Healthcare & Life Sciences Industry Update

Healthcare & Life Sciences Industry Update August 2013

Member FINRA/SIPC

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

• According to an article in The Wall Street Journal, the state health insurance exchanges being implemented as part of the Patient Protection and Affordable Care Act (“PPACA”) will likely restrict patients’ access to physicians and providers. According to the article, most of the health insurance plans offered on the state health exchanges will be structured as health maintenance organizations (“HMOs”). These plans are characterized by relatively few choices of healthcare providers and impose systems of approvals and referrals before a patient can access more expensive forms of care. Furthermore, the plans often do not include some of the largest hospitals and health systems, who often cost more than smaller healthcare providers. As a result, many patients who elect to purchase health insurance on state exchanges will experience a significant change in access. (A subscription to The Wall Street Journal Online may be required)

• On July 30, Community Health Systems (NYSE:CYH) announced that it would acquire Health Management Associates (HMA) for approximately $3.9 billion, offering $10.50 in cash and 0.0692 CYH shares for each HMA share. The combination would generate one of the largest U.S. hospital companies with 206 locations. The deal is expected to create $150 to $180 million in annual synergies. Health reform has driven a number of large, recent M&A transactions in the hospital sector, including the purchase of Vanguard Health by Tenet in late June for $1.7 billion, reflecting an effort by acquirors to gain scale. The press release, dated July 30th, announcing the HMA acquisition can be found here.

1 HW&Co. HCLS Group Insight August 2013

Dermatology Overview

2 Equity Trading Overview August 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 $8,047 3.6% 8.1% 1.7x 7.8x 1.7x 8.1x Contract Pharma Manufacturing 5 1,216 15.5% 48.2% 1.7x 11.9x 1.8x 10.5x on page 7) Contract Research Organizations 5 2,546 10.6% 75.8% 1.8x 12.8x 1.6x 11.3x Disease Management 2 3,562 26.8% 65.0% 1.7x 14.3x 1.6x 9.7x Emergency Services 1 1,958 (8.2%) (7.6%) 2.3x 8.4x 2.2x 8.9x Health Care Staffing 4 1,547 10.3% 73.2% 1.0x 13.2x 1.0x 12.6x HMO - Medical 10 20,979 14.6% 47.0% 0.5x 7.6x 0.4x 7.7x

Support Services Information Services 11 2,934 14.2% 32.6% 2.9x 21.7x 3.0x 11.7x Specialty Managed Care 2 2,621 28.4% 48.2% 1.1x 8.4x 1.0x NA

Payer, Provider, & Pharmacy Specialty Pharmacy Management 5 18,832 13.6% 42.3% 0.9x 10.0x 0.9x 9.9x Dental Products 3 31,189 1.3% 28.7% 2.7x 14.5x 2.6x 13.0x Durable Medical Equipment 5 1,938 (0.8%) 10.8% 1.1x 10.5x 1.1x 7.8x Life Sciences Tools 3 17,317 7.9% 37.0% 2.8x 10.9x 2.7x 10.4x

Devices Medical Devices and Products 14 41,866 11.0% 31.3% 2.9x 11.1x 2.8x 10.5x Products & Medical / Surgical / Dental Supplies 6 13,117 11.8% 31.3% 0.2x 10.1x 0.2x 9.1x Acute-Care Hospitals 6 15,470 1.7% 83.1% 1.2x 8.0x 1.0x 7.5x Assisted Living 6 2,326 (2.3%) 51.3% 1.8x 11.9x 2.2x 13.3x Diagnostic Imaging 3 2,891 11.3% 32.8% 1.7x 6.5x 1.7x 5.9x Dialysis Services 2 21,059 (5.5%) (0.6%) 2.1x 10.3x 1.6x 8.1x Home Care / Hospice 6 617 4.0% 20.3% 0.7x 6.7x 0.7x 6.8x Long-Term Care 3 1,357 9.7% 36.3% 0.9x 6.0x 0.8x 6.6x Physician Practice Management 3 2,166 9.8% 17.1% 2.0x 9.8x 1.8x 11.3x

Psychiatric Hospitals / Management 3 3,092 11.7% 79.0% 0.4x 6.6x 0.4x 7.3x Provider-Based Services Provider-Based Surgicenters / Rehabilitation 4 2,516 17.5% 21.9% 1.8x 7.8x 1.7x 7.9x Payer, Provider, & Pharmacy Support Services 48 $6,424 12.9% 43.3% 1.6x 11.6x 1.5x 10.0x Products & Devices 31 $21,085 6.2% 27.8% 1.9x 11.4x 1.9x 10.2x Provider-Based Services 36 $5,721 6.4% 37.9% 1.4x 8.2x 1.3x 8.3x HW&Co. HCLS Composite Index 115 $9,215 9.1% 38.1% 1.6x 10.3x 1.5x 9.4x S&P 500 5.5% 22.2%

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

(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% 120.0% 3 Equity Markets Overview August 2013

Healthcare & 200 Life Sciences Industry Stock 180 79.5% Performance 160 57.0% 49.7% 140

120

100

40 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-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 07/23/13 07/23/13 Agios Pharmaceuticals Inc AGIO IPO $134.7 (by proceeds) 07/30/13 07/30/13 Theravance Inc THRX Follow-On 111.9 07/17/13 07/17/13 OncoMed Pharmaceuticals Inc OMED IPO 93.8 07/24/13 07/24/13 Onconova Therapeutics Inc ONTX IPO 89.1 07/29/13 07/29/13 Foundation Medicine Inc FMI IPO 86.3 07/19/13 07/19/13 MannKind Corp MNKD Follow-On 83.0 07/24/13 07/24/13 Conatus Pharmaceuticals Inc CNAT IPO 66.0 07/26/13 07/26/13 Five Prime Therapeutics Inc FPRX IPO 60.0 07/26/13 07/26/13 GI Dynamics Inc GID Follow-On 54.6 07/24/13 07/24/13 Cellular Dynamics Intl Inc ICEL IPO 46.2 07/24/13 07/24/13 TearLab Corp TLB Follow-On 40.4 07/18/13 07/18/13 TG Therapeutics Inc TGTX Follow-On 40.3 07/26/13 07/26/13 Lipocine Inc MBARD Follow-On 38.0 07/23/13 07/23/13 Heat Biologics Inc HTBX IPO 26.0 07/31/13 07/31/13 BioCryst Pharmaceuticals Inc BCRX Follow-On 20.2 07/31/13 07/31/13 EnteroMedics Inc ETRM Follow-On 20.0 07/31/13 07/31/13 TrovaGene Inc TROV Follow-On 15.0 07/18/13 07/18/13 pSiVida Corp PSDV Follow-On 10.8 07/23/13 07/23/13 Rexahn Pharmaceuticals Inc RNN Follow-On 5.7 07/19/13 04/04/13 Cardium Therapeutics Inc CXM Convertible 4.0 07/26/13 07/26/13 Genufood Energy Enzymes Corp N/A Follow-On 3.0 07/19/13 07/19/13 International Stem Cell Corp ISCO Follow-On 3.0 07/23/13 07/23/13 Boston Therapeutics Inc BTHE Follow-On 2.0 07/26/13 07/26/13 CorMedix Inc CRMD.U Convertible 0.5 07/22/13 07/22/13 CNS Response Inc CNSO Follow-On 0.1

4 M&A Overview August 2013

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Healthcare & Announced Target Buyer 7/31/2013 ReSearch Pharmaceutical Services, Inc. Kohlberg Kravis Roberts & Co. 7/31/2013 Restat, LLC Catamaran Corporation 22 Life Sciences 300 7/25/2013 Denison Pharmaceuticals, Inc. Brookstone Partners 16 7/24/2013 American Eldercare, Inc. Humana Inc. 7/19/2013 Roscoe Medical, Inc. Tenex Capital Management M&A __ 18 13 7/17/2013 InfuSystem Holdings, Inc. Meson Capital Partners LLC 250 13 18 17 20 7/17/2013 Indiana HomeCare Network LLC Almost Family Inc. 11 12 7/15/2013 IDEV Technologies, Inc. Abbott Laboratories (NYSE:ABT) 12 16 7/11/2013 Platinum Health Services, LLC Healthcare Services Group Inc. 200 7/2/2013 Zest Anchors LLC Avista Capital Holdings, L.P.

