SCOTT-MACON HEALTHCARE REVIEW: THIRD QUARTER 2010

Third Quarter 2010 Healthcare Review

Healthcare Overview, Mean Revenue Multiples

Healthcare Overview, Mean EBITDA Multiples

E
Analysis of Selected Healthcare Merger and Acquisition Transactions July 1 September 30, 2010 Analysis of Selected Publicly-Traded Healthcare Companies

17

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SCOTT-MACON, LTD.

THIRD QUARTER 2010 H E A LT H C A R E R E V I E W

Dear Clients and Friends, Scott-Macon is pleased to present our quarterly Healthcare Review covering the third quarter of 2010. Pages four and five represent a visual snapshot of the average multiples for all of the healthcare, medical and pharmaceutical transactions that either closed or were announced during the third quarter, along with the average multiples for the major publicly-traded healthcare, medical and pharmaceutical companies. Starting on page 6, we present information on the quarters mergers and acquisitions activity. In the Services segment, we can see a continuing trend of public companies re-emerging in the M&A market. The largest deal to close this quarter in the Services segment was the eye-popping $3.1 billion acquisition of MultiPlan, Inc. by BC Partners and Silver Lake Partners. The Preferred Provider Organization was purchased from Welsh, Carson, Anderson & Stowe and The Carlyle Group. This deal came quickly after MultiPlan completed its acquisition of Viant in the first quarter of this year. MultiPlans national network of medical providers includes over 5,000 hospitals, 115,000 ancillary care facilities and 625,000 healthcare practitioners. Another large deal of note, following up from last quarter in the Services segment, was the completion of the Allscripts-Misys stock merger
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with Eclipsys valued at $1.2 billion, representing 2.3 times Eclipsys revenues and 21.6 times its EBITDA. UnitedHealths Ingenix information technology operation closed or announced four deals last quarter, continuing its aggressive acquisition strategy involving both software and services for the provider community. Private equity investors were very much in evidence during the quarter as well. In addition to the MultiPlan deal, where both buyer and seller were private equity firms, no less than nine more Services deals involved private equity buyers. The two domestic deals with disclosed values aside from MultiPlan were Vestars $257 million acquisition of Health Grades, and Providence Equitys $241 million takeover of Virtual Radiologic. The insurance segment last quarter saw just three transactions, all with a government-payor focus, due to the continuing uncertainties created in the commercial market by the new PPACA regulations. Turning to Providers starting on page 8, we can further see that the number of deals initiated by publicly-traded companies becomes more evident. The largest deal in this sector was completed by publiclytraded Gentiva Health Services in the takeover of another publicly-traded company Odyssey Healthcare,

Inc. in an all cash transaction for a price of $27 per share. This represents 1.3 times Odysseys revenues and 10.5 times its EBITDA. The combination of Gentiva and Odyssey creates the largest U.S. healthcare provider of home health and hospice services based on revenue. Annualized pro forma revenues of the combined companies for the twelve months ended July 4, 2010 exceeded $1.9 billion. In the Products areas beginning on page 11, continuing the trend of the last several quarters, there was an array of megadeal activity primarily involving publicly-traded targets. The largest deal of the quarter was in the Biotech sector with Sanofi-Aventis SAs attempted hostile takeover of Genzyme Corp. Sanofis bid was for $69 per share providing an enterprise value of $16.6 billion, representing 3.9 times Genzymes revenues and 32.9 times its EBITDA. Genzyme's CEO has acknowledged that he might be open to selling the company if the price were higher and recently issued 2011 profit projections between $5.0 billion and $5.1 billion that are well above current Wall Street expectations. The other large deal in the Products segment was the completion of Mercks acquisition of Millipore Corp. The deal closed for $107 per share, providing for an enterprise value of $6.9 billion, representing 4.2 times Millipores revenues and 16.9 times its EBITDA. The combined company will have 10,000 employees in 64 countries with pro forma revenues of $2.9 billion for fiscal year 2009. Following the mergers and acquisitions analy-

sis, we present an analysis of publicly-traded Services, Providers, and Products companies by sector. Mean EBITDA multiples for Services companies ended the quarter at 9.3x (up from 8.6x in Q2 2010); Providers at 7.1x (down from 7.3x in Q2 2010); and Products at 9.9x (up from 9.2x in Q2 2010). Technology services companies ended the quarter at an average EBITDA multiple of 14.6 times, while Outsourcing services companies traded at 9.2 times EBITDA as of September 30. The Insurance segment EBITDA multiple

came in at 4.9 times. Finally, contact information for the ScottMacon Healthcare Group Professionals appears on the back cover. We welcome your call or email to discuss your thoughts on this article. Sincerely yours,

Nathan D. Cortright Managing Director Group Head Healthcare Investment Banking

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H E A LT H C A R E O V E R V I E W
M E A N R E V E N U E M U L T I P L E S
OVERALL: Revenue Multiple

3.6x 2.5x 1.4x 1.1x 1.1x 2.1x

Services

Providers

Products

SERVICES: Revenue Multiple

3.4x 2.6x 0.3x NA Technology Outsourcing 2.4x 1.3x 2.3x 1.9x NA India-Based Outsourcing Information 2.3x

Insurance

PROVIDERS: Revenue Multiple

2.5x 1.7x 0.8x Labs 1.3x 1.1x 1.2x 1.2x NA Home Health & Hospice Non-Acute Long-Term Care 0.8x 0.4x

Acute

PRODUCTS: Revenue Multiple

*5.6x 2.3x 1.8x NA Clinical Devices Non-Clinical Devices NA Disposables Commercial 2.0x 2.0x 2.2x

2.3x 1.8x 0.7x Consumer

*Not to scale

3.0x

2.8x

2.9x 0.6x NA

Pharmaceuticals
Public Companies

Biotech
M&A Transactions

Distribution

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H E A LT H C A R E O V E R V I E W
M E A N E B I T D A M U L T I P L E S
OVERALL: EBITDA Multiple
14.0x 9.3x 7.1x 9.8x 9.9x *23.0

Services

Providers

Products

SERVICES: EBITDA Multiple

14.6x 15.5x 9.2x 4.9x NA Insurance Technology Outsourcing NA India-Based Outsourcing Information 10.0x 11.7x 9.4x 15.1x

PROVIDERS: EBITDA Multiple

*27.3x 10.5x 8.2x 6.2x 6.7x 6.5x NA Labs Home Health & Hospice Non-Acute Long-Term Care Acute 8.9x 6.7x 7.6x

PRODUCTS: EBITDA Multiple

*32.7x 11.1x 11.2x 9.0x 10.0x *16.9x

NA Clinical Devices Non-Clinical Devices

NA Disposables Commercial

*18.2x 10.4x 9.0x 8.6x

*28.5x 8.5x

NA Consumer
*Not to scale

NA Pharmaceuticals
Public Companies

Biotech
M&A Transactions

Distribution

SCOTT-MACON, LTD.

ANALYSIS OF SELECTED HEALTHCARE MERGER & ACQUISITION TRANSACTIONS1 THIRD QUARTER (JULY 1 SEPTEMBER 30, 2010)
($ millions Except Per Share Data)
Acquirer/ Target Price Target Revenue Target EBITDA
2

Date

Price/ Revenue

Price/ EBITDA
2

Target Description

SERVICES - INSURANCE Announced Announced HealthSpring Inc. (NYSE:HS) / Bravo Health Inc. Centene Corp. (NYSE:CNC). / Citrus Health Care, Inc., Medicaid and Long-Term Care Diversion Assets Molina Healthcare Inc. (NYSE:MOH) / Abri Health Plan, Inc. $545.0 NA NA NA NA NA NA NA NA NA Provides managed care services. Comprises Medicaid services to 52,000 non-reform members and long-term care services to approximately 2,000 members. Operates as a managed Medicaid HMO for BadgerCare Plus and Medicaid SSI members in Wisconsin.

9/1/2010

$16.0

NA

NA

NA

NA

MEAN (INSURANCE) MEDIAN (INSURANCE) SERVICES - TECHNOLOGY 8/24/2010 9/1/2010 Allscripts Healthcare Solutions, Inc. (NasdaqGS:MDRX) / Eclipsys Corporation Availity, L.L.C. / RealMed Corporation Brightree, LLC / Computer Applications Unlimited, Inc. Call24, Inc. / Medearc Cegedim SA (ENXTPA:CGM) / Pulse Systems, Inc. CompuGroup Holding USA, Inc. / American Healthcare Holdings Inc. Covisint Corporation / DocSite, LLC Hyland Software, Inc. / Computer Systems Company, Inc. Ingenix, Inc. / A-Life Medical, Inc. Ingenix, Inc. / Axolotl Corporation $1,169.8 NA $517.4 NA $54.2 NA

NA NA

NA NA

2.3x NA

21.6x NA

Operates as a healthcare information technology company. Provides health care administration solutions that automate health care transactions and information exchange between providers, payers, and patients. Provides home medical equipment (HME) software solutions to HME providers. Provides physician recruitment software to simplify and automate the physician recruitment process for physician recruiters. Develops and sells information management solutions. Provides healthcare technology and services that connect patients, providers, payers, hospitals, and labs. Specializes in capturing, organizing, and analyzing clinical data. Provides image and information management software solutions. Provides natural language processing technologies and solutions to the healthcare industry. Provides Web-based tools and services to electronically create, exchange, and distribute clinical information for health care communities, physicians, hospitals, and healthcare systems. Provides healthcare information technology solutions. Develops electronic patient reported outcomes (ePRO) solutions for the life sciences industry. Provides digital displays and enhancements to companies that assist attorneys to prepare or enhance exhibits for trials involving medical issues. Designs and deploys solutions for the automated digitization of patient clinical forms to the healthcare industry. Offers orthopaedic picture archive and communications systems serving orthopaedic market. Engages in the development, marketing, implementation, and support of information systems for the health and social services sector. Provides integrated clinical research suite of enterprise-level software products, services, and hosted solutions worldwide. Operates as an information technology and service company which develops clinical information systems and diagnostic information systems for healthcare providers. Develops DICOM integration, connectivity, and recording technologies for medical imaging and communication applications. Develops Web-centric image management and workflow solutions for hospitals, clinics, imaging centers, and physician practices. Provides integrated information solutions for healthcare providers, groups, and networks. Operates as a health information technology and consulting company. Offers on demand claims processing solutions for the healthcare industry. Develops IT solutions to government customers. Develops and sells multimedia Web-based healthcare applications to patients, physicians, pharmacists, and other healthcare providers.

7/29/2010 8/10/2010

NA NA

NA NA

NA NA

NA NA

NA NA

7/27/2010 Announced 9/17/2010 9/24/2010 Announced Announced

$58.0 $65.0 $16.0 NA $74.4 $24.0

NA $28.0 NA NA $17.1 NA

NA $6.2 NA NA NA NA

NA 2.3x NA NA 4.3x NA

NA 10.4x NA NA NA NA

8/20/2010 9/1/2010 7/5/2010

Ingenix, Inc. / Picis, Inc. Management Buyout / CRF, Inc. Management Buyout / Medical Design Studios, Inc., Substantially All Assets MedLink International, Inc. (OTCBB:MLKN.A) / healthinformatics, llc Merge Healthcare Incorporated. (NasdaqGM:MRGE) / Stryker Imaging Corporation OMERS Private Equity / Logibec Groupe Informatique Ltee Oracle Corp. (NasdaqGS:ORCL) / Phase Forward Inc. Orion Healthcare Ventures / Aspyra Inc., Substantially All Assets PACSGEAR, Inc. / NAI Tech Products, Inc. RadNet, Inc. (NasdaqGM:RDNT) / eRAD Image Medical, Inc. Silk Information Systems Inc. / Medical Office Software, Inc. Smartronix, Inc. / Cogon Systems, LLC Tricom Infotech Solutions, Inc. / GTESS Corporation VSE Corp. (NasdaqGS:VSEC) / Akimeka LLC Winsonic Digital Media Group Ltd. (OTCPK:WDMG) / VIPMEDRx, Inc.

NA $21.3 NA

NA $25.6 NA

NA NA NA

NA 0.8x NA

NA NA NA

8/4/2010

$0.5

NA

NA

NA

NA

Announced 7/16/2010

NA $248.4

NA $70.5

NA $23.6

NA 3.5x

NA 10.5x

8/11/2010

$591.1

$221.6

$30.3

2.7x

19.5x

8/9/2010

NA

NA

NA

NA

NA

8/13/2010

NA

NA

NA

NA

NA

10/1/2010

$10.8

NA

NA

NA

NA

7/30/2010 8/11/2010 Announced 8/19/2010 8/20/2010

$1.5 NA NA $44.0 NA

NA NA NA $38.0 NA

NA NA NA NA NA

NA NA NA 1.2x NA

NA NA NA NA NA

MEAN (TECHNOLOGY) MEDIAN (TECHNOLOGY)

2.4x 2.3x

15.5x 15.0x

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Target Revenue Target EBITDA
2

Date

Acquirer/ Target

Price

Price/ Revenue

Price/ EBITDA
2

Target Description

SERVICES - OUTSOURCING 9/15/2010 9/1/2010 Announced 8/26/2010 Adreima / Hospital Inpatient Services, LLC AMN Healthcare Services Inc. (NYSE:AHS) / Medfinders, Inc. Avista Capital Holdings, L.P. / INC Research, Inc. BC Partners; Silver Lake Partners / MultiPlan, Inc. CarePayment Technologies, Inc. (OTCPK:CPYT) / Vitality Financial, Inc. Catholic Health Initiatives / Consolidated Health Services, Inc. Centene Corp. (NYSE:CNC) / Novasys Health, L.L.C. Coalition America, Inc. / OPN eHealth Services, Ltd. Fufeng Jinqiu Printing & Packaging Co., Ltd. / USA Therapy, Inc. Great Hill Partners, LLC; Primus / SterilMed, Inc. Highland Capital Management, L.P. / Medical Staffing Network Holdings Inc., Substantially All Assets Highlander Partners, L.P. & Others / Eagle Hospital Physicians LLC iMedX, Inc. / Med-Tech Transcriptions, Inc. Ingenix, Inc. / Executive Health Resources, Inc. IPC The Hospitalist Company, Inc. (NasdaqGS:IPCM) / Ann Arbor Inhospital Physicians, PLLC IPC The Hospitalist Company, Inc. (NasdaqGS:IPCM) / Austin Hospital Physicians, PA Keystone Peer Review Organization, Inc. / Preferred Physicians Healthcare Alliance, L.C. Lambda Therapeutic Research, Ltd. / Biovail Contract Research Management Buyout / MediStaff Corporation MedAssets, Inc. (NasdaqGS:MDAS) / The Broadlane Group, Inc. Medestar / Fidelis Partners, Inc. NCO Group Inc. / Health Blueprints, Inc. Ovation Benefits Group LLC / Health Navigators, LLC PracticeMax, Inc. / MediNomics, LLC Premier Healthcare Exchange, Inc. / Crossfire Technologies, LLC Prospect Partners, LLC / Navix Diagnostix, Inc. Providence Equity Partners LLC / Virtual Radiologic Corporation The Coding Source, LLC / Sinaiko Healthcare Consulting, Inc. The Lofton Corporation / Flex Med, Inc. Thomas H. Lee Partners, L.P. / Intermedix Corporation TRS Institute, LLC / A Line Above, LLC Virtual Radiologic Corporation / NightHawk Radiology Holdings, Inc. (NasdaqGM:NHWK) Vyteris Inc. (OTCBB:VYTR) / Medisync Bioservices Inc. NA $239.4 NA $3,100.0 NA $303.0 NA NA NA NA NA NA NA 0.8x NA NA NA NA NA NA Operates as a self-pay eligibility outsourcing company for hospitals. Provides health care staffing services. A therapeutically-focused contract research organization, conducts clinical development programs. An independent preferred provider organization (PPO) network, supplies network-based cost management solutions for healthcare payers and providers. Provides payment and receivables management services to medical providers and patients. Offers health care management and health care support services. A managed healthcare and health plan administration company. Provides comprehensive health management services. A developmental stage company, focuses on providing short term, long term, and temporary to permanent placements of qualified and licensed therapists. Provides reprocessing, repair, and refurbishment of medical devices, equipment, and instruments. Offers temporary healthcare staffing company services.

7/30/2010 10/1/2010 7/27/2010 7/29/2010 8/6/2010

NA NA NA NA NA

NA NA NA NA NM

NA NA NA NA NA

NA NA NA NA NA

NA NA NA NA NA

7/15/2010 Announced

NA NA

$100.0 NA

NA NA

NA NA

NA NA

8/17/2010 8/2/2010 Announced 7/29/2010 7/1/2010 8/31/2010

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

Develops and manages hospitalist programs to hospitals and payors. Provides medical and legal dictation/transcription services. Provides physician medical management solutions to hospitals and health systems. Offers healthcare services with an annualized volume of 11,000 patient encounters. Provides hospitalist services. Offers wellness and prevention, healthcare management, case management, and disease management programs through a network of physicians and hospitals. Provides contract research services for pharmaceutical, biotech, and drug delivery companies. A development stage medical staffing company that focuses on providing personnel staffing services. Provides margin control solutions for healthcare providers Provides healthcare recruitment and consulting services to healthcare systems, hospitals, physician groups, and academic institutions. Provides hospital revenue cycle consulting services for health care organizations. Develops employee healthcare plans and strategies for businesses and health care providers. Provides practice management services to independent physicians. Operates as an application service provider and a business process outsourcing (BPO) resource for managed healthcare organizations. Provides solutions for funding, operation, maintenance, and updating of diagnostic testing programs. Provides teleradiology services for hospitals, clinics, radiology practices, and diagnostic imaging centers. Operates as an independent healthcare management consulting company. Operates as a medical staffing agency that offers staffing of RNs, LPNs, CNAs, and respiratory therapists for healthcare facilities. Provides medical billing, transcription, and coding services focused on emergency departments. Provides digital transcription services for medical providers, hospitals, and physician practices. Provides professional services, business services, and clinical workflow technology to radiology groups and hospitals. Offers product development, clinical trial management, and data management services for the pharmaceutical, biotechnology and medical device industries.

7/23/2010 9/17/2010 Announced 9/30/2010

$6.0 $0.0 $850.0 NA

NA NA $167.6 NA

NA NA NA NA

NA NA 5.1x NA

NA NA NA NA

9/13/2010 9/10/2010 9/9/2010 9/1/2010

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

8/3/2010 7/12/2010 8/11/2010 7/7/2010

NA $241.1 $27.5 NA

NA $123.0 NA NA

NA $20.0 NA NA

NA 2.0x NA NA

NA 12.1x NA NA

8/23/2010 7/1/2010 Announced

NA NA $195.6

NA NA $157.4

NA NA $24.5

NA NA 1.2x

NA NA 8.0x

Announced

$8.1

$3.5

NA

2.3x

NA

MEAN (OUTSOURCING) MEDIAN (OUTSOURCING) SERVICES - INFORMATION 8/19/2010 Consumer Health Technologies, Inc. / MyHealthFunds, Inc. NA NA NA

2.3x 2.0x

10.0x 10.0x

NA

NA

Provides tools, education, and support to employers and employees to implement consumer directed healthcare programs.

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Target Revenue $27.9 Target EBITDA
2

Date Announced

Acquirer/ Target Ebix Inc. (NasdaqGS:EBIX) / ADAM Inc. (NasdaqGM:ADAM) MedMeme LLC / Medical Intelligence Solutions National Research Corp. (NasdaqGM:NRCI) / OCS, Inc. Vestar Capital Partners / Health Grades Inc. (NasdaqGS:HGRD) WebmasterWorld, Inc. / IVF Connections.com

Price $65.8

Price/ Revenue 2.4x

Price/ EBITDA
2

Target Description Provides online information and technology solutions for employers, benefits brokers, healthcare organizations, and online media companies. Provides information and insight on medical and clinical research for medical professionals. Provides business intelligence and information solutions to healthcare providers, government organizations, and stakeholders in the healthcare industry. Provides proprietary, objective ratings of hospitals, nursing homes, and home health agencies; and advisory services. Operates as an infertility news, information, and support community.

$6.3

10.5x

Announced 8/3/2010

NA $16.3

NA NA

NA NA

NA NA

NA NA

Announced

$256.9

$58.2

$13.1

4.4x

19.6x

8/17/2010

NA

NA

NA

NA

NA

MEAN (INFORMATION) MEDIAN (INFORMATION) MEAN (SERVICES) MEDIAN (SERVICES) PROVIDERS - LABS 8/5/2010 Cyprotex plc (AIM:CRX) / Apredica, Inc. $4.3 $1.7 $0.2

3.4x 3.4x 2.5x 2.3x

15.1x 15.1x 14.0x 11.3x

2.6x

27.3x

Announced Announced 7/28/2010 7/13/2010 Announced 7/8/2010 Announced 8/12/2010

Essilor Canada Lte / Cascade and Econo-Optic Essilor of America, Inc. / Custom Optical Lab Inc. and a Stake in Epic Labs Inc. IRIS International Inc. (NasdaqGS:IRIS) / AlliedPath, Inc. Laboratory Corp. of America Holdings (NYSE:LH) / DCL Medical Laboratories, LLC Laboratory Corp. of America Holdings (NYSE:LH) / Genzyme Genetics MedLink International, Inc. (OTCBB:MLKN.A) / LabTestPortal.com LLC Nikon Optical USA Inc. / Encore Optics, LLC OriGene Technologies, Inc. / Blue Heron Biotechnology, Inc. Radient Pharmaceuticals Corporation (AMEX:RPC) / Provista Diagnostics Inc.

NA NA $6.0 NA $925.0 $0.4 NA NA

$6.4 $5.5 NA NA $371.0 NA $4.0 NA

NA NA NA NA NA NA NA NA

NA NA NA NA 2.5x NA NA NA

NA NA NA NA NA NA NA NA

Provides preclinical contract testing services for the evaluation and optimization of the ADME, toxicity, and pharmacokinetic properties of drug candidates early in the drug-discovery process. Operates as a prescription laboratory and provides laboratory services. A prescription laboratory that manufactures eye care products. A cancer-focused molecular diagnostics testing laboratory, Provides laboratory services specializing in various anatomic, clinical, and molecular pathology tests. Provides reproductive, genetics, oncology, and pathology testing services for hospitals and network physicians. Operates as a resource for consumers and healthcare professionals that offers private online lab testing. Operates as prescription laboratory and provides support and products to eyecare professionals. Provides a range of synthetic DNA sequences and related services to researchers in pharmaceutical and biotechnology companies. Offers clinical laboratory services such as tests for memory loss and cognitive impairment, detection of breast cancer, and detection of womens reproductive cancers.

Announced

NA

NA

NA

NA

NA

MEAN (LABS) MEDIAN (LABS)

2.5x 2.5x PROVIDERS - HOME HEALTH & HOSPICE

27.3x 27.3x

8/3/2010 8/17/2010 8/4/2010 7/1/2010 9/1/2010 7/1/2010 7/7/2010 7/7/2010 7/1/2010 8/13/2010

Bayshore Healthcare, Ltd. / Community Care Therapy Limited Gentiva Health Services Inc. (NasdaqGS:GTIV) / Odyssey Healthcare Inc. (Nasdaq: ODSY) Harden Healthcare Texas, LLC / Voyager HospiceCare, Inc. LHC Group, Inc. (NasdaqGS:LHCG) / Idaho Home Health And Hospice, Inc. LHC Group, Inc. (NasdaqGS:LHCG) / Lifeline Health Care of Harrodsburg Private Investor / Aid & Assist At Home LLC Res-Care Inc. (NasdaqGS:RSCR) / ReadyCare Inc. Shore Capital Partners, LLC / Sirona Infusion, LLC Visiting Nurse & Hospice of Fairfield County / Nursing & Home Care, Inc. Webster Capital / Epic MedStaff Services, Inc.

NA $900.8 NA NA NA NA NA NA NA NA

NA $690.4 NA $9.2 NA $8.0 NA NA NA NA

NA $86.2 NA NA NA NA NA NA NA NA

NA 1.3x NA NA NA NA NA NA NA NA

NA 10.5x NA NA NA NA NA NA NA NA

Provides in-home rehabilitation services. Provides hospice care. Provides hospice services. Provides home health care services. Provides home-based services available to patients and families. Operates as a non-medical in-home health care company. Offers home care and residential services to the elderly and people with developmental and intellectual disabilities. Provides home infusion services. A non-profit visiting nurse agency providing a wide range of community-based, family-centered services. Provides home healthcare services to medically fragile children.

MEAN (HOME HEALTH & HOSPICE) MEDIAN (HOME HEALTH & HOSPICE) PROVIDERS - NON-ACUTE 7/13/2010 7/2/2010 Akron Children's Hospital / Allergy & Asthma Center of Northeast Ohio, Inc. Alliance Healthcare Services, Inc. (NYSE:AIQ) / Arkansas Cancer Center, P.A., Certain Radiation Therapy Assets BJC Health System, Inc. / Cardiology Diagnostics Ltd. NA NA NA NA NA NA

1.3x 1.3x

10.5x 10.5x

NA NA

NA NA

Provides diagnosis and treatment of asthma and allergic diseases for patients of various ages. Certain radiation therapy assets including a radiation therapy facility. Engages in cardiology practice through its eight physicians.

9/16/2010

NA

NA

NA

NA

NA

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Target Revenue NA NA NA NA Target EBITDA
2

Date 8/29/2010 9/1/2010 8/31/2010 10/1/2010

Acquirer/ Target Center for Sleep / Hermitage Sleep Center Centric Health Corp. (TSX:CHH) / Community Advantage Rehabilitation, Inc. Clarkson Eyecare, Inc. / Tilley Eye Center Community Health Systems, Inc. (NYSE:CYH) / Forum Health Comprehensive Behavioral Care Inc. / Compcare De Puerto Rico, Inc. Cooperative Health Services, Inc. / Green River Heart Institute, P.S.C., Inc. Cornerstone Healthcare Plus REIT Inc / Global Rehab Inpatient Rehab Facility Crouse Hospital Auxiliary, Inc. / Internist Associates of Central New York, P.C. DW Healthcare Partners / Cryo-Cell International, Inc. (OTCBB:CCEL)

Price NA $1.8 NA $120.0

Price/ Revenue NA NA NA NA

Price/ EBITDA
2

Target Description Provides sleep diagnostics and treatment services. Provides community rehabilitation services for adults and children. Provides medical eye care services. Provides healthcare services including behavioral medicines, geropsychiatric programs, and partial hospitalization program/intensive outpatient programs. Operates as a provider of mental healthcare services. A provider of preventive, medical, and rehabilitative heart services. An inpatient rehabilitation facility that includes 42 beds. Provides internal medicines and related services. The company has 15 doctors and five nurse practitioners. A private family cord blood stem cell bank, engages in cellular processing and cryogenic cellular storage, with a focus on the collection and preservation of umbilical cord (UCord) blood stem cells for family use. Comprises six childcare facilities providing early childhood education programs. Provides rehabilitation programs and therapeutic treatment services for various recovery issues. Provides urological services.

NA NA NA NA

NA NA NA NA

7/22/2010 8/27/2010 8/19/2010 Announced Announced

$0.3 NA $14.8 NA $9.6

NA NA NA NA $15.9

NA NA NA NA $2.3

NA NA NA NA 0.6x

NA NA NA NA 4.2x

8/3/2010 7/1/2010 7/12/2010

Edleun Group, Inc. (TSXV:EDU) / Six Childcare Centers in Alberta Elements Behavioral Health, Inc. / The Ranch Endo Pharmaceuticals Holdings Inc. (NasdaqGS:ENDP) / HealthTronics, Inc. ENT And Allergy Associates, LLP / Otolaryngology Associates, LLC Erdman Company / St. Francis Outpatient Center Froedtert Memorial Lutheran Hospital, Inc. / 51 Physician Practices and Ambulatory Surgery Center Haskell Acquisition Partnership Ltd. / Temple University Health System, Inc., Northeastern Ambulatory Care Center Campus Haven Recovery Center / Community Outreach Services, Inc. Healthcare Of Today, Inc. / Suncoast Perfusion Service, Inc. Healthcare Trust of America, Inc. / Sierra Vista Medical Office Building in San Luis Obispo, California HEALTHSOUTH Corp. (NYSE:HLS) / Sugar Land Rehabilitation Hospital L.P. Insight Health Services Holdings Corp. (OTCBB:ISGT) / Eight Imaging Centers in Phoenix, Arizona, El Paso, Texas, and Las Cruces, New Mexico Insight Health Services Holdings Corp. (OTCBB:ISGT) / Texas Imaging Services Of El Paso Inc. and Four Imaging Centers IPC The Hospitalist Company, Inc. (NasdaqGS:IPCM) / Hospital Internists of Bristol, LLC Kindred Healthcare Inc. (NYSE:KND) / Three Nursing and Rehabilitation Centers in Dallas-Fort Worth Ladybug Resource Group, Inc. (OTCBB:LBRG) / Men's Medical Corporation Leonard Green & Partners, L.P. / Aspen Dental Management, Inc. Leonard Green & Partners, L.P. / Prospect Medical Holdings Inc. (NasdaqGM:PZZ) MEDNAX, Inc. (NYSE:MD) / Roberto L Villarreal MD PA MedQuest Associates, Inc. / InSight Health Services Holdings Corp., Mobile Imaging Assets in North Carolina Memorial Health Care System, Inc. / Chattanooga Heart Institute Methodist Healthcare System Of San Antonio Ltd, LLP / Cardiology Clinic of SA and Central Cardiovascular Institute of SA and Cardiology of ST NextImage Medical, Inc. / SelectMRI, LLC Northwest Community Hospital Inc / Affinity Healthcare LLC Northwestern Management Services LLC / The Dental Team Onex Corporation (TSX:OCX) / Res-Care Inc. (NasdaqGS:RSCR) Peninsula Regional Health System, Inc. / Peninsula Regional Neurosurgery Providence Health & Services / Spokane Cardiology PSC and Heart Clinics Northwest

$6.8 NA $303.6

NA NA $190.1

NA NA $80.1

NA NA 1.6x

NA NA 3.8x

7/6/2010 7/31/2010 9/7/2010 Announced

NA $16.6 NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

Provides medical and surgical treatment for ear, nose, and throat problems. An outpatient medical center that includes a 14-bed operating room with inpatient and outpatient radiology. Includes 51 physician practice clinics and one ambulatory surgery center. Provides healthcare services.

7/1/2010 Announced 8/4/2010

NA NA $11.0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

Owns and operates addiction treatment centers. Provides blood management services including autotransfusion and platelet gel therapy. A 3-story, Class A medical office property spread over an area of approximately 45,000 square foot. Operates as an acute rehabilitation hospital. Comprises imaging centers which offer diagnostic imaging services. Provides medical imaging services.

9/20/2010 7/26/2010

NA $8.5

NA $18.7

NA NA

NA 0.5x

NA NA

8/5/2010

NA

NA

NA

NA

NA

8/11/2010 9/27/2010

NA $38.0

NA $24.0

NA $3.0

NA 1.6x

NA 12.7x

A physician group practice company, provides hospitalist services. Comprises three nursing and rehabilitation centers and offers healthcare services. A network of independent physicians that provides solutions to treat sexual health issues. Provides dental and denture services. Provides healthcare and physician services. Provides cardiology services to pediatric patients. Asset provides diagnostic imaging services through mobile facilities. Operates as a cardiovascular diagnostic, treatment, research, and rehabilitation center. Offers cardiology services.

Announced Announced Announced 8/16/2010 7/26/2010

$45.0 NA $333.7 NA $9.2

NA NA $468.1 NA $3.3

NA NA $56.0 NA NA

NA NA 0.7x NA 2.8x

NA NA 6.0x NA NA

Announced 7/19/2010

NA NA

NA NA

NA NA

NA NA

NA NA

8/30/2010 9/1/2010

NA NA

NA NA

NA NA

NA NA

NA NA

9/20/2010 Announced 7/27/2010 Announced

NA $597.8 NA NA

NA $1,569.1 NA NA

NA $98.2 NA NA

NA 0.4x NA NA

NA 6.1x NA NA

Provides diagnostic imaging services to the workers' compensation industry. Provides healthcare services including internal medicine, family practice, gastroenterology, immediate care and diagnostic imaging. Owns and operates dental clinics. Provides residential, therapeutic, job training, and educational support services. Offers neurosurgical services. Own and operate cardiovascular care hospitals.

SCOTT-MACON, LTD.

10
Target Revenue NA NA Target EBITDA
2

Date Announced 8/11/2010

Acquirer/ Target RadNet, Inc. (NasdaqGM:RDNT) / Progressive Health Llc, Imaging Centers in New Jersey RadNet, Inc. (NasdaqGM:RDNT) / Three Facilities in Edison, Old Bridge and Green Brook

Price NA $3.5

Price/ Revenue NA NA

Price/ EBITDA
2

Target Description Comprises diagnostic imaging services centers. Healthcare facilities that provide Magnetic Resonance Imaging (MRI), computed tomography (CT), Positron emission tomography (PET), mammography, ultrasound and x-ray service. Provide dialysis services. Provides emergency and non-emergency medical care and transportation services. Operates as a team of orthopaedic physicians offering care for injuries or illnesses that affect the bones, joints, ligaments, tendons, muscles, and nerves. Provides diagnostic sleep testing and treatment services for physicians and their patients. Provides radiology and diagnostic imaging services. Provides cardiovascular services to patients. Comprises a diagnostic center and offers imaging services.

NA NA

NA NA

7/1/2010 Announced Announced

Renal Advantage, Inc. / Five Dialysis Centers in Alabama and Florida Rural/Metro Corp. (NasdaqCM:RURL) / Pridemark Paramedic Services, LLC Sanford Health & MeritCare / Orthopaedic Associates Of Fargo LLP Seredor Corporation / United Sleep Diagnostics, Inc. Shelby Baptist Medical Center / Tower Imaging Medical Group Inc. St. Vincent Health / The Care Group LLC Surgical Specialty Hospital of Arizona, LLC / InSight Health Services Holdings Corp., Camelback Specialty Imaging Location in Phoenix Team Health Holdings, Inc. (NYSE:TMH) / Morningstar Emergency Physicians Texas Children's Hospital / Partners in Ob/Gyn Care, P.A. The Sanger Clinic P.A. / Heart Group Of the Carolinas, P.A. Topcon Medical Systems, Inc. / OptiMedica Corporation, Retina and Glaucoma Business Undisclosed Investors / 25,000 square foot ambulatory surgery center in Florida WakeMed Raleigh Campus / Raleigh Cardiology Associates P.A

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

9/22/2010 Announced 7/1/2010 7/20/2010

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

8/10/2010 7/1/2010 8/31/2010 Announced 9/8/2010 Announced

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

Provides emergency medical care services. Offers obstetric and gynecologic healthcare services. Provides cardiac medical care services. Engages in the treatment of retinal and glaucoma conditions through pattern scan laser technology. 25,000 square foot ambulatory surgery center in Florida. Owns and operates a cardiology specialty center.

MEAN (NON-ACUTE) MEDIAN (NON-ACUTE) PROVIDERS - LONG-TERM CARE Announced 8/1/2010 Amica Mature Lifestyles Inc. (TSX:ACC) / Amica at West Vancouver and Amica at City Centre Bloomfield Senior Living LLC / Autumn Park Assisted Living Community LLC And Autumn Glen Assisted Living Community LLC Capital Senior Living Acquisition, LLC / Signature Assisted Living of Texas, LLC, 12 Leased Communities Ciena Healthcare Management, Inc. & Others / Courtland Gardens Health Center, Inc. Community Health Systems, Inc. (NYSE:CYH) / Marion Regional Healthcare Systems Cornerstone Healthcare Plus REIT Inc / Terrace at Mountain Creek and Carriage Court of Hilliard Emeritus Corp. (NYSE:ESC) / Montclair Park Assisted Living & Memory Care Community Grubb & Ellis Equity Advisors, LLC / Skilled Nursing Facility Portfolio in Virginia Guardian Elder Care at Brockway, LLC / Weatherwood-Carbon County Nursing Home & Rehabilitation Center Hunter Management, LLC / Lancaster Manor Lamplight Communities LLC / Lamplight Inn of Dayton Lehman Brothers Inc., Investment Arm / the Cedars at the JCA Management Buyout / Lakeshore Healthcare Investment Group National Health Investors Inc. (NYSE:NHI) / Bickford Senior Living Group, LLC, Three Assisted Living Facilities Oasis Health Care / Highgate LTC Management LLC Private Investors / Bishop Francis J. Mugavero Center for Geriatric Care, Inc. Private Investors / Holy Family Home Private Investors / Willow Creek Randall Residences / Westport Independent Living at 8460 Westport Drive Senior Health Solutions, LLC / Evergreen Health Care Center LLC NA NA NA NA NA NA

1.2x 0.7x

6.5x 6.0x

NA NA

NA NA

Operate as retirement communities. Operate as assisted senior living communities.

9/13/2010

$25.8

NA

NA

NA

NA

Comprises assisted living and memory care facilities with a combined capacity of 764 residents. Operates a nursing center. Owns and operates nursing homes in South Carolina. Comprises two assisted living facilities. Provides services for senior adults includingpersonalized supportive services and health care designed to meet the needs of those who need help with activities of daily living. A seven building portfolio of skilled nursing facilities totaling 563 beds. A 200 bed rehabilitation and long term care healthcare center offering healthcare services. A nursing home that has 293 beds. Offers assisted-living and residential services. Operates as a rehabilitation and geriatric-care center for adults. Owns and operates a senior skilled nursing facility. Three assisted living facilities that include in total 102 units.

Announced 7/7/2010 Announced 9/3/2010

NA $25.7 $26.0 NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

9/16/2010 7/1/2010

$45.0 $11.1

NA NA

NA NA

NA NA

NA NA

8/13/2010 7/1/2010 8/1/2010 7/19/2010 7/1/2010

$8.1 $4.0 NA NA $11.5

NA NA NA NA NA

NA NA NA NA NA

NA NA NA NA NA

NA NA NA NA NA

9/15/2010 Announced

$22.7 $30.1

NA NA

NA NA

NA NA

NA NA

Owns skilled nursing care facilities. A 288-bed nursing home.

Announced 8/2/2010 7/13/2010 7/30/2010

$16.9 $7.1 $2.5 NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

Owns and operates a 200-bed skilled nursing facility. Comprises 116 unit Alzheimer's and assisted living facility. Comprises assisted living facility covering an area of 34,400square feet. Owns and operates nursing homes.

SCOTT-MACON, LTD.

11
Date 9/7/2010 Acquirer/ Target TrinityCare Senior Living, Inc. (OTCPK:TCSR) / TrinityCare Senior Living, Inc., Prior to Reverse Merger with SeaBridge Freight Corp. (OTCPK:TCSR) Price NA Target Revenue $6.8 Target EBITDA
2

Price/ Revenue NA

Price/ EBITDA
2

Target Description Develops, owns, and manages senior living facilities that focus on providing independent living, assisted living, memory care, and adult day care services.

$0.2

NA

MEAN (LONG-TERM CARE) MEDIAN (LONG-TERM CARE) PROVIDERS - ACUTE 10/1/2010 8/31/2010 Announced Announced Announced 8/4/2010 8/12/2010 Abrazo Advantage Health Plan, Inc / Arizona Heart Hospital, LLC Adventist Health System, Inc. / University Community Health, Inc. Aspirus, Inc. / Grand View Health System, Inc. Avanti Health Systems, Inc. / Community Hospital of Huntington Park, Inc. Caritas Christi Health Care / Landmark Medical Center Inc. Cornerstone Healthcare Group / Solara Healthcare LLC Grubb & Ellis Healthcare REIT II, Inc.; Grubb & Ellis Equity Advisors, LLC / Landmark Hospital of Cape Girardeau, LLC Grubb & Ellis Healthcare REIT II, Inc.; Grubb & Ellis Equity Advisors, LLC / Landmark Hospital of Joplin, LLC HCA, Inc. / Emory Eastside Medical Center Health Management Associates Inc. (NYSE:HMA) / Shands HealthCare, Shands Lake Shore and Shands Live Oak and Shands Starke Health Management Associates Inc. (NYSE:HMA) / Wuesthoff Health System, Inc. $32.3 $200.0 NA NA NA NA $8.2 NA $502.5 NA NA NA NA NA NA NA NA NA NA NA NA

NA NA

NA NA

NA 0.4x NA NA NA NA NA

NA NA NA NA NA NA NA

Operates as a hospital for the diagnosis and treatment of cardiovascular diseases. Operates five hospitals with almost 150 years of health care experience. Operates a hospital, a surgical center, an eye and optical center, and clinics. Provides various healthcare services geared toward women and children. Operates community hospitals. Operates as a long-term acute care hospital company. Operates as a hospital and offers healthcare services.

8/31/2010

$9.2

NA

NA

NA

NA

Operates as a 30 private patient room hospital.

Announced 7/1/2010

NA $35.3

NA $100.0

NA NA

NA 0.4x

NA NA

Operates as an acute care hospital and medical center. Comprises health care facilities.

10/1/2010

$145.0

$290.0

NA

0.5x

NA

10/1/2010

9/1/2010 Announced 9/1/2010 9/29/2010 9/10/2010 Announced 10/4/2010 9/1/2010 7/1/2010 7/1/2010 Announced 8/1/2010

9/19/2010

IASIS Healthcare Corporation / Pikes Peak Regional Hospital and 73% of Wadley Regional Medical Center Intensiva Healthcare Corp. / Regency Hospital Company, LLC Kindred Healthcare Inc. (NYSE:KND) / Vista Healthcare, LLC Lifepoint Hospitals Inc. (NasdaqGS:LPNT) / HighPoint Health System McLaren Health Care Corporation / Central Michigan Community Hospital Inc. New Directions Health Systems, LLC / Pike County Memorial Hospital North Shore University Hospital / Saint Vincent Catholic Medical Centers Private Investor / Sioux Falls Hospital Management, Inc. ProMedica Health System, Inc. / St Luke's Hospital RegionalCare Hospital Partners, Inc. / Coffee Health Group Scott and White Hospital and Clinic / Scott & White Hospital-Brenham Sentara Healthcare, Inc. / Rockingham Memorial Hospital Inc. Vanguard Health Systems Inc. / Resurrection Health Care Corporation, Two Hospitals and One Outpatient Facility Visiting Nurse Service Of New York / White Plains Hospital Medical Center

$95.0

NA

NA

NA

NA

Operates acute care hospitals with services including behavioral health, bloodless medicine and surgery, cancer care, community programs, diagnostic services, emergency department, and a heart center. Operates as a community health center and as a regional hospital. Operates long term acute care hospitals. Operates long-term acute care hospitals. Operates hospitals in Tennessee. Operates as a community acute care hospital that provides health and wellness services. A general medical and surgical hospital with 32 beds. Operates hospitals, skilled nursing facilities, a home care agency, and outpatient sites. Owns and operates hospitals. Operates as a hospital in Ohio. Owns and operates hospitals. Operates as a hospital including 60-bed and 128-bed longterm care facility, Operates a community hospital that provides various healthcare services. Asset comprises two hospitals and one outpatient facility. The assets are located in Illinois. A modern general hospital facility with 300 beds, it cares for more than 11,000 patients a year.

$210.0 NA $145.0 NA $0.3 $17.0 $20.0 NA $145.0 NA NA $45.0

$374.9 $150.0 NA NA NA NA NA NA NA NA NA $282.0

$27.7 $27.0 NA NA NA NA NA NA NA NA NA NA

0.6x NA NA NA NA NA NA NA NA NA NA 0.2x

7.6x NA NA NA NA NA NA NA NA NA NA NA

$5.1

NA

NA

NA

NA

MEAN (ACUTE) MEDIAN (ACUTE) MEAN (PROVIDERS) MEDIAN (PROVIDERS) PRODUCTS - CLINICAL DEVICES 9/13/2010 0880650 B.C. Ltd. / Attwell Capital Inc. (TSXV:AT.H) Alcon Inc. (NYSE:ACL) / LensX Lasers, Inc. Amedica Corporation / U.S. Spinal Technologies, LLC Boston Scientific Corporation (NYSE:BSX) / Asthmatx, Inc. $0.4 NA NM

0.4x 0.4x 1.1x 0.6x

7.6x 7.6x 9.8x 6.8x

NA

NM

8/23/2010 9/21/2010

$744.0 NA

NA NA

NA NA

NA NA

NA NA

Announced

$443.5

NA

NA

NA

NA

Engaged in the research, development, and commercialization of a medical device used in the treatment of chronic pain and other conditions. Offers a laser that operates inside the eye for cataract removal. Operates as a medical device company that develops, manufactures, and distributes spinal implants and instruments. Designs, develops, and manufactures catheter-based medical devices for the treatment of asthma.

SCOTT-MACON, LTD.

12
Date 9/7/2010 9/2/2010 9/27/2010 Acquirer/ Target Carestream Health Inc. / Quantum Medical Imaging, L.L.C. Cellectis (ENXTPA:ALCLS) / Cyto Pulse Sciences, Inc. Codman & Shurtleff, Inc. / Micrus Endovascular Corp. CR Bard Inc. (NYSE:BCR) / SenoRx, Inc. Crocker Ventures / TMJ Implants, Inc. Devicor Medical Products, LLC / Ethicon Endo-Surgery, Inc., Breast Care Business ERBA Diagnostics Mannheim GmbH / IVAX Diagnostics Inc. (AMEX:IVD) Price NA $2.2 $397.9 Target Revenue NA NA $94.5 Target EBITDA
2

Price/ Revenue NA NA 4.2x

Price/ EBITDA
2

Target Description Designs and manufactures medical radiographic systems for hospitals and imaging centers. Operates as a biomedical device and treatment development company. Develops, manufactures, and markets implantable and disposable medical devices for the treatment of cerebral vascular diseases. Engages in the development, manufacture, and sale of devices for the diagnosis and treatment of breast cancer. Designs and manufactures alloplastic implants for the treatment of temporomandibular joint disorders and injuries. Markets and distributes systems designed to help doctors diagnose breast cancer at early stages, while minimizing patient discomfort. Engages in the development, manufacture, and marketing of diagnostic test kits and automated systems that are used to aid in the detection of disease markers primarily in the areas of autoimmune and infectious diseases. Comprises several innovative spine product lines and Silverbolt Percutaneous Pedicle Screw System. Engages in designing, developing, and manufacturing medical devices. Researches, develops, manufactures, sells, and supports magnetic resonance imaging (MRI) technologies for radiologists, technologists, and oncologists. A medical services company that delivers solutions to detect, and stage and monitor diseases affecting the eye, diabetic retinopathy, macular degeneration, and glaucoma. Develops, manufactures, and markets medical devices for the treatment of structural heart disease. Develops, manufactures, and markets products for medical procedures that use embolotherapy. Comprises a non invasive diagnostic test for the quantification of skin tissue cholesterol (skin sterol). Designs, manufactures, and markets physiologic vascular instruments for diagnostic vascular testing applications. Manufactures ophthalmic procedure pack and other specialty micro-surgical products such as knives, blades, and accessories. Engages in the development and marketing of diagnostic tests in the fields of cancer, and neurodegenerative and neuromuscular diseases. Develops optical coherence tomography imaging modality that applies photonics to medical imaging applications. Manufactures temperature and pressure ulcer management devices. Manufactures heat shrink tubes and medical balloons. Develops, manufactures, and markets medical devices. Develops micro-size electromechanical devices including the smallest available intravascular ultrasound device. Engages in the development, manufacture, and distribution of solutions for the treatment of spinal pathologies and procedures.

NA NA $15.1

NA NA 26.3x

7/6/2010 9/29/2010

$193.2 NA

$56.1 NA

$4.2 NA

3.4x NA

46.3x NA

7/12/2010

NA

NA

NA

NA

NA

9/1/2010

$18.4

$18.1

NM

1.0x

NM

8/27/2010

7/8/2010 8/5/2010

Exactech Inc. (NasdaqGS:EXAC) / VertiFlex, Inc., Minimally Invasive Spine Reconstruction Portfolio Fenner plc (LSE:FENR) / Manufacturing and Research, Inc. Hologic Inc. (NasdaqGS:HOLX) / Sentinelle Medical, Inc. Ifa Systems Ag (XTRA:IS8) / Inoveon Corporation Medtronic, Inc. (NYSE:MDT) / Medtronic ATS Medical, Inc. Merit Medical Systems, Inc. (NasdaqGS:MMSI) / BioSphere Medical Inc. Miraculins Inc. (TSXV:MOM) / PreMD Inc., PreVu Skin Cholesterol Test Opto Circuits (India) Ltd. (BSE:532391) / Unetixs Vascular, Inc. RoundTable Healthcare Management, LLC; Argon Medical Devices, Inc.; Aspen Surgical Products, Inc. / BD Ophthalmic Systems Limited and Becton Dickinson Acutecare, Inc. Rozetta-Cell Life Sciences, Inc. / Power 3 Medical Products Inc. (OTCBB:PWRM) St. Jude Medical Inc. (NYSE:STJ) / LightLab Imaging, Inc. Stryker Corp. (NYSE:SYK) / Gaymar Industries, Inc. TDC Medical, Inc. / Advanced Polymers, Inc. United States Surgical Corporation / Somanetics Corp. Volcano Corporation (NasdaqGS:VOLC) / Fluid Medical, Inc. Welsh, Carson, Anderson & Stowe / K2M, Inc.

$3.5

NA

NA

NA

NA

NA $335.0

NA $15.0

NA NA

NA 22.3x

NA NA

Announced

NA

NA

NA

NA

NA

8/12/2010 9/10/2010 9/3/2010 7/26/2010 7/30/2010

$349.4 $65.5 $0.4 $9.7 $270.0

$75.9 $31.3 NA NA NA

NM NM NA NA NA

4.6x 2.1x NA NA NA

NM NM NA NA NA

Announced

NA

NM

NM

NA

NA

7/6/2010 Announced 7/14/2010 7/27/2010 8/5/2010 8/19/2010

$97.4 $150.0 NA $291.3 $4.2 NA

NA $77.0 NA $54.1 NA NA

NA NA NA $11.5 NA NA

NA 2.0x NA 5.4x NA NA

NA NA NA 25.4x NA NA

MEAN (CLINICAL DEVICES) MEDIAN (CLINICAL DEVICES) PRODUCTS - NON-CLINICAL DEVICES Announced 3M Co. (NYSE:MMM) / Arizant Inc. Axela Inc. / Xceed Molecular, Inc. Harvard Bioscience Inc. (NasdaqGM:HBIO) / Coulbourn Instruments, LLC HEGLN (Dalian) Pharmaceutical Co., Ltd. / Urodynamix Technologies Ltd., Substantially All Assets Masimo Corporation (NasdaqGS:MASI) / SEDLine, Inc. $810.0 NA NA

5.6x 3.8x

32.7x 26.3x

NA

NA

7/26/2010

NA

NA

NA

NA

NA

8/23/2010 Announced 7/2/2010

NA $2.0 $3.0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

Announced 9/6/2010

Sanofi Pasteur, Inc. / VaxDesign Corporation Undisclosed Investors / Avon Rubber plc, Avon Protection Systems Facility in Cadillac

$60.0 $2.6

NA NA

NA NA

NA NA

NA NA

Engages in the design, manufacture, marketing, and distribution of temperature management systems for surgical patients. Engages in commercializing a platform for automated gene expression analysis and developing clinical research assays and custom arrays. Designs, manufactures, and markets laboratory instrumentation for the life sciences industry. Non-invasive medical technology and diagnostic devices based on near-infrared spectroscopy (NIRS) technology. Offers neuromonitoring research and develops advanced brain function monitoring technologies for next generation monitors to improve the care of patients under anesthesia or sedation. Provides a surrogate human immune system that enables researchers to test the immune response to drugs. Manufactures conventional negative pressure mask with a range of SCBA (Self Contained Breathing Apparatus) and PAPR (Powered Air Purifying Respirator).

SCOTT-MACON, LTD.

13
Date 7/28/2010 Acquirer/ Target VaxGen Inc. (OTCBB:VXGN) / diaDexus, Inc. Price NA Target Revenue $11.9 Target EBITDA
2

Price/ Revenue NA

Price/ EBITDA
2

Target Description Engages in the discovery, development, and commercialization of in vitro diagnostic products to address the medical needs in the cardiovascular field.

NM

NA

MEAN (NON-CLINICAL DEVICES) MEDIAN (NON-CLINICAL DEVICES) PRODUCTS - DISPOSABLES 8/26/2010 Microflex Corporation / MedTexx, Black Dragon latex glove line NA NA NA

NA NA

NA NA

NA

NA

Manufactures disposable black latex examination gloves.

MEAN (DISPOSABLES) MEDIAN (DISPOSABLES) PRODUCTS - COMMERCIAL 7/12/2010 Alliance Network Communications Holdings, Inc. (OTCBB:ALHN) / BioCube, Inc. Cherry Vale Impressions LLC / SFC USA Inc. Health Specialties Manufacturing, Inc. / KEMS Nutraceuticals International, Inc. Lonza Group AG (SWX:LONN) / Vivante GMP Solutions, Inc. Medical Action Industries Inc. (NasdaqGS:MDCI) / AVID Medical, Inc. Merck KGaA (DB:MRK) / Millipore Corp. PerkinElmer Inc. (NYSE:PKI) / VisEn Medical, Inc. Philips Lighting North America Corporation / Burton Medical Products Corporation Quad Energy S.A / Global Agri-Med Technologies Inc. Quad-C Management, Inc. / Joerns Healthcare Inc. STRATEC Biomedical Systems AG (DB:SBS) / Ballista, Inc. $1.3 NA NA

NA NA

NA NA

NA

NA

Intends to develop decontamination technology based on aerosol based delivery method. Designs and distributes apparel including medical wear apparel. Offers contract manufacturing services for the nutrition industry. Provides contract manufacturing services for viral-based biologics. Supplies custom procedure trays and surgical products. Provides technologies, tools, and services for life science research, drug discovery, process development, drug manufacturing, and quality assurance. Designs, develops, and commercializes fluorescence in vivo imaging technology platforms. Engages in the designing, manufacturing, and distributing exam, diagnostic, and surgery lighting equipment. A development stage company, holds a right to distribute and market BreastAlert products. Engages in manufacturing beds and furnishings, lifting and repositioning, and wound management products. Manufactures optics, illumination, fluidic, and mechanical systems for medical imaging, bioscience research, life science, medical research, diagnostics, and laboratory automation markets. Offers precision instrumentation, data acquisition systems, production tablet press replication, and tablet press control systems for the pharmaceutical industry. Provides digital pathology solutions for clinical diagnostics and drug discovery applications.

7/30/2010 9/20/2010 8/27/2010 8/27/2010 7/15/2010

NA NA NA $62.5 $6,903.4

NA NA NA $136.0 $1,654.4

NA NA NA NA $408.2

NA NA NA 0.5x 4.2x

NA NA NA NA 16.9x

7/30/2010 8/20/2010 8/20/2010 8/8/2010 7/2/2010

$29.8 NA NA NA $5.2

NA NA NA NA $2.7

NA NA NA NA NA

NA NA NA NA 1.9x

NA NA NA NA NA

Announced

Unity Management Group Inc. (OTCPK:UYMG) / Metropolitan Computing Corporation Ventana Medical Systems, Inc. / BioImagene, Inc.

NA

NA

NA

NA

NA

Announced

$100.0

NA

NA

NA

NA

MEAN (COMMERCIAL) MEDIAN (COMMERCIAL) PRODUCTS - CONSUMER 7/13/2010 9/9/2010 Healthnostics, Inc. (OTCPK:HNSS) / Worldwide Wipes Co. Pacific Community Ventures, LLC; San Francisco Equity Partners; Simon Equity Partners / Zoom Eyeworks, Inc. William Demant Holding A/S (CPSE:WDH) / Otix Global, Inc. (NasdaqGM:OTIX) NA NA NA NA NA NA

2.2x 1.9x

16.9x 16.9x

NA NA

NA NA

Manufactures and distributes wipes to individuals and corporations for medical and disinfecting uses. Manufactures and markets eyewear products.

Announced

$59.1

$88.4

NM

0.7x

NM

Designs, develops, manufactures, and markets digital hearing aids primarily to hearing impaired consumers.

MEAN (CONSUMER PRODUCTS) MEDIAN (CONSUMER PRODUCTS) PRODUCTS - PHARMACEUTICALS 7/5/2010 A5 Laboratories Inc. (OTCBB:AFLB) / VIDA Pharma Pharmaceutical Manufacturing Inc., CRO Assets and novel Interferon Production Technology Actient Pharmaceuticals, LLC / UCB, Inc., Six Pharmaceutical Products ALK-Abell, Inc. / Nelco Laboratories, Inc. Berkley Resources Inc. (DB:W8O) / TrichoScience Innovations Inc. BioMarin Pharmaceutical Inc. (NasdaqGS:BMRN) / ZyStor Therapeutics, Inc. Bristol-Myers Squibb Company (NYSE:BMY) / ZymoGenetics, Inc. (NasdaqGM:ZGEN) Cannabis Medical Solutions, Inc. (OTCBB:CMSI) / Green Medicals LLC, Eight Medical Marijuana Dispensaries in Colorado Certain Oil and Natural Gas Property Interests in Hill County and Coke County, Texas / Regent Technologies Inc $0.7 NA NA

0.7x 0.7x

NA NA

NA

NA

Comprises technology for the production of novel interferon.

7/29/2010 8/2/2010 9/20/2010 8/17/2010 Announced Announced

NA $2.8 $9.1 $115.0 $732.8 NA

NA NA NA NA $162.8 NA

NA NA NA NA $16.2 NA

NA NA NA NA 4.5x NA

NA NA NA NA 45.3x NA

Comprises pharmaceutical products. Produces and markets injection-based vaccines. A life sciences company which has developed and patented a hair cell replication technology. Develops therapeutics for patients with genetic disorders. Focuses on the development and commercialization of therapeutic proteins for the treatment of human diseases. Comprises medical marijuana dispensaries.

Announced

NA

NA

NA

NA

NA

Engages in the development of a treatment of the eye disease, known as dry age-related macular degeneration

SCOTT-MACON, LTD.

14
Date Announced Acquirer/ Target CK Life Sciences International Holdings Inc. (SEHK:775) / Wex Pharmaceuticals Inc. (TSX:WXI) Clinsys Holdings Inc.; Jubilant Pharma Pte. Ltd. / Cadista Holdings Inc. Conatus Pharmaceuticals Inc. / IDUN Pharmaceuticals, Inc. Covidien Group S.a.r.l. / ev3 Inc. Price $34.9 Target Revenue NA Target EBITDA
2

Price/ Revenue NA

Price/ EBITDA
2

Target Description Engages in the discovery, development, manufacture, and commercialization of drug products for pain management. Develops generic drugs. Engages in the discovery and development of human therapeutics to control apoptosis. Operates as an endovascular company that focuses on identifying and treating peripheral vascular disease, including lower extremity arterial disease and neurovascular disease. Engages in the discovery, development, production, and distribution of pharmaceutical products. Develops medicines for the treatment of cardiovascular diseases. Engages in designing and developing non-systemic orallydelivered protein therapeutics for the treatment of metabolic diseases. Engages in the development of protein therapeutic product candidates to treat autoimmune and inflammatory diseases, and cancer. A drug development company, focuses on identifying and developing products that address unmet medical needs, primarily for disorders of the nervous system. Engages in the research, manufacture, and sale of prescription and over-the-counter products. Engages in the discovery, in-licensing, and development of novel drug candidates for central nervous system disorders. A development-stage pharmaceutical company, discovers and develops small molecule therapeutics for multiple oncology and immunology-based indications. Comprises worldwide right for ABLAVAR which is a injectable magnetic resonance angiography blood pool imaging agent for peripheral vascular disease and to evaluate aortoiliac occlusive disease. Operates as a pharmaceutical research and development company. Manufactures and distributes pharmaceutical products. Develops and markets prescription and non-prescription products that treat womens health, gastroenterological, and anemia conditions. Provides evidence-based solutions to support the development and commercialization of pharmaceuticals, biotechnology, and medical devices. Develops dengue fever vaccine.

NM

NM

Announced 7/30/2010 7/9/2010

$35.2 NA $2,592.2

NA NA $472.5

NA NA $83.1

NA NA 5.5x

NA NA 31.2x

Announced 8/24/2010 7/20/2010

DataCall Technologies, Inc. (OTCBB:DCLT) / Lab Amazon Group, Inc. DERMENA North America Inc. / Cortria Corporation Eli Lilly & Co. (NYSE:LLY) / Alnara Pharmaceuticals, Inc. Emergent BioSolutions, Inc. (NYSE:EBS) / Trubion Pharmaceuticals Inc. (NasdaqGM:TRBN) Endo Pharmaceuticals Holdings Inc. (NasdaqGS:ENDP) / Penwest Pharmaceuticals Co. (NasdaqGM:PPCO) Endo Pharmaceuticals Holdings Inc. (NasdaqGS:ENDP) / Qualitest Pharmaceuticals, Inc. Euthymics Bioscience, Inc. / DOV Pharmaceutical Inc. Gilead Sciences Inc. (NasdaqGS:GILD) / CGI Pharmaceuticals, Inc. Lantheus Medical Imaging, Inc. / EPIX Pharmaceuticals, Inc., Balance of Worldwide Rights of ABLAVAR Lexicon Pharmaceuticals, Inc. (NasdaqGM:LXRX) / Symphony Icon, Inc. Management Buyout / Dragon Pharmaceutical Inc. Meda AB (OM:MEDA A) / Meda Pharmaceuticals Inc. MedcoHealth Solutions Inc. (NYSE:MHS) / United BioSource Corporation Merck & Co. Inc. (NYSE:MRK) / Hawaii Biotech, Inc., Dengue Fever Vaccine Research Unit Merck Sharp & Dohme Corp. / Cherokee Pharmaceuticals, LLC Metagenics, Inc. / Catalina Lifesciences, Inc. Noven Pharmaceuticals, Inc. / Shire US Inc., Daytrana Omnicare Inc. (NYSE:OCR) / Continuing Care Rx, Inc. Pernix Therapeutics Holdings, Inc. (AMEX:PTX) / Macoven Pharmaceuticals, LLC Persistence Capital Partners / Warnex Inc. (TSX:WNX) Pfizer Inc. (NYSE:PFE) / FoldRx Pharmaceuticals, Inc. Pharmachem Laboratories, Inc. / Forbes Medi Tech Inc., Substantially All Assets PharMerica Corporation (NYSE:PMC) / Chem Rx Corporation, Substantially All Assets Private Investors / Belcher Pharmaceuticals, Inc. Rostock Group / Longevica Pharmaceuticals, Inc. SNM Global Holdings, Inc. (OTCPK:SNMN) / Live Clean Solutions LLC Striker Energy Corp. (OTCBB:SKRY) / Hawthorn Pharmaceuticals, Inc., Granisol Oral Solution Targacept, Inc. (NasdaqGM:TRGT) / Cornerstone Therapeutics, License for Nicotinic-Receptor Patent and Compound Library Thomas H. Lee Partners, L.P. / inVentiv Health, Inc. Transgene Biotek Ltd. (BSE:526139) / Marillion Pharmaceuticals, Inc.

NA $101.5 $380.0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

Announced

$95.7

$20.9

NM

4.6x

NM

9/17/2010

$155.3

$35.7

$15.4

4.4x

10.1x

Announced

$1,200.0

NA

NA

NA

NA

7/19/2010

$2.0

NA

NA

NA

NA

7/8/2010

$120.0

NA

NA

NA

NA

7/12/2010

NA

NA

NA

NA

NA

7/30/2010 7/22/2010 10/4/2010

$90.0 $102.0 $350.0

NA $165.8 $111.3

NA $28.4 NA

NA 0.6x 3.2x

NA 3.6x NA

9/17/2010

$730.0

NA

NA

NA

NA

Announced

$3.1

NA

NA

NA

NA

9/3/2010 8/19/2010 10/1/2010 9/1/2010 9/8/2010 9/20/2010 Announced

NA NA NA NA $2.2 $11.4 NA

NA NA $71.0 $170.0 NA $21.5 NA

NA NA NA NA NA $0.6 NA

NA NA NA NA NA 0.5x NA

NA NA NA NA NA 18.8x NA

Manufactures active pharmaceutical ingredients (APIs). Manufactures nutritional supplements for bariatric surgery patients. A prescription central nervous system stimulant patch system for treatment of ADHD. Provides pharmaceutical services to the health care industry. Manufactures and distributes generic pharmaceutical products of Pernix branded products. Provides laboratory services to the pharmaceutical and healthcare sectors. Engages in the discovery and development of disease modifying drug therapies for diseases of protein misfolding and amyloidosis. Focuses on providing nutritional solutions for the nutraceutical/functional food ingredient markets. Offers institutional pharmacy services to nursing facilities and long-term healthcare institutions. Engages in the manufacture, marketing, and distribution of prescription and over the counter products. Develops and sells kinase inhibitors that keep normal cells healthy during chemotherapy or radiation treatments. Develops, manufactures and distributes enzyme products produced through fermentation technology and procedures. A pharmaceutical product that is used in cancer care to treat nausea and vomiting associated with cancer therapy. Comprises rights of nicotinic-receptor based patents and library of preclinical compounds used for respiratory pharmaceutical products. Provides value-added services to the pharmaceutical, life sciences, and healthcare industries. Engages in the development and commercialization of therapeutics for the treatment of cancers, inflammatory, and autoimmune diseases.

8/26/2010 Announced 8/2/2010 7/27/2010 Announced 7/22/2010 8/3/2010

$4.0 $70.6 NA NA NA $1.0 $76.4

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

8/4/2010 Announced

$1,189.0 NA

$1,083.7 NA

$136.5 NA

1.1x NA

8.7x NA

SCOTT-MACON, LTD.

15
Date Announced 7/30/2010 9/28/2010 Acquirer/ Target TrioBiotics Pharma AG (DB:T33) / ActivBiotics Pharma, LLC United Mortgage Bankers Ltd. / Pristine Pharma Corporation Valeant Pharmaceuticals International, Inc. (TSX:BVF) / Valeant Pharmaceuticals International Victory Pharma, Inc. / MiddleBrook Pharmaceuticals, Inc., Substantially All Assets W. R. Grace & Co.- Conn / Synthetech Inc. (OTCBB:NZYM) Watson Pharmaceuticals Inc. (NYSE:WPI) / Columbia Laboratories Inc., Progesterone Related Assets Price $2.9 NA $3,676.1 Target Revenue NA NA $884.5 Target EBITDA
2

Price/ Revenue NA NA 4.2x

Price/ EBITDA
2

Target Description A pharmaceutical company. Develops and sells over the counter (OTC) and prescription pharmaceutical products under the brand NUMED. A specialty pharmaceutical company, engages in the development, manufacture, and marketing of a range of pharmaceutical products. Comprises development and commercialization of antiinfective drug products using proprietary delivery technology. Specializes in organic synthesis, biocatalysis, and chiral technologies. Comprises womens healthcare products for endocrinology disorders which includes bioadhesive progesterone gel.

NA NA $369.3

NA NA 10.0x

8/2/2010

NA

NA

NA

NA

NA

Announced 7/2/2010

$18.6 NA

$12.6 NA

$0.1 NA

1.5x NA

NM NA

MEAN (PHARMACEUTICALS) MEDIAN (PHARMACEUTICALS) PRODUCTS - BIOTECH 8/4/2010 Apredica, Inc. / Cellumen, Inc. NA NA NA

3.0x 3.7x

18.2x 10.1x

NA

NA

9/21/2010

DSM Holding Company USA, Inc. / Microbia, Inc. GlaxoSmithKline plc (LSE:GSK) / Amplimmune, Inc., Worldwide Rights to AMP-224 Fusion Protein Management Buyout / Regenicin, Inc. (OTCBB:WDST) Marina Biotech, Inc. (NasdaqGM:MRNA) / Cequent Pharmaceuticals, Inc. Medtronic Sofamor Danek Inc. / Osteotech, Inc. (NasdaqGM:OSTE) Neostem, Inc. (AMEX:NBS) / Progenitor Cell Therapy, L.L.C. Private Investors / Microarrays, Inc. Private Investors / Sinuwave Technologies Corporation Ramius Advisors, LLC; Ramius, LLC; Ramius Optimum Investments LLC; Ramius Value and Opportunity Master Fund Ltd / Cypress Bioscience, Inc. (NasdaqGM:CYPB) Ruentex Industries Ltd (TSEC:2915); ScinoPharm Taiwan, Ltd. / Tanvex Biologics, Inc. Sanofi-Aventis (ENXTPA:SAN) / Genzyme Corp. (NasdaqGS:GENZ) Sanofi-Aventis (ENXTPA:SAN) / TargeGen, Inc. Santarus Inc. (NasdaqGM:SNTS) / Covella Pharmaceuticals, Inc. SyntheMed Inc. (OTCBB:SYMD) / Pathfinder, LLC Thermo Fisher Scientific, Inc. (NYSE:TMO) / Fermentas International, Inc. Undisclosed Investors / American Biogenetic Sciences, Inc. (OTCBB:MABA) US WorldMeds, LLC / Solstice Neurosciences, Inc. Virbac SA (ENXTPA:VIRP) / Intervet, Inc., Six Products Lines

NA

NA

NA

NA

NA

Announced

$508.0

NA

NA

NA

NA

Provides the continuum of cell-based drug discovery, early safety assessment, and discovery toxicology products and solutions for the biopharmaceutical researchers to create various efficacious, safe, and patient-targeted drugs. Engages in the development, production, and commercialization of specialty ingredients and biomaterials utilizing fermentation technology. Comprises the worldwide rights to produce an oncology drug for cancer treatment. A development stage company, focuses on tissueengineered skin substitutes to restore human skin. An early-stage biopharmaceutical company, develops RNAibased therapies. Develops biologic products for orthopedic, spinal, trauma, neurosurgical, and oral/maxillofacial surgeons for use in various surgical procedures. Supports the development and commercialization of cellular therapies. Engages in the development and commercialization of microarray technologies for biological research, detection, and diagnosis. Intends to develop and commercialize technology for the treatment of Chronic Sinusitis. Provides therapeutics and personalized medicine services.

7/15/2010 7/21/2010 Announced

NM $46.0 $124.5

NA NA $95.8

NA NA $5.1

NA NA 1.3x

NA NA 24.2x

Announced 7/19/2010

NA NA

$8.2 NA

NA NA

NA NA

NA NA

9/15/2010 Announced

$1.0 $58.5

NA $30.9

NA NM

NA 1.9x

NA NM

Announced

NA

NA

NA

NA

NA

Announced

$16,609.8

$4,292.1

$505.7

3.9x

32.9x

7/31/2010

$560.0

NA

NA

NA

NA

9/10/2010 Announced 7/16/2010 8/13/2010 8/13/2010 8/11/2010

$1.9 NA $260.0 $0.5 $35.7 NA

NA NA $55.0 NA NA NA

NA NA NA NA NA NA

NA NA 4.7x NA NA NA

NA NA NA NA NA NA

Engages in development of biosimilars and biobetters, as well as the provision of contract research and contract manufacturing services for biologics. Focuses on rare genetic disease disorders, renal diseases, orthopaedics, cancers, transplant and immune diseases, and diagnostic and predictive testing areas. Discovers and develops small molecule kinase inhibitors that target vascular leakage (edema), vascular proliferation (angiogenesis), and inflammation. Operates as a provider of VLA-1 neutralizing antibodies for the multiple inflammatory and autoimmune diseases. Operates as a regenerative medicine company. Engages in the discovery, manufacture, and marketing of molecular biological products. Engaged in the research, development, and production of biopharmaceutical products. Engages in the development, manufacture, marketing, and sale of biopharmaceutical products. Engages in the treatment of swine immunology, reproduction, parasitology and performance.

MEAN (BIOTECH) MEDIAN (BIOTECH) PRODUCTS - DISTRIBUTION 7/14/2010 Biofield Corp. (OTCBB:BZEC) / Sky Unicorn Holdings Limited NA NA NA

2.9x 2.9x

28.5x 28.5x

NA

NA

10/1/2010

9/2/2010

Clayton, Dubilier & Rice, Inc.; Goldman Sachs Group, Merchant Banking Division / HGI Holdings, Inc. HART Health, Inc. / Synergy Logistics Inc, Van Service Division

$850.0

NA

NA

NA

NA

Distributes healthcare equipments such as Infrascanner Hematoma Detection System and Infrascanner Disposable Shields for use in acute care hospitals and emergency medical markets. Operates as a mail order, direct-to-consumer provider of disposable medical products to chronic disease patients. Provides commercial first aid supplies through a van delivery service.

NA

NA

NA

NA

NA

SCOTT-MACON, LTD.

16
Date 9/27/2010 Acquirer/ Target Seredor Corporation / Precision Diagnostic Services, Inc. and CPAP Store & SleepEasy Therapeutics Valiant Healthcare, Inc (OTCPK:VHCI) / Atlantic Medical Supply, Inc. Vision Service Plan Inc. / Capitol Optical Corporation Water Street Healthcare Partners / Medical Specialties Distributors, LLC Price NA Target Revenue NA Target EBITDA
2

Price/ Revenue NA

Price/ EBITDA
2

Target Description Distributes airway pressure (CPAP) devices and provides sleep center facility and patient care services. Operates as a retail supplier of home health equipment and supplies. A retailer of optical products. Supplies healthcare products and biomedical equipment on rent to the home healthcare market.

NA

NA

Announced 9/16/2010 7/30/2010

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

MEAN (DISTRIBUTION) MEDIAN (DISTRIBUTION) MEAN (PRODUCTS) MEDIAN (PRODUCTS) 1) Source: Financial Information from SEC filings and other publicly-available sources 2) EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization 3) NA: Not Available 4) NM: Not Meaningful

NA NA 3.6x 3.3x

NA NA 23.0x 24.2x

SCOTT-MACON, LTD.

ANALYSIS OF SELECTED PUBLICLY-TRADED HEALTHCARE COMPANIES1 THIRD QUARTER (JULY 1 SEPTEMBER 30, 2010)
($ millions Except Per Share Data)
Stock Price Stock Price 52 Wk High Stock Price 52 Wk Low LTM4 Revenue LTM EBITDA5
4

17

Company Name (Ticker Symbol)

Market Cap2

TEV3

LTM4 Diluted EPS Before Extra

TEV3/ Revenue

TEV3/ EBITDA5

P/ Diluted EPS Before Extra

SERVICES - INSURANCE
Aetna Inc. (NYSE:AET) AMERIGROUP Corp. (NYSE:AGP) Centene Corp. (NYSE:CNC) CIGNA Corp. (NYSE:CI) Coventry Health Care Inc. (NYSE:CVH) Health Net Inc. (NYSE:HNT) HealthSpring Inc. (NYSE:HS) Humana Inc. (NYSE:HUM) Independence Holding Co. (NYSE:IHC) Metropolitan Health Networks Inc. (AMEX:MDF) Molina Healthcare Inc. (NYSE:MOH) Triple-S Management Corporation (NYSE:GTS) Unitedhealth Group, Inc. (NYSE:UNH) Universal American Corp (NYSE:UAM) WellCare Health Plans, Inc. (NYSE:WCG) WellPoint Inc. (NYSE:WLP) 31.61 42.47 23.59 35.78 21.53 27.19 25.84 50.24 7.04 3.80 26.99 16.85 35.11 14.75 28.96 56.64 35.96 42.68 25.95 39.26 27.27 28.18 27.00 53.55 10.00 4.50 31.80 21.36 36.07 17.23 39.12 70.00 24.94 20.87 17.25 26.83 16.61 12.90 11.83 35.66 4.75 1.85 17.05 13.04 23.50 8.59 22.25 44.04 13,194.01 2,166.90 1,218.88 9,899.43 3,194.84 2,648.98 1,478.25 8,502.22 107.24 154.07 805.27 491.47 39,473.05 1,113.61 1,230.73 22,641.27 15,878.21 1,997.50 1,222.90 11,325.43 3,298.63 2,721.90 1,545.18 8,416.71 171.05 121.97 610.70 641.71 40,204.05 726.43 250.47 29,908.67 34,645.90 5,472.03 4,295.31 19,711.00 12,613.68 14,619.81 2,866.31 32,443.18 353.35 362.50 3,846.82 2,071.05 91,909.00 5,325.60 5,988.23 60,235.00 2,949.30 301.20 214.00 2,189.00 918.59 424.44 318.90 2,189.69 (22.47) 31.97 87.80 112.52 8,325.00 276.54 125.10 5,561.50 3.52 3.36 1.90 4.46 2.09 (0.49) 3.01 6.78 0.34 0.47 0.98 2.47 3.96 2.15 (1.96) 11.23 0.5x 0.4x 0.3x 0.6x 0.3x 0.2x 0.5x 0.3x 0.5x 0.3x 0.2x 0.3x 0.4x 0.1x 0.0x 0.5x 5.4x 6.6x 5.7x 5.2x 3.6x 6.4x 4.8x 3.8x NM 3.8x 7.0x 5.7x 4.8x 2.6x 2.0x 5.4x 9.0x 12.7x 12.4x 8.0x 10.3x NM 8.6x 7.4x 21.0x 8.0x NM 6.8x 8.9x 6.9x NM 5.0x

MEAN (INSURANCE) MEDIAN (INSURANCE)

0.3x 0.3x

4.9x 5.2x

9.6x 8.6x

SERVICES - TECHNOLOGY
Accretive Health, Inc. (NYSE:AH) Allscripts Healthcare Solutions, Inc. (NasdaqNM:MDRX) Cerner Corp. (NasdaqNM:CERN) Computer Programs & Systems Inc. (NasdaqNM:CPSI) Craneware plc (AIM:CRW) iSOFT Group Limited (ASX:ISF) MedAssets, Inc. (NasdaqNM:MDAS) Medidata Solutions, Inc. (NasdaqGM:MDSO) Merge Healthcare Incorporated. (NasdaqGM:MRGE) Omnicell Inc. (NasdaqNM:OMCL) Quality Systems Inc. (NasdaqGS:QSII) Raysearch Laboratories AB (OM:RAY B) Sage Group plc (LSE:SGE) Vital Images Inc. (NasdaqNM:VTAL) 10.83 18.47 83.99 42.57 8.64 0.12 21.04 19.20 2.90 13.08 66.31 6.16 4.34 13.23 15.21 22.55 92.95 50.05 8.93 0.89 25.08 19.46 4.25 15.38 68.89 6.91 4.46 16.92 9.05 15.65 70.50 33.92 5.09 0.12 18.10 13.36 1.92 9.62 51.30 3.54 3.27 11.35 986.20 3,442.37 6,927.66 466.69 219.13 128.89 1,214.45 456.52 241.48 427.56 1,917.09 209.36 5,711.70 190.00 866.33 3,301.25 6,411.58 451.68 188.24 315.38 1,410.07 374.07 440.52 242.40 1,816.18 197.26 6,159.51 72.89 549.88 704.50 1,763.07 136.01 28.40 364.58 366.62 150.73 85.15 217.46 308.10 14.16 2,139.14 58.80 30.85 125.33 450.86 24.85 7.24 22.49 101.47 23.32 13.81 15.95 83.94 6.52 570.21 (0.63) 0.00 0.42 2.53 1.35 0.21 (0.32) 0.42 0.34 (0.52) 0.13 1.73 0.13 0.24 (0.29) 1.6x 4.7x 3.6x 3.3x NM 0.9x 3.8x 2.5x NM 1.1x NM NM 2.9x 1.2x NM NM 14.2x 18.2x NM 14.0x 13.9x 16.0x NM 15.2x NM NM 10.8x NM NM NM NM NM NM NM NM NM NM NM NM NM 18.3x NM

MEAN (TECHNOLOGY) MEDIAN (TECHNOLOGY)

2.6x 2.7x

14.6x 14.2x

18.3x 18.3x

SERVICES - OUTSOURCING
Advisory Board Co. (NasdaqGS:ABCO) 44.15 44.97 24.25 688.88 659.12 249.31 36.17 0.75 2.6x 18.2x NM

SCOTT-MACON, LTD.

18
Stock Price 52 Wk High 42.25 19.30 15.26 7.50 11.00 47.82 9.84 10.16 45.26 2.43 107.33 0.04 43.76 63.53 11.03 16.90 61.83 2,846.03 8.95 54.00 4.51 23.68 19.50 59.84 30.31 38.50 21.79 47.74 10.62 66.94 61.60 9.98 27.50 7.50 30.63 7.89 25.64 9.50 29.69 9.35 Stock Price 52 Wk Low Market Cap2 25.99 518.38 12.34 10.05 5.40 4.14 21.51 4.12 4.16 27.96 0.94 60.87 0.01 27.20 37.44 6.92 9.95 41.50 1,867.03 5.34 37.50 1.73 17.88 11.44 37.00 20.33 21.17 7.68 29.27 7.41 43.45 44.83 5.74 19.00 2.24 19.14 4.17 11.78 3.78 20.27 4.00 133.35 189.95 58.04 168.53 1,127.43 276.88 108.84 1,577.17 290.75 853.52 130.73 504.01 3,030.12 223.52 1,106.70 2,345.96 455.85 365.44 26,415.46 226.70 998.73 398.41 1,605.23 1,293.99 443.82 138.92 1,576.93 675.32 22,575.92 2,539.32 328.99 173.51 151.70 2,821.68 191.47 1,352.76 125.20 2,945.47 215.22 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra 70.39 2.25 23.44 49.62 9.07 33.21 24.08 27.69 (5.40) 130.05 65.19 211.07 14.93 57.01 314.55 26.33 221.60 294.62 56.96 26.50 2,002.10 38.80 51.63 127.89 72.98 133.78 37.22 41.00 267.28 (1.00) 2,830.80 321.53 58.11 18.61 24.48 671.86 22.02 163.90 (4.21) 218.82 71.11 0.70 0.56 0.32 (0.12) 0.20 0.97 (1.21) 1.63 0.01 5.97 (0.00) 2.20 2.52 0.12 0.02 2.64 156.16 0.18 1.78 0.16 0.71 1.07 1.22 1.58 1.28 0.95 3.90 (1.30) 2.83 3.95 0.63 1.34 (0.26) 2.00 0.08 0.71 (1.80) 0.80 0.16

Company Name (Ticker Symbol) Air Methods Corp. (NasdaqNM:AIRM) America Service Group Inc. (NasdaqNM:ASGR) American Dental Partners, Inc. (NasdaqNM:ADPI) American Medical Alert Corp. (NasdaqSC:AMAC) AMN Healthcare Services Inc. (NYSE:AHS) Athenahealth, Inc. (NasdaqGM:ATHN) BioScrip Inc. (NasdaqNM:BIOS) CardioNet, Inc. (NasdaqNM:BEAT) Catalyst Health Solutions, Inc. (NasdaqGS:CHSI) CBaySystems Holdings Limited (AIM:CBAY) Cegedim SA (ENXTPA:CGM) China Public Healthcare Holding Ltd (SEHK:8116) CorVel Corp. (NasdaqNM:CRVL) Covance Inc. (NYSE:CVD) Cross Country Healthcare Inc. (NasdaqNM:CCRN) Emdeon Inc. (NYSE:EM) Emergency Medical Services Corp. (NYSE:EMS) EPS Co. Ltd. (TSE:4282) eResearchTechnology Inc. (NasdaqNM:ERES) Express Scripts Inc. (NasdaqNM:ESRX) Healthcare Locums Plc (AIM:HLO) Healthcare Services Group Inc. (NasdaqNM:HCSG) Healthways Inc. (NasdaqNM:HWAY) HMS Holdings Corp. (NasdaqNM:HMSY) ICON plc (NasdaqGS:ICLR) IPC The Hospitalist Company, Inc. (NasdaqGS:IPCM) Kendle International Inc. (NasdaqNM:KNDL) Magellan Health Services Inc. (NasdaqNM:MGLN) MDS, Inc. (TSX:MDS) MedcoHealth Solutions Inc. (NYSE:MHS) Mednax, Inc. (NYSE:MD) MedQuist Inc. (NasdaqGM:MEDQ) National Research Corp. (NasdaqNM:NRCI) NightHawk Radiology Holdings, Inc. (NasdaqGM:NHWK) Omnicare Inc. (NYSE:OCR) On Assignment Inc. (NasdaqGS:ASGN) Parexel International Corp. (NasdaqNM:PRXL) PDI Inc. (NasdaqNM:PDII) Pharmaceutical Product Development Inc. (NasdaqNM:PPDI) Rural/Metro Corp. (NasdaqSC:RURL)

Stock Price 41.58 14.88 12.06 6.10 5.14 33.02 5.16 4.51 35.20 1.84 61.12 0.01 42.45 46.79 7.19 12.18 53.25 2,549.22 7.48 48.70 2.01 22.79 11.64 58.94 21.62 27.30 9.32 47.24 10.04 52.06 53.30 8.76 26.08 6.38 23.88 5.25 23.13 8.74 24.79 8.51

TEV 584.27 103.67 294.54 57.14 230.73 1,049.65 563.52 58.66 1,369.61 531.46 1,469.26 146.79 490.33 2,739.28 270.10 1,992.96 2,460.46 396.32 364.91 28,257.46 250.10 919.66 665.34 1,538.50 1,073.23 409.21 237.07 1,273.20 588.43 25,362.12 2,560.50 416.94 173.24 179.19 4,616.64 238.90 1,470.36 41.47 2,453.34 465.72

LTM4 Revenue 513.89 647.82 278.80 39.63 603.63 214.88 1,422.13 130.39 3,195.90 383.82 1,091.67 37.81 348.16 2,010.63 492.97 954.59 2,707.53 316.24 96.83 36,263.80 243.86 754.43 711.38 261.16 895.38 335.02 492.47 2,856.21 206.00 62,758.30 1,346.59 322.29 58.87 157.36 6,126.95 398.75 1,335.88 110.95 1,414.49 530.75

TEV3/ Revenue 1.1x 0.2x 1.1x 1.4x 0.4x 4.9x 0.4x 0.4x 0.4x 1.4x 1.3x 3.9x 1.4x 1.4x 0.5x 2.1x 0.9x 1.3x 3.8x 0.8x 1.0x 1.2x 0.9x NM 1.2x 1.2x 0.5x 0.4x 2.9x 0.4x 1.9x 1.3x 2.9x 1.1x 0.8x 0.6x 1.1x 0.4x 1.7x 0.9x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 8.3x 18.5x 4.4x 5.9x 6.3x 6.9x NM NM NM 10.5x 8.2x 7.0x 9.8x 8.6x 8.7x 10.3x 9.0x 8.4x 7.0x 13.8x 14.1x 6.4x 17.8x 5.2x NM 8.0x 11.0x 5.8x 4.8x NM 9.0x 8.0x 7.2x 9.3x 7.3x 6.9x 10.9x 9.0x NM 11.2x 6.5x 21.2x 21.6x 19.2x NM NM 5.3x NM 21.6x NM 10.2x NM 19.3x 18.6x NM NM 20.1x 16.3x NM NM 12.3x NM 10.8x NM 13.6x 21.3x 9.8x 12.1x NM 18.4x 13.5x 13.8x 19.4x NM 11.9x NM NM NM NM NM

SCOTT-MACON, LTD.

19
Stock Price 52 Wk High 70.98 41.38 11.84 18.46 21.82 Stock Price 52 Wk Low Market Cap2 47.08 5,926.64 22.09 8.61 11.55 12.00 2,211.98 639.08 831.89 159.91 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra 400.62 2.22 108.79 105.75 149.27 14.11 0.98 0.59 0.44 0.65

Company Name (Ticker Symbol) Stericycle, Inc. (NasdaqGS:SRCL) SXC Health Solutions, Corp. (NasdaqNM:SXCI) Synergy Health plc (LSE:SYR) Team Health Holdings, Inc. (NYSE:TMH) Transcend Services, Inc. (NasdaqGS:TRCR)

Stock Price 69.48 36.38 11.64 12.91 15.25

TEV 6,902.13 1,849.66 849.54 1,252.94 134.25

LTM4 Revenue 1,294.29 1,758.44 426.38 2,540.69 84.28

TEV3/ Revenue NM 1.1x 2.0x 0.5x 1.6x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 17.2x NM 17.0x 8.0x 8.4x 9.5x NM 19.6x NM 23.4x

MEAN (OUTSOURCING) MEDIAN (OUTSOURCING)

1.3x 1.1x

9.2x 8.4x

16.3x 18.4x

SERVICES - INDIA-BASED OUTSOURCING

3i Infotech, Ltd. (BSE:532628) Firstsource Solutions Limited (BSE:532809) HCL Technologies Ltd. (BSE:532281) Hexaware Technologies Ltd. (BSE:532129) Infosys Technologies Ltd. (BSE:500209) KPIT Cummins Infosystems Ltd. (BSE:532400) Mphasis Limited (BSE:526299) NIIT Technologies Ltd. (BSE:532541) Patni Computer Systems Ltd. (BSE:532517) Satyam Computer Services Ltd. (BSE:500376) Tata Consultancy Services Limited (BSE:532540) Tech Mahindra Limited (BSE:532755) Wipro Ltd. (BSE:507685) 1.34 0.60 9.32 1.68 67.56 3.59 13.83 4.51 9.24 2.00 20.49 16.80 9.96 2.29 0.89 9.97 2.28 68.31 4.29 17.68 4.63 13.86 2.68 22.35 25.72 10.04 1.27 0.54 6.14 1.42 47.25 1.62 12.11 2.71 8.69 1.74 12.36 13.71 7.13 256.40 256.52 6,335.07 244.18 38,578.61 283.21 2,902.22 265.48 1,210.38 2,354.53 40,111.83 2,112.44 24,262.41 688.51 502.36 6,472.54 145.28 35,023.91 266.40 2,880.76 228.97 1,140.85 1,884.80 38,446.18 2,360.69 23,189.33 535.76 419.74 2,613.61 212.86 5,382.00 164.74 1,039.51 212.54 675.04 1,220.44 6,790.57 1,000.55 6,010.47 105.28 59.86 408.73 31.79 1,803.00 30.98 266.11 44.20 147.00 101.74 2,072.02 237.39 1,319.65 0.34 0.06 0.39 0.15 2.42 0.22 1.07 0.55 1.10 (0.03) 0.81 1.18 0.43 1.3x 1.2x 2.5x 0.7x NM 1.6x 2.8x 1.1x 1.7x 1.5x NM 2.4x 3.9x 6.5x 8.4x 15.8x 4.6x 19.4x 8.6x 10.8x 5.2x 7.8x 18.5x 18.6x 9.9x 17.6x 4.0x 10.1x 23.7x 11.4x NM 16.2x 12.9x 8.3x 8.4x NM NM 14.3x 23.1x

MEAN (INDIA-BASED OUTSOURCING) MEDIAN (INDIA-BASED OUTSOURCING)

1.9x 1.6x

11.7x 9.9x

13.2x 12.1x

SERVICES - INFORMATION
ADAM Inc. (NasdaqNM:ADAM) Healthstream Inc. (NasdaqNM:HSTM) National Research Corp. (NasdaqGM:NRCI) WebMD Health Corp. (NasdaqNM:WBMD) 6.34 5.32 26.08 49.87 6.57 5.49 27.50 52.81 2.95 3.37 19.00 33.25 63.22 116.09 173.51 2,905.78 64.37 97.33 173.24 2,483.48 27.87 60.69 58.87 480.38 6.26 11.33 18.61 91.31 0.21 0.61 1.34 1.15 2.3x 1.6x 2.9x NM 10.3x 8.6x 9.3x NM NM 8.7x 19.4x NM

MEAN (INFORMATION) MEDIAN (INFORMATION)

2.3x 2.3x

9.4x 9.3x

14.1x 14.1x

MEAN (SERVICES) MEDIAN (SERVICES)

1.4x 1.1x

9.3x 8.4x

13.9x 12.8x

PROVIDERS - LABS
Bio-Reference Laboratories Inc. (NasdaqNM:BRLI) Celera Corporation (NasdaqGS:CRA) Charles River Laboratories International Inc. (NYSE:CRL) Clarient, Inc. (NasdaqCM:CLRT) Genoptix, Inc. (NasdaqNM:GXDX) Laboratory Corp. of America Holdings (NYSE:LH) MEDTOX Scientific Inc. (NasdaqNM:MTOX) 20.86 6.74 33.15 3.38 14.20 78.43 11.63 24.67 7.72 41.65 4.35 39.00 83.00 13.28 15.42 5.94 26.82 1.88 13.51 63.81 7.01 580.45 552.60 2,196.49 296.53 249.68 8,062.60 101.38 604.47 229.72 2,393.94 327.17 109.65 9,307.50 96.43 433.74 144.04 1,182.32 100.04 198.23 4,782.20 92.00 57.41 (13.69) 252.06 0.36 54.01 1,140.50 8.68 0.89 (0.22) 1.27 (0.07) 1.53 5.22 0.23 1.4x 1.6x 2.0x 3.3x 0.6x 1.9x 1.0x 10.5x NM 9.5x NM 2.0x 8.2x 11.1x 23.4x NM NM NM 9.3x 15.0x NM

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Stock Price 52 Wk High 9.72 62.83 Stock Price 52 Wk Low Market Cap2 5.10 48.48 40.80 8,943.99 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra 4.91 0.52 1,569.60 4.06

Company Name (Ticker Symbol) Psychemedics Corp. (NasdaqCM:PMD) Quest Diagnostics Inc. (NYSE:DGX)

Stock Price 9.30 50.47

TEV 43.79 11,663.63

LTM4 Revenue 18.83 7,393.14

TEV3/ Revenue 2.3x 1.6x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 8.9x 18.0x 7.4x 12.4x

MEAN (LABS) MEDIAN (LABS)

1.7x 1.6x

8.2x 8.9x

15.6x 15.0x

PROVIDERS - HOME HEALTH & HOSPICE

Addus HomeCare Corp. (NasdaqGM:ADUS) Allied Healthcare International Inc. (NasdaqGS:AHCI) Almost Family Inc. (NasdaqNM:AFAM) Amedisys Inc. (NasdaqNM:AMED) Arcadia Resources Inc. (AMEX:KAD) Chemed Corp. (NYSE:CHE) Gentiva Health Services Inc. (NasdaqNM:GTIV) IPC The Hospitalist Company, Inc. (NasdaqGