Healthcare & Life Sciences Industry Update

Healthcare & Life Sciences Industry Update September 2013

Member FINRA/SIPC

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

• According to Katherine Baicker of Harvard University and Helen Levy of the University of Michigan, while improved coordination of care between healthcare providers (through provider networks) may improve the allocation of healthcare resources, it is also likely to undermine competitive pressures and result in higher prices to payors and patients. In addition, their essay in the New England Journal of Medicine also cites merger activity in the hospital space as another threat to price competition for physician services. The authors point to these developments as unintended consequences resulting from healthcare reform that generally favors provider organizations with scale and the ability to concentrate leverage in negotiating payment rates with payors. A link to the full essay can be found here. Modern Healthcare also posted an online article that serves as a good summary of the full essay which can be found here.

• On August 27, the Treasury Department released the final rules requiring most individuals the carry health insurance, also known as the “Individual Mandate,” as well as penalties for non-compliance. Most Americans will be required to have health insurance starting in 2014 and will have to report coverage status on 2015 tax returns. For example, an individual who chooses not to carry insurance will be subject to a fine of $95 or 1% of income above a certain threshold (whichever is greater). This penalty increases to the greater of $695 per person or 2.5% of taxable annual income in 2016 and beyond. An article in the Wall Street Journal summarizing the release can be found here (a subscription to the Wall Street Journal Online may be required).

• An article in MedCity News discusses the explosion of smartphone and tablet apps that track vital health data from heart rate and blood sugar levels to frequency of sexual activity. These apps are part of a booming industry expected to reach $26 billion in 2017, by which time more than half of the world’s smartphone users will have downloaded at least one of these products. The article cautions that, while these apps have the potential to revolutionize the delivery of medicine and bring healthcare access to remote and poverty- stricken corners of the globe, little is known about the mechanisms these products have in place to safeguard the highly sensitive health data of their users.

1 HW&Co. HCLS Group Insight September 2013

Urgent Care Industry Overview

2 Equity Trading Overview September 2013

Average Median TEV/ Median TEV/ Key Trading Number of 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 $8,053 (5.4%) 9.4% 1.7x 7.9x 1.7x 8.2x Contract Pharma Manufacturing 5 1,301 8.5% 28.9% 1.8x 12.1x 1.8x 10.7x on page 7) Contract Research Organizations 5 2,467 8.5% 63.4% 1.7x 13.3x 1.5x 10.6x Disease Management 2 3,818 27.5% 77.4% 1.8x 15.4x 1.8x 10.4x Emergency Services 1 2,231 10.3% 5.6% 2.6x 10.4x 2.5x 10.5x Health Care Staffing 4 1,495 5.7% 53.9% 1.0x 12.9x 1.0x 12.3x HMO - Medical 10 20,827 13.1% 36.3% 0.5x 7.3x 0.4x 7.6x

Support Services Information Services 11 2,783 11.5% 21.4% 2.7x 19.2x 2.9x 11.6x Specialty Managed Care 2 2,561 19.2% 55.8% 1.0x 8.0x 1.0x NA Payer, Provider, & Pharmacy Specialty Pharmacy Management 5 18,416 3.3% 33.3% 0.9x 10.0x 0.9x 9.9x Dental Products 3 30,266 0.2% 23.6% 2.6x 12.7x 2.6x 11.2x Durable Medical Equipment 5 1,903 (3.8%) 11.9% 1.1x 10.5x 1.1x 7.3x Life Sciences Tools 3 17,270 0.4% 29.2% 2.6x 12.4x 2.6x 10.9x

Devices Medical Devices and Products 14 39,027 1.8% 21.9% 2.8x 10.6x 2.6x 9.9x Products & Medical / Surgical / Dental Supplies 6 12,987 7.1% 31.1% 0.2x 9.9x 0.2x 8.9x Acute-Care Hospitals 6 15,142 (8.1%) 57.0% 1.1x 7.9x 1.0x 7.5x Assisted Living 6 2,205 (12.4%) 14.1% 1.7x 11.1x 2.0x 13.4x Diagnostic Imaging 3 2,812 6.2% 21.7% 1.8x 6.5x 1.8x 6.0x Dialysis Services 2 20,892 (9.3%) (1.5%) 2.0x 9.8x 1.6x 7.9x Home Care / Hospice 6 632 5.5% 13.2% 0.7x 7.2x 0.6x 7.5x Long-Term Care 3 1,349 4.3% 33.0% 0.9x 5.6x 0.8x 6.6x Physician Practice Management 3 2,211 6.3% 17.8% 2.0x 9.6x 2.3x 10.0x Psychiatric Hospitals / Management 3 3,043 2.2% 70.4% 0.4x 6.1x 0.4x 7.1x Provider-Based Services Surgicenters / Rehabilitation 4 2,471 5.5% 17.9% 1.7x 7.7x 1.7x 7.8x Payer, Provider, & Pharmacy Support Services 48 $6,395 10.2% 38.5% 1.6x 11.7x 1.5x 10.2x Products & Devices 31 $20,291 1.1% 23.5% 1.9x 11.2x 1.8x 9.6x Provider-Based Services 36 $5,640 0.0% 27.1% 1.4x 7.9x 1.4x 8.2x HW&Co. HCLS Composite Index 115 $9,007 4.5% 31.1% 1.6x 10.2x 1.5x 9.3x S&P 500 0.5% 17.2%

Public Company Disease Management Sector Psychiatric Hospitals / Management Contract Research Organizations Performance Acute-Care Hospitals (12-month % Specialty Managed Care Health Care Staffing change in stock HMO - Medical price) Specialty Pharmacy Management Long-Term Care HW&Co. HCLS Composite Index Medical / Surgical / Dental Supplies Life Sciences Tools Contract Pharma Manufacturing Dental Products Medical Devices and Products Diagnostic Imaging Information Services Surgicenters / Rehabilitation Physician Practice Management S&P 500 Assisted Living Home Care / Hospice Durable Medical Equipment Clinical Laboratories Emergency Services Dialysis 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 September 2013

Healthcare & 200 Life Sciences

Industry Stock 180 79.3% Performance 160 55.6% 58.9%

140

120

100

40 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-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 08/19/13 08/19/13 DARA Biosciences Inc DARA Follow-On $2,730.0 (by proceeds) 08/13/13 08/13/13 Envision Healthcare Holdings EVHC IPO 1,110.9 08/13/13 08/13/13 The Medicines Company MDCO Follow-On 201.3 08/07/13 08/07/13 Intrexon Corp XON IPO 184.0 08/29/13 08/29/13 Lipocine Inc MBARD Follow-On 126.7 08/26/13 08/26/13 Acucela Inc - IPO 101.6 08/13/13 08/13/13 BioScrip Inc BIOS Follow-On 94.1 08/15/13 08/15/13 Ophthotech Corp OPHT IPO 85.0 08/13/13 08/13/13 Bind Therapeutics Inc BIND IPO 80.5 08/13/13 08/13/13 GenMark Diagnostics Inc GNM L Follow-On 75.0 08/07/13 08/07/13 Acceleron Pharma Inc XLRN IPO 74.8 08/20/13 08/20/13 Coronado Biosciences Inc CNDO Follow-On 70.0 08/26/13 08/26/13 LDR Holding Corp LDRH IPO 69.0 08/13/13 08/13/13 Fate Therapeutics Inc - IPO 69.0 08/16/13 08/16/13 Sophiris Bio Inc SHS Follow-On 65.0 08/09/13 08/09/13 GI Dynamics Inc GID Follow-On 54.6 08/07/13 08/07/13 Vanda Pharmaceuticals Inc VNDA Follow-On 52.1 08/22/13 08/22/13 Regado Biosciences Inc RGDO IPO 43.0 08/08/13 08/08/13 Hansen Medical Inc HNSN Follow-On 35.0 08/19/13 08/19/13 XOMA Corp XOMA Follow-On 31.6 08/06/13 08/06/13 Spectrum Pharmaceuticals Inc SPPI Follow-On 25.3 08/07/13 08/07/13 OXiGENE Inc OXGN Follow-On 23.7 08/07/13 08/07/13 Accelerate Diagnostics Inc AXDX Follow-On 20.0 08/08/13 08/08/13 Axogen Inc A XGN Follow-On 18.0 08/07/13 08/07/13 Opexa Therapeutics Inc OPXA Follow-On 18.0

4 M&A Overview September 2013

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Announced Ta r g e t Buyer Healthcare & 8/30/2013 Physicians Endoscopy L.L.C. Pamlico Capital 8/28/2013 Western Reserve Senior Care Kindred Healthcare Inc. 22 Life Sciences 300 8/20/2013 Optimum Outcomes, Inc. Adreima, Inc. 16 8/20/2013 Design Clinicals, Inc. First Databank, Inc.

