Healthcare & Life Sciences Update

Healthcare & Life Sciences Industry Update May 2012

Member FINRA/SIPC

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

• With the Obamacare debate temporarily cooled while the Supreme Court deliberates on the constitutionality of the Patient Protection and Affordable Care Act (“ACA”), Miles Zaremski contributed an article to the Huffington Post in which he dissects the key issues. While Zaremski is biased in favor of the ACA, the piece succinctly summarizes for the casual reader topics such as the penalty for failing to purchase health insurance (the individual mandate) and the impact on the remainder of the bill should the individual mandate be found unconstitutional. Read the article here.

• Despite the future of the ACA still being unclear, according to the Wall Street Journal, health insurers are bracing for the cost associated with one of its provisions. As part of the bill, health insurers are required to pay refunds back to consumers and employers if an insufficient portion of those premiums are actually spent reimbursing healthcare expenditures. According to estimates cited in the article, the total refunds and rebates could be as high as $1.3 billion. (Wall Street Journal subscription may be required)

• An article published in the New England Journal of Medicine titled “Medicare's Readmissions-Reduction Program – A Positive Alternative” makes the case that hospitals should begin providing warranties to discharged patients for medical services performed while admitted. According to the article, 20% of Medicare beneficiaries are rehospitalized within 30 day of discharge at an annual cost of $17 billion. Furthermore, the article asserts that hospitals are disincentivized by the current reimbursement model, even factoring in changes from healthcare reform, to reduce readmissions as they provide an additional revenue stream.

• A blog post in the Harvard Business Review, “Health Care for 1% of the Cost,” suggests the U.S. healthcare system has something to learn from poorer countries when it comes to meeting cost constraints without diminishing quality of care. The article illustrates a number of examples, ranging from cheap prosthetic legs for amputees in Thailand to low- cost cataract surgery in India, of how many Third World countries have shifted their paradigms of innovation away from the U.S. model requiring large spend on high technology and sophisticated training for healthcare professionals.

1 Equity Trading Overview May 2012

Median TEV/ Median TEV/ Key Trading Number of Average Sector Enterprise Change in Stock Price LTM Multiples Forward Mulitples Companies Statistics Value ($ mm) 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA (detail begins Clinical Laboratories 3 $8,026 (1.0%) (8.9%) 1.7x 7.8x 1.7x 7.8x Contract Pharma Manufacturing 5 748 11.2% (5.0%) 1.0x 8.3x 1.2x 10.9x on page 6) Contract Research Organizations 5 1,524 6.3% (15.8%) 1.2x 11.5x 1.1x 8.7x Disease Management 3 1,824 (1.4%) (46.0%) 2.0x 6.8x 1.3x 6.9x Emergency Services 1 1,636 1.2% 24.4% 2.5x 9.6x 2.0x 7.3x Health Care Staffing 4 817 22.4% (6.9%) 0.6x 9.8x 0.7x 8.4x HMO - Medical 11 13,507 0.0% 6.0% 0.3x 5.9x 0.3x 5.6x Information Services 13 2,212 9.9% 0.0% 2.7x 13.9x 2.9x 10.2x Specialty Managed Care 2 2,469 (7.2%) (7.2%) 0.9x 6.2x 0.8x NA Specialty Pharmacy Management 5 11,614 9.0% 10.9% 0.8x 11.0x 0.6x 8.9x Dental Products 4 18,575 6.3% 0.6% 2.7x 10.7x 2.5x 9.9x Durable Medical Equipment 4 2,229 1.2% (20.4%) 1.3x 6.9x 1.2x 6.3x Life Sciences Tools 3 13,856 (2.3%) (15.5%) 2.3x 8.5x 2.3x 8.0x Medical Devices and Products 14 34,795 2.2% (7.4%) 2.3x 8.6x 2.3x 8.0x Medical / Surgical / Dental Supplies 7 8,947 (0.8%) (3.3%) 0.2x 8.1x 0.2x 7.3x Acute-Care Hospitals 6 12,590 6.0% (21.4%) 0.9x 6.3x 0.9x 6.2x Assisted Living 7 1,515 6.4% (30.2%) 1.8x 12.2x 1.6x 8.8x Diagnostic Imaging 3 2,691 21.2% (15.6%) 1.5x 6.0x 1.5x 5.5x Dialysis Services 2 21,114 4.4% (4.5%) 2.1x 10.0x 1.9x 9.0x Home Care / Hospice 7 901 20.5% (29.7%) 0.6x 5.3x 0.6x 5.9x Long-Term Care 4 901 2.0% (21.1%) 0.6x 5.6x 0.6x 4.5x Physician Practice Management 4 828 6.5% (8.2%) 0.5x 7.6x 1.2x 7.8x Psychiatric Hospitals / Management 3 2,318 (6.1%) (14.9%) 0.3x 5.4x 0.3x 6.0x Surgicenters / Rehabilitation 4 2,097 13.2% (1.9%) 1.6x 7.3x 1.5x 7.2x Payer, Provider, & Pharmacy Support Services 52 $4,438 5.0% (4.8%) 1.4x 9.1x 1.3x 8.3x Products & Devices 32 $15,681 1.3% (9.2%) 1.8x 8.6x 1.7x 7.9x Provider-Based Services 40 $4,995 8.2% (16.4%) 1.1x 7.3x 1.1x 6.8x HW&Co. HCLS Composite Index 124 $6,989 5.5% (10.1%) 1.4x 8.3x 1.3x 7.6x S&P 500 6.5% 2.5%

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

(60.0%) (50.0%) (40.0%) (30.0%) (20.0%) (10.0%) (0.0%) 10.0% 20.0% 30.0% 40.0% 2 Equity Markets Overview May 2012

Healthcare & 180 Life Sciences Industry Stock 59.3% 160 Performance 58.7% 52.6% 140

120

100

40 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 HW&Co. HCLS Index S&P 500 Dow Jones U.S. Health Care Index

Top 25 Equity Gross Proceeds Closing Date Filing Date Issuer Ticker Transaction Type ($mm) Offerings 04/02/12 04/02/12 Theravance Inc THRX Follow-On $212.9 (by proceeds) 04/30/12 04/30/12 Acadia Healthcare Co Inc ACHC Follow-On 126.6 04/30/12 04/27/12 Rockwell Medical Technologies RMTI Follow-On 120.0 04/04/12 04/04/12 Savient Pharmaceuticals Inc SVNT Follow-On 100.0 04/03/12 03/23/12 Clovis Oncology Inc CLVS Follow-On 75.0 04/12/12 03/27/12 Pacira Pharmaceuticals Inc PCRX Follow-On 67.3 04/11/12 05/05/10 ArQule Inc ARQL Follow-On 60.0 04/13/12 04/13/12 Hyperion Therapeutics Inc HPTX IPO 57.5 04/10/12 04/10/12 Horizon Pharma Inc HZNP Follow-On 53.2 04/30/12 12/23/10 Supernus Pharmaceuticals Inc SUPN IPO 50.0 04/02/12 04/02/12 Stemline Therapeutics Inc STML IPO 50.0 04/26/12 06/17/10 Transcept Pharmaceuticals Inc TSPT Follow-On 40.5 04/23/12 04/23/12 Accelr8 Technology Corp AXK Follow-On 35.0 04/23/12 12/23/11 PhotoMedex Inc PHMD Follow-On 27.6 04/18/12 03/07/12 Osprey Medical Inc OSP IPO 20.7 04/02/12 05/03/11 Derma Sciences Inc DSCI Follow-On 19.7 04/06/12 04/06/12 Catalyst Pharmaceutical CPRX Follow-On 17.9 04/23/12 04/19/12 TrovaGene Inc TROV Follow-On 17.3 04/12/12 04/12/12 AspenBio Pharma Inc APPY Follow-On 17.3 04/06/12 03/13/12 DARA Biosciences Inc DARA Follow-On 15.0 04/05/12 02/17/12 Galena Biopharma Inc GALE Follow-On 14.6 04/18/12 04/18/12 Proteonomix Inc PROT Follow-On 13.0 04/24/12 12/23/11 PhotoMedex Inc PHMD Follow-On 12.4 04/10/12 04/10/12 TearLab Corp TLB Follow-On 12.4 04/16/12 04/16/12 DARA Biosciences Inc DARA Convertible 10.3

3 M&A Overview May 2012

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Healthcare & Announced Target Buyer 4/26/2012 EUSA Pharma, Inc. Jazz Pharmaceuticals plc (NasdaqGS:JAZZ) Life Sciences 300 4/24/2012 BREG, Inc. Water Street Healthcare Partners 17 18 4/17/2012 Community Intervention Services, Inc. H.I.G. Growth Partners, LLC 16 4/12/2012 Pervasis Therapeutics, Inc. Shire plc (LSE:SHP) M&A __ 19 18 13 4/10/2012 eResearchTechnology, Inc. (NasdaqGS:ERT) Genstar Capital, LLC 250 13 18 11 17 4/10/2012 CodeRyte, Inc. 3M Co. (NYSE:MMM) 11 4/10/2012 KAI Pharmaceuticals, Inc. Amgen Inc. (NasdaqGS:AMGN) 4/9/2012 CornerStone Research & Development, Inc. Sun Capital Partners, Inc. 200 5 4/5/2012 Allos Therapeutics, Inc. (NasdaqGS:ALTH) Spectrum Pharmaceuticals, Inc. (NasdaqGS:SPPI) 4/2/2012 Fresenius Medical Care Holdings Inc., 54 Golub Capital; DSI Renal, Inc. 150 Dialysis Clinics 278 279 267 255 256 242 245 236 223 225 LTM Deal Statistics

Number Number Transactionsof 219 100 Aggregate Number Median Transaction Multiples 179 6 Value ($bn) of Deals TEV/Rev TEV/EBITDA $148.4 1,013 1.76x 11.7x 50 81 Note: Transactions based on publicly available information 0 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

PEG Acquirer Strategic Acquirer

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

Life Sciences $500 1400 21x 4.0x M&A Trends $450 1200 18.3x 18x 3.5x

$400 $389.4

EV / LTM Revenue Multiple Revenue EV LTM /

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

200 __

EV /LTM EV EBITDA Multiple 3x $50 $44.6 0.5x

AggregateTransaction Value in ($ billions) $0 0 0x 0.0x 2007 2008 2009 2010 2011 2012 YTD 2007 2008 2009 2010 2011 2012 YTD Aggregate Deal Value # of deals TEV / LTM EBITDA TEV / LTM Sales

Announced PEG Investments by Segment (Last 3 Years) PEG Investments and Exits 140 Private Equity HC&LS Industry Number of Segment Companies 120 M&A Activity 120 113

Biotechnology 4 ' Healthcare Technology 16 100 94 95 Healthcare Distributors 8 Healthcare Equipment 23 79 80 80 Healthcare Facilities 34 69 71 65 Healthcare Services 53 62 58 60 Healthcare Supplies 8 60 TransactionVolume 49 50 Life Sciences Tools & Services 10 40 40 42 40 Managed Healthcare 6 31 32 27 Pharmaceuticals 22 23 17 20

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

4 Debt Markets Overview May 2012

Key Credit Quarterly Healthcare Loan Volume Average Spread on Healthcare Loans

$24 Statistics L + 500

___ $21 __ L + 400 $18

$15 L + 300 $12

$9 L + 200

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

$3 Loan VolumeLoan Quarterby ($ billions)in $0 L + 0 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 2006 2007 2008 2009 2010 2011 2012 YTD Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional

Credit Statistics Average Secondary Spread

L + 1000 6.0x

2006 2007 2008 2009 2010 2011 2012 YTD __ L + 800

__ 4.0x L + 600

L + 400

2.0x EBITDA Multiple EBITDA

L + 200 Average Spread Over Over LIBOR Spread Average

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

Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread Top 20 Recent 05/15/12 Watson Pharmaceuticals Inc Pharmaceutical preparations $4,500 Bridge Loan Baa3 / BBB L+ 150 Healthcare & 05/15/12 Watson Pharmaceuticals Inc Pharmaceutical preparations 1,500 Term Loan Baa3 / BBB L+ 150 04/18/12 Boston Scientific Corp Surgical and medical instruments 2,000 Revolver/Line >= 1 Yr. Baa3 / BBB- L+ 150 Life Sciences 05/01/12 Zimmer Holdings Surgical appliances and supplies 1,350 Revolver/Line >= 1 Yr. Baa1 / A- L+ 100 Debt Offerings 04/04/12 Aveta Holdings LLC Offices & clinics of medical doctors 525 Term Loan B B1 / B+ L+ 650 04/04/12 Aveta Holdings LLC Offices & clinics of medical doctors 50 Revolver/Line >= 1 Yr. B1 / B+ L+ 600 (by deal amount) 04/01/12 ResCare Inc Intermediate care facilities 175 Revolver/Line >= 1 Yr. B1 / B- L+ 275 04/01/12 ResCare Inc Intermediate care facilities 175 Term Loan A B1 / B- L+ 275 04/13/12 Steris Corp Surgical appliances and supplies 300 Revolver/Line >= 1 Yr. NR / NR L+ 100 04/20/12 AMN Healthcare Inc. Health and allied services 200 Term Loan B Ba2 / BB- L+ 475 04/20/12 AMN Healthcare Inc. Health and allied services 50 Revolver/Line >= 1 Yr. Ba2 / BB- L+ 425 04/04/12 Dialysis Newco Inc Kidney dialysis centers 133 Term Loan NR / NR L+ 500 04/04/12 Dialysis Newco Inc Kidney dialysis centers 30 364-Day Facility NR / NR L+ 500 04/04/12 Dialysis Newco Inc Kidney dialysis centers 30 Revolver/Line >= 1 Yr. NR / NR L+ 500 04/25/12 Physiotherapy Associates Offices of health practitioners 100 Term Loan B Ba2 / B L+ 475 04/25/12 Physiotherapy Associates Offices of health practitioners 25 Revolver/Line >= 1 Yr. Ba2 / B L+ 475 04/02/12 Tri-City Healthcare District General medical & surgical hospitals 51 Term Loan A NR / NR L+ 175 04/02/12 Tri-City Healthcare District General medical & surgical hospitals 25 Revolver/Line >= 1 Yr. NR / NR L+ 175 04/20/12 Flager Hospital General medical & surgical hospitals 68 Other Loan NR / NR N/A 04/02/12 Legacy Hospital Partners Inc General medical & surgical hospitals 60 Term Loan A NR / NR L+ 450

5 Healthcare & Life Sciences Trading Statistics May 2012

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $12.13 $11.96 $6.69 9.5% 83.2% $13.09 $6.00 $1,153 $102 $28 $1,170 $163 $50 $44 Mar-12 Dec-11 $256 $99 $88 8.5x 22.1x 4.6x 11.8x Cambrex Corporation. 6.48 6.84 4.54 (14.4%) 23.2% 8.44 3.87 192 84 21 258 265 52 29 Mar-12 Dec-11 265 NA 29 1.0x 5.7x 1.0x NA Integrated Biopharma Inc. 0.05 0.04 0.19 151.2% (76.3%) 0.21 0.02 1 13 0 13 28 2 2 Dec-11 Jun-11 NA NA NA 0.5x 6.6x NA NA Patheon Inc. 2.21 1.44 2.27 64.9% (7.4%) 2.37 1.09 286 284 33 541 678 33 (17) Jan-12 Oct-11 698 50 8 0.8x 16.4x 0.8x 10.9x West Pharmaceutical Services, Inc. 44.90 41.06 46.88 11.2% (5.0%) 47.62 35.50 1,517 381 100 1,757 1,213 205 130 Mar-12 Dec-11 1,251 216 134 1.4x 8.3x 1.4x 8.1x Number of Companies 5 Median: 11.2% (5.0%) Total $3,149 $748 $2,348 $2,470 1.0x 8.3x 1.2x 10.9x Mean: 44.5% 3.6% $748 2.5x 11.8x 1.9x 10.3x

Contract Research Organizations Albany Molecular Research Inc. $3.19 $2.99 $4.81 1.3% (34.8%) $5.55 $2.08 $98 $3 $8 $84 $204 $7 ($11) Mar-12 Dec-11 $216 $19 $4 0.4x 18.3x 0.4x 4.3x Charles River Laboratories International, Inc. 35.53 34.81 40.52 6.3% (15.8%) 42.84 25.52 1,744 704 61 2,389 1,143 272 188 Mar-12 Dec-11 1,157 274 198 2.1x 8.8x 2.1x 8.7x Covance Inc. 46.76 46.60 60.50 6.2% (25.3%) 63.86 42.02 2,661 340 440 2,302 2,125 308 203 Mar-12 Dec-11 2,189 311 199 1.1x 7.5x 1.1x 7.4x ICON Public Limited Company 22.18 20.26 24.63 16.7% (9.7%) 26.22 15.03 1,334 20 129 1,148 969 76 35 Mar-12 Dec-11 1,090 117 74 1.2x 15.2x 1.1x 9.8x PAREXEL International Corporation 26.94 24.29 24.24 31.7% (3.0%) 28.74 15.26 1,603 247 0 1,697 1,314 148 79 Mar-12 Jun-11 1,367 170 103 1.3x 11.5x 1.2x 10.0x Number of Companies 5 Median: 6.3% (15.8%) Total $7,440 $1,524 $5,755 $6,019 1.2x 11.5x 1.1x 8.7x Mean: 12.4% (17.7%) $1,524 1.2x 12.2x 1.2x 8.1x

Disease Management Alere Inc. $23.89 $26.32 $39.10 (0.7%) (35.7%) $41.18 $17.82 $1,920 $3,534 $514 $4,941 $2,475 $566 $164 Mar-12 Dec-11 $2,690 $622 $547 2.0x 8.6x 1.8x 7.9x Corac Group plc 0.16 $0.18 $0.27 (1.4%) (46.0%) 0.31 0.14 40 0 24 15 1 (9) (9) Dec-11 (CapabilityDec-11 Needed)(Capability Needed)(Capability Needed) 28.8x NM NA NA Healthways Inc. 6.67 $7.93 $16.24 (10.8%) (60.6%) 17.62 5.59 223 294 1 516 691 101 51 Mar-12 Dec-11 685 88 38 0.7x 5.1x 0.8x 5.9x Number of Companies 3 Median: (1.4%) (46.0%) Total $2,183 $1,824 $3,167 $3,375 2.0x 6.8x 1.3x 6.9x Mean: (4.3%) (47.4%) $1,824 10.5x 6.8x 1.3x 6.9x

Emergency Services Air Methods Corp. $84.11 $88.47 $62.87 1.2% 24.4% $93.30 $56.17 $1,060 $558 $2 $1,636 $719 $188 $111 Mar-12 Dec-11 $805 $223 $137 2.5x 9.6x 2.0x 7.3x Number of Companies 1 Median: 1.2% 24.4% Total $1,060 $1,636 $719 $805 2.5x 9.6x 2.0x 7.3x Mean: 1.2% 24.4% $1,636 2.5x 9.6x 2.0x 7.3x

Health Care Staffing AMN Healthcare Services Inc. $6.71 $5.57 $8.94 41.0% (22.2%) $9.33 $3.60 $272 $194 $5 $501 $898 $56 $40 Mar-12 Dec-11 $934 $65 $47 0.6x 9.3x 0.5x 7.7x Cross Country Healthcare, Inc. 4.61 6.14 7.52 (24.3%) (37.9%) 8.00 3.76 144 42 11 174 504 21 11 Dec-11 Dec-11 526 24 15 0.3x 8.4x 0.3x 7.2x On Assignment Inc. 18.71 11.92 11.02 65.4% 70.2% 19.37 6.27 703 81 18 766 635 60 50 Mar-12 Dec-11 699 64 56 1.2x 12.9x 1.1x 11.9x Team Health Holdings, Inc. 21.54 20.43 21.10 3.8% 8.4% 24.13 15.08 1,417 409 10 1,827 3,263 172 140 Mar-12 Dec-11 1,961 203 158 0.6x 10.4x 0.9x 9.0x Number of Companies 4 Median: 22.4% (6.9%) Total $2,536 $817 $5,300 $4,120 0.6x 9.8x 0.7x 8.4x Mean: 21.5% 4.6% $817 0.7x 10.2x 0.7x 8.9x

As of April 30, 2012 6 Healthcare & Life Sciences Trading Statistics May 2012

Payer, Provider, & Pharmacy Support Services

Stock Price Total Lastest Twelve Months Lastest Equity Cash and LTM Forward Estimate TEV/ LTM Multiples (5) TEV/ Fwd Multiples Company Name Change in Stock % Change 52 Week Total Debt Ent. (LTM) FYE Mkt. Value Equiv. Period (3) 4/30/2012 3 mos.Price12 mos. 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Date (3) Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $44.04 $45.80 $42.54 0.0% 6.4% $51.14 $33.43 $15,299 $4,128 $809 $18,619 $34,308 $3,796 $3,341 Mar-12 Dec-11 $35,523 $3,324 $2,965 0.5x 4.9x 0.5x 5.6x Cigna Corp. 46.23 43.54 47.17 3.9% (1.3%) 52.95 38.79 13,283 5,229 2,111 13,698 23,375 2,407 2,206 Mar-12 Dec-11 28,146 2,862 2,337 0.6x 5.9x 0.5x 4.8x Coventry Health Care Inc. 29.99 $30.53 $33.59 1.7% (7.1%) 37.86 25.78 4,258 1,585 1,745 4,097 12,847 947 831 Mar-12 Dec-11 14,141 812 680 0.3x 4.3x 0.3x 5.0x Health Net, Inc. 35.61 $36.15 $33.01 (3.8%) 6.9% 41.22 20.51 2,964 511 391 3,245 11,368 483 452 Mar-12 Dec-11 11,584 472 441 0.3x 8.5x 0.3x 6.9x Humana Inc. 80.68 85.16 77.09 (8.5%) 6.0% 96.46 65.20 13,165 1,915 3,656 11,424 37,860 2,541 2,236 Mar-12 Dec-11 39,571 2,606 2,206 0.3x 4.5x 0.3x 4.4x Unitedhealth Group, Inc. 56.15 53.06 50.47 9.9% 14.1% 59.71 41.27 58,549 12,854 11,661 59,742 103,712 9,333 8,560 Mar-12 Dec-11 109,863 9,688 8,686 0.6x 6.4x 0.5x 6.2x WellPoint Inc. 67.82 64.65 79.80 5.3% (11.7%) 81.92 56.61 22,437 10,189 2,279 30,347 61,232 4,991 4,326 Mar-12 Dec-11 61,542 4,528 4,067 0.5x 6.1x 0.5x 6.7x Number of Companies 7 Median: 1.7% 6.0% Total $129,955 $20,168 $284,701 $300,369 0.5x 5.9x 0.5x 5.6x Mean: 1.2% 1.9% $20,168 0.4x 5.8x 0.4x 5.7x

Government: AMERIGROUP Corporation $61.76 $67.74 $68.30 (10.5%) (9.6%) $75.74 $37.57 $2,987 $737 $640 $3,097 $6,547 $294 $278 Mar-12 Dec-11 $8,711 $380 $339 0.5x 9.0x 0.4x 8.2x Centene Corp. 39.59 47.08 35.30 (9.5%) 9.3% 50.98 25.28 2,037 350 433 1,954 5,851 251 200 Mar-12 Dec-11 7,989 309 240 0.3x 7.8x 0.2x 6.3x Molina Healthcare Inc. 25.65 33.86 28.22 (14.6%) (10.5%) 36.83 13.93 1,188 229 518 900 5,024 192 147 Mar-12 Dec-11 5,968 201 148 0.2x 4.7x 0.2x 4.5x WellCare Health Plans, Inc. 61.18 61.64 48.29 4.8% 39.6% 74.41 33.29 2,636 144 1,445 1,457 6,423 475 460 Mar-12 Dec-11 7,029 356 333 0.2x 3.4x 0.2x 4.1x Number of Companies 4 Median: (10.0%) (0.2%) Total $8,849 $1,852 $23,845 $29,697 0.3x 6.2x 0.2x 5.4x Mean: (7.5%) 7.2% $1,852 0.3x 6.2x 0.2x 5.8x

