 44 3.0x 12.5x 2.8x 11.0x HMS Holdings Corp. 23.17 (33.6%) (23.6%) 37.19 18.50 2,014 337 128 2,223 440 134 85 Sep-12 Dec-11 478 155 95 5.0x 16.6x 4.7x 14.4x MedAssets, Inc. 16.10 (3.8%) 68.4% 18.68 9.04 951 916 8 1,859 633 193 90 Sep-12 Dec-11 636 204 85 2.9x 9.6x 2.9x 9.1x MHlhIMerge Healthcare Incorporated 3273.27 28%2.8% (39.6%) 6906.90 2202.20 304 250 41 511 248 46 27 S12Sep-12 D11Dec-11 250 52 42 212.1x 11.2 x 202.0x 999.9x Quality Systems Inc. 18.21 3.7% (48.5%) 45.00 15.04 1,081 0 117 959 456 116 104 Sep-12 Mar-12 477 127 103 2.1x 8.3x 2.0x 7.6x Number of Companies 8 Median: 0.7% (8.2%) Total $1,494 $2,862 $448 $478 3.0x 11.8x 2.9x 10.5x Mean: 0.7% (8.2%) $1,994 3.0x 11.8x 2.9x 10.5x

As of November 30, 2012 7 Healthcare & Life Sciences Trading Statistics December 2012

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 11/30/2012 3 mos. 12 mos. High LowValue Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) Specialty Managed Care Assurant Inc. 34.21 (1.1%) (12.8%) 44.54 32.41 2,693 1,066 1,073 2,686 8,455 1,168 1,037 Sep-12 Dec-11 8,437 NA 908 0.3x 2.3x 0.3x NA CorVel Corporation 41.95 (4.5%) (12.1%) 54.23 39.46 470 0 20 450 416 55 39 Sep-12 Mar-12 424 NA NA 1.1x 8.2x 1.1x NA Number of Companies 2 Median: (2.8%) (12.4%) Total $3,163 $1,568 $8,871 $8,861 0.7x 5.3x 0.7x NA Mean: (2.8%) (12.4%) $1,568 0.7x 5.3x 0.7x NA

Specialty Pharmacy Management BioScrip Inc. $10.30 22.2% 67.8% $10.34 $5.17 $586 $226 $67 $745 $1,904 $60 $45 Sep-12 Dec-11 $656 $43 $21 0.4x 12.5x 1.1x 17.4x Express Scripts Holding Company 53.85 (12.8%) 18.0% 66.06 43.02 43,963 17,125 12481,248 59,840 78,926 44504,450 3,119 Sep-12 Dec-11 94,157 5,529 51575,157 08x0.8x 13.4x 06x0.6x 10.8x Catamaran Corporation 49.08 14.3% 65.7% 53.65 27.91 10,068 1,272 393 10,937 7,989 307 215 Sep-12 Dec-11 9,938 352 209 1.4x 36.0x 1.1x 31.0x Omnicare Inc. 36.24 13.0% 11.1% 36.81 29.24 4,006 2,056 647 5,390 6,188 700 563 Sep-12 Dec-11 6,148 689 572 0.9x 7.7x 0.9x 7.8x PharMerica Corporation 14.44 13.3% (7.7%) 15.75 9.03 426 244 50 620 1,895 104 74 Sep-12 Dec-11 1,831 101 70 0.3x 5.9x 0.3x 6.1x Number of Companies 5 Median: 13.2% 14.5% Total $59,048 $16,649 $96,901 $112,730 0.6x 10.1x 0.8x 9.3x Mean: 8.9% 22.3% $16,649 0.6x 9.9x 0.7x 10.5x

As of November 30, 2012 8 Healthcare & Life Sciences Trading Statistics December 2012

Products & Devices

Stock Price Total Lastest Twelve Months Equity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 We Week e k Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 11/30/2012 3 mos. 12 mos. High LowValue Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $90.95 (0.9%) 12.2% $95.46 $77.51 $62,931 $6,358 $3,029 $64,768 $29,606 $7,677 $6,404 Sep-12 Dec-11 $29,733 $7,793 $6,512 2.2x 8.4x 2.2x 8.3x DENTSPLY International Inc. 39.70 9.8% 9.9% 41.38 34.42 5,635 1,838 56 7,453 2,913 528 410 Sep-12 Dec-11 2,917 598 472 2.6x 14.2x 2.6x 12.5x Sirona Dental Systems Inc. 62.61 18.7% 40.9% 63.86 40.59 3,442 75 151 3,370 979 249 176 Sep-12 Sep-12 1,068 290 257 3.4x 13.6x 3.2x 11.6x Young Innovations Inc. 36.17 (1.7%) 24.7% 40.44 26.90 286 0 15 271 109 29 25 Sep-12 Dec-11 109 30 26 2.5x 9.2x 2.5x 9.0x Number of Companies 4 Median: 4.5% 18.5% Total $72,294 $18,965 $33,607 $33,828 2.5x 11.4x 2.5x 10.3x Mean: 6.5% 21.9% $18,965 2.7x 11.4x 2.6x 10.3x