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

Number Number Transactionsof 219 7 100 200 209 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $110.3 1,096 2.18x 10.1x 50 106 Note: Transactions based on publicly available information 0 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

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 2.0x 9.0x $200 $194.1 9x $174.6 7.7x 1.5x $141.4 400 $150 6x $110.6 $101.6 1.0x $100 __ 200

$65.0 __

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

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 7 113 Healthcare Equipment 28 100 94 95 Healthcare Facilities 31 Healthcare Services 59 79 80 79 80 69 71 Healthcare Supplies 8 65 65 60 62 TransactionVolume 58 Life Sciences Tools & Services 17 60 50 Managed Healthcare 6 49 40 40 42 Pharmaceuticals 17 40 35 27

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

5 Debt Markets Overview August 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 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 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.

Recent Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread 07/16/13 Trinity Health Corp Offices & clinics of medical doctors $931,000,000 Revolver/Line >= 1 Yr. NR / Aa2 N/A Healthcare & 07/24/13 Life Time Fitness Home health care services 760,000,000 Revolver/Line >= 1 Yr. NR / NR L+ 150 Life Sciences 07/24/13 Life Time Fitness Home health care services 100,000,000 Term Loan NR / NR L+ 150 Debt Offerings 07/19/13 Dignity Health Specialty outpatient clinics 680,000,000 Revolver/Line >= 1 Yr. NR / NR L+ 88 07/08/13 MedSolutions Holdings Inc Health and allied services 75,000,000 Revolver/Line >= 1 Yr. B+ / NR L+ 525 (by deal amount) 07/08/13 MedSolutions Holdings Inc Health and allied services 300,000,000 Term Loan B B+ / NR L+ 525 07/09/13 FHC Health Systems Inc Psychiatric hospitals 140,000,000 Term Loan B BB- / NR L+ 475 07/09/13 FHC Health Systems Inc Psychiatric hospitals 25,000,000 Revolver/Line >= 1 Yr. BB- / NR N/A

6 Healthcare & Life Sciences Trading Statistics August 2013

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $14.19 (5.7%) 3.8% $15.49 $11.73 $1,364 $107 $46 $1,423 $292 $96 $84 Jun-13 Dec-12 $316 $102 $93 5.1x 15.4x 4.5x 13.9x Cambrex Corporation. 14.65 17.3% 58.7% 15.66 8.81 440 88 32 482 267 51 29 Jun-13 Dec-12 303 65 44 1.7x 8.5x 1.6x 7.4x Integrated Biopharma Inc. 0.00 (32.5%) 0.0% 0.26 0.11 3 15 0 17 32 (0) (1) Mar-13 Jun-12 NA NA NA 0.5x NM NA NA Patheon Inc. 5.70 29.0% 123.5% 6.36 2.41 802 603 57 1,352 881 117 75 Apr-13 Oct-12 1,025 143 67 1.5x 11.5x 1.3x 9.4x West Pharmaceutical Services, Inc. 73.76 15.5% 48.2% 74.51 46.87 2,551 401 175 2,806 1,309 228 148 Jun-13 Dec-12 1,375 242 159 2.2x 12.3x 2.0x 11.6x Number of Companies 5 Median: 15.5% 48.2% Total $5,160 $1,216 $2,781 $3,018 1.7x 11.9x 1.8x 10.5x Mean: 4.7% 46.8% $1,216 2.2x 11.9x 2.4x 10.6x

Contract Research Organizations Albany Molecular Research Inc. $12.71 6.5% 349.1% $13.90 $2.86 $399 $8 $29 $379 $242 $39 $22 Jun-13 Dec-12 $248 $42 $30 1.6x 9.8x 1.5x 9.1x Charles River Laboratories International, Inc. 45.54 4.7% 33.8% 46.90 33.70 2,234 636 100 2,764 1,143 250 168 Jun-13 Dec-12 1,170 269 200 2.4x 11.0x 2.4x 10.3x Covance Inc. 82.50 10.6% 75.8% 83.26 46.15 4,610 325 430 4,490 2,279 330 210 Jun-13 Dec-12 2,371 363 239 2.0x 12.8x 1.9x 12.4x ICON Public Limited Company 39.22 22.1% 62.5% 40.23 22.43 2,375 0 137 2,178 1,237 148 104 Jun-13 Dec-12 1,320 167 119 1.8x 14.7x 1.6x 13.0x PAREXEL International Corporation 49.45 20.8% 79.7% 50.49 25.95 2,811 396 199 2,919 1,734 208 139 Jun-13 Jun-13 1,912 258 180 1.8x 15.3x 1.5x 11.3x Number of Companies 5 Median: 10.6% 75.8% Total $12,429 $2,546 $6,635 $7,022 1.8x 12.8x 1.6x 11.3x Mean: 13.0% 120.2% $2,546 1.9x 12.7x 1.8x 11.2x

Disease Management Alere Inc. $33.40 30.1% 77.0% $35.38 $17.13 $2,717 $3,876 $327 $6,272 $2,950 $617 $157 Jun-13 Dec-12 $3,000 $667 $546 2.1x 10.0x 2.1x 9.4x Healthways Inc. 17.16 23.5% 53.1% 18.13 8.58 588 268 2 853 669 46 17 Jun-13 Dec-12 719 85 30 1.3x 18.7x 1.2x 10.0x Number of Companies 2 Median: 26.8% 65.0% Total $3,305 $3,562 $3,620 $3,719 1.7x 14.3x 1.6x 9.7x Mean: 26.8% 65.0% $3,562 1.7x 14.3x 1.6x 9.7x

Emergency Services Air Methods Corp. $33.59 (8.2%) (7.6%) $50.61 $32.24 $1,306 $645 $11 $1,958 $843 $214 $133 Jun-13 Dec-12 $888 $221 $142 2.3x 8.4x 2.2x 8.9x Number of Companies 1 Median: (8.2%) (7.6%) Total $1,306 $1,958 $843 $888 2.3x 8.4x 2.2x 8.9x Mean: (8.2%) (7.6%) $1,958 2.3x 8.4x 2.2x 8.9x

Health Care Staffing AMN Healthcare Services Inc. $14.78 7.6% 153.1% $15.94 $5.50 $680 $154 $2 $838 $998 $71 $58 Jun-13 Dec-12 $1,021 $77 $62 0.9x 11.8x 0.8x 10.9x Cross Country Healthcare, Inc. 5.64 12.8% 23.7% 6.23 3.80 174 0 21 154 445 5 (3) Jun-13 Dec-12 449 9 2 0.3x 44.0x 0.3x 16.8x On Assignment Inc. 30.53 25.8% 95.8% 32.93 14.70 1,627 369 12 1,982 1,624 167 135 Jun-13 Dec-12 1,669 163 126 1.2x 11.8x 1.2x 12.1x Team Health Holdings, Inc. 40.22 7.9% 50.6% 42.42 24.09 2,800 510 65 3,216 2,240 222 171 Jun-13 Dec-12 2,365 248 192 1.4x 14.5x 1.4x 13.0x Number of Companies 4 Median: 10.3% 73.2% Total $5,281 $1,547 $5,307 $5,504 1.0x 13.2x 1.0x 12.6x Mean: 13.5% 80.8% $1,547 1.0x 20.5x 0.9x 13.2x