M&A __ 18 8/19/2013 Development & Research, Inc. Hanger, Inc. 13 8/15/2013 Bracket Parthenon Capital Partners 250 13 18 20 8/14/2013 Novella Clinical, Inc. Quintiles Transnational Corp. 17 15 11 12 8/12/2013 6N Systems, Inc. eHealth Solutions, Inc. 12 16 8/11/2013 Cardiocom, LLC Medtronic, Inc. 200 8/6/2013 TJ Holdings, Inc. Ameritox, Ltd.

150 291 267 256 242 245 236 LTM Deal Statistics 225 229 221 223 Number of Transactions 219 100 200 209 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Re v TEV/EB ITDA $106.4 1,153 2.12x 9.7x 50 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 LTM / EV Number of Transactions of 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 __ $77.2 200 __

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

Aggregate Transaction Value ($ in in billions) ($ Value Transaction Aggregate $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 20 ' 120 120 Healthcare Distributors 6 113 Healthcare Equipment 28 100 94 95 Healthcare Facilities 35 87 Healthcare Services 55 79 80 80 69 71 Healthcare Supplies 8 65 65 60 62 Transaction Volume Transaction 58 Life Sciences Tools & Services 18 60 50 Managed Healthcare 5 49 40 40 42 43 Pharmaceuticals 17 40 27

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

5 Debt Markets Overview September 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 L + 100 $3 LoanVolumeQuarter by ($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 LIBOR

0.0x L + 0 Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest 1

(1) Not available for 2013YTD.

Recent Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread 08/14/13 Community Health Systems General medical & surgical hospitals $4,580 Bridge Loan BB / NR N/A Healthcare & 08/14/13 Community Health Systems General medical & surgical hospitals 2,260 Term Loan A BB / NR N/A Life Sciences 08/12/13 ConvaTec Ltd Surgical appliances and supplies 1,316 Term Loan B B+ / Ba3 N/A Debt Offerings 08/02/13 Hologic Inc X-ray apparatus and tubes 1,289 Term Loan B BB / Ba2 L+ 275 08/06/13 Boston Scientific Corp Surgical and medical instruments 400 Term Loan A BBB- / NR L+ 150 (by deal amount) 08/15/13 Dialysis Newco Inc Kidney dialysis centers 227 Term Loan B NR / NR L+ 425 08/15/13 Dialysis Newco Inc Kidney dialysis centers 40 Revolver/Line >= 1 Yr. NR / NR L+ 425 08/15/13 Dialysis Newco Inc Kidney dialysis centers 13 Delay Draw Term Loan NR / NR L+ 425 08/01/13 National Surgical Hospitals General medical & surgical hospitals 158 Term Loan B B / B2 L+ 450 08/01/13 National Surgical Hospitals General medical & surgical hospitals 30 Revolver/Line >= 1 Yr. B / B2 L+ 450 08/15/13 Bracket Holding Corp Pharmaceutical preparations 90 Term Loan B NR / NR L+ 400 08/15/13 Bracket Holding Corp Pharmaceutical preparations 35 Delay Draw Term Loan NR / NR L+ 400 08/15/13 Bracket Holding Corp Pharmaceutical preparations 25 Revolver/Line >= 1 Yr. NR / NR L+ 400 08/12/13 Optimum Outcomes Inc Health and allied services 62 Term Loan A NR / NR L+ 525 08/12/13 Optimum Outcomes Inc Health and allied services 5 Delay Draw Term Loan NR / NR L+ 525 08/23/13 Embassy Management LLC Specialty outpatient clinics 48 Term Loan A NR / NR L+ 550 08/23/13 Embassy Management LLC Specialty outpatient clinics 20 Delay Draw Term Loan NR / NR L+ 550 08/23/13 Embassy Management LLC Specialty outpatient clinics 6 Revolver/Line >= 1 Yr. NR / NR L+ 550 08/08/13 Avalon Laboratories LLC Surgical and medical instruments 40 Term Loan NR / NR L+ 425 08/08/13 Avalon Laboratories LLC Surgical and medical instruments 5 Revolver/Line >= 1 Yr. NR / NR L+ 425

6 Healthcare & Life Sciences Trading Statistics September 2013

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $17.97 24.3% 28.9% $18.98 $11.73 $1,729 $107 $46 $1,777 $292 $96 $84 Jun-13 Dec-12 $316 $104 $95 6.1x 18.5x 5.6x 17.0x Cambrex Corporation. 13.63 (2.4%) 13.2% 15.66 8.81 411 88 32 479 267 51 29 Jun-13 Dec-12 308 65 42 1.8x 9.8x 1.6x 7.4x Integrated Biopharma Inc. 0.15 0.0% (23.1%) 0.26 0.11 3 15 0 18 32 (0) (1) Mar-13 Jun-12 NA NA NA 0.6x NM NA NA Patheon Inc. 6.37 15.6% 132.5% 6.80 2.60 898 603 57 1,448 881 117 75 Apr-13 Oct-12 1,028 143 67 1.6x 12.3x 1.4x 10.1x West Pharmaceutical Services, Inc. 73.95 8.5% 58.5% 79.38 47.03 2,580 401 175 2,784 1,309 228 148 Jun-13 Dec-12 1,366 246 161 2.1x 12.0x 2.0x 11.3x Number of Companies 5 Median: 8.5% 28.9% Total $5,621 $1,301 $2,781 $3,019 1.8x 12.1x 1.8x 10.7x Mean: 9.2% 42.0% $1,301 2.4x 13.1x 2.7x 11.5x

Contract Research Organizations Albany Molecular Research Inc. $11.01 8.5% 238.7% $13.90 $3.20 $348 $8 $29 $317 $242 $39 $22 Jun-13 Dec-12 $252 $43 $31 1.3x 8.1x 1.3x 7.4x Charles River Laboratories International, Inc. 46.05 9.7% 28.0% 48.73 35.54 2,259 636 100 2,789 1,143 250 168 Jun-13 Dec-12 1,169 268 200 2.4x 11.1x 2.4x 10.4x Covance Inc. 81.04 8.7% 69.0% 84.75 46.15 4,530 325 430 4,410 2,279 330 210 Jun-13 Dec-12 2,375 365 238 1.9x 13.4x 1.9x 12.1x ICON Public Limited Company 36.54 5.7% 59.1% 40.98 22.43 2,224 0 137 2,042 1,237 148 104 Jun-13 Dec-12 1,320 167 119 1.7x 13.8x 1.5x 12.3x PAREXEL International Corporation 46.43 2.0% 63.4% 53.55 28.45 2,610 444 199 2,777 1,734 209 136 Jun-13 Jun-13 1,918 262 179 1.6x 13.3x 1.4x 10.6x Number of Companies 5 Median: 8.5% 63.4% Total $11,971 $2,467 $6,635 $7,034 1.7x 13.3x 1.5x 10.6x Mean: 6.9% 91.6% $2,467 1.8x 11.9x 1.7x 10.6x

Disease Management Alere Inc. $31.17 23.2% 68.1% $35.38 $17.20 $2,548 $3,876 $327 $6,714 $2,950 $617 $157 Jun-13 Dec-12 $3,023 $676 $543 2.3x 10.7x 2.2x 9.9x Healthways Inc. 19.08 31.8% 86.8% 19.74 8.58 656 268 2 922 669 46 17 Jun-13 Dec-12 718 85 30 1.4x 20.2x 1.3x 10.9x Number of Companies 2 Median: 27.5% 77.4% Total $3,205 $3,818 $3,620 $3,741 1.8x 15.4x 1.8x 10.4x Mean: 27.5% 77.4% $3,818 1.8x 15.4x 1.8x 10.4x

Emergency Services Air Methods Corp. $40.92 10.3% 5.6% $50.61 $32.24 $1,591 $645 $11 $2,231 $843 $214 $133 Jun-13 Dec-12 $882 $213 $137 2.6x 10.4x 2.5x 10.5x Number of Companies 1 Median: 10.3% 5.6% Total $1,591 $2,231 $843 $882 2.6x 10.4x 2.5x 10.5x Mean: 10.3% 5.6% $2,231 2.6x 10.4x 2.5x 10.5x

Health Care Staffing AMN Healthcare Services Inc. $13.60 5.3% 65.1% $16.20 $8.11 $625 $154 $2 $768 $998 $71 $58 Jun-13 Dec-12 $1,016 $77 $64 0.8x 10.8x 0.8x 9.9x Cross Country Healthcare, Inc. 5.65 6.1% 42.7% 6.23 3.80 176 0 21 150 445 5 (3) Jun-13 Dec-12 446 7 (0) 0.3x 28.2x 0.3x 22.7x On Assignment Inc. 30.17 20.5% 87.8% 32.93 15.77 1,617 369 12 1,972 1,624 167 135 Jun-13 Dec-12 1,669 164 126 1.2x 11.8x 1.2x 12.0x Team Health Holdings, Inc. 38.43 0.1% 36.1% 42.42 24.09 2,675 510 65 3,091 2,240 222 171 Jun-13 Dec-12 2,365 248 187 1.4x 13.9x 1.3x 12.5x Number of Companies 4 Median: 5.7% 53.9% Total $5,093 $1,495 $5,307 $5,496 1.0x 12.9x 1.0x 12.3x Mean: 8.0% 57.9% $1,495 0.9x 16.2x 0.9x 14.3x

As of September 3, 2013 7 Healthcare & Life Sciences Trading Statistics September 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 9/3/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $63.39 7.6% 67.1% $66.00 $37.10 $23,587 $9,297 $3,228 $30,678 $39,919 $3,819 $3,348 Jun-13 Dec-12 $46,936 $3,868 $3,551 0.8x 8.0x 0.7x 7.9x Cigna Corp. 78.69 19.1% 74.2% 79.99 45.16 22,257 5,187 3,306 24,336 31,106 3,718 3,340 Jun-13 Dec-12 31,950 3,523 2,984 0.8x 6.5x 0.8x 6.9x Coventry Health Care Inc. 6.86 1.9% 16.3% 7.20 5.20 6,038 0 5 6,035 320 0 318 Jun-13 Jun-13 NA NA NA 18.8x 0.0x NA NA Health Net, Inc. 30.18 (4.7%) 30.2% 33.70 21.09 2,396 524 230 2,641 11,153 266 231 Jun-13 Dec-12 11,057 346 325 0.2x 9.9x 0.2x 7.6x Humana Inc. 92.08 16.1% 33.5% 94.67 63.93 14,407 2,852 1,398 15,740 40,015 2,848 2,464 Jun-13 Dec-12 41,137 2,618 2,336 0.4x 5.5x 0.4x 6.0x UnitedHealth Group Incorporated 71.74 14.9% 32.9% 73.67 51.09 72,938 16,717 10,038 82,770 116,819 10,202 9,251 Jun-13 Dec-12 122,648 10,578 9,314 0.7x 8.1x 0.7x 7.8x WellPoint Inc. 85.14 11.3% 44.1% 90.00 53.69 25,453 15,512 1,665 39,618 66,372 5,678 4,858 Jun-13 Dec-12 70,730 4,541 4,079 0.6x 7.0x 0.6x 8.7x Number of Companies 7 Median: 11.3% 33.5% Total $167,076 $28,831 $305,705 $324,458 0.7x 7.0x 0.6x 7.7x Mean: 9.5% 42.6% $28,831 3.2x 6.4x 0.5x 7.5x

Gove rnme nt: Centene Corp. 57.15 19.0% 43.2% 59.96 34.73 3,122 552 731 2,989 10,252 182 128 Jun-13 Dec-12 10,904 352 275 0.3x 16.4x 0.3x 8.5x Molina Healthcare, Inc. 33.39 (9.0%) 39.1% 40.90 21.62 1,525 761 1,170 1,544 6,429 209 163 Jun-13 Dec-12 6,668 251 181 0.2x 7.4x 0.2x 6.2x WellCare Health Plans, Inc. 63.67 24.0% 13.6% 68.17 44.75 2,773 346 1,378 1,924 8,395 268 245 Jun-13 Dec-12 9,346 391 348 0.2x 7.2x 0.2x 4.9x Number of Companies 3 Median: 19.0% 39.1% Total $7,421 $2,152 $25,076 $26,918 0.2x 7.4x 0.2x 6.2x Mean: 11.3% 32.0% $2,152 0.3x 10.3x 0.2x 6.5x

Information Services Data/Analytics: Accelrys Inc. $9.04 12.5% 20.2% $9.98 $7.59 $502 $0 $73 $371 $166 $10 ($15) Jun-13 Dec-12 $174 $32 $23 2.2x 38.7x 2.1x 11.6x National Research Corp. 0.52 210.2% 245.3% 0.52 0.15 3 1 0 4 6 0 (0) Jun-13 Dec-12 NA NA NA 0.7x 103.4x NA NA Number of Companies 2 Median: 111.4% 132.7% Total $505 $187 $172 $174 1.5x 71.0x 2.1x 11.6x Mean: 111.4% 132.7% $187 1.5x 71.0x 2.1x 11.6x

eHealth: WebMD Health Corp. 31.42 4.9% 115.2% 35.28 13.13 1,558 800 999 1,332 488 53 30 Jun-13 Dec-12 $510 $113 $62 2.7x 24.9x NA NA Number of Companies 1 Median: 4.9% 115.2% Total $1,558 $1,332 $488 $510 2.7x 24.9x NA NA Mean: 4.9% 115.2% $1,332 2.7x 24.9x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $14.54 6.9% 40.1% $16.43 $8.85 $2,567 $545 $92 $3,040 $1,404 $78 ($20) Jun-13 Dec-12 $1,418 $205 $102 2.2x 39.0x 2.1x 14.8x athenahealth, Inc. 105.49 26.2% 21.4% 117.54 56.33 3,887 246 48 4,100 494 43 9 Jun-13 Dec-12 595 112 71 8.3x 96.1x 6.9x 36.7x Cerner Corporation 46.06 (4.0%) 29.7% 50.85 33.82 15,804 182 281 15,016 2,712 782 631 Jun-13 Dec-12 2,959 978 722 5.5x 19.2x 5.1x 15.4x Computer Programs & Systems Inc. 54.96 11.5% 11.1% 58.46 46.08 609 0 7 597 196 49 46 Jun-13 Dec-12 203 53 48 3.0x 12.2x 2.9x 11.3x HMS Holdings Corp. 24.99 (0.1%) (27.4%) 35.73 18.50 2,194 303 139 2,366 489 149 91 Jun-13 Dec-12 508 164 101 4.8x 15.8x 4.7x 14.4x MedAssets, Inc. 22.42 37.4% 33.1% 24.17 15.40 1,372 831 9 2,203 671 212 108 Jun-13 Dec-12 680 222 92 3.3x 10.4x 3.2x 9.9x Merge Healthcare Incorporated 2.65 (20.8%) (14.6%) 4.71 2.27 248 253 44 483 246 27 9 Jun-13 Dec-12 243 45 22 2.0x 17.9x 2.0x 10.7x Quality Systems Inc. 20.69 16.8% 20.6% 23.58 16.02 1,233 0 106 1,103 451 97 83 Jun-13 Mar-13 461 112 85 2.4x 11.3x 2.4x 9.9x Number of Companies 8 Median: ` 21.0% Total $1,783 $3,613 $491 $551 3.2x 16.9x 3.1x 12.9x Mean: 9.2% 14.3% $2,284 3.2x 16.9x 3.1x 12.9x

As of September 3, 2013 8 Healthcare & Life Sciences Trading Statistics September 2013

Payer, Provider, & Pharmacy Support Services

Specialty Pharmacy Management BioScrip Inc. $12.20 (19.9%) 33.3% $17.62 $8.05 $827 $225 $0 $971 $741 $35 $20 Jun-13 Dec-12 $845 $63 $28 1.3x 27.6x 1.1x 15.4x Express Scripts Holding Company 63.88 3.3% 3.7% 67.66 49.79 52,011 14,280 1,990 64,959 106,709 6,472 4,187 Jun-13 Dec-12 102,454 6,752 6,337 0.6x 10.0x 0.6x 9.6x Catamaran Corporation 57.68 17.7% 35.9% 60.93 42.37 11,890 1,025 311 12,583 13,157 613 379 Jun-13 Dec-12 14,356 662 437 0.9x 19.5x 0.9x 19.0x Omnicare Inc. 54.37 18.5% 69.3% 56.39 32.03 5,625 2,035 510 7,125 6,126 711 574 Jun-13 Dec-12 6,219 701 592 1.2x 10.0x 1.1x 10.2x PharMerica Corporation 12.30 (20.0%) (0.8%) 16.45 11.75 366 257 8 611 1,746 118 85 Jun-13 Dec-12 1,659 124 90 0.3x 5.2x 0.4x 4.9x Number of Companies 5 Median: 3.3% 33.3% Total $70,719 $18,416 $128,479 $125,534 0.9x 10.0x 0.9x 9.9x Mean: (0.1%) 28.3% $18,416 0.9x 13.2x 0.8x 10.0x

As of September 3, 2013 9 Healthcare & Life Sciences Trading Statistics September 2013

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. 34.14 (4.6%) 23.5% 38.84 26.29 2,003 325 87 2,236 1,710 276 177 Jun-13 Sep-12 1,717 308 185 1.3x 8.1x 1.3x 7.3x Invacare Corporation 15.01 (3.8%) 11.9% 18.27 10.26 480 115 25 574 1,417 30 (7) Jun-13 Dec-12 1,354 NA (30) 0.4x 19.1x 0.4x NA Prism Medical Ltd. 5.20 0.6% (14.9%) 6.50 4.50 44 22 2 63 72 6 4 May-13 Nov-12 76 9 NA 0.9x 10.5x 0.8x 6.8x ResMed Inc. 47.24 0.7% 26.6% 51.40 37.74 6,711 301 1,013 6,135 1,514 458 380 Jun-13 Jun-13 1,656 514 434 4.1x 13.4x 3.7x 11.9x Rotech Healthcare Inc. 0.01 (95.0%) (98.0%) 0.75 0.00 0 525 19 506 466 75 9 Sep-12 Dec-11 NA NA NA 1.1x 6.8x NA NA Number of Companies 5 Median: (3.8%) 11.9% Total $9,238 $1,903 $5,180 $4,804 1.1x 10.5x 1.1x 7.3x Mean: (20.4%) (10.2%) $1,903 1.5x 11.6x 1.6x 8.7x

Life Sciences Tools Agilent Technologies Inc. $46.64 3.8% 27.1% $48.33 $35.38 $16,066 $2,701 $2,519 $16,440 $6,831 $1,330 $959 Jul-13 Oct-12 $6,772 $1,507 $1,236 2.4x 12.4x 2.4x 10.9x Becton, Dickinson and Company 97.38 (1.0%) 29.2% 104.98 74.18 18,912 3,970 2,024 20,583 7,920 2,126 1,594 Jun-13 Sep-12 8,003 2,151 1,602 2.6x 9.7x 2.6x 9.6x Life Technologies Corporation 74.41 0.4% 56.3% 74.98 45.67 12,848 2,215 262 14,788 3,818 1,191 796 Jun-13 Dec-12 3,848 1,289 1,119 3.9x 12.4x 3.8x 11.5x Number of Companies 3 Median: 0.4% 29.2% Total $47,827 $17,270 $18,570 $18,623 2.6x 12.4x 2.6x 10.9x Mean: 1.1% 37.5% $17,270 3.0x 11.5x 2.9x 10.6x

Medical Devices and Products Abbott Laboratories $33.33 (10.0%) (49.0%) $72.47 $31.64 $51,799 $7,935 $4,373 $50,432 $40,101 $11,541 $8,980 Jun-13 Dec-12 $22,163 $5,331 $4,147 1.3x 4.4x 2.3x 9.5x ArthroCare Corporation 31.67 (7.3%) 8.4% 37.49 29.14 895 0 230 726 368 88 70 Jun-13 Dec-12 374 81 67 2.0x 8.3x 1.9x 9.0x Baxter International Inc. 69.56 (0.3%) 19.6% 74.60 57.95 37,756 9,035 2,689 40,835 14,347 4,100 3,377 Jun-13 Dec-12 15,257 4,209 3,403 2.8x 10.0x 2.7x 9.7x Boston Scientific Corporation 10.58 17.2% 104.3% 11.49 5.04 14,208 4,252 268 17,930 7,125 1,630 946 Jun-13 Dec-12 7,131 1,609 933 2.5x 11.0x 2.5x 11.1x CR Bard Inc. 114.87 10.7% 17.2% 117.54 93.79 9,092 1,483 879 9,716 2,986 887 755 Jun-13 Dec-12 3,036 850 709 3.3x 11.0x 3.2x 11.4x Danaher Corp. 65.52 6.6% 24.1% 69.02 50.63 45,574 4,155 2,151 47,472 18,573 4,145 3,279 Jun-13 Dec-12 18,950 4,168 3,302 2.6x 11.4x 2.5x 11.4x Hanger, Inc. 30.71 (3.5%) 8.1% 37.39 22.38 1,061 504 15 1,560 1,023 169 132 Jun-13 Dec-12 1,070 189 145 1.5x 9.2x 1.5x 8.3x Hologic Inc. 21.34 4.0% 9.4% 23.96 18.46 5,771 5,005 745 9,817 2,447 821 323 Jun-13 Sep-12 2,512 969 810 4.0x 12.0x 3.9x 10.1x Hospira Inc. 39.03 10.6% 16.2% 42.60 28.62 6,465 1,761 727 7,543 4,003 253 21 Jun-13 Dec-12 4,054 673 464 1.9x 27.1x 1.9x 11.2x Johnson & Johnson 86.41 2.5% 28.8% 94.42 66.97 243,510 14,982 14,855 233,363 69,992 22,744 18,677 Jun-13 Dec-12 70,708 23,173 19,045 3.3x 10.3x 3.3x 10.1x Medtronic, Inc. 51.75 0.8% 29.1% 55.98 40.28 52,138 11,180 860 51,987 16,665 5,638 4,808 Jul-13 Apr-13 16,934 6,174 5,384 3.1x 9.2x 3.1x 8.4x Stryker Corporation 66.89 0.5% 27.0% 71.55 51.60 25,293 2,771 1,913 23,412 8,792 1,932 1,645 Jun-13 Dec-12 8,984 2,453 2,126 2.7x 12.1x 2.6x 9.5x Thermo Fisher Scientific, Inc. 88.83 1.9% 57.3% 92.72 56.64 32,025 7,114 1,004 37,715 12,777 2,683 1,684 Jun-13 Dec-12 12,910 2,742 2,505 3.0x 14.1x 2.9x 13.8x Zimmer Holdings, Inc. 79.09 1.7% 29.8% 85.08 61.83 13,410 1,688 657 13,866 4,514 1,677 1,334 Jun-13 Dec-12 4,587 1,733 1,366 3.1x 8.3x 3.0x 8.0x Number of Companies 14 Median: 1.8% 21.9% Total $538,996 $39,027 $203,713 $188,673 2.8x 10.6x 2.6x 9.9x Mean: 2.5% 23.6% $39,027 2.6x 11.3x 2.7x 10.1x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $56.92 9.5% 49.7% $59.75 $37.12 $13,149 $1,396 $1,347 $12,977 $83,963 $1,274 $1,106 Jun-13 Sep-12 $87,304 $1,407 $1,244 0.2x 10.2x 0.1x 9.2x Cardinal Health, Inc. 50.28 7.5% 28.4% 52.49 36.91 17,068 3,865 2,305 19,032 101,093 2,443 2,046 Jun-13 Jun-13 83,025 2,389 1,989 0.2x 7.8x 0.2x 8.0x Henry Schein, Inc. 101.05 6.6% 33.7% 107.75 73.35 8,740 468 91 9,597 9,325 789 661 Jun-13 Dec-12 9,581 814 688 1.0x 12.1x 1.0x 11.8x McKesson Corporation 121.41 9.2% 41.3% 126.36 84.65 27,757 4,874 2,456 29,726 123,964 3,094 2,474 Jun-13 Mar-13 131,120 3,479 2,921 0.2x 9.6x 0.2x 8.5x Owens & Minor Inc. 34.11 0.2% 22.4% 36.40 26.97 2,159 215 219 2,167 9,047 250 203 Jun-13 Dec-12 9,111 260 210 0.2x 8.7x 0.2x 8.3x Patterson Companies, Inc. 39.88 2.4% 18.3% 42.69 31.36 4,163 860 505 4,420 3,628 399 353 Jul-13 Apr-13 4,054 429 376 1.2x 11.1x 1.1x 10.3x Number of Companies 6 Median: 7.1% 31.1% Total $73,036 $12,987 $331,021 $324,196 0.2x 9.9x 0.2x 8.9x Mean: 5.9% 32.3% $12,987 0.5x 9.9x 0.5x 9.4x

As of September 3, 2013 10 Healthcare & Life Sciences Trading Statistics September 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 9/3/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $39.26 (18.7%) 45.9% $51.29 $26.33 $3,659 $9,631 $285 $13,470 $13,037 $1,708 $1,074 Jun-13 Dec-12 $13,138 $1,902 $1,111 1.0x 7.7x 1.0x 7.1x Health Management Associates Inc. 12.86 (7.4%) 68.1% 17.28 6.97 3,346 3,733 37 7,002 5,868 882 495 Jun-13 Dec-12 6,884 844 443 1.2x 7.9x 1.0x 8.3x HCA Holdings, Inc. 38.19 (1.8%) 35.1% 41.83 27.92 17,079 28,525 594 46,414 33,386 6,361 4,670 Jun-13 Dec-12 36,956 6,376 4,676 1.4x 7.3x 1.3x 7.3x Lifepoint Hospitals Inc. 45.23 (8.8%) 12.3% 53.29 34.37 2,150 1,755 160 3,781 3,540 473 241 Jun-13 Dec-12 4,372 536 311 1.1x 8.0x 0.9x 7.1x Tenet Healthcare Corp. 39.05 (16.1%) 90.1% 49.48 20.52 3,968 5,635 95 9,679 9,361 1,207 746 Jun-13 Dec-12 10,342 1,265 781 1.0x 8.0x 0.9x 7.6x Universal Health Services Inc. 67.75 (1.5%) 70.4% 72.74 39.84 6,653 3,578 17 10,504 7,112 1,348 1,026 Jun-13 Dec-12 8,238 1,258 938 1.5x 7.8x 1.3x 8.4x Number of Companies 6 Median: (8.1%) 57.0% Total $36,854 $15,142 $72,304 $79,930 1.1x 7.9x 1.0x 7.5x Mean: (9.1%) 53.7% $15,142 1.2x 7.8x 1.1x 7.6x

Assisted Living Assisted Living Concepts Inc. $14.15 (3.3%) 19.9% $16.00 $11.46 $551 $228 $7 $651 $542 $118 $73 Jun-13 Dec-12 NA NA NA 1.2x 5.5x NA NA Brookdale Senior Living Inc. 25.02 (10.4%) 16.0% 30.65 21.28 3,104 2,626 28 5,699 2,492 392 135 Jun-13 Dec-12 2,885 423 137 2.3x 14.7x 2.0x 13.5x Capital Senior Living Corp. 20.82 (21.7%) 73.7% 27.90 11.82 581 429 18 990 328 55 13 Jun-13 Dec-12 357 65 15 3.0x 18.0x 2.8x 15.3x Emeritus Corp. 21.81 (14.3%) 10.0% 30.95 19.64 1,040 4,060 114 4,974 1,673 306 135 Jun-13 Dec-12 1,921 371 187 3.0x 16.3x 2.6x 13.4x Five Star Quality Care Inc. 5.19 0.8% 12.3% 6.87 4.44 251 63 15 282 1,231 46 20 Jun-13 Dec-12 1,431 46 21 0.2x 6.1x 0.2x 6.1x Skilled Healthcare Group, Inc. 4.84 (34.4%) (15.6%) 8.01 4.79 190 446 5 633 868 82 56 Jun-13 Dec-12 864 82 54 0.7x 7.6x 0.7x 7.7x Number of Companies 6 Median: (12.4%) 14.1% Total $5,716 $2,205 $7,135 $7,458 1.7x 11.1x 2.0x 13.4x Mean: (13.9%) 19.4% $2,205 1.7x 11.4x 1.7x 11.2x

Diagnostic Imaging Alliance Healthcare Services, Inc. $24.30 57.4% 270.3% $25.44 $5.71 $252 $559 $31 $812 $456 $144 $59 Jun-13 Dec-12 $460 $148 NA 1.8x 5.4x 1.8x 5.5x RadNet, Inc. 2.58 2.0% (7.1%) 3.35 2.13 103 584 0 689 669 100 43 Jun-13 Dec-12 692 114 47 1.0x 6.5x 1.0x 6.0x Varian Medical Systems Inc. 70.45 6.2% 21.7% 75.78 57.00 7,584 174 740 6,934 2,929 692 625 Jun-13 Sep-12 2,959 684 618 2.4x 10.0x 2.3x 10.1x Number of Companies 3 Median: 6.2% 21.7% Total $7,940 $2,812 $4,054 $4,112 1.8x 6.5x 1.8x 6.0x Mean: 21.8% 94.9% $2,812 1.7x 7.3x 1.7x 7.2x

Dialysis Services DaVita HealthCare Partners Inc. $107.51 (13.7%) 11.3% $131.33 $96.23 $11,428 $8,490 $700 $20,051 $10,121 $2,101 $1,655 Jun-13 Dec-12 $11,536 $2,374 $1,864 2.0x 9.4x 1.7x 8.4x Fresenius Medical Care AG & Co. KGAA 49.22 (5.0%) (14.4%) 59.52 46.58 15,137 8,350 535 21,732 14,475 2,760 2,136 Jun-13 Dec-12 14,621 2,920 2,288 2.0x 10.2x 1.5x 7.4x Number of Companies 2 Median: (9.3%) (1.5%) Total $26,565 $20,892 $24,595 $26,157 2.0x 9.8x 1.6x 7.9x Mean: (9.3%) (1.5%) $20,892 2.0x 9.8x 1.6x 7.9x

Home Care / Hospice Addus HomeCare Corporation $21.18 16.2% 327.5% $23.71 $4.70 $231 $0 $18 $192 $254 $19 $17 Jun-13 Dec-12 $262 $19 $16 0.8x 10.0x 0.7x 10.2x Almost Family Inc. 18.87 (5.2%) (13.9%) 22.47 17.66 178 1 35 147 348 26 23 Jun-13 Dec-12 345 22 19 0.4x 5.7x 0.4x 6.6x Amedisys Inc. 16.29 34.0% 19.3% 18.70 8.81 524 75 7 570 1,388 74 34 Jun-13 Dec-12 1,282 69 26 0.4x 7.5x 0.4x 8.3x Gentiva Health Services Inc. 11.47 8.9% 7.1% 13.85 8.47 360 910 160 1,087 1,679 170 149 Jun-13 Dec-12 1,671 156 137 0.6x 6.5x 0.7x 6.9x LHC Group, Inc. 22.63 2.1% 33.5% 26.90 16.18 398 26 3 431 635 61 53 Jun-13 Dec-12 666 53 47 0.7x 7.1x 0.6x 8.1x Chemed Corp. 69.64 (1.6%) 5.6% 82.00 56.51 1,299 179 73 1,365 1,447 189 164 Jun-13 Dec-12 1,449 207 165 0.9x 7.2x 0.9x 6.6x Number of Companies 6 Median: 5.5% 13.2% Total $379 $632 $1,012 $974 0.7x 7.2x 0.6x 7.5x Mean: 9.1% 63.2% $632 0.6x 7.3x 0.6x 7.8x

Long-Term Care The Ensign Group, Inc. $38.65 8.8% 33.0% $39.63 $24.97 $848 $216 $43 $1,034 $857 $87 $56 Jun-13 Dec-12 $924 $139 $105 1.2x 11.8x 1.1x 7.4x Kindred Healthcare Inc. 14.70 4.3% 34.1% 16.63 9.68 796 1,672 43 2,372 6,186 427 222 Jun-13 Dec-12 5,800 409 218 0.4x 5.6x 0.4x 5.8x National Healthcare Corp. 46.14 (4.1%) 3.3% 50.82 43.39 648 10 74 640 748 99 70 Jun-13 Dec-12 775 NA NA 0.9x 5.6x 0.8x NA Number of Companies 3 Median: 4.3% 33.0% Total $2,292 $1,349 $7,792 $7,498 0.9x 5.6x 0.8x 6.6x Mean: 3.0% 23.5% $1,349 0.8x 7.7x 0.8x 6.6x

As of September 3, 2013 11 Healthcare & Life Sciences Trading Statistics September 2013

Provider-Based Services

Specialty: MEDNAX, Inc. 97.37 6.8% 41.0% 100.12 67.86 4,775 154 34 4,909 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: 6.8% 41.0% Total $4,775 $4,909 $1,976 $2,152 2.5x 10.9x 2.3x 10.0x Mean: 6.8% 41.0% $4,909 2.5x 10.9x 2.3x 10.0x

Dental: Birner Dental Management Services Inc. $16.36 2.2% 3.8% $23.03 $16.21 $34 $6 $1 $39 $63 $5 $1 Jun-13 Dec-12 NA NA NA 0.6x 8.4x NA NA Number of Companies 1 Median: 2.2% 3.8% Total $34 $39 $63 $0 0.6x 8.4x NA NA Mean: 2.2% 3.8% $39 0.6x 8.4x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $56.21 2.2% 13.6% $60.54 $46.00 $1,509 $28 $188 $1,255 $3,293 $244 $209 Jun-13 Dec-12 $3,290 $259 $183 0.4x 5.1x 0.4x 4.8x Providence Service Corp. 26.84 3.6% 139.7% 31.31 9.70 359 124 83 416 1,136 58 43 Jun-13 Dec-12 1,132 58 43 0.4x 7.1x 0.4x 7.1x Universal Health Services Inc. 67.75 (1.5%) 70.4% 72.74 39.84 6,653 3,578 17 10,504 7,112 1,348 1,026 Jun-13 Dec-12 8,238 1,258 938 1.5x 7.8x 1.3x 8.4x Number of Companies 3 Median: 2.2% 70.4% Total $8,521 $3,043 $11,541 $12,660 0.4x 6.1x 0.4x 7.1x Mean: 1.4% 74.6% $3,043 0.6x 5.0x 0.7x 6.8x

Surgicenters / Rehabilitation Surge ry Ce nte rs: AmSurg Corp. $37.29 5.4% 29.5% $41.00 $25.00 $1,205 $616 $42 $2,281 $999 $337 $305 Jun-13 Dec-12 $1,077 $364 $333 2.3x 6.7x 2.1x 6.3x Number of Companies 1 Median: 5.4% 29.5% Total $1,205 $2,281 $999 $1,077 2.3x 6.7x 2.1x 6.3x Mean: 5.4% 29.5% $2,281 2.3x 6.7x 2.1x 6.3x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $31.46 5.5% 38.9% $33.73 $19.85 $2,746 $1,320 $80 $4,472 $2,198 $525 $437 Jun-13 Dec-12 $2,263 $534 $444 2.0x 8.3x 2.0x 8.4x Select Medical Holdings Corporation 8.47 10.3% (16.9%) 12.03 7.21 1,183 1,550 5 2,767 2,925 386 323 Jun-13 Dec-12 2,973 382 316 0.9x 7.1x 0.9x 7.2x US Physical Therapy Inc. 27.53 (4.5%) 6.3% 32.15 22.69 333 17 10 363 251 42 36 Jun-13 Dec-12 264 38 39 1.4x 8.7x 1.4x 9.6x Number of Companies 3 Median: 5.5% 6.3% Total $4,262 $2,534 $5,374 $5,500 1.4x 8.3x 1.4x 8.4x Mean: 3.8% 9.4% $2,534 1.5x 8.0x 1.4x 8.4x