Information Services Data/Analytics: Accelrys Inc. $8.23 $7.49 $7.21 9.9% 8.7% $8.45 $5.68 $458 $0 $95 $335 $149 $16 ($9) Mar-12 Dec-11 $166 $33 $24 2.3x 26.0x 2.0x 10.2x eResearchTechnology, Inc. 7.90 5.68 6.30 45.2% 24.2% 8.15 3.86 390 21 46 372 194 41 20 Mar-12 Dec-11 200 58 32 2.0x 9.1x 1.9x 6.4x National Research Corp. 48.34 41.82 34.65 23.5% 35.7% 49.86 28.00 328 2 8 334 78 24 19 Mar-12 Dec-11 88 NA 23 4.4x 13.9x 3.8x NA Number of Companies 3 Median: 23.5% 24.2% Total $1,175 $347 $421 $166 2.3x 13.9x 2.0x 8.3x Mean: 26.2% 22.9% $347 2.9x 16.3x 2.6x 8.3x

eHealth: WebMD Health Corp. 22.75 27.60 51.73 (17.5%) (60.7%) 58.55 22.27 1,268 800 1,142 947 534 96 81 Mar-12 Dec-11 $507 $108 $50 1.7x 7.3x NA NA Number of Companies 1 Median: (17.5%) (60.7%) Total $1,268 $947 $534 $507 1.7x 7.3x NA NA Mean: (17.5%) (60.7%) $947 1.7x 7.3x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $11.10 $20.62 $20.36 (41.0%) (48.5%) $21.92 $8.99 $2,112 $344 $176 $2,280 $1,473 $242 $161 Mar-12 Dec-11 $1,512 $338 $263 1.5x 9.4x 1.5x 6.8x athenahealth, Inc. 72.45 64.82 44.97 23.0% 56.8% 78.24 38.97 2,597 0 52 2,481 351 53 36 Mar-12 Dec-11 429 86 65 7.1x 46.9x 5.8x 28.9x Cerner Corporation 81.11 69.39 59.99 33.3% 35.0% 81.48 53.93 13,826 153 281 13,085 2,307 629 494 Mar-12 Dec-11 2,587 833 577 5.7x 20.8x 5.1x 15.7x Computer Programs & Systems Inc. 59.59 61.84 59.13 4.0% 1.4% 79.06 41.80 659 0 9 633 178 44 42 Mar-12 Dec-11 195 51 48 3.6x 14.3x 3.3x 12.4x HMS Holdings Corp. 24.06 33.96 25.96 (26.9%) (8.3%) 34.98 19.78 2,078 346 107 2,316 389 117 86 Mar-12 Dec-11 505 166 106 6.0x 19.8x 4.6x 13.9x MedAssets, Inc. 12.61 12.29 16.04 20.7% (21.3%) 16.28 8.52 729 967 1 1,586 598 182 79 Mar-12 Dec-11 606 198 88 2.7x 9.3x 2.6x 8.0x Merge Healthcare Incorporated 4.29 6.07 5.64 (21.0%) (13.0%) 7.23 4.23 396 250 40 607 241 54 35 Mar-12 Dec-11 288 68 50 2.6x 11.2x 2.1x 9.0x Quality Systems Inc. 37.40 43.74 44.53 (6.0%) (16.6%) 50.70 33.08 2,206 0 129 2,076 418 130 121 Dec-11 Mar-11 438 145 128 5.0x 15.9x 4.7x 14.3x SunCoke Energy Inc. 15.22 15.26 0.00 13.4% 0.0% 18.00 9.20 1,067 726 114 1,700 1,675 157 94 Mar-12 Dec-11 1,866 264 181 1.1x 12.1x 0.9x 6.4x Number of Companies 9 Median: 4.0% (8.3%) Total $25,670 $2,974 $7,629 $8,425 3.6x 14.3x 3.3x 12.4x Mean: (0.1%) (1.6%) $2,974 3.9x 17.8x 3.4x 12.8x

As of April 30, 2012 7 Healthcare & Life Sciences Trading Statistics May 2012

Payer, Provider, & Pharmacy Support Services

Specialty Pharmacy Management BioScrip Inc. $7.41 $6.55 $6.75 37.5% 60.7% $7.85 $4.52 $412 $291 $0 $705 $1,843 $63 $49 Mar-12 Dec-11 $586 $51 $34 0.4x 11.0x 1.2x 13.9x Express Scripts Holding Company 55.79 50.28 58.99 9.0% (1.7%) 60.89 34.47 44,863 8,076 5,620 47,319 46,128 2,601 2,374 Dec-11 Dec-11 91,259 5,330 4,569 1.0x 18.2x 0.5x 8.9x Catalyst Health Solutions, Inc. 86.37 56.48 63.25 55.8% 45.1% 92.62 45.35 3,885 269 51 4,109 5,663 218 169 Mar-12 Dec-11 6,337 239 185 0.8x 20.3x 0.6x 17.2x Omnicare Inc. 34.84 33.05 32.66 6.0% 10.9% 36.48 20.36 3,936 1,992 622 5,306 6,250 662 528 Mar-12 Dec-11 6,235 661 551 0.8x 8.0x 0.9x 8.0x PharMerica Corporation 11.87 12.25 13.21 (5.9%) (9.8%) 16.45 10.43 350 272 7 632 2,045 104 73 Mar-12 Dec-11 1,939 100 69 0.3x 6.4x 0.3x 6.3x Number of Companies 5 Median: 9.0% 10.9% Total $53,445 $11,614 $61,929 $106,356 0.8x 11.0x 0.6x 8.9x Mean: 20.5% 21.0% $11,614 0.7x 12.8x 0.7x 10.9x

As of April 30, 2012 8 Healthcare & Life Sciences Trading Statistics May 2012

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. $32.45 34.39 45.92 (2.1%) (27.9%) $48.80 $26.90 $2,014 $95 $175 $1,934 $1,612 $307 $221 Mar-12 Sep-11 $1,667 $337 $225 1.2x 6.3x 1.2x 5.7x Invacare Corporation 15.85 17.56 32.88 (5.4%) (51.8%) 34.52 14.54 504 268 33 739 1,806 131 91 Mar-12 Dec-11 1,701 NA NA 0.4x 5.6x 0.4x NA ResMed Inc. 34.01 29.92 32.22 16.1% 6.6% 35.32 23.37 4,904 236 776 4,364 1,338 358 275 Mar-12 Jun-11 1,369 372 291 3.3x 12.0x 3.2x 11.7x Steris Corp. 31.41 30.96 36.16 4.4% (12.8%) 36.76 27.08 1,810 210 151 1,878 1,407 285 223 Mar-12 Mar-12 1,444 299 220 1.3x 7.5x 1.3x 6.3x Number of Companies 4 Median: 1.2% (20.4%) Total $9,232 $2,229 $6,163 $6,180 1.3x 6.9x 1.2x 6.3x Mean: 3.3% (21.5%) $2,229 1.6x 7.9x 1.5x 7.9x

Life Sciences Tools Agilent Technologies Inc. $42.18 $45.09 $49.88 (2.3%) (15.5%) $55.33 $28.67 $14,663 $2,181 $3,662 $13,183 $6,731 $1,385 $1,133 Jan-12 Oct-11 $6,950 $1,624 $1,429 2.0x 9.5x 1.9x 8.1x Becton, Dickinson and Company 78.45 76.85 86.95 (0.7%) (8.7%) 89.75 69.59 16,483 4,170 1,839 17,960 7,943 2,208 1,684 Mar-12 Sep-11 7,882 2,257 1,691 2.3x 8.0x 2.3x 8.0x Life Technologies Corporation 46.36 49.58 55.93 (4.5%) (16.0%) 56.71 35.30 8,264 2,425 219 10,426 3,819 1,234 826 Mar-12 Dec-11 3,841 1,396 1,149 2.7x 8.5x 2.7x 7.5x Number of Companies 3 Median: (2.3%) (15.5%) Total $39,410 $13,856 $18,493 $18,673 2.3x 8.5x 2.3x 8.0x Mean: (2.5%) (13.4%) $13,856 2.3x 8.7x 2.3x 7.8x