As of July 31, 2013 7 Healthcare & Life Sciences Trading Statistics August 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 7/31/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $64.17 11.7% 78.0% $66.00 $35.78 $23,878 $9,297 $3,228 $30,968 $39,919 $3,819 $3,348 Jun-13 Dec-12 $46,937 $3,824 $3,550 0.8x 8.1x 0.7x 8.1x Cigna Corp. 77.83 17.6% 93.2% 79.25 40.00 22,207 5,187 3,306 24,423 31,106 3,718 3,340 Jun-13 Dec-12 32,426 3,283 2,838 0.8x 7.0x 0.8x 7.4x Coventry Health Care Inc. 6.90 (2.1%) 0.0% 7.20 5.20 6,073 0 5 6,068 312 0 306 Dec-12 Jun-12 NA NA NA 19.4x 0.0x NA NA Health Net, Inc. 30.67 4.3% 39.3% 33.70 16.65 2,435 524 230 2,680 11,153 266 231 Jun-13 Dec-12 11,065 346 325 0.2x 10.1x 0.2x 7.7x Humana Inc. 91.26 23.1% 48.1% 92.74 60.95 14,279 2,852 1,398 15,612 40,015 2,848 2,464 Jun-13 Dec-12 41,302 2,648 2,266 0.4x 5.5x 0.4x 5.9x UnitedHealth Group Incorporated 72.85 21.6% 42.6% 73.66 50.32 74,308 16,717 10,038 84,052 116,819 10,202 9,251 Jun-13 Dec-12 122,645 10,578 9,319 0.7x 8.2x 0.7x 7.9x WellPoint Inc. 85.56 17.3% 60.6% 90.00 52.57 25,579 15,512 1,665 39,743 66,372 5,678 4,858 Jun-13 Dec-12 70,726 4,531 4,077 0.6x 7.0x 0.6x 8.8x Number of Companies 7 Median: 17.3% 48.1% Total $168,757 $29,078 $305,696 $325,102 0.7x 7.0x 0.6x 7.8x Mean: 13.4% 51.7% $29,078 3.3x 6.6x 0.5x 7.6x

Government: Centene Corp. 55.47 20.1% 45.8% 59.96 34.73 3,030 552 731 2,897 10,252 182 128 Jun-13 Dec-12 10,883 352 275 0.3x 15.9x 0.3x 8.2x Molina Healthcare, Inc. 37.12 11.8% 52.1% 40.90 21.62 1,696 761 1,170 1,715 6,429 209 163 Jun-13 Dec-12 6,668 251 181 0.3x 8.2x 0.3x 6.8x WellCare Health Plans, Inc. 61.03 4.7% (5.8%) 66.04 44.75 2,653 346 1,378 1,630 8,395 268 245 Jun-13 Dec-12 9,164 387 345 0.2x 6.2x 0.2x 4.2x Number of Companies 3 Median: 11.8% 45.8% Total $7,379 $2,081 $25,076 $26,714 0.3x 8.2x 0.3x 6.8x Mean: 12.2% 30.7% $2,081 0.3x 10.1x 0.2x 6.4x

Information Services Data/Analytics: Accelrys Inc. $8.73 (11.4%) 7.5% $9.98 $7.59 $488 $0 $73 $332 $166 $10 ($15) Jun-13 Dec-12 $177 $29 $23 2.0x 34.4x 1.9x 11.6x National Research Corp. 0.17 0.0% 11.3% 0.18 0.15 1 1 0 2 6 0 (0) Jun-13 Dec-12 NA NA NA 0.3x 43.8x NA NA Number of Companies 2 Median: (5.7%) 9.4% Total $489 $167 $172 $177 1.1x 39.1x 1.9x 11.6x Mean: (5.7%) 9.4% $167 1.1x 39.1x 1.9x 11.6x

eHealth: WebMD Health Corp. 33.01 36.7% 124.4% 35.28 13.13 1,621 800 999 1,394 488 53 30 Jun-13 Dec-12 $508 $106 $65 2.9x 26.1x NA NA Number of Companies 1 Median: 36.7% 124.4% Total $1,621 $1,394 $488 $508 2.9x 26.1x NA NA Mean: 36.7% 124.4% $1,394 2.9x 26.1x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $15.81 14.2% 71.8% $16.02 $8.85 $2,791 $545 $92 $3,266 $1,404 $78 ($20) Jun-13 Dec-12 $1,450 $231 $127 2.3x 30.9x 2.3x 14.1x athenahealth, Inc. 111.95 16.3% 22.3% 116.18 56.33 4,125 246 48 4,338 494 43 9 Jun-13 Dec-12 595 112 71 8.8x 101.7x 7.3x 38.9x Cerner Corporation 49.00 1.3% 32.6% 50.85 33.82 16,812 182 281 16,025 2,712 782 631 Jun-13 Dec-12 2,961 976 725 5.9x 20.5x 5.4x 16.4x Computer Programs & Systems Inc. 55.74 6.3% 12.6% 56.31 44.95 618 0 7 605 196 49 46 Jun-13 Dec-12 203 52 48 3.1x 12.4x 3.0x 11.7x HMS Holdings Corp. 24.19 (4.0%) (29.7%) 37.19 18.50 2,123 303 139 2,294 489 149 91 Jun-13 Dec-12 507 165 94 4.7x 15.4x 4.5x 13.9x MedAssets, Inc. 21.77 16.2% 65.0% 22.13 12.80 1,326 831 9 2,157 671 212 108 Jun-13 Dec-12 679 221 92 3.2x 10.2x 3.2x 9.7x Merge Healthcare Incorporated 4.53 45.2% 53.0% 4.71 2.27 423 253 44 629 246 27 9 Jun-13 Dec-12 265 60 31 2.5x 21.7x 2.4x 10.6x Quality Systems Inc. 22.87 28.0% 41.5% 23.38 16.02 1,363 0 106 1,233 451 97 83 Jun-13 Mar-13 462 113 86 2.7x 12.7x 2.7x 11.0x Number of Companies 8 Median: ` 37.0% Total $1,743 $3,818 $491 $551 3.2x 17.9x 3.1x 12.8x Mean: 15.4% 33.7% $2,226 3.2x 17.9x 3.1x 12.8x

As of July 31, 2013 8 Healthcare & Life Sciences Trading Statistics August 2013

Payer, Provider, & Pharmacy Support Services

Specialty Pharmacy Management BioScrip Inc. $16.25 17.2% 155.5% $17.62 $6.21 $1,097 $225 $0 $1,351 $741 $35 $20 Jun-13 Dec-12 $863 $68 $36 1.9x 37.8x 1.6x 20.0x Express Scripts Holding Company 65.55 10.4% 13.1% 67.66 49.79 53,371 14,280 1,990 66,319 106,709 6,472 4,187 Jun-13 Dec-12 102,355 6,751 6,335 0.6x 10.2x 0.6x 9.8x Catamaran Corporation 54.10 (7.0%) 27.0% 59.00 42.27 11,140 1,025 311 11,922 13,157 613 379 Jun-13 Dec-12 14,247 657 434 1.0x 23.2x 0.8x 18.1x Omnicare Inc. 52.79 20.6% 68.1% 53.54 31.02 5,462 2,035 510 6,962 6,126 711 574 Jun-13 Dec-12 6,208 701 592 1.1x 9.8x 1.1x 9.9x PharMerica Corporation 14.64 13.6% 42.3% 16.45 9.82 435 257 8 699 1,746 118 85 Jun-13 Dec-12 1,656 118 81 0.4x 6.3x 0.4x 5.9x Number of Companies 5 Median: 13.6% 42.3% Total $71,504 $18,832 $128,479 $125,330 0.9x 10.0x 0.9x 9.9x Mean: 11.0% 61.2% $18,832 1.0x 16.0x 0.9x 11.4x

As of July 31, 2013 9 Healthcare & Life Sciences Trading Statistics August 2013

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. 37.07 8.8% 41.8% 38.84 25.05 2,175 325 87 2,408 1,710 276 177 Jun-13 Sep-12 1,717 308 185 1.4x 8.7x 1.4x 7.8x Invacare Corporation 15.61 16.1% 10.8% 18.27 10.26 500 115 25 593 1,417 32 (4) Jun-13 Dec-12 1,364 NA (24) 0.4x 18.5x 0.4x NA Prism Medical Ltd. 5.22 (1.9%) (14.6%) 6.50 4.50 44 22 2 64 72 6 4 May-13 Nov-12 76 10 NA 0.9x 10.5x 0.8x 6.3x ResMed Inc. 47.65 (0.8%) 51.0% 51.40 30.98 6,789 301 1,013 6,117 1,514 458 380 Jun-13 Jun-13 1,655 503 417 4.2x 13.9x 3.7x 12.2x Rotech Healthcare Inc. 0.14 (18.6%) (81.5%) 0.76 0.09 4 525 19 510 466 75 9 Sep-12 Dec-11 NA NA NA 1.1x 6.8x NA NA Number of Companies 5 Median: (0.8%) 10.8% Total $9,511 $1,938 $5,180 $4,812 1.1x 10.5x 1.1x 7.8x Mean: 0.7% 1.5% $1,938 1.6x 11.7x 1.6x 8.8x

Life Sciences Tools Agilent Technologies Inc. $44.73 7.9% 16.8% $47.47 $35.38 $15,408 $2,356 $2,519 $15,248 $6,902 $1,402 $1,053 Apr-13 Oct-12 $6,784 $1,472 $1,219 2.2x 10.9x 2.2x 10.4x Becton, Dickinson and Company 103.72 10.0% 37.0% 104.98 74.10 20,148 3,970 2,024 21,896 7,920 2,143 1,611 Jun-13 Sep-12 8,000 2,149 1,601 2.8x 10.2x 2.7x 10.2x Life Technologies Corporation 74.60 1.2% 70.0% 74.81 43.17 12,880 2,215 262 14,805 3,818 1,191 796 Jun-13 Dec-12 3,870 1,320 1,131 3.9x 12.5x 3.8x 11.2x Number of Companies 3 Median: 7.9% 37.0% Total $48,437 $17,317 $18,641 $18,653 2.8x 10.9x 2.7x 10.4x Mean: 6.4% 41.3% $17,317 3.0x 11.2x 2.9x 10.6x

Medical Devices and Products Abbott Laboratories $36.63 (0.8%) (44.8%) $72.47 $31.64 $57,101 $7,935 $4,373 $55,781 $40,101 $11,541 $8,980 Jun-13 Dec-12 $22,187 $5,242 $4,146 1.4x 4.8x 2.5x 10.6x ArthroCare Corporation 36.26 4.6% 22.6% 37.49 27.21 1,022 0 230 874 368 88 70 Jun-13 Dec-12 378 92 71 2.4x 9.5x 2.3x 9.5x Baxter International Inc. 73.04 4.5% 24.8% 74.60 57.40 39,645 9,035 2,689 42,724 14,347 4,100 3,377 Jun-13 Dec-12 15,259 4,209 3,400 3.0x 10.4x 2.8x 10.2x Boston Scientific Corporation 10.92 45.8% 111.2% 11.11 5.04 14,732 4,252 268 18,454 7,125 1,630 946 Jun-13 Dec-12 7,123 1,652 921 2.6x 11.3x 2.6x 11.2x CR Bard Inc. 114.60 15.3% 17.8% 115.35 93.69 9,071 1,483 879 9,695 2,986 887 755 Jun-13 Dec-12 3,036 853 710 3.2x 10.9x 3.2x 11.4x Danaher Corp. 67.34 10.5% 27.5% 69.02 50.63 46,840 4,155 2,151 48,738 18,573 4,145 3,279 Jun-13 Dec-12 18,957 4,168 3,303 2.6x 11.7x 2.6x 11.7x Hanger, Inc. 36.92 21.5% 43.3% 37.39 22.38 1,275 504 15 1,779 1,023 172 135 Jun-13 Dec-12 1,068 190 146 1.7x 10.5x 1.7x 9.3x Hologic Inc. 22.70 11.5% 22.6% 23.96 18.46 6,113 5,005 745 10,373 2,447 821 323 Jun-13 Sep-12 2,542 1,001 827 4.5x 13.6x 4.1x 10.4x Hospira Inc. 40.70 22.9% 17.1% 41.35 28.62 6,742 1,761 727 7,820 4,003 253 21 Jun-13 Dec-12 4,062 678 452 2.0x 28.1x 1.9x 11.5x Johnson & Johnson 93.50 9.7% 35.1% 94.42 66.85 262,631 14,982 14,855 256,855 69,992 22,744 18,677 Jun-13 Dec-12 70,752 23,128 19,019 3.7x 11.5x 3.6x 11.1x Medtronic, Inc. 55.24 18.3% 40.1% 55.90 38.53 55,654 10,669 860 55,252 16,590 5,593 4,774 Apr-13 Apr-13 16,954 6,125 5,353 3.3x 9.9x 3.3x 9.0x Stryker Corporation 70.46 7.4% 35.4% 71.32 50.96 26,643 2,771 1,913 24,762 8,792 1,932 1,645 Jun-13 Dec-12 8,981 2,454 2,127 2.8x 12.8x 2.8x 10.1x Thermo Fisher Scientific, Inc. 91.11 12.9% 63.7% 92.29 53.77 32,811 7,114 1,004 38,512 12,777 2,683 1,684 Jun-13 Dec-12 12,913 2,740 2,504 3.0x 14.4x 3.0x 14.1x Zimmer Holdings, Inc. 83.48 9.2% 41.7% 85.08 57.60 14,055 1,688 657 14,507 4,514 1,677 1,334 Jun-13 Dec-12 4,586 1,737 1,366 3.2x 8.7x 3.2x 8.3x Number of Companies 14 Median: 11.0% 31.3% Total $574,337 $41,866 $203,638 $188,798 2.9x 11.1x 2.8x 10.5x Mean: 13.8% 32.7% $41,866 2.8x 12.0x 2.8x 10.6x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $58.27 7.7% 46.8% $59.30 $36.73 $13,455 $1,396 $1,347 $13,284 $83,963 $1,274 $1,106 Jun-13 Sep-12 $87,304 $1,407 $1,244 0.2x 10.5x 0.2x 9.4x Cardinal Health, Inc. 50.09 13.3% 16.2% 51.09 36.91 17,122 3,854 2,305 18,527 101,093 2,443 2,046 Jun-13 Jun-13 83,627 2,356 2,009 0.2x 7.8x 0.2x 7.9x Henry Schein, Inc. 103.83 14.9% 38.8% 104.81 72.84 9,047 468 91 10,074 9,325 789 661 Jun-13 Dec-12 9,603 812 682 1.1x 13.0x 1.0x 12.4x McKesson Corporation 122.66 15.9% 35.2% 126.36 84.65 28,043 4,874 2,456 30,012 123,964 3,094 2,474 Jun-13 Mar-13 130,956 3,479 2,921 0.2x 9.7x 0.2x 8.6x Owens & Minor Inc. 35.96 10.4% 27.5% 36.23 26.97 2,277 215 219 2,284 9,047 250 203 Jun-13 Dec-12 9,111 260 210 0.3x 9.1x 0.3x 8.8x Patterson Companies, Inc. 40.89 7.7% 19.9% 41.25 31.36 4,300 726 505 4,520 3,637 400 354 Apr-13 Apr-13 3,839 421 370 1.2x 11.3x 1.2x 10.7x Number of Companies 6 Median: 11.8% 31.3% Total $74,244 $13,117 $331,030 $324,440 0.2x 10.1x 0.2x 9.1x Mean: 11.6% 30.7% $13,117 0.5x 10.2x 0.5x 9.6x

As of July 31, 2013 10 Healthcare & Life Sciences Trading Statistics August 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 7/31/2013 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. $46.06 1.1% 87.2% $51.29 $22.93 $4,293 $9,631 $285 $14,104 $13,037 $1,708 $1,074 Jun-13 Dec-12 $13,158 $1,900 $1,107 1.1x 8.1x 1.1x 7.4x Health Management Associates Inc. 13.48 17.3% 104.9% 17.28 6.27 3,508 3,733 37 7,007 5,868 882 495 Jun-13 Dec-12 6,895 862 523 1.2x 7.5x 1.0x 8.1x HCA Holdings, Inc. 39.00 (2.2%) 47.3% 41.83 23.91 17,397 28,525 594 47,000 33,386 6,361 4,670 Jun-13 Dec-12 37,315 6,323 4,643 1.4x 7.5x 1.3x 7.4x Lifepoint Hospitals Inc. 49.13 2.4% 28.9% 53.29 34.37 2,336 1,755 160 3,967 3,540 473 241 Jun-13 Dec-12 4,360 535 312 1.1x 8.4x 0.9x 7.4x Tenet Healthcare Corp. 44.65 (1.6%) 141.6% 49.48 17.80 4,621 5,635 95 10,066 9,361 1,207 746 Jun-13 Dec-12 10,442 1,344 875 1.1x 8.6x 1.0x 7.5x Universal Health Services Inc. 69.95 5.0% 79.0% 71.54 38.25 6,856 3,583 17 10,676 7,112 1,348 1,026 Jun-13 Dec-12 8,014 1,261 938 1.5x 7.9x 1.3x 8.5x Number of Companies 6 Median: 1.7% 83.1% Total $39,010 $15,470 $72,304 $80,183 1.2x 8.0x 1.0x 7.5x Mean: 3.7% 81.5% $15,470 1.2x 8.0x 1.1x 7.7x

Assisted Living Assisted Living Concepts Inc. $14.15 0.4% 21.5% $16.00 $11.46 $551 $228 $7 $657 $542 $119 $74 Jun-13 Dec-12 NA NA NA 1.2x 5.2x NA NA Brookdale Senior Living Inc. 29.12 12.9% 76.9% 30.34 15.66 3,583 2,556 28 6,194 2,492 398 141 Jun-13 Dec-12 2,877 433 152 2.5x 16.1x 2.2x 14.3x Capital Senior Living Corp. 23.04 (5.0%) 105.0% 27.90 9.69 639 429 18 1,029 328 55 13 Jun-13 Dec-12 359 68 21 3.2x 19.2x 2.9x 15.1x Emeritus Corp. 23.19 (9.8%) 36.8% 30.95 15.10 1,099 4,060 114 5,057 1,673 306 135 Jun-13 Dec-12 1,914 381 192 3.3x 18.4x 2.6x 13.3x Five Star Quality Care Inc. 5.92 25.2% 65.8% 6.87 3.49 286 63 15 317 1,231 46 20 Jun-13 Dec-12 1,447 47 21 0.3x 6.9x 0.2x 6.8x Skilled Healthcare Group, Inc. 6.52 (7.4%) 20.1% 8.01 4.97 256 446 5 702 868 82 56 Jun-13 Dec-12 883 95 68 0.8x 7.6x 0.8x 7.4x Number of Companies 6 Median: (2.3%) 51.3% Total $6,413 $2,326 $7,135 $7,480 1.8x 11.9x 2.2x 13.3x Mean: 2.7% 54.3% $2,326 1.9x 12.2x 1.7x 11.4x

Diagnostic Imaging Alliance Healthcare Services, Inc. $19.69 54.4% 386.2% $19.76 $3.90 $204 $559 $31 $764 $456 $144 $59 Jun-13 Dec-12 $460 $148 NA 1.7x 5.2x 1.7x 5.2x RadNet, Inc. 2.78 1.5% 18.8% 3.22 2.13 111 584 0 697 669 100 43 Jun-13 Dec-12 684 119 49 1.1x 6.5x 1.0x 5.9x Varian Medical Systems Inc. 72.50 11.3% 32.8% 75.78 53.74 7,861 174 740 7,210 2,929 692 625 Jun-13 Sep-12 2,958 684 616 2.5x 10.5x 2.4x 10.5x Number of Companies 3 Median: 11.3% 32.8% Total $8,177 $2,891 $4,054 $4,103 1.7x 6.5x 1.7x 5.9x Mean: 22.4% 145.9% $2,891 1.7x 7.4x 1.7x 7.2x

Dialysis Services DaVita HealthCare Partners Inc. $116.41 (1.9%) 18.3% $131.33 $95.17 $12,316 $8,490 $700 $20,895 $10,121 $2,101 $1,655 Jun-13 Dec-12 $11,505 $2,345 $1,854 2.3x 10.7x 1.8x 8.9x Fresenius Medical Care AG & Co. KGAA 47.56 (9.2%) (19.4%) 59.52 46.58 14,627 8,350 535 21,222 14,475 2,760 2,136 Jun-13 Dec-12 14,614 2,928 2,300 1.9x 9.9x 1.5x 7.2x Number of Companies 2 Median: (5.5%) (0.6%) Total $26,943 $21,059 $24,595 $26,120 2.1x 10.3x 1.6x 8.1x Mean: (5.5%) (0.6%) $21,059 2.1x 10.3x 1.6x 8.1x

Home Care / Hospice Addus HomeCare Corporation $19.64 65.9% 342.9% $23.71 $4.06 $214 $0 $18 $196 $254 $19 $17 Jun-13 Dec-12 $257 $18 $16 0.8x 10.6x 0.8x 10.8x Almost Family Inc. 19.13 (3.1%) (13.1%) 22.96 17.66 179 1 35 145 348 26 23 Jun-13 Dec-12 343 22 19 0.4x 5.1x 0.4x 6.6x Amedisys Inc. 12.51 24.6% 2.6% 15.95 8.81 403 75 7 449 1,388 74 34 Jun-13 Dec-12 1,302 70 29 0.3x 5.9x 0.3x 6.4x Gentiva Health Services Inc. 10.74 2.4% 61.3% 12.90 6.52 336 910 160 1,088 1,679 170 149 Jun-13 Dec-12 1,676 156 136 0.6x 6.1x 0.6x 7.0x LHC Group, Inc. 22.94 5.6% 28.2% 24.14 15.69 404 26 3 438 635 61 53 Jun-13 Dec-12 668 52 45 0.7x 7.2x 0.7x 8.4x Chemed Corp. 70.59 (13.5%) 12.5% 82.00 56.51 1,317 179 73 1,383 1,447 189 164 Jun-13 Dec-12 1,449 207 165 1.0x 7.3x 1.0x 6.7x Number of Companies 6 Median: 4.0% 20.3% Total $369 $617 $1,012 $985 0.7x 6.7x 0.7x 6.8x Mean: 13.6% 72.4% $617 0.6x 7.0x 0.6x 7.6x

Long-Term Care The Ensign Group, Inc. $38.24 9.7% 36.3% $39.19 $24.97 $835 $216 $43 $999 $857 $87 $56 Jun-13 Dec-12 $921 $138 $106 1.2x 11.3x 1.1x 7.3x Kindred Healthcare Inc. 15.36 46.4% 62.2% 15.62 9.00 830 1,672 43 2,414 6,186 427 222 Jun-13 Dec-12 5,872 409 218 0.4x 5.7x 0.4x 5.9x National Healthcare Corp. 48.03 3.4% 10.0% 50.82 41.55 674 10 74 657 748 99 70 Jun-13 Dec-12 787 NA NA 0.9x 6.0x 0.8x NA Number of Companies 3 Median: 9.7% 36.3% Total $2,340 $1,357 $7,792 $7,580 0.9x 6.0x 0.8x 6.6x Mean: 19.8% 36.2% $1,357 0.8x 7.7x 0.8x 6.6x

As of July 31, 2013 11 Healthcare & Life Sciences Trading Statistics August 2013

Provider-Based Services

Specialty: MEDNAX, Inc. 97.42 9.8% 47.3% 98.48 66.50 4,777 154 34 4,911 1,976 450 415 Jun-13 Dec-12 2,152 490 449 2.5x 10.9x 2.3x 10.0x Number of Companies 1 Median: 9.8% 47.3% Total $4,777 $4,911 $1,976 $2,152 2.5x 10.9x 2.3x 10.0x Mean: 9.8% 47.3% $4,911 2.5x 10.9x 2.3x 10.0x

Dental: Birner Dental Management Services Inc. $16.36 2.0% 10.5% $23.03 $16.21 $34 $6 $1 $39 $63 $5 $1 Jun-13 Dec-12 NA NA NA 0.6x 8.6x NA NA Number of Companies 1 Median: 2.0% 10.5% Total $34 $39 $63 $0 0.6x 8.6x NA NA Mean: 2.0% 10.5% $39 0.6x 8.6x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $57.15 11.7% 18.6% $60.54 $46.00 $1,534 $28 $188 $1,280 $3,293 $244 $209 Jun-13 Dec-12 $3,290 $259 $183 0.4x 5.2x 0.4x 4.9x Providence Service Corp. 27.57 57.5% 113.7% 31.31 9.56 360 124 83 411 1,136 58 43 Jun-13 Dec-12 1,126 56 41 0.4x 8.1x 0.4x 7.3x Universal Health Services Inc. 69.95 5.0% 79.0% 71.54 38.25 6,856 3,583 17 10,676 7,112 1,348 1,026 Jun-13 Dec-12 8,014 1,261 938 1.5x 7.9x 1.3x 8.5x Number of Companies 3 Median: 11.7% 79.0% Total $8,750 $3,092 $11,541 $12,429 0.4x 6.6x 0.4x 7.3x Mean: 24.7% 70.4% $3,092 0.6x 5.3x 0.7x 6.9x

Surgicenters / Rehabilitation Surgery Centers: AmSurg Corp. $39.11 16.5% 32.4% $41.00 $25.00 $1,251 $616 $42 $2,327 $999 $337 $305 Jun-13 Dec-12 $1,076 $364 $333 2.3x 6.9x 2.2x 6.4x Number of Companies 1 Median: 16.5% 32.4% Total $1,251 $2,327 $999 $1,076 2.3x 6.9x 2.2x 6.4x Mean: 16.5% 32.4% $2,327 2.3x 6.9x 2.2x 6.4x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $32.56 18.4% 45.4% $33.73 $19.85 $2,842 $1,320 $80 $4,568 $2,198 $525 $437 Jun-13 Dec-12 $2,265 $536 $446 2.1x 8.5x 2.0x 8.5x Select Medical Holdings Corporation 8.97 8.7% (15.8%) 14.89 7.21 1,251 1,550 5 2,792 2,925 386 323 Jun-13 Dec-12 2,971 379 312 1.0x 7.0x 0.9x 7.4x US Physical Therapy Inc. 28.62 19.9% 11.5% 31.56 22.69 345 17 10 376 251 42 36 Jun-13 Dec-12 262 38 39 1.5x 9.0x 1.4x 9.9x Number of Companies 3 Median: 18.4% 11.5% Total $4,439 $2,579 $5,374 $5,498 1.5x 8.5x 1.4x 8.5x Mean: 15.7% 13.7% $2,579 1.5x 8.2x 1.5x 8.6x

As of July 31, 2013 12 M&A Detail August 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/31/2013 Mercer Advisors Inc. Lovell Minnick Partners, LLC; Patterson Companies, Inc. - - - - Yes Healthcare & Caltius Capital Management (NasdaqGS:PDCO) Life Sciences 7/31/2013 Restat, LLC The F. Dohmen Co. Catamaran Corporation (TSX:CCT) $409.5 - - - No 7/31/2013 Digirad Corporation, Surgical Imaging Digirad Corporation Novadaq Technologies Inc. $3.0 - - - No M&A Technology Assets (NasdaqGM:DRAD) (TSX:NDQ) 7/31/2013 Theraclone Sciences, Inc. Arch Venture Partners, L.P.; Canaan PharmAthene, Inc. (AMEX:PIP) - - - - Yes Partners; HealthCare Ventures LLC; MPM Capital; Versant Ventures, Inc.; Alexandria Real Estate Equities, 7/31/2013 Six Assisted Living Properties in Colorado - Madison Realty Companies - - - - No 7/31/2013 ReSearch Pharmaceutical Services, Inc. Warburg Pincus LLC; GE Equity Kohlberg Kravis Roberts & Co. L.P. - - - - Yes (NYSE:KKR) 7/31/2013 Ceptaris Therapeutics Inc. Ben Franklin Technology Partners of Actelion US Holding Company $250.0 - - - No Southeastern Pennsylvania, Investment Arm; Vivo Ventures, LLC; Burrill Venture Capital 7/31/2013 Emerald BioStructures Inc., Crystallization Emerald BioStructures, Inc. Rigaku Americas Corporation - - - - No Reagent and Consumable Business 7/31/2013 Nursing Homes in Lancaster and - Complete Healthcare Resources, Inc. - - - - No Northumberland Counties 7/30/2013 Vansen Pharma Inc., Right, Title & Interest to Vansen Pharma Inc. Okana Ventures Inc. $13.6 - - - No Certain Spectracef & Cefditoren Pivoxil 7/30/2013 Cytori Therapeutics, Inc., Puregraft Products, Cytori Therapeutics, Inc. Bimini Technologies LLC $15.0 - - - No Licenses Celution for Alopecia (NasdaqGM:CYTX) 7/30/2013 Optimer Pharmaceuticals, Inc. DWS Investment GmbH; T. Rowe Cubist Pharmaceuticals Inc. $696.3 9.1x - - No (NasdaqGS:OPTR) Price Associates, Inc.; YFY Biotech (NasdaqGS:CBST) Management Company 7/30/2013 Trius Therapeutics, Inc. (NasdaqGM:TSRX) InterWest Partners LLC; Kleiner, Cubist Pharmaceuticals Inc. $747.7 52.9x - - Yes Perkins, Caufield & Byers; Prism (NasdaqGS:CBST) VentureWorks; Versant Ventures, Inc.; The Biotech Growth Trust PLC 7/30/2013 Baxter International Inc.,Continuous Renal Baxter International Inc. Nikkiso Co. Ltd. (TSE:6376) $38.8 0.8x - - No Replacement Therapy (CRRT) Business (NYSE:BAX) 7/30/2013 The Lighthouse and Immanuel Fontenelle Home Alegent Creighton Health Immanuel Retirement Communities, - - - - No 7/29/2013 Community Health Solutions of America, Inc., Community Health Solutions of Molina Healthcare of South Carolina, - - - - No Certain Assets of South Carolina Solutions America, Inc. Inc. Business 7/29/2013 Sanjay P. Patel, M.D., P.A. - MEDNAX, Inc. (NYSE:MD) - - - - No 7/29/2013 Baldwin Physician Services, Inc. - IPC The Hospitalist Company, Inc. - - - - No (NasdaqGS:IPCM) 7/29/2013 RevMap, Inc. - Radius Global Solutions LLC - - - - No 7/29/2013 Tri-county Emergency Physicians, Inc. - Team Health Holdings, Inc. - - - - No (NYSE:TMH) 7/29/2013 Health Management Associates Inc. BlackRock, Inc. (NYSE:BLK); The Community Health Systems, Inc. $7,567.6 1.3x 8.6x 15.3x Yes (NYSE:HMA) Vanguard Group, Inc.; Wellington (NYSE:CYH) Management Company LLP; Glenview Capital Management, LLC 7/28/2013 51% of Transitions Optical, Inc. and 100% of PPG Industries Inc. (NYSE:PPG); Essilor International SA (ENXTPA:EI) $1,855.0 2.2x - - No Intercast Europe S.R.L. PPG Industries Securities, Inc.; Group 26 Diversified Holdings Ireland; PPG Luxembourg Finance 7/26/2013 Five My Dentist Locations in Kansas, Missouri, - Broadstone Net Lease, Inc. - - - - No Oklahoma and Texas 7/26/2013 Mastech Holdings, Inc., Healthcare Staffing Mastech Holdings, Inc. Accountable Healthcare Staffing, LLC $1.2 - - - No Segment (AMEX:MHH) 7/26/2013 Immco Diagnostics, Inc. Summit Partners Trinity Biotech plc (NasdaqGS:TRIB) $32.8 - - - Yes 7/26/2013 Lackawanna Ambulance, Inc. - Moses Taylor Health Care System, - - - - No 7/26/2013 Cirrus Pharmaceuticals, Inc. - Kemwell Biopharma Pvt. Ltd. - - - - No 7/26/2013 Mri Center Of New England, Inc., Two MRI Mri Center Of New England, Inc. Center for Diagnostic Imaging, Inc. - - - - No Centers 7/25/2013 Van Conversions, Inc. - WMK Inc. - - - - No 7/25/2013 Clinical Testing Laboratories and Forensic - BelHealth Investment Partners, LLC - - - - No Testing Laboratory and Genetic Testing 7/25/2013 Denison Pharmaceuticals, Inc. - Brookstone Partners - - - - Yes 7/24/2013 Lion Biotechnologies, Inc. - Genesis Biopharma, Inc. $13.5 - - - No (OTCPK:GNBP) 7/24/2013 Comprehensive Clinical Development, Late Comprehensive Clinical Clinical Research Advantage, Inc. - - - - No Phase Division Development, Inc. 7/24/2013 American Eldercare, Inc. - Humana Inc. (NYSE:HUM) - - - - No 7/23/2013 Definitive Homecare Solutions, Ltd. - Mediware Information Systems, Inc. - - - - No 7/23/2013 Matrical, Inc. - Brooks Automation, Inc. $10.0 - - - No (NasdaqGS:BRKS) 7/23/2013 Eli Lilly and Company, Worldwide Development Eli Lilly and Company (NYSE:LLY) Transition Therapeutics Inc. - - - - No Rights to TT-601 (TSX:TTH) 7/23/2013 Wijit, Inc. - Kinova USA, LLC - - - - No 13 M&A Detail August 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/23/2013 ECCO Health, LLC - Kareo, Inc. - - - - No Healthcare & 7/22/2013 Synectic Engineering, Inc - Mack Molding Company, Inc. - - - - No 7/19/2013 Roscoe Medical, Inc. River Associates Investments, LLC Tenex Capital Management - - - - Yes Life Sciences 7/19/2013 Augusta Open MRI, and Two Outpatient - Outpatient Imaging Affiliates, LLC - - - - No M&A Imaging Centers in Elizabethtown and Omaha 7/18/2013 Real Estate Assets of Esplanade Rehab Hospital - Medical Properties Trust Inc. $15.8 - - - No (Continued) in Corpus Christi (NYSE:MPW) 7/18/2013 Memorial Hospital of Tampa, LP, Palms of IASIS Healthcare LLC HCA Holdings, Inc. (NYSE:HCA) - - - - No Pasadena Hospital LP, & Town & Country Hospital LP 7/18/2013 Formex, LLC Akela Pharma Inc. Biotech Investment Group - - - - No 7/18/2013 Twin Cities Orthopedics, Minnesota Valley Twin Cities Orthopedics Harrison Street Real Estate Capital, $37.8 - - - Yes Surgery Center in Burnsville LLC 7/17/2013 OroGen Bio Sciences, Inc. - Celling Biosciences, LLC - - - - No 7/17/2013 InfuSystem Holdings, Inc. (AMEX:INFU) Kleinheinz Capital Partners, Inc.; Meson Capital Partners LLC $71.6 1.3x 5.8x 17.2x Yes AWM Investment Company Inc.; Boston Avenue Capital, L.L.C.; Greenwood Investments, Inc. 7/17/2013 Pfizer Inc., Exclusive Worldwide Rights of Pfizer Inc. (NYSE:PFE) Sequella, Inc. - - - - No Sutezolid 7/17/2013 Indiana HomeCare Network LLC - Almost Family Inc. $12.5 0.9x - - No 7/17/2013 Almost Family Inc., Two Locations in Alabama Almost Family Inc. - $3.0 0.5x - - No of Visiting Nurse Segment (NasdaqGS:AFAM) 7/16/2013 Talon Therapeutics, Inc. Warburg Pincus LLC; OrbiMed Spectrum Pharmaceuticals, Inc. $228.8 - - - Yes Advisors, L.L.C.; Iroquois Capital, (NasdaqGS:SPPI) LP; Perceptive Advisors LLC; Deerfield Management Company 7/16/2013 ProSites, Inc. - CPA Site Solutions, Inc. - - - - No 7/16/2013 Kauffman Foot & Ankle Specialists - Foot Health Centers, P.A. - - - - No 7/15/2013 TotipotentRx Corporation - ThermoGenesis Corp. $18.6 - - - No (NasdaqCM:KOOL) 7/15/2013 IDEV Technologies, Inc. Bay City Capital LLC; RiverVest Abbott Laboratories (NYSE:ABT) $310.0 - - - Yes Venture Partners, LLC; PTV Sciences, L.P.; North Sky Capital; Heron Capital Venture Capital 7/15/2013 OptiMedica Corporation Alloy Ventures, Inc.; Kleiner, Abbott Laboratories (NYSE:ABT) $400.0 - - - Yes Perkins, Caufield & Byers; Bio*One Capital Pte Ltd; BlackRock Private Equity Partners; DAG Ventures, LLC 7/15/2013 Medical Security Card Company, LLC Monitor Clipper Partners, LLC MedImpact Healthcare Systems, Inc. - - - - Yes 7/15/2013 PathoGene, L.L.C. - DxNA LLC - - - - No 7/14/2013 Block Vision Inc. - Superior Vision Services, Inc. - - - - No 7/12/2013 Littleton Med Partners, LP, CareMeridian Littleton Med Partners, LP American Realty Capital Operating $11.3 - - - Yes Rehabilitation Facility located in Littleton, Partnership, L.P. 7/12/2013 Data Strategies, Inc. - Integrated Solutions Group, Inc. - - - - No 7/12/2013 Regina Medical Center - Allina Health System, Inc. - - - - No 7/11/2013 Clay County Hospital Inc. Clay County Illinois St. Mary's Good Samaritan, - - - - No Incorporated 7/11/2013 Platinum Health Services, LLC Walnut Court Capital Advisors, Healthcare Services Group Inc. $30.1 - - - Yes LLC; Z Capital LLC (NasdaqGS:HCSG) 7/11/2013 HCR ManorCare, Inc., Heartland of Charleston HCR ManorCare, Inc. Stonerise Healthcare LLC - - - - No 7/11/2013 Sherkston Shores Beach Resort and - Carefree Communities Inc. - - - - No Campground and Regency Heights Co-Op Inc 7/10/2013 Duke Medical Equipment LLC - Anovent, Inc. $7.0 1.8x 4.7x - No 7/10/2013 Neurofluidics, Inc. Brain Trust Accelerator Fund, L.P. Minnetronix, Inc. - - - - Yes 7/10/2013 St Joseph's Hospital Health Center The Sisters of St. Francis Catholic Health East, Inc. - - - - No 7/10/2013 Emergency Services, Inc. - Mount Carmel Health System, Inc. - - - - No 7/9/2013 Biolucidation, LLC - Melior Discovery, Inc. - - - - No 7/9/2013 RiverTech Medical LLC - Vention Medical, Inc. - - - - No 7/9/2013 Stinger Medical LLC Riverside Partners LLC Enovate Medical - - - - Yes 7/9/2013 The Anson Group, LLC - Navigant Consulting Inc. (NYSE:NCI) - - - - No 7/8/2013 Medical Referral Source, Inc. - The Advisory Board Company $11.5 - - - No (NasdaqGS:ABCO) 7/8/2013 EVIDERA United BioSource Corporation Symphony Technology Group - - - - No 7/8/2013 HGI Healthcare, Inc. - Accountable Healthcare Staffing, LLC - - - - No 7/8/2013 IMAGE Molding Inc. - Intertech Plastics, Inc. - - - - No 7/7/2013 Nile Therapeutics, Inc (OTCPK:NLTX) Calmedica Capital; Clal Gemel Ltd.; Capricor, Inc. - - - - Yes Beechwood Ventures, LLC; Wexford Capital LLC; Two River Group Holdings, LLC 7/5/2013 Clinical Instruments International, Inc. - LeMaitre Vascular, Inc. $1.1 1.7x - - No 7/5/2013 Dr. T.C. Hobbs & Associates, Inc. - Riverside Radiology and Interventional - - - - No 7/4/2013 HHC of Florida and HeartHealthy Meals Inc. - Patient Home Monitoring Corp. - - - - No 7/3/2013 The Club at Raider Ranch and The Isle at Raider RR AL Care Group Limited CHP Partners LP - - - - No