As of September 3, 2013 12 M&A Detail September 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 8/31/2013 Dopps Chiropractic of Hutchinson, LLC ------No Healthcare & 8/31/2013 Engineering and Research Associates, Inc. The Northwestern Mutual Life Machine Solutions Inc. - - - - No Life Sciences Insurance Company; Atlantic Trust PWM; Sempra Energy Trading LLC; M&A Tortoise Energy Infrastructure Corp. 8/30/2013 Acton Pharmaceuticals, Inc. Sequoia Capital Meda AB (OM:MEDA A) $200.0 - - - Yes 8/30/2013 Accriva Diagnostics Essex Woodlands Health Ventures; Nexus Dx, Inc. - - - - Yes KB Partners, LLC; Kaiser Permanente Ventures; Telegraph Hill Partners; PTV Sciences, L.P. 8/30/2013 Physicians Endoscopy L.L.C. Silver Oak Services Partners, LLC Pamlico Capital - - - - Yes 8/29/2013 Vision Consulting, LLC - Parallon Business Solutions, LLC - - - - No 8/29/2013 Life Stem Genetics Inc. Ben Franklin Technology Partners of Miami Days Corp. - - - - No Southeastern Pennsylvania, Investment Arm; Vivo Ventures, LLC; Burrill Venture Capital 8/29/2013 Freeman Medical Center, LLC - Baxter County Regional Hospital, Inc - - - - No 8/28/2013 Boca Pharmacal, Inc. Boca Life Science Holdings, LLC Generics Bidco I, LLC $225.0 - - - No 8/28/2013 InaVein, LLC - LeMaitre Vascular, Inc. $3.9 1.1x - - No (NasdaqGM:LMAT) 8/28/2013 Western Reserve Senior Care - Kindred Healthcare Inc. (NYSE:KND) - - - - No 8/28/2013 Glenwood, LLC ------No 8/27/2013 BioBehavioral Diagnostics Company Sevin Rosen Funds Pearson plc (LSE:PSON) - - - - No 8/27/2013 Acurian, Inc. J.P. Morgan Partners, LLC; Pharmaceutical Product Development, - - - - Yes EuclidSR Partners; Flatiron Partners; LLC ProQuest Investments; Merck Capital Ventures, LLC 8/27/2013 Sharon Regional Health System Inc. - Community Health Systems, Inc. - - - - No (NYSE:CYH) 8/26/2013 Hi-Tech Pharmacal Co., Inc. (NasdaqGS:HITK) - American Realty Capital Healthcare $492.7 2.1x 10.1x 13.1x No Trust, Inc.; AR Capital, LLC; American Realty Capital Global Trust, Inc. 8/26/2013 Amplimmune, Inc. InterWest Partners LLC; Wellcome MedImmune, LLC $500.0 - - - Yes Trust, Investment Division 8/26/2013 Longevity Logic, Inc. - Worldwide Food Services, Inc. - - - - No (OTCPK:WFSV) 8/26/2013 Merus Labs International Inc., Factive Product Merus Labs International Inc. Vansen Pharma Inc $3.4 - - - No (TSX:MSL) 8/26/2013 Cardiothoracic and Vascular Surgical Specialists - OhioHealth Corporation - - - - No Inc. 8/26/2013 Valley Organics Inc. BlackRock, Inc. (NYSE:BLK); The Latteno Food Corp. (OTCPK:LATF) - - - - No Vanguard Group, Inc.; Wellington Management Company LLP; Glenview Capital Management, LLC 8/24/2013 Onyx Pharmaceuticals, Inc. (NasdaqGS:ONXX) Samana Capital, L.P; Fidelity Amgen Inc. (NasdaqGS:AMGN) $9,259.3 18.0x - - Yes Management & Research Company; iNetworks, LLC; T. Rowe Price Associates, Inc. 8/23/2013 Medtronic Vascular, Inc., Pioneer Plus Re-Entry Medtronic Vascular, Inc. Volcano Corporation $15.0 - - - No Catheter Product Line (NasdaqGS:VOLC) 8/23/2013 Ceregene, Inc. Hamilton BioVentures; Investor Sangamo Biosciences Inc. - - - - Yes Growth Capital; California (NasdaqGS:SGMO) Technology Ventures, LLC 8/23/2013 Pathwork Diagnostics, Inc. - Response Genetics, Inc $1.2 - - - No (NasdaqCM:RGDX) 8/23/2013 S. June Smith Center Inc. - Excentia Corp. - - - - No 8/22/2013 Viztek LLC, Two Imaging Centers Using Viztek Viztek, LLC The Radiology Group, LLC - - - - No Opal-RIS 8/22/2013 PathCentral, Inc. Baird Venture Partners; Arboretum XIFIN, Inc. - - - - Yes Ventures; Okapi Venture Capital, LLC 8/22/2013 Akron General Health System - Community Health Systems, Inc. - - - - No (NYSE:CYH); The Cleveland Clinic Foundation 8/22/2013 Lamplighter Manufactured Home Community - American Land Lease Inc. - - - - No 8/21/2013 6800 Preston Limited, 66-Bed Post-Acute Care 6800 Preston Limited Physicians Realty L.P. $18.2 - - - No Specialty Hospital, Located In Plano, Texas 8/21/2013 Vancouver Bridgewood, LLC, Bridgewood at Vancouver Bridgewood, LLC CHP Partners LP $22.1 - - - No Four Seasons Retirement & Assisted Living Community 8/21/2013 MWSH Yelm, LLC, Rosemont Retirement & MWSH Yelm, LLC CHP Partners LP $16.9 - - - No Assisted Living Community 8/21/2013 Sandy Assisted Living, LLC - CHP Partners LP $17.4 - - - No 8/21/2013 Gibson Creek Retirement Cottages & Assisted JILAR Enterprises, LLC; JILAR CHP Partners LP $12.4 - - - No Living Community Salem Cottages, LLC 13 M&A Detail September 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 8/21/2013 Gresham Assisted Living, LLC, Huntington Gresham Assisted Living, LLC CHP Partners LP $15.0 - - - No Healthcare & Terrace Assisted Living Community, Gresham 8/21/2013 MWSH Beaverton, LLC, Beaverton Hills MWSH Beaverton, LLC CHP Partners LP $12.9 - - - No Life Sciences Assisted Living Residence in Beaverton 8/21/2013 MWSH Billings, LLC, Bonaventure of Billings MWSH Billings, LLC CHP Partners LP $48.3 - - - No M&A Senior Living Community (Continued) 8/21/2013 Auburn Assisted Living, LLC, Auburn Auburn Assisted Living, LLC CHP Partners LP $21.9 - - - No Meadows Senior Community, Assisted Living and Special Care 8/21/2013 Arbor Place Senior Living Community Medford, MWSH Medford, LLC CHP Partners LP $15.8 - - - No Oregon 8/21/2013 MWSH Idaho Falls, LLC, Bonaventure of Idaho MWSH Idaho Falls, LLC CHP Partners LP $44.4 - - - No Falls Senior Living Community 8/21/2013 Five Rivers Assisted Living and Retirement Five Rivers Assisted Living and CHP Partners LP $16.7 - - - No Community, LLC, Five Rivers Retirement & Retirement Community, LLC Assisted Living 8/21/2013 West Hills Assisted Living Community LLC, West Hills Assisted Living CHP Partners LP $15.0 - - - No West Hills Retirement and Assisted Living Community, LLC Community Corval 8/21/2013 Bonaventure Place Retirement & Assisted Living MWSH Boise LLC CHP Partners LP $40.0 - - - No Community, LLC 8/21/2013 Roseburg Assisted Living, LLC, Oak Park Roseburg Assisted Living, LLC CHP Partners LP $12.1 - - - No Assisted Living Community Roseburg, OR 8/21/2013 Orchard Heights Senior Community, LLC - CHP Partners LP $17.8 - - - No 8/21/2013 Albany Assisted Living, LLC - CHP Partners LP $10.0 - - - No 8/21/2013 MWSH BEND LLC, High Desert Assisted Kleinheinz Capital Partners, Inc.; CHP Partners LP $13.6 - - - No Living Community Bend AWM Investment Company Inc.; Boston Avenue Capital, L.L.C.; Greenwood Investments, Inc. 8/21/2013 Longview Monticello, LLC, Monticello Park Longview Monticello, LLC CHP Partners LP $27.4 - - - No Retirement & Assisted Living Community Longview 8/21/2013 MWSH Sparks, LLC, Bonaventure of Sparks MWSH Sparks, LLC CHP Partners LP $55.2 - - - No Senior Living Community Sparks 8/21/2013 Southern Hills Assisted Living Community, Southern Hills Assisted Living CHP Partners LP $12.9 - - - No LLC, Southern Hills Assisted Living Community Community, LLC Salem 8/21/2013 Tualatin Assisted Living, LLC Warburg Pincus LLC; OrbiMed CHP Partners LP $9.7 - - - No Advisors, L.L.C.; Iroquois Capital, LP; Perceptive Advisors LLC; Deerfield Management Company 8/21/2013 Edge BioServ, LLC Edge Biosystems, Inc. BRLI No. 2 Acquisition Corp. - - - - No 8/20/2013 Optimum Outcomes, Inc. Waud Capital Partners, L.L.C.; Fifth Adreima, Inc. - - - - Yes Street Capital LLC 8/20/2013 Design Clinicals, Inc. - First Databank, Inc. - - - - No 8/20/2013 Mitchell & McCormick, Inc., Behavioral Health Mitchell and McCormick, Inc. Qualifacts Systems Inc. - - - - No Business 8/19/2013 Medfusion, Inc. Intuit Inc. (NasdaqGS:INTU) - - - - - No 8/19/2013 Keller's Limb & Brace, Inc. Snell Prosthetic & Orthotic Hanger, Inc. (NYSE:HGR) - - - - No Laboratory, Inc. 8/19/2013 Medafor, Inc. RAIN Source Capital; CryoLife Inc. Davol Inc. $280.0 - - - No (NYSE:CRY) 8/19/2013 Kirkegaard & Perry Laboratories, Inc. - SeraCare Life Sciences, Inc. - - - - No 8/19/2013 Development & Research, Inc. - Hanger, Inc. (NYSE:HGR) - - - - No 8/16/2013 Landauer- Metropolitan, Inc. Clairvest Group Inc. (TSX:CVG) Quadrant Management, Inc. $22.0 - - - No 8/15/2013 Bracket United BioSource Corporation Parthenon Capital Partners - - - - Yes 8/15/2013 Hooper Holmes Inc., Portamedic Brand and Hooper Holmes Inc. (AMEX:HH) American Para Professional Systems, $8.4 - - - No Paramedical Exam Service Line Inc. 8/15/2013 Urgent Care Specialists, LLC, Three Centers in Urgent Care Specialists, LLC St. Elizabeth Physicians - - - - No Northern Kentucky 8/15/2013 Cal Ceram Dental Lab, Inc. - Beacon Bay Holdings - - - - No 8/15/2013 Axxiem Web Solutions, AxxiTRIALS Clinical Axxiem Web Solutions Litéra Corp. - - - - No Trials Community Portal Solution 8/14/2013 Novella Clinical, Inc. FHI 360 Quintiles Transnational Corp. - - - - No 8/14/2013 Pathway Therapeutics Ltd., Anticancer Drug Pathway Therapeutics Ltd. VetDC, Inc - - - - No 8/14/2013 Premier Orthopedics, LLC - The Center for Orthopedic Research - - - - No and Education, Inc. 8/13/2013 Hedgepath, LLC - HedgePath Pharmaceuticals, Inc. - - - - No (OTCPK:HPPI) 8/13/2013 SafeStitch Medical, Inc. (OTCBB:SFES) Frost Group, LLC; Brilliant TransEnterix, Inc. - - - - No Champion Resources Limited; Grandtime Associates Limited 8/13/2013 PharmaBioSource Inc, Pharmaceutical Facility PharmaBioSource, Inc. Colliers International Property $100.0 - - - No Consultants, Inc. 8/13/2013 Health Service Review, Inc. - HealthSmart Holdings, Inc. - - - - No 8/13/2013 Johnston Healthcare Search - Stanton Chase International, Inc. - - - - No 8/13/2013 ExtendMD LLC - Orange Health Solutions, Inc. - - - - No 14 M&A Detail September 2013

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 8/12/2013 6N Systems, Inc. - eHealth Solutions, Inc. - - - - No Healthcare & 8/12/2013 P. J. Noyes Company, Inc. - Nipro Diagnostics, Inc. - - - - No 8/12/2013 Wellbrooke of Avon Mainstreet Property Group, LLC HealthLease Properties Real Estate $16.6 - - - No Life Sciences Investment Trust (TSX:HLP.UN) M&A 8/12/2013 Great Lakes Drug Development, Inc. Calmedica Capital; Clal Gemel Ltd.; Certara, L.P. - - - - Yes Beechwood Ventures, LLC; (Continued) Wexford Capital LLC; Two River Group Holdings, LLC 8/12/2013 Radiation Oncology Services of America, Inc. Ambulatory Services of America, Vantage Oncology, LLC - - - - No Inc. 8/11/2013 Cardiocom, LLC - Medtronic, Inc. (NYSE:MDT) $200.0 4.0x - - No 8/9/2013 The Counseling Center, Inc. - La Frontera Center, Inc. - - - - No 8/9/2013 Catholic Health Partners, Inc., Nursing Homes in Mercy Health Partners (Southwest - - - - - No Mariemont, Hamilton, Dayton and Southern Ohio Region) Indiana 8/8/2013 Glenwood Regional Medical Center and IASIS Healthcare LLC MPT Operating Partnership, L.P. $281.3 - - - Yes Mountain Vista Medical Center and Southeast Texas Hospital 8/8/2013 Animal Reference Pathology, Inc. ARUP Laboratories, Inc. Gardiner Smith Laboratories, LLC - - - - No 8/8/2013 Exciton Technologies, US Operations Exciton Technologies Inc. Crawford Healthcare Ltd. - - - - No 8/8/2013 Medical Center in Margate - CAC-Florida Medical Centers, LLC - - - - No 8/8/2013 Eastern Connecticut Health Network, Inc. - Vanguard Health Systems Inc. - - - - No (NYSE:VHS); Yale-New Haven Health Services Corporation 8/8/2013 Friendship Ridge ------No 8/8/2013 Okmulgee Memorial Hospital, Inc. Okmulgee Memorial Hospital Muscogee (Creek) Nation - - - - No Authority 8/7/2013 Hunter Laboratories, Inc. - Bio-Reference Laboratories Inc. - - - - No (NasdaqGS:BRLI) 8/7/2013 Chautauqua County Home Chautauqua County, Kansas - $16.5 - - - No 8/7/2013 Arpeggi, Inc. EDF Ventures; Prism VentureWorks; Gene By Gene, LTD. - - - - No The Vertical Group; Aperture Venture Partners, LLC; Hercules Technology Growth Capital, Inc. 8/7/2013 Bayside Ob-Gyn & Infertility, Inc. - OB/GYN Associates of Erie, P.C. - - - - No 8/7/2013 Champion Manufacturing, Inc. Invacare Corporation (NYSE:IVC) Levine Leichtman Capital Partners $45.0 2.0x 8.2x - Yes 8/7/2013 Dental Practice Facility in Plymouth - PDHC, Ltd. - - - - No 8/6/2013 Cramer Products, Inc. - Performance Health, Inc. - - - - No 8/6/2013 Assisted Living Property in Round Rock, Texas - One Liberty Properties Inc. $22.8 - - - No (NYSE:OLP) 8/6/2013 Upstate Linac Services, LLC - Oncology Services International, Inc. - - - - No 8/6/2013 Palau Pharma S.A., Albaconazole Antifungal Palau Pharma S.A. Actavis, Inc. (NYSE:ACT) - - - - No Agent 8/6/2013 TJ Holdings, Inc. - Ameritox, Ltd. - - - - No 8/6/2013 C&G Technologies, Inc. - BC Technical, Inc. - - - - No 8/6/2013 Mesilla Valley Sleep Lab, LLC - Quality Sleep Solutions, Inc. - - - - No 8/6/2013 AMG Specialty Hospital-Tulsa - Acadiana Management Group, LLC - - - - Yes 8/6/2013 Physicians Interactive, Inc. Perseus, L.L.C. Merck Global Health Innovation LLC - - - - No 8/6/2013 The Optical Solution - Levin Eye Care LLC - - - - No 8/5/2013 Cypress Pharmaceuticals, Inc., Certain Cypress Cypress Pharmaceutical, Inc. Breckenridge Pharmaceutical, Inc. $30.0 - - - No Assets 8/5/2013 Holston Anesthesia Associates, P.C. - American Anesthesiology, Inc. - - - - No 8/5/2013 Rocky Mountain Urgent Care, PC and Rocky - Infinite Aegis Group, LLC - - - - No Mountain Medical Group, P.C. 8/2/2013 Two Senior Housing Facilities Located in - Tiptree Financial Inc. $21.9 - - - No Baldwinsville and Geneva (NasdaqCM:TIPT); Premier Senior Living Group, LLC 8/2/2013 Oakley, Inc., REVO Brand Oakley, Inc. Sequential Brands Group, Inc. $20.0 - - - No (OTCPK:SQBG) 8/2/2013 AHC Media LLC Thompson Media Group LLC Lone Peak Capital Group LLC - - - - Yes 8/2/2013 Three High Quality Senior Living Facilities in US - American Realty Capital Healthcare - - - - No Trust, Inc. 8/1/2013 HarborChase of Jasper Emeritus Corp. (NYSE:ESC) CNL Healthcare Properties, Inc. $7.3 - - - No 8/1/2013 Manhattan Diagnostic Radiology, Inc. - RadNet, Inc. (NasdaqGM:RDNT) $2.3 - - - No 8/1/2013 3M Innovative Properties Company, Dry 3M Innovative Properties Company Adamis Pharmaceuticals Corporation $10.0 - - - No Powder Inhaler Technology (OTCPK:ADMP) 8/1/2013 TJM Properties Inc., 15 Senior Housing Projects TJM Properties Inc. Fortress Investment Group LLC $200.0 - - - No (NYSE:FIG) 8/1/2013 Angels of Mercy Home Health Care LLC - Oncologix Tech, Inc. $0.7 0.2x - - No 8/1/2013 The Laurels of West Carrollton LLC Meditrust of Ohio, Inc. Laurel Health Care Company $2.5 - - - No 8/1/2013 The Laurels of Huber Heights - Laurel Health Care Company $4.4 - - - No 8/1/2013 Nentwick Care Center - Pritok Capital LLC - - - - Yes 8/1/2013 Midwest Vein & Laser Center ------No 8/1/2013 UAB School of Nursing Foundry Clinic - University of Alabama at Birmingham - - - - No School of Nursing, Endowment Arm 8/1/2013 Laurel Surgical Center, LLC - Excela Health $10.8 - - - No 15 M&A Detail September 2013

Contacts Turner Bredrup James Clark Todd Morris 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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