Medical Devices and Products Abbott Laboratories $62.06 $55.26 $52.66 13.9% 19.3% $62.57 $46.29 $97,580 $16,647 $4,346 $104,984 $39,267 $11,435 $8,393 Mar-12 Dec-11 $39,955 $12,474 $9,772 2.7x 9.0x 2.6x 8.4x ArthroCare Corporation 24.96 31.26 33.42 (19.4%) (29.4%) 35.82 23.54 690 0 162 548 360 22 (2) Mar-12 Dec-11 361 95 68 1.5x 25.8x 1.5x 5.8x Baxter International Inc. 55.41 56.80 58.92 0.2% (2.6%) 62.50 47.55 30,826 5,216 2,272 33,359 13,997 3,852 3,165 Mar-12 Dec-11 14,252 4,039 3,315 2.4x 8.6x 2.3x 8.3x Boston Scientific Corporation 6.26 5.95 7.71 4.5% (16.4%) 7.91 5.01 8,979 4,259 284 12,954 7,563 1,615 936 Mar-12 Dec-11 7,467 1,691 1,044 1.7x 7.9x 1.7x 7.7x CR Bard Inc. 98.96 92.31 107.36 7.4% (7.3%) 113.84 80.80 8,306 1,239 675 8,870 2,926 947 835 Mar-12 Dec-11 3,027 947 829 3.0x 9.4x 2.9x 9.4x Danaher Corp. 54.22 52.31 54.64 3.4% (1.8%) 56.45 39.34 37,561 4,926 1,043 41,512 17,115 3,730 2,997 Mar-12 Dec-11 18,583 4,054 3,262 2.4x 10.9x 2.2x 10.2x Hanger Orthopedic Group Inc. 23.55 22.05 27.13 22.3% (13.3%) 27.90 14.57 800 506 32 1,265 936 166 134 Mar-12 Dec-11 975 163 127 1.4x 7.8x 1.3x 7.8x Hologic Inc. 19.12 20.92 22.46 (0.4%) (13.2%) 23.24 13.90 5,043 1,527 855 5,715 1,862 619 310 Mar-12 Sep-11 1,921 702 597 3.1x 9.2x 3.0x 8.1x Hospira Inc. 35.12 34.11 56.77 1.2% (38.1%) 57.25 26.92 5,794 1,779 656 6,945 4,021 621 377 Mar-12 Dec-11 4,006 714 503 1.7x 8.6x 1.7x 9.7x Johnson & Johnson 65.10 64.89 65.63 (0.9%) (0.9%) 68.05 59.08 178,721 19,449 30,267 166,087 64,996 19,379 16,203 Apr-12 Jan-12 67,036 21,139 17,750 2.6x 8.6x 2.5x 7.9x Medtronic, Inc. 38.20 39.93 42.24 (1.7%) (8.5%) 43.33 30.18 39,751 10,263 1,190 47,669 16,479 5,528 4,653 Jan-12 Apr-11 16,289 6,113 5,217 2.9x 8.6x 2.9x 7.8x Stryker Corp. 54.57 53.96 60.11 (0.8%) (7.5%) 64.61 43.73 20,788 1,774 690 19,265 8,453 2,491 2,002 Mar-12 Dec-11 8,709 2,589 2,123 2.3x 7.7x 2.2x 7.4x Thermo Fisher Scientific, Inc. 55.65 56.07 60.77 6.1% (7.2%) 65.86 43.06 20,439 6,675 788 26,322 12,105 2,439 1,517 Mar-12 Dec-11 12,411 2,732 2,332 2.2x 10.8x 2.1x 9.6x Zimmer Holdings, Inc. 62.93 61.03 67.94 3.2% (3.6%) 69.93 47.00 11,151 1,717 674 11,639 4,477 1,484 1,114 Mar-12 Dec-11 4,534 1,664 1,330 2.6x 7.8x 2.6x 7.0x Number of Companies 14 Median: 2.2% (7.4%) Total $466,429 $34,795 $194,556 $199,525 2.4x 8.6x 2.3x 8.0x Mean: 2.8% (9.3%) $34,795 2.3x 10.1x 2.3x 8.2x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $37.21 $38.97 $42.22 (4.1%) (8.4%) $43.47 $34.33 $9,594 $1,882 $2,327 $9,149 $81,001 $1,388 $1,254 Mar-12 Sep-11 $80,956 $1,413 $1,283 0.1x 6.6x 0.1x 6.5x Cardinal Health, Inc. 42.27 42.13 45.30 (0.8%) (3.3%) 47.06 37.53 14,612 2,553 2,410 15,063 107,551 2,059 1,746 Mar-12 Jun-11 107,738 2,143 1,847 0.1x 7.4x 0.1x 7.0x Henry Schein, Inc. 76.74 71.27 72.96 8.2% 5.0% 77.72 58.50 6,925 481 102 7,622 8,682 721 603 Mar-12 Dec-11 8,803 726 609 0.9x 10.7x 0.9x 10.5x McKesson Corporation 91.41 82.19 84.74 16.2% 10.1% 92.69 66.61 22,496 3,980 3,149 23,327 122,734 2,880 2,329 Mar-12 Mar-12 122,972 3,211 2,742 0.2x 8.1x 0.2x 7.3x Owens & Minor Inc. 29.24 29.85 34.59 (3.8%) (15.1%) 35.71 25.87 1,858 212 214 1,857 8,722 248 214 Mar-12 Dec-11 9,035 261 228 0.2x 7.5x 0.2x 7.1x Patterson Companies Inc. 34.09 32.09 35.54 6.8% (1.8%) 36.93 26.19 3,783 850 538 4,095 3,483 400 359 Jan-12 Apr-11 3,514 401 359 1.2x 10.2x 1.2x 10.2x PSS World Medical Inc. 23.93 24.28 28.83 (1.6%) (16.8%) 29.47 18.51 1,227 319 32 1,517 2,113 171 136 Dec-11 Apr-11 2,119 171 136 0.7x 8.9x 0.7x 8.9x Number of Companies 7 Median: (0.8%) (3.3%) Total $60,495 $8,947 $334,285 $335,138 0.2x 8.1x 0.2x 7.3x Mean: 3.0% (4.3%) $8,947 0.5x 8.5x 0.5x 8.2x

As of April 30, 2012 9 Healthcare & Life Sciences Trading Statistics May 2012

Provider-Based Services

Stock Price Total Ent. Lastest Twelve Months Equity Mkt. Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples (5) TEV/ Fwd Multiples Company Name Change in Stock % Change 52 Week Total Debt Value (LTM) Value Equiv. Period (3) FYE Date(3) 4/30/2012 3 mos.Price12 mos. 3 mos. 12 mos. High Low (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $24.34 $20.03 $30.90 28.9% (20.8%) $31.55 $14.61 $2,169 $9,557 $129 $12,021 $14,056 $1,867 $1,203 Mar-12 Dec-11 $13,825 $1,915 $1,180 0.9x 6.3x 0.9x 6.3x Health Management Associates Inc. 7.20 6.84 11.62 12.5% (36.2%) 11.74 4.81 1,846 3,715 8 5,271 6,064 866 576 Mar-12 Dec-11 6,475 964 648 0.9x 6.1x 0.8x 5.5x HCA Holdings, Inc. 26.92 27.83 34.59 8.3% (17.9%) 35.37 17.03 11,796 27,902 471 40,038 33,650 6,155 4,631 Mar-12 Dec-11 35,386 6,392 4,779 1.2x 6.5x 1.1x 6.3x Lifepoint Hospitals Inc. 39.02 41.16 43.27 (3.3%) (6.2%) 43.45 28.95 1,903 1,603 116 3,431 3,654 549 358 Mar-12 Dec-11 3,694 557 372 0.9x 6.2x 0.9x 6.2x Tenet Healthcare Corp. 5.19 5.72 6.63 (2.6%) (25.1%) 6.74 3.46 2,142 4,583 104 6,808 9,646 1,083 667 Mar-12 Dec-11 9,797 1,238 811 0.7x 5.9x 0.7x 5.5x Universal Health Services Inc. 42.71 42.40 56.41 3.6% (22.0%) 56.46 31.35 4,145 0 0 7,968 0 0 0 Mar-12 Dec-11 7,632 1,243 942 1.1x 6.6x 1.0x 6.4x Number of Companies 6 Median: 6.0% (21.4%) Total $24,001 $12,590 $67,070 $76,810 0.9x 6.3x 0.9x 6.2x Mean: 7.9% (21.4%) $12,590 0.9x 6.3x 0.9x 6.0x