Durable Medical Equipment Hill-Rom Holdings, Inc. $27.96 1.7% (11.5%) $36.13 $24.69 $1,700 $353 $84 $1,969 $1,634 $294 $203 Sep-12 Sep-12 $1,751 $326 $200 1.2x 6.7x 1.1x 6.0x Invacare Corporation 14.13 4.2% (31.2%) 20.85 12.87 451 252 35 668 1,791 107 66 Sep-12 Dec-11 1,781 NA 50 0.4x 6.2x 0.4x NA ResMed Inc. 41.09 9.8% 57.7% 42.30 23.37 5,879 266 891 5,254 1,393 399 315 Sep-12 Jun-12 1,497 441 356 3.8x 13.2x 3.5x 11.9x Steris Corp. 34.17 (0.1%) 13.6% 37.18 27.70 1,998 434 157 2,277 1,439 301 239 Sep-12 Mar-12 1,449 283 216 1.6x 7.6x 1.6x 8.1x Number of Companies 4 Median: 2.9% 1.1% Total $10,028 $2,542 $6,258 $6,479 1.4x 7.1x 1.3x 8.1x Mean: 3.9% 7.2% $2,542 1.7x 8.4x 1.6x 8.7x

Life Sciences Tools Agilent Technologies Inc. $38.29 3.4% 2.1% $46.28 $32.51 $13,342 $2,362 $2,351 $13,356 $6,858 $1,420 $1,119 Oct-12 Oct-12 $7,113 $1,617 $1,375 1.9x 9.4x 1.9x 8.3x Becton, Dickinson and Company 76.67 1.1% 3.9% 80.56 70.05 15,101 4,166 1,671 17,084 7,708 2,072 1,561 Sep-12 Sep-12 7,921 2,127 1,581 2.2x 8.2x 2.2x8.0x Life Technologies Corporation 49.35 3.9% 27.4% 51.47 37.97 8,491 2,454 274 10,662 3,810 1,238 828 Sep-12 Dec-11 3,788 1,354 1,108 2.8x 8.6x 2.8x 7.9x Number of Companies 3 Median: 3.4% 3.9% Total $36,934 $13,701 $18,376 $18,822 2.2x 8.6x 2.2x 8.0x Mean: 2.8% 11.1% $13,701 2.3x 8.8x 2.3x 8.1x

Medical Devices and Products Abbott Laboratories $65.00 (0.6%) 19.2% $72.47 $53.80 $102,743 $16,280 $7,997 $107,609 $39,414 $11,452 $8,609 Sep-12 Dec-11 $39,729 $12,446 $9,832 2.7x 9.4x 2.7x 8.6x ArthroCare Corporation 33.49 14.0% 12.3% 33.78 23.54 934 0 203 810 364 25 4 Sep-12 Dec-11 365 93 70 2.2x 32.1x 2.2x 8.7x Baxter International Inc. 66.27 13.4% 28.3% 68.91 47.55 36,407 5,970 3,191 39,247 14,031 3,844 3,143 Sep-12 Dec-11 14,168 3,967 3,254 2.8x 10.2x 2.8x 9.9x Boston Scientific Corporation 5.54 2.0% (6.1%) 6.41 4.79 7,606 4,255 352 11,509 7,276 1,657 981 Sep-12 Dec-11 7,197 1,626 975 1.6x 6.9x 1.6x 7.1x CR Bard Inc. 99.01 1.3% 13.6% 108.31 82.22 8,150 1,293 809 8,634 2,947 948 824 Sep-12 Dec-11 2,962 945 811 2.9x 9.1x 2.9x 9.1x DhCDanaher Corp. 53.97 18%1.8% 11.6% 57.15 45.06 37,384 4,714 1,541 40,624 18,002 41294,129 33053,305 S12Sep-12 D11Dec-11 18,031 38683,868 30923,092 232.3x 979.7x 232.3x 10.5 x Hanger, Inc. 26.11 (7.2%) 63.2% 29.60 15.58 887 509 56 1,340 961 172 139 Sep-12 Dec-11 980 166 130 1.4x 7.8x 1.4x 8.1x Hologic Inc. 19.08 (3.2%) 8.3% 22.16 16.18 5,090 5,069 560 9,598 2,003 668 322 Sep-12 Sep-12 2,639 1,013 866 4.8x 14.4x 3.6x 9.5x Hospira Inc. 29.80 (11.1%) 5.7% 38.49 27.24 4,924 1,796 841 5,878 4,007 376 137 Sep-12 Dec-11 4,037 635 456 1.5x 14.3x 1.5x 9.3x Johnson & Johnson 69.73 3.7% 7.7% 72.74 61.71 193,240 16,851 15,486 190,320 65,921 20,446 16,973 Sep-12 Jan-12 67,337 21,331 17,619 2.9x 9.3x 2.8x 8.9x Medtronic, Inc. 42.11 4.0% 15.6% 44.79 34.07 42,958 11,452 1,759 51,735 16,209 5,382 4,590 Oct-12 Apr-12 16,517 6,037 5,255 3.2x 9.3x 3.1x 8.6x Stryker Corporation 54.16 2.0% 10.9% 57.15 45.61 20,592 1,769 1,423 18,498 8,534 2,488 2,002 Sep-12 Dec-11 8,590 2,537 2,054 2.2x 7.4x 2.2x 7.3x Thermo Fisher Scientific, Inc. 63.55 11.5% 34.5% 63.78 43.06 22,892 7,472 832 29,527 12,507 2,571 1,592 Sep-12 Dec-11 12,381 2,598 2,315 2.4x 11.5x 2.4x 11.4x Zimmer Holdings, Inc. 65.97 6.6% 30.5% 69.00 47.00 11,446 1,734 802 11,697 4,459 1,499 1,135 Sep-12 Dec-11 4,468 1,682 1,320 2.6x 7.8x 2.6x 7.0x Number of Companies 14 Median: 2.0% 13.0% Total $495,253 $37,645 $196,635 $199,402 2.5x 9.4x 2.5x 8.8x Mean: 2.7% 18.2% $37,645 2.5x 11.4x 2.4x 8.8x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $42.22 10.8% 13.6% $42.24 $35.48 $9,942 $1,447 $1,067 $10,322 $79,490 $1,426 $1,284 Sep-12 Sep-12 $85,258 $1,462 $1,2980.1x7.2x0.1x7.1x Cardinal Health, Inc. 40.45 2.2% (4.7%) 44.49 36.91 13,744 2,879 2,440 14,135 106,649 2,230 1,895 Sep-12 Jun-12 99,399 2,261 1,955 0.1x 6.3x 0.1x 6.3x Henry Schein, Inc. 80.77 5.6% 25.5% 81.30 61.13 7,107 609 89 8,004 8,872 738 616 Sep-12 Dec-11 8,924 742 618 0.9x 10.7x 0.9x 10.8x McKesson Corporation 94.47 8.8% 16.2% 97.23 74.89 22,299 3,581 2,831 23,049 123,186 2,960 2,398 Sep-12 Mar-12 123,023 3,124 2,626 0.2x 7.8x 0.2x 7.4x Owens & Minor Inc. 27.38 (2.1%) (11.1%) 31.49 27.28 1,736 215 80 1,872 8,779 251 216 Sep-12 Dec-11 8,871 252 212 0.2x 7.4x 0.2x 7.4x Patterson Companies, Inc. 34.10 0.2% 13.0% 36.42 28.16 3,763 775 500 4,037 3,588 398 353 Oct-12 Apr-12 3,629 405 358 1.1x 10.1x 1.1x 10.0x Number of Companies 6 Median: 3.9% 13.3% Total $58,590 $10,237 $330,563 $329,103 0.2x 7.6x 0.2x 7.4x Mean: 4.3% 8.8% $10,237 0.4x 8.3x 0.4x 8.1x

As of November 30, 2012 9 Healthcare & Life Sciences Trading Statistics December 2012

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 We Week e k Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 11/30/2012 3 mos. 12 mos. High LowValue Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $29.46 8.9% 48.3% $32.70 $15.97 $2,634 $9,781 $241 $12,604 $14,669 $1,899 $1,208 Sep-12 Dec-11 $12,991 $1,924 $1,1940.9x6.5x1.0x6.6x Health Management Associates Inc. 7.95 4.1% (3.3%) 8.69 4.81 2,038 3,684 35 5,556 6,621 942 603 Sep-12 Dec-11 6,722 970 614 0.8x 5.9x 0.8x 5.7x HCA Holdings, Inc. 31.75 11.4% 30.2% 34.32 19.86 14,017 27,399 472 42,179 35,674 6,545 4,904 Sep-12 Dec-11 36,205 6,431 4,746 1.2x 6.4x 1.2x 6.6x Lifepoint Hospitals Inc. 35.98 (11.1%) (8.3%) 43.87 34.32 1,776 1,664 98 3,394 3,880 537 332 Sep-12 Dec-11 3,966 529 336 0.9x 6.3x 0.9x 6.4x Tenet Healthcare Corp. 28.96 37.1% 55.7% 29.00 16.20 3,084 4,751 83 7,858 9,939 1,182 753 Sep-12 Dec-11 9,819 1,177 761 0.8x 6.6x 0.8x 6.7x Universal Health Services Inc. 45.07 12.6% 12.1% 46.93 35.71 4,381 3,489 26 8,133 7,666 1,209 906 Sep-12 Dec-11 7,558 1,183 885 1.1x 6.7x 1.1x 6.9x Number of Companies 6 Median: 10.1% 21.1% Total $27,930 $13,287 $78,448 $77,262 0.9x 6.4x 0.9x 6.6x Mean: 10.5% 22.4% $13,287 0.9x 6.4x 0.9x 6.5x

Assisted Living Assisted Living Concepts Inc. $8.66 11.7% (37.0%) $20.33 $6.93 $201 $180 $3 $376 $230 $53 $30 Sep-12 Dec-11 $228 $43 ($31) 1.6x 7.1x 1.7x 8.7x Brookdale Senior Living Inc. 25.56 17.6% 64.4% 25.75 14.19 3,133 2,577 43 5,668 2,419 376 124 Sep-12 Dec-11 2,772 372 104 2.3x 15.0x 2.0x 15.2x Capital Senior Living Corp. 17.81 49.9% 139.7% 18.00 6.70 488 333 48 773 294 47 15 Sep-12 Dec-11 309 52 15 2.6x 16.7x 2.5x 14.9x Emeritus Corp. 22.62 12.7% 42.3% 24.72 14.24 1,021 2,208 97 3,131 1,300 227 90 Sep-12 Dec-11 1,356 241 99 2.4x 13.9x 2.3x 13.0x Five Star Quality Care Inc. 4.92 6.0% 91.4% 5.98 2.56 236 64 14 276 1,294 45 19 Sep-12 Dec-11 1,365 48 21 0.2x 6.1x 0.2x 5.8x Skilled Healthcare Group, Inc. 6.70 20.5% 56.9% 8.41 4.47 258 454 3 709 869 103 78 Sep-12 Dec-11 874 104 78 0.8x 6.8x 0.8x 6.8x Sunrise Senior Living Inc. 14.44 0.7% 187.1% 14.53 4.60 822 539 106 1,261 652 60 18 Sep-12 Dec-11 1,313 147 NA 1.9x 10.8x 1.0x 8.6x Number of Companies 7 Median: 12.7% 64.4% Total $6,159 $1,742 $7,059 $8,217 1.9x 10.8x 1.7x 8.7x Mean: 17.0% 77.8% $1,742 1.7x 10.9x 1.5x 10.4x

Diagnostic Imaging Alliance Healthcare Services, Inc. $1.24 (7.5%) 1.6% $2.19 $0.72 $64 $631 $79 $664 $478 $153 $48 Sep-12 Dec-11 NA NA NA 1.4x 4.2x NA NA RadNet, Inc. 2.43 (9.3%) 0.8% 3.64 1.87 93 552 0 646 681 113 54 Sep-12 Dec-11 655 108 51 0.9x 5.5x 1.0x 6.0x Varian Medical Systems Inc. 69.16 17.7% 11.1% 71.95 52.90 7,566 161 705 6,973 2,807 658 597 Sep-12 Sep-12 3,046 699 639 2.5x 10.6x 2.3x 10.0x Number of Companies 3 Median: (7.5%) 1.6% Total $7,723 $2,761 $3,966 $3,701 1.4x 5.5x 1.6x 8.0x Mean: 0.3% 4.5% $2,761 1.6x 6.8x 1.6x 8.0x

Dialysis Services DaVita HealthCare Partners Inc . $108.00 11.3% 41.8% $116.50 $72.46 $11,316 $5,761 $382 $17,372 $7,789 $1,636 $1,329 Sep-12 Dec-11 $8,220 $1,722 $1,378 22x2.2x 10.6x 21x2.1x 10.1x Fresenius Medical Care AG & Co. KGAA 68.77 (3.8%) 0.5% 78.38 64.41 21,015 8,447 619 29,760 13,624 2,779 2,189 Sep-12 Dec-11 13,782 2,899 2,306 2.2x 10.5x 2.2x 10.3x Number of Companies 2 Median: 3.8% 21.2% Total $32,331 $23,566 $21,413 $22,003 2.2x 10.5x 2.1x 10.2x Mean: 3.8% 21.2% $23,566 2.2x 10.5x 2.1x 10.2x

Home Care / Hospice Addus HomeCare Corporation $6.78 40.7% 78.4% $6.90 $3.00 $73 $22 $2 $94 $278 $13 $10 Sep-12 Dec-11 $281 $14 $12 0.3x 7.3x 0.3x 6.7x Almost Family Inc. 19.84 (12.0%) 32.5% 26.87 14.01 185 1 43 144 351 33 31 Sep-12 Dec-11 348 33 29 0.4x 4.3x 0.4x 4.3x Amedisys Inc. 10.47 (26.9%) (11.8%) 15.95 9.35 324 122 39 424 1,497 105 65 Sep-12 Dec-11 1,498 96 55 0.3x 4.0x 0.3x 4.4x Gentiva Health Services Inc. 10.30 (6.2%) 77.0% 12.85 5.13 316 938 156 1,099 1,737 183 154 Sep-12 Dec-11 1,721 183 155 0.6x 6.0x 0.6x 6.0x LHC Group, Inc. 19.38 11.4% 39.4% 20.26 12.40 341 25 0 381 633 64 57 Sep-12 Dec-11 637 61 54 0.6x 5.9x 0.6x 6.2x Chemed Corp. 68.08 3.3% 26.9% 72.10 47.66 1,313 173 69 1,417 1,412 182 158 Sep-12 Dec-11 1,426 198 160 1.0x 7.8x 1.0x 7.1x Number of Companies 6 Median: (1.4%) 36.0% Total $320 $593 $1,023 $1,032 0.5x 6.0x 0.5x 6.1x Mean: 1.7% 40.4% $593 0.5x 5.9x 0.5x 5.8x

Long-Term Care The Ensign Group, Inc. $25.79 (12.8%) 8.8% $31.25 $23.12 $556 $203 $32 $734 $806 $117 $89 Sep-12 Dec-11 $829 $129 $100 0.9x 6.3x 0.9x 5.7x Kindred Healthcare Inc. 10.85 (3.2%) (12.5%) 13.62 7.60 578 1,622 36 2,121 6,164 395 197 Sep-12 Dec-11 6,222 433 235 0.3x 5.4x 0.3x 4.9x National Healthcare Corp. 44.73 (0.1%) 7.4% 49.68 40.28 625 10 84 624 741 95 65 Sep-12 Dec-11 744 NA NA 0.8x 5.8x 0.8x NA Number of Companies 3 Median: (3.2%) 7.4% Total $1,760 $1,159 $7,712 $7,795 0.8x 5.8x 0.8x 5.3x Mean: (5.4%) 1.2% $1,159 0.7x 5.8x 0.7x 5.3x

As of November 30, 2012 10 Healthcare & Life Sciences Trading Statistics December 2012

Provider-Based Services

Specialty: MEDNAX, Inc. 79.00 14.5% 17.2% 79.08 59.24 3,788 48 66 3,765 1,750 408 378 Sep-12 Dec-11 1,819 422 391 2.2x 9.2x 2.1x 8.9x NbNumber of fC Compani es 1 Median: 14.5% 17.2% TtlTotal $3,788 $3,765 $1,750 $1,819 222.2x 929.2x 212.1x 898.9x Mean: 14.5% 17.2% $3,765 2.2x 9.2x 2.1x 8.9x

Dental: Birner Dental Management Services Inc. $16.36 (4.9%) 2.0% $19.49 $14.75 $31 $5 $1 $35 $62 $4 $1 Sep-12 Dec-11 NA NA NA 0.6x 8.2x NA NA Number of Companies 1 Median: (4.9%) 2.0% Total $31 $35 $62 $0 0.6x 8.2x NA NA Mean: (4.9%) 2.0% $35 0.6x 8.2x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $51.88 4.7% 2.4% $56.58 $40.24 $1,434 $0 $209 $1,157 $3,099 $207 $175 Sep-12 Dec-11 $3,226 $247 $183 0.4x 5.6x 0.4x 4.7x Providence Service Corp. 13.92 22.0% 18.9% 15.94 9.56 178 141 64 262 1,064 40 26 Sep-12 Dec-11 1,105 44 25 0.2x 6.5x 0.2x 5.9x Universal Health Services Inc. 45.07 12.6% 12.1% 46.93 35.71 4,381 3,489 26 8,133 7,666 1,209 906 Sep-12 Dec-11 7,558 1,183 885 1.1x 6.7x 1.1x 6.9x Number of Companies 3 Median: 12.6% 12.1% Total $5,993 $2,388 $11,828 $11,888 0.3x 6.0x 0.4x 5.9x Mean: 13.1% 11.1% $2,388 0.4x 4.7x 0.6x 5.8x

Surgicenters / Rehabilitation Surgery Centers: AmSurg Corp. $28.02 (5.3%) 7.4% $32.17 $24.80 $888 $398 $36 $1,561 $915 $307 $276 Sep-12 Dec-11 $926 $312 $281 1.7x 5.1x 1.7x 5.0x Number of Companies 1 Median: (5.3%) 7.4% Total $888 $1,561 $915 $926 1.7x 5.1x 1.7x 5.0x Mean: (5.3%) 7.4% $1,561 1.7x 5.1x 1.7x 5.0x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $21.99 (4.8%) 27.3% $24.99 $15.19 $2,104 $1,242 $163 $3,636 $2,127 $498 $417 Sep-12 Dec-11 $2,146 $493 $417 1.7x 7.1x 1.7x 7.4x Select Medical Holdings Corporation 11.04 6.2% 27.3% 14.89 6.94 1,551 1,355 50 2,890 2,926 396 330 Sep-12 Dec-11 2,956 405 339 1.0x 7.2x 1.0x 7.1x US Physical Therapy Inc. 26.72 2.3% 35.8% 28.40 17.75 317 17 11 340 250 43 38 Sep-12 Dec-11 252 38 39 1.4x 7.9x 1.4x 9.0x Number of Companies 3 Median: 2.3% 27.3% Total $3,972 $2,289 $5,303 $5,353 1.4x 7.2x 1.4x 7.4x Mean: 1.2% 30.1% $2,289 1.4x 7.4x 1.3x 7.8x

As of November 30, 2012 11 M&A Detail December 2012

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement Healthcare & 11/30/2012 Advanced Medical Sales LLC - Solanbridge Group, Inc. $0.2 - - - No (OTCPK:SLNX) Life Sciences 11/30/2012 Jacinto Medical Group, P.A., A Sleep And Jacinto Medical Group, P.A. University General Health System, Inc. -- --No Imaging Center in Houston Suburb (OTCPK:UGHS) M&A 11/29/2012 Avvo, Inc., Health Business Avvo, Inc. HealthTap Inc .----No 11/29/2012 MD Urgent Care Inc. - Presbyterian Healthcare Services, Inc. - - - - No 11/29/2012 St. Mary Health Corporation - Prime Healthcare Services, Inc. $85.0 - - - No 11/28/2012 Marina Biotech, Inc., Unlocked Nucleobase Marina Biotech, Inc. Protiva Biotherapeutics, Inc. $0.3 - - - No Analog (OTCPK:MRNA) 11/28/2012 Healthpoint, Ltd. DFB Pharmaceuticals, Inc. Smith & Nephew plc (LSE:SN.) $792.0 5.3x - 72.0x No 11/28/2012 Natural Industries, Inc. - Novozymes A/S (CPSE:NZYM B) -- --No 11/27/2012 Children's Hospital & Research Center Oakland - UCSF Medical Center -- --No 11/27/2012 Stiefel Laboratories, Inc., Onmel Stiefel Laboratories, Inc. Merz, Incorporated - - - - No 11/27/2012 Case Management, Inc. - All Island Case Management -- --No Corporation 11/26/2012 Bristol Hospital Incorporated - Vanguard Health Systems Inc. -- --No (NYSE:VHS) 11/26/2012 Thomas Medical Products, Inc. Vital Signs, Inc. Merit Medical Systems, Inc. $167.0 4.5x 10.1x - No (NasdaqGS:MMSI) 11/26/2012 Children's ENT and Facial Plastic Surgery - Children's Hospitals And Clinics Of -- --No Minnesota Inc. 11/26/2012 New River Medical Center - CentraCare Health System, Inc. -- --No 11/23/2012 Amicare Behavioral Centers, LLC 2C4K, LP Acadia Vista, LLC $113.0 1.8x - - No 11/21/2012 Palm Coast SLP LLC, Senior Housing Palm Coast SLP LLC American Realty Capital Healthcare -- --No Communities Located in Palm Coast Trust, Inc. 11/21/2012 Behavioral Centers of America, LLC Siguler Guff & Company, LP; Acadia Healthcare Company, Inc. $145.0 2.7x 20.2x 23.5x Yes Linden LLC; Health Enterprise (NasdaqGM:ACHC) Partners 11/21/2012 Community Care Services, Inc. - Justice Resource Institute, Inc. - - - - No 11/20/2012 Surgg,ical Center of Elizabethtown, Limited - Hardin Memorial Hospital Inc. $6.8 - - - No Partnership 11/20/2012 Chesapeake Applications Inc. - Alpha Imaging, LLC -- --No 11/19/2012 BioMimetic Therapeutics Inc. CMEA Capital; InterWest Partners Wright Medical Group Inc. $332.7 164.6x - - Yes (NasdaqGS:BMTI) LLC; Novo A/S; ClearBridge Asset (NasdaqGS:WMGI) Management Inc. 11/19/2012 Amazing Charts, Inc. - Pri-Med USA - - - - No 11/19/2012 Saint Joseph Outpatient Care Center -Saint Joseph Health System, Inc. -- --No 11/19/2012 Arcadia Nursing Home Mayo Clinic Health Systems Catholic Residential Services, Inc. - - - - No 11/16/2012 Capintec, Inc. IDP Investments LLC Eczacibasi-Monrol Nükleer Ürünler -- --Yes Tic. ve San A.S. 11/16/2012 GLT Medical Services, Ltd. - IPC The Hospitalist Company, Inc. -- --No (NasdaqGS:IPCM) 11/16/2012 Aribex, Inc .-KaVo Dental GmbH & Co . KG -- --No 11/15/2012 SkinMedica, Inc. Domain Associates, L.L.C.; Allergan Inc. (NYSE:AGN) $375.0 - - - Yes EuclidSR Partners; HealthCare Ventures LLC 11/15/2012 Geron Corp., Intellectual Property and Assets Geron Corporation BioTime Acquisition Corporation - - - - No related to Discontinued Human Embryonic Stem (NasdaqGS:GERN) Cell Unit 11/14/2012 NOX Technologies, Inc. - Nu Skin Enterprises Inc. (NYSE:NUS) $12.5 - - - No 11/14/2012 Arcadia Solutions, LLC Marquette Financial Companies Ferrer Freeman & Company, LLC - - - - Yes

11/14/2012 Emergint Technologies, Inc. - CACI International Inc. (NYSE:CACI) -- --No 11/14/2012 Emeritus Corp., Emeritus at Bellevue Place Emeritus Corp. (NYSE:ESC) HCP, Inc. (NYSE:HCP) $16.7 - - - No Nursing Home in Bellevue 11/14/2012 Christiana Medical Group, P.A. - IPC The Hospitalist Company, Inc. -- --No (NasdaqGS:IPCM) 11/14/2012 3DM Systems, Inc., Global Manufacturing and 3DM Systems, Inc. GN Store Nord A/S (CPSE:GN) $12.0 - - - No Selling Rights of Ear Scanner Technology 11/13/2012 Arkansas Surgical Hospital LLC - Medical Facilities Corp. (TSX:DR) $71.0 - - - No 11/13/2012 Cypress Pharmaceutical, Inc. TA Associates Management, L.P. Pernix Therapeutics Holdings, Inc. $101.0 - - - Yes (AMEX:PTX) 11/13/2012 Gilda's Club Western New York, Inc. - Life Transitions Center, Inc. - - - - No 11/13/2012 Conejos County Hospital Corporation - Lutheran Hospital Association Of The -- --No San Luis Valley 11/12/2012 Shaser Bioscience, Inc . - Spectrum Brands Holdings , Inc . $89. 3 ---No (NYSE:SPB) 11/12/2012 Health Now Md LLC - Healthiest You Corporation - - - - No 11/12/2012 Hilton Convalescent Home ------No 11/12/2012 Truth On Call, Inc. - Instinet Incorporated - - - - No 11/9/2012 Park Royal Hospital - Acadia Healthcare Company, Inc. $33.4 - - - No (NasdaqGM:ACHC)

12 M&A Detail December 2012

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement Healthcare & 11/9/2012 U-Systems, Inc. Sycamore Ventures; WI Harper GE Healthcare Ltd. - - - - Yes Group; Siemens Venture Capital Life Sciences GmbH; Radius Ventures, LLC 11/9/2012 Discovery Health Record Solutions, LLC Silverhawk Capital Partners, LLC HealthPort Incorporated - - - - Yes M&A 11/9/2012 Girindus America Inc . Girindus AG (DB:GIR) Avecia Biotechnology , Inc . $12.6 ---No 11/8/2012 Hometown Oxygen Pittsburgh, L.L.C. - Dynamic Healthcare Services, Inc. - - - - No (Continued) 11/8/2012 Prev ABR LLC, C. Diff Program and Other Prev ABR LLC Synthetic Biologics Inc. (AMEX:SYN) $1.7 - - - No Assets 11/8/2012 Fortitech, Inc. Trilantic Capital Management LLC Royal DSM N.V. (ENXTAM:DSM) $634.0 - - - Yes 11/8/2012 EpiCept Corporation (OTCPK:EPCT) Credit Suisse Private Equity, LLC; Immune Pharmaceuticals Ltd. - - - - Yes Perseus, L.L.C.; Celgene Corporation; Private Equity Holding AG 11/8/2012 Vessix Vascular, Inc. OrbiMed Advisors, L.L.C.; Edmond Boston Scientific Corporation $425.0 - - - Yes de Rothschild Investment Partners (NYSE:BSX) 11/8/2012 DUSA Pharmaceuticals Inc. Morgens, Waterfall, Vintiadis & Caraco Pharmaceutical Laboratories $191.0 3.8x 26.5x 28.8x No (NasdaqGM:DUSA) Company, Inc.; Deerfield Ltd. Management Company, L.P.; Porter Orlin LLC 11/8/2012 Anasazi Software, Inc. - Cerner Corporation -- - -No (NasdaqGS:CERN) 11/8/2012 Mcallen Heritage Village, LLC - HRC Investors Corp.----No 11/7/2012 BioSeek, Inc. BioSeek Plc DiscoveRx Corporation - - - - No 11/7/2012 Hospital Medical Associates of Monmouth - IPC The Hospitalist Company, Inc. -- - -No County (NasdaqGS:IPCM) 11/6/2012 Access Scientific, Inc. Carrot Capital Healthcare Ventures; Endeavour Capital, Inc. - - - - Yes CAC, LLC 11/6/2012 Envoy Therapeutics, Inc. 5AM Ventures; Takeda Ventures, Takeda America Holdings, Inc. $140.0 - - - Yes Inc.; Roche Venture Fund 11/6/2012 Harbor Health Systems , LLC - One Call Care Management , Inc . -- - -No 11/6/2012 Cancer Center at Fairfax - Virginia Cancer Specialists, P.C. - - - - No 11/6/2012 Two Clinics located in Florida Keys - Advanced Dermatology & Cosmetic -- - -No Surgery Inc. 11/6/2012 Sage Products, Inc. - Madison Dearborn Partners, LLC - - - - Yes 11/5/2012 Sunrise Medical, Inc., Global Mobility and Sunrise Medical, Inc. Equistone Partners Europe - - - - Yes Seating Operations 11/5/2012 Advanced Medical Technologies, LLC - CAE Healthcare, Inc. $20.0 - - - No 11/5/2012 Certify Data Systems, Inc. Contemporary Healthcare Capital, Humana Inc. (NYSE:HUM) - - - - No LLC 11/5/2012 Dell Inc., Revenue Cycle Solutions Line of Dell Inc. (NasdaqGS:DELL) Conifer Health Solutions, Inc. - - - - No Business for Hospitals and Healthcare Systems 11/5/2012 Heartland Dental Care, Inc. CHS Capital Teachers' Private Capital - - - - Yes 11/5/2012 CMdilEiCare Medical Equipment, I nc., R Rhbdehab and CMdilEiCare Medical Equipment, I nc. Un ite d Seat ing & M o bility, LLC -- - -No Repair Divisions 11/5/2012 Milliman Care Guidelines LLC Milliman, Inc. The Hearst Corporation - - - - No 11/2/2012 Metropolitan Health Networks Inc. Fundamental Management Humana Inc. (NYSE:HUM) $740.8 1.0x 7.7x 9.3x No (NYSE:MDF) Corporation; Red Mountain Capital Partners LLC; Nicusa Capital, LLC 11/2/2012 SPSmedical Supply Corp. - Crosstex International, Inc. $36.0 2.1x 8.4x - No 11/2/2012 JeffQuip, Inc. - United Seating & Mobility, LLC - - - - No 11/2/2012 South Texas Cost Containment, Inc. - DISA Global Solutions, Inc. - - - - No 11/1/2012 Alabama Emergency Room Administrative Alabama Emergency Room Team Health Holdings, Inc. -- - -No Services PC, Certain Assets Administrative Services, PC (NYSE:TMH) 11/1/2012 MSC Group, Inc., S3 Strategic Surgical MSC Group, Inc. Medical Implant Solutions, LLC - - - - No Solutions 11/1/2012 Genesis Digital Imaging, Inc. - Carestream Health, Inc. - - - - No 11/1/2012 Bio OriGyn LLC, Pre-Seed Brand Bio OriGyn LLC Lil' Drug Store Products, Inc. - - - - No 11/1/2012 Nurse On Call, Inc. Kinderhook Industries Emeritus Corp. (NYSE:ESC) $112.6 - - - Yes 11/1/2012 Priority Care Inc. - U.S. Healthworks, Inc. - - - - No 11/1/2012 HHA Services, Inc. - ABM Industries Incorporated -- - -No (NYSE:ABM) 11/1/2012 AbbeyMoor Medical, Inc., The Spanner AbbeyMoor Medical, Inc. SRS Medical Systems, Inc. - - - - No Temporary Prostatic Stent 11/1/2012 Amplicare LLC - Deyta, LLC - - - - No 11/1/2012 South Hills Cardiology Associates - St. Clair Health Corporation - - - - No 11/1/2012 Bay Bioanalytical Laboratory, Inc. - Pacific BioLabs Inc. - - - - No 11/1/2012 Odyssey Healthcare, Inc., Phoenix Hospice Odyssey Healthcare, Inc. Banner Health $3.7 - - - No 11/1/2012 GtLkHGreat Lakes Home H HlthSiealthcare Services Hamo t H ea lth F ound ati on I nc MdCMedCare EEqu iipment tC Company, LLC -- - -No 11/1/2012 HealthWorks NW, LLC - Hazelden Foundation - - - - No

13 M&A Detail December 2012

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

Paul Hepper Andy Hewlett Whit Knier Vice President Vice President Vice President [email protected] [email protected] [email protected] +1 (804) 932-1326 +1 (415) 217-3427 +1 (804) 932-1321

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