14 M&A Detail August 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/3/2013 Oklahoma Care Group, LP, Town Village Oklahoma Care Group, LP CHP Partners LP $22.5 - - - No Healthcare & 7/3/2013 36 Seniors Housing Communities - Formation Capital, L.L.C.; $400.0 - - - No Life Sciences SAFANAD Limited 7/2/2013 University Physical Therapy, Ltd. - Avera Queen Of Peace Hospital - - - - No M&A 7/2/2013 Clinch Valley Physicians, Inc. - Clinch Valley Medical Center, Inc. - - - - No 7/2/2013 Libertas Pharma Inc. - Mayne Pharma Group Limited - - - - No (Continued) (ASX:MYX) 7/2/2013 Zest Anchors LLC The Jordan Company, L.P. Avista Capital Holdings, L.P. - - - - Yes 7/2/2013 Farmis, Inc. - VWR International LLC - - - - No 7/2/2013 Metro Medical Management Services, Inc. - Medical Transcription Billing, Corp. - - - - No 7/1/2013 Advanced Liquid Logic, Inc Charleston Angel Partners, LLC; Illumina Inc. (NasdaqGS:ILMN) $96.0 - - - Yes Southeast TechInventures, Inc. 7/1/2013 ENTrigue Surgical, Inc. EDF Ventures; Prism VentureWorks; ArthroCare Corporation $45.0 - - - Yes The Vertical Group; Aperture (NasdaqGS:ARTC) Venture Partners, LLC; Hercules Technology Growth Capital, Inc. 7/1/2013 The Inn at Halcyon Village - National Health Investors Inc. $15.3 - - - No 7/1/2013 14 Assisted Living and Memory Care Tiptree Financial Inc. National Health Investors Inc. $123.0 - - - No 7/1/2013 3 Assisted Living Communities - National Health Investors Inc. $12.0 - - - No 7/1/2013 SyrVet, Inc. - Neogen Corp. (NasdaqGS:NEOG) $10.0 - - - No 7/1/2013 Moog Inc., Ethox Medical Moog Inc. (NYSE:MOG.A) Dempsey Ventures, Inc. - - - - No 7/1/2013 CoAxia, Inc. Affinity Capital Management; Canaan ZOLL Medical Corporation - - - - Yes Partners; Space Center Ventures, Inc.; Saints Capital; Baird Venture Partners 7/1/2013 South Jersey Emergency Physicians, PA - Team Health Holdings, Inc. - - - - No 7/1/2013 North Central Emergency Associates, LLC - Team Health Holdings, Inc. - - - - No 7/1/2013 Prothera, Inc. - Soho Flordis International Pty Limited - - - - No 7/1/2013 Wave Imaging, LLC Verde Valley Medical Imaging Center MemorialCare Medical Foundation - - - - No 7/1/2013 No Place Like Home Senior Care LLC - EmpRes Healthcare Management, - - - - No 7/1/2013 WellAWARE Systems, Inc. Valhalla Partners; .406 Ventures, Healthsense, Inc. - - - - Yes 7/1/2013 Parma Community General Hospital (Inc.) - University Hospitals Health System, - - - - No 7/1/2013 TechHealth, Inc. - One Call Care Management, Inc. - - - - No 7/1/2013 Pfizer Inc., Worldwide License To BMP Pfizer Inc. (NYSE:PFE) Bioventus LLC - - - - No 7/1/2013 Racine Emergency Physicians, SC - Team Health Holdings, Inc. - - - - No 7/1/2013 BACTES Imaging Solutions, Inc. - Sharecare, Inc. - - - - No 7/1/2013 Celsis In Vitro, Inc. Celsis International Ltd. BioreclamationIVT - - - - No 7/1/2013 NewYork-Presbyterian/Lower Manhattan - NewYork-Presbyterian Hospital - - - - 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

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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