Assisted Living Assisted Living Concepts Inc. $17.91 $16.34 $18.29 13.9% (0.7%) $18.58 $11.16 $415 $88 $3 $499 $234 $66 $44 Dec-11 Dec-11 $241 $71 $48 2.1x 7.5x 2.1x 7.0x Brookdale Senior Living Inc. 19.01 $18.50 $26.85 6.4% (30.2%) 27.38 10.98 2,303 2,466 42 4,738 2,341 382 122 Mar-12 Dec-11 2,540 407 155 2.1x 12.2x 1.9x 11.6x Capital Senior Living Corp. 9.69 $8.56 $9.40 21.9% 4.5% 10.10 5.44 262 280 18 473 271 39 18 Mar-12 Dec-11 304 54 28 1.8x 13.0x 1.6x 8.8x Emeritus Corp. 17.20 18.43 23.45 (1.3%) (29.8%) 24.72 13.36 775 2,231 50 2,970 1,278 209 75 Mar-12 Dec-11 1,315 235 101 2.4x 15.0x 2.3x 12.6x Five Star Quality Care Inc. 3.43 3.50 8.25 (2.0%) (59.1%) 8.44 2.15 164 115 27 243 1,276 41 17 Mar-12 Dec-11 1,381 45 14 0.2x 6.1x 0.2x 5.4x Skilled Healthcare Group, Inc. 7.67 6.06 13.16 33.2% (36.7%) 13.95 3.30 295 476 10 754 867 118 93 Mar-12 Dec-11 873 113 86 0.9x 5.8x 0.9x 6.7x Sunrise Senior Living Inc. 6.28 7.77 10.55 (14.1%) (39.5%) 10.65 3.68 358 758 47 928 624 58 18 Mar-12 Dec-11 1,354 74 NA 1.6x 24.8x 0.7x 12.6x Number of Companies 7 Median: 6.4% (30.2%) Total $4,572 $1,515 $6,891 $8,007 1.8x 12.2x 1.6x 8.8x Mean: 8.3% (27.4%) $1,515 1.6x 12.1x 1.4x 9.3x

Diagnostic Imaging Alliance Healthcare Services, Inc. $1.37 $1.37 $4.40 21.2% (69.0%) $4.45 $0.93 $70 $642 $60 $719 $496 $144 $34 Mar-12 Dec-11 $480 $132 $28 1.5x 4.9x 1.5x 5.4x RadNet, Inc. 3.09 2.39 4.21 26.1% (15.6%) 5.19 1.87 118 557 2 675 644 110 52 Mar-12 Dec-11 690 124 58 1.1x 6.0x 1.0x 5.5x Varian Medical Systems Inc. 63.42 64.73 71.16 (3.3%) (9.7%) 71.95 48.72 7,166 162 617 6,679 2,714 628 573 Mar-12 Sep-11 2,846 652 600 2.5x 10.6x 2.3x 10.2x Number of Companies 3 Median: 21.2% (15.6%) Total $7,354 $2,691 $3,854 $4,016 1.5x 6.0x 1.5x 5.5x Mean: 14.7% (31.4%) $2,691 1.7x 7.2x 1.6x 7.0x

Dialysis Services DaVita Inc. $88.58 $83.97 $85.44 8.8% 0.6% $90.42 $59.14 $8,327 $4,515 $449 $13,049 $7,298 $1,533 $1,252 Mar-12 Dec-11 $7,685 $1,602 $1,319 1.9x 9.0x 1.7x 8.1x Fresenius Medical Care AG & Co. KGAA 71.17 72.15 73.45 (0.0%) (9.5%) 75.48 56.51 21,593 8,806 580 29,180 13,060 2,675 2,110 Mar-12 Dec-11 14,162 2,961 2,384 2.2x 10.9x 2.1x 9.9x Number of Companies 2 Median: 4.4% (4.5%) Total $29,920 $21,114 $20,358 $21,847 2.1x 10.0x 1.9x 9.0x Mean: 4.4% (4.5%) $21,114 2.1x 10.0x 1.9x 9.0x

Home Care / Hospice Addus HomeCare Corporation $4.62 $3.75 $6.01 26.6% (22.9%) $6.38 $3.00 $50 $32 $1 $79 $274 $14 $10 Mar-12 Dec-11 $276 $16 $12 0.3x 5.3x 0.3x 5.1x Almost Family Inc. 24.38 19.50 33.29 32.7% (29.7%) 34.67 12.50 227 2 37 196 347 36 33 Mar-12 Dec-11 361 33 30 0.6x 5.2x 0.5x 5.9x Amedisys Inc. 14.73 11.33 33.41 42.6% (55.8%) 34.42 9.12 453 137 41 552 1,482 133 94 Mar-12 Dec-11 1,487 101 59 0.4x 3.6x 0.4x 5.4x Gentiva Health Services Inc. 8.28 7.36 25.91 15.0% (70.4%) 28.21 2.81 256 938 73 1,082 1,783 180 151 Mar-12 Dec-11 1,755 175 145 0.6x 4.0x 0.6x 6.2x LHC Group, Inc. 17.71 15.34 28.12 20.5% (40.2%) 30.54 12.34 336 14 0 385 631 69 61 Mar-12 Dec-11 649 62 58 0.6x 5.6x 0.6x 6.2x Lincare Holdings Inc. 24.40 25.47 30.97 (5.4%) (22.3%) 31.79 19.65 2,061 727 29 2,719 1,917 459 330 Mar-12 Dec-11 2,040 495 362 1.4x 5.9x 1.3x 5.5x Chemed Corp. 60.34 57.44 72.02 6.8% (13.3%) 72.25 47.66 1,160 169 34 1,295 1,378 182 158 Mar-12 Dec-11 1,436 204 168 0.9x 7.1x 0.9x 6.3x Number of Companies 7 Median: 20.5% (29.7%) Total $4,543 $901 $7,812 $8,005 0.6x 5.3x 0.6x 5.9x Mean: 19.8% (36.4%) $901 0.7x 5.3x 0.7x 5.8x

Long-Term Care The Ensign Group, Inc. $26.71 $26.48 $28.08 2.5% (3.4%) $32.67 $19.61 $585 $205 $33 $746 $777 $116 $90 Mar-12 Dec-11 $842 $125 $99 1.0x 6.5x 0.9x 6.0x Kindred Healthcare Inc. 9.64 12.28 24.86 (24.8%) (61.8%) 26.15 7.60 503 1,658 40 1,975 5,909 388 206 Mar-12 Dec-11 6,299 444 239 0.4x 5.6x 0.3x 4.5x National Healthcare Corp. 45.60 46.07 47.27 1.6% (1.9%) 53.08 29.97 631 10 60 666 752 96 67 Mar-12 Dec-11 747 NA NA 0.9x 5.7x 0.9x NA Sun Healthcare Group, Inc. 7.23 4.49 11.34 61.0% (38.7%) 12.23 2.06 182 89 45 216 1,923 80 49 Mar-12 Dec-11 1,913 76 40 0.1x 2.3x 0.1x 2.8x Number of Companies 4 Median: 2.0% (21.1%) Total $1,901 $901 $9,361 $9,802 0.6x 5.6x 0.6x 4.5x Mean: 10.1% (26.4%) $901 0.6x 5.0x 0.6x 4.4x

As of April 30, 2012 10 Healthcare & Life Sciences Trading Statistics May 2012

Provider-Based Services

Specialty: Integramed America Inc. $12.39 $9.32 $10.23 35.4% 22.9% $13.50 $6.70 $149 $10 $57 $102 $280 $19 $10 Mar-12 Dec-11 $302 $22 $12 0.4x 5.6x 0.3x 4.7x MEDNAX, Inc. 70.24 72.78 74.47 (1.4%) (1.0%) 75.86 58.48 3,368 84 22 3,375 1,629 386 359 Mar-12 Dec-11 1,778 431 402 2.1x 8.9x 1.9x 7.8x Number of Companies 2 Median: 17.0% 11.0% Total $3,517 $1,738 $1,909 $2,080 1.2x 7.3x 1.1x 6.3x Mean: 17.0% 11.0% $1,738 1.2x 7.3x 1.1x 6.3x

Dental: Birner Dental Management Services Inc. $16.36 $17.75 $19.43 (0.8%) (15.5%) $21.99 $14.75 $31 $5 $1 $34 $62 $4 $2 Mar-12 Dec-11 NA NA NA 0.5x 7.6x NA NA Number of Companies 1 Median: (0.8%) (15.5%) Total $31 $34 $62 $0 0.5x 7.6x NA NA Mean: (0.8%) (15.5%) $34 0.5x 7.6x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $44.28 $48.71 $51.21 (9.6%) (14.9%) $56.76 $41.10 $1,209 $0 $172 $1,007 $2,880 $203 $173 Mar-12 Dec-11 $3,281 $241 $176 0.3x 4.9x 0.3x 4.2x Providence Service Corp. 14.06 15.22 15.09 (6.1%) (4.6%) 15.94 8.35 183 148 47 297 975 44 30 Mar-12 Dec-11 1,035 50 35 0.3x 5.9x 0.3x 6.0x Universal Health Services Inc. 42.71 42.40 56.41 3.6% (22.0%) 56.46 31.35 4,145 3,584 42 7,968 7,567 1,204 906 Mar-12 Dec-11 7,632 1,243 942 1.1x 6.6x 1.0x 6.4x Number of Companies 3 Median: (6.1%) (14.9%) Total $5,538 $2,318 $11,422 $11,948 0.3x 5.4x 0.3x 6.0x Mean: (4.0%) (13.8%) $2,318 0.4x 4.4x 0.5x 5.5x

Surgicenters / Rehabilitation Surgery Centers: AmSurg Corp. $28.76 $26.38 $26.85 11.4% 7.1% $29.78 $19.08 $907 $448 $44 $1,621 $839 $288 $260 Mar-12 Dec-11 $923 $312 $284 1.9x 5.6x 1.8x 5.2x Number of Companies 1 Median: 11.4% 7.1% Total $907 $1,621 $839 $923 1.9x 5.6x 1.8x 5.2x Mean: 11.4% 7.1% $1,621 1.9x 5.6x 1.8x 5.2x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $22.39 $18.85 $27.54 14.9% (12.6%) $28.50 $13.65 $2,140 $1,246 $44 $3,792 $2,060 $470 $391 Mar-12 Dec-11 $2,131 $488 $409 1.8x 7.9x 1.8x 7.8x Select Medical Holdings Corporation 8.57 8.40 8.81 3.9% (3.9%) 9.66 5.48 1,226 1,433 9 2,660 2,855 385 315 Mar-12 Dec-11 2,904 401 322 0.9x 6.9x 0.9x 6.6x US Physical Therapy Inc. 24.38 20.26 24.69 19.6% 0.1% 26.23 16.58 287 25 10 316 243 43 37 Mar-12 Dec-11 250 39 40 1.3x 7.6x 1.3x 8.0x Number of Companies 3 Median: 14.9% (3.9%) Total $3,653 $2,256 $5,158 $5,285 1.3x 7.6x 1.3x 7.8x Mean: 12.8% (5.5%) $2,256 1.4x 7.5x 1.3x 7.5x

As of April 30, 2012 11 M&A Detail May 2012

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 4/30/2012 Columbus Oncology & Hematology Associates, - The Mark H. Zangmeister Cancer - - - - No Healthcare & Inc. Center 4/30/2012 Gen-Probe Inc. (NasdaqGS:GPRO) Kleiner, Perkins, Caufield & Byers; Hologic Inc. (NasdaqGS:HOLX) $3,868.8 6.6x 21.2x 27.9x No Life Sciences Wellington Management Company M&A LLP; BAMCO Inc. 4/30/2012 Triax Pharmaceuticals, LLC Clearlake Capital Group, LLC Onset Dermatologics LLC - - - - No 4/30/2012 Medcenter One, Inc. - Sanford Health of Northern Minnesota - - - - No

4/30/2012 BioSeek, Inc. Asterand Plc (LSE:ATD) - - - - - No 4/29/2012 Hemerus Medical, LLC - Haemonetics Corp. (NYSE:HAE) $27.0 - - - No 4/27/2012 Durango Cancer Center PC and Southwest - Mercy Regional Medical Center - - - - No Oncology PC 4/26/2012 SIGMA, LLC Lovett Miller & Co. Baxter International Inc. (NYSE:BAX) $150.0 - - - No 4/26/2012 EUSA Pharma, Inc. 3i Group plc (LSE:III); Advent Jazz Pharmaceuticals plc $700.0 - - - Yes Venture Partners; Essex Woodlands (NasdaqGS:JAZZ) Health Ventures; Goldman Sachs 4/25/2012 Matrix Management Solutions LLC - Quality Systems Inc. - - - - No (NasdaqGS:QSII) 4/25/2012 Mid Michigan Orthopedics, PC - Memorial Healthcare - - - - No 4/24/2012 Smart Solutions Health Care Group - WeiserMazars LLP - - - - No 4/24/2012 Regional Toxicology Services, L.L.C. - Waud Capital Partners, L.L.C. - - - - Yes 4/24/2012 DecisionView, Inc. Granite Ventures, LLC; Adobe IMS Health Incorporated - - - - No Ventures; Aeris Capital AG 4/24/2012 BREG, Inc. Orthofix Holdings, Inc. Water Street Healthcare Partners $157.5 - - - Yes 4/24/2012 Creighton University Medical Center, Inc. Amisub (Saint Joseph Hospital), Inc.; Alegent Health - - - - No Creighton Health Care, Inc. 4/23/2012 Ardea Biosciences, Inc. (NasdaqGS:RDEA) Wellington Management Company AstraZeneca PLC (LSE:AZN) $1,080.9 148.0x - - No LLP; Prudential Investments LLC 4/23/2012 Nabi Biopharmaceuticals (NasdaqGS:NABI) Renaissance Technologies Corp.; Biota Holdings Ltd. (ASX:BTA) - - - - No RRH Capital Management Inc.; 683 Capital Management, LLC 4/23/2012 Pfizer Nutrition Inc. Pfizer Inc. (NYSE:PFE) Nestlé S.A. (SWX:NESN) $11,850.0 5.6x 23.7x - No 4/23/2012 ALARIS Medical Systems, Inc. And CareFusion Corporation Natus Medical Inc. $58.0 0.6x - - No CareFusion 2200, Inc. (NYSE:CFN) (NasdaqGS:BABY) 4/23/2012 Teaneck Anesthesia Group, P.A. and Bergen - Team Health Holdings, Inc. - - - - No Anesthesia Associates, P.A. (NYSE:TMH) 4/23/2012 Ascentia Health Care Solutions, LLC - Healthways Inc. (NasdaqGS:HWAY) - - - - No 4/23/2012 Prestige Laboratory, LLC - US Clinical Laboratories, LLC - - - - No 4/23/2012 St. Joseph's Mercy Health Center, Inc. Sisters Of Mercy Health System, Inc. Capella Healthcare, Inc. - - - - No 4/22/2012 Diabetes Specialty Centre - Byram Healthcare Centers, Inc. $16.0 0.6x - - No 4/20/2012 Biolex Therapeutics, Inc., LEX SystemSM and Biolex Therapeutics, Inc. Synthon Holding B.V. - - - - No Two Biological Drug Candidates 4/20/2012 XenneX, Inc. - LifeMap Sciences, Inc. - - - - No 4/19/2012 Central Arkansas Radiation Therapy Institute, Central Arkansas Radiation Therapy University of Arkansas for Medical $9.5 - - - No Inc., CARTI/UAMS Facility Institute, Inc. Sciences 4/19/2012 The Westerly Hospital - Westerly Hospital Holdco, LLC. - - - - No 4/19/2012 BlueLibris, LLC - Numera, Inc. - - - - No 4/18/2012 Catalyst Health Solutions, Inc. Principal Global Investors, LLC; SXC Health Solutions, Inc. $4,326.3 0.8x 20.9x 26.6x No (NasdaqGS:CHSI) Fidelity Management & Research Company 4/18/2012 CareSource Michigan CareSource Management Group, Co. McLaren Health Plan, Inc. $27.0 - - - No Inc. 4/17/2012 Cardiovascular Consultants Of Nevada, LLP - Cardiovascular Consultants Of - - - - No Nevada HealthCare Partners Cardiology 4/17/2012 Soulstis Med Spa - The Cascade Medspa and Laser - - - - No Centre 4/17/2012 Community Intervention Services, Inc. - H.I.G. Growth Partners, LLC - - - - Yes 4/17/2012 Dixie Elixirs, LLC Dixie Holdings, LLC Medical Marijuana, Inc. - - - - No (OTCPK:MJNA)

4/16/2012 Eli Lilly & Co., Worldwide License to Develop Eli Lilly & Co. (NYSE:LLY) Vanda Pharmaceuticals, Inc. $100.0 - - - No and Commercialize VLY-686 (NasdaqGM:VNDA) 4/16/2012 Mount Auburn, Inc. - Home Health International Inc. - - - - No (OTCPK:HHII) 4/16/2012 Sunridge International, Inc., Substantially All Sunridge International, Inc. Westhouse Medical Services Plc $2.0 - - - No Assets (OTCPK:SNDZ) (DB:5WM) 4/14/2012 FusionSleep Atlanta North - FusionHealth LLC - - - - No 4/13/2012 Alliance Medical Group Inc. - University HealthCare Alliance - - - - No 4/13/2012 Alameda Family Physicians Medical Group, Inc. - University HealthCare Alliance - - - - No 4/12/2012 PhytoSPHERE Systems, LLC CannaBank Inc. Medical Marijuana, Inc. - - - - No (OTCPK:MJNA) 4/12/2012 PharmaSphere, LLC, License for the use of PharmaSphere, LLC PhytoSPHERE Systems, LLC - - - - No TerraSphere Systems 12 M&A Detail May 2012

Enterprise Enterprise Value / LTM Private Equity Announced U.S. Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement Healthcare & 4/12/2012 Pedinol Pharmacal, Inc. - Valeant Pharmaceuticals International, - - - - No Inc. (TSX:VRX) Life Sciences 4/12/2012 Pervasis Therapeutics, Inc. Highland Capital Partners; Polaris Shire plc (LSE:SHP) - - - - Yes Venture Partners, Inc. M&A 4/12/2012 Santa Barbara Medical Innovations, LLC - Primcogent Solutions - - - - No 4/11/2012 URL Pharma, Inc. Elliott Management Corporation; Takeda Pharmaceuticals U.S.A., Inc. $800.0 1.3x - - No (Continued) Momar Corporation 4/10/2012 eResearchTechnology, Inc. (NasdaqGS:ERT) Blum Capital Partners Genstar Capital, LLC $376.7 2.0x 9.2x 19.3x Yes 4/10/2012 Discovery Labware Inc. Becton, Dickinson and Company Corning Inc. (NYSE:GLW) $730.0 2.3x - - No (NYSE:BDX) 4/10/2012 CodeRyte, Inc. Cardinal Partners; Polaris Venture 3M Co. (NYSE:MMM) - - - - Yes Partners, Inc.; SVB Capital 4/10/2012 Collier's Sterilizer Sales and Service Co., Inc. ------No 4/10/2012 KAI Pharmaceuticals, Inc. Intersouth Partners; InterWest Amgen Inc. (NasdaqGS:AMGN) $315.0 - - - Yes Partners; Skyline Ventures; Investor Growth Capital 4/10/2012 MasterCare DENTS - The Guardian Life Insurance - - - - No Company of America 4/9/2012 CornerStone Research & Development, Inc. Mitsui & Co. (U.S.A.), Inc. Sun Capital Partners, Inc. - - - - Yes 4/9/2012 Cook General BioTechnology LLC - Cook Group Incorporated - - - - No 4/9/2012 Lakewood Ranch Oncology Center LLC - Radiation Therapy Services Holdings, $26.0 - - - No Inc. 4/9/2012 Evans Memorial Hospital, Inc., Glenview Health Evans Memorial Hospital, Inc. AdCare Property Holdings, LLC $8.2 - - - No & Rehabilitation 4/5/2012 Allos Therapeutics, Inc. (NasdaqGS:ALTH) Calvert Investment Management, Spectrum Pharmaceuticals, Inc. $108.7 1.4x - - Yes Inc.; Warburg Pincus LLC; Perseus, (NasdaqGS:SPPI) L.L.C. 4/5/2012 Farhouch Berdjis MD Medical Corp - Pediatrix Medical Group, Inc.(Florida) - - - - No 4/5/2012 Burlington Anesthesia PLLC - American Anesthesiology, Inc. - - - - No 4/5/2012 CompuData, Inc. - Advantedge Healthcare Solutions, Inc. - - - - No

4/5/2012 Unity Health Center, Inc. Community Health Partners, Inc. SSM Health Care Of Oklahoma - - - - No 4/5/2012 Current Solutions, LLC Advantage Capital Partners Roscoe Medical, Inc. - - - - No 4/4/2012 Whispering Oaks Assisted Living Facility, 450 - First Business Bank - - - - No E. Franklin Street 4/4/2012 da Vinci Dental Studios, Inc. ------No 4/4/2012 SeqWright, Inc. BioWright Holdings, Inc. GE Healthcare Ltd. - - - - No 4/4/2012 New England Sinai Hospital Inc. - Steward Health Care System, LLC - - - - No 4/3/2012 Accutome, Inc. - Halma plc (LSE:HLMA) $25.0 1.2x - 12.5x No 4/3/2012 Merge Healthcare Solutions Inc., Health Merge Healthcare Solutions Inc Higi LLC $2.8 - - - No Information Kiosks 4/3/2012 DePuy Orthopaedics Inc., Worldwide Trauma DePuy Orthopaedics Inc. Biomet Inc. $280.0 - - - No Business 4/3/2012 Zion's Way Home Health, Inc. - The Ensign Group, Inc. - - - - No (NasdaqGS:ENSG) 4/3/2012 Pennsylvania Subacute Portfolio - Sabra Health Care REIT, Inc. $29.9 8.8x - - No (NasdaqGS:SBRA) 4/2/2012 Mercy Medical, A Corporation, Four Baldwin Mercy Medical, A Corporation The Covenant Group, Inc.; Legend - - - - No Retirement Facilities Retirement Corp. 4/2/2012 PinnacleHealth Medical Group, Inc. - Pinnacle Health System - - - - No 4/2/2012 GlobalNet Solutions, Inc. - Medical Transcription Billing, Corp. - - - - No 4/2/2012 BioSoteria, Inc. - Dohmen Investment Group, LLC - - - - No 4/2/2012 Five Senior Living Communities in Texas and - Capital Senior Living Corp. $49.4 - - - No Indiana (NYSE:CSU) 4/2/2012 Newport Laboratories, Inc. - Merial Limited - - - - No 4/2/2012 Research Organics, Inc. - Sigma-Aldrich Corporation - - - - No (NasdaqGS:SIAL) 4/2/2012 Fresenius Medical Care Holdings Inc., 54 Fresenius Medical Care Holdings Golub Capital; DSI Renal, Inc. - - - - Yes Dialysis Clinics Inc. 4/2/2012 West Coast Radiology Center Inc. - RadNet, Inc. (NasdaqGM:RDNT) - - - - No 4/2/2012 Custom Holdings, LLC - ATG Rehab Inc. - - - - No 4/2/2012 MED-STAFF Oklahoma, LLC - Accountable Healthcare Holdings - - - - No Corp. 4/2/2012 iMed Cost Containment Solution LLC - Health Systems International, LLC - - - - No 4/2/2012 Chapman & Associates, Bill Review Clients Chapman & Associates, R.L.L.P. Health Systems International, LLC - - - - No Contacts Turner Bredrup Todd Morris Cheairs Porter James Clark Managing Director Managing Director Managing Director Managing Director [email protected] [email protected] [email protected] [email protected] +1 (804) 915-0110 +1 (415) 217-3412 +1 (804) 915-0130 +1 (804) 915-0119 Geoff Smith Andy Dixon Whit Knier Director Vice President Vice President [email protected] [email protected] [email protected] +1 (804) 915-0195 +1 (415) 217-3419 +1 (804) 932-1321 13 1001 Haxall Point Sources: 9th Floor Capital IQ. Richmond, VA 23219 Thomson Financial. Phone: +1 (804) 648-0072 S&P. Fax: +1 (804) 648-0073 Reuters. Bloomberg. Irving Levin Associates. 575 Market Street 31st Floor Harris Williams & Co. is a preeminent middle market investment bank focused on the advisory needs of clients San Francisco, CA 94105 Phone: +1 (415) 288-4260 worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to Fax: +1 (415) 288-4269 excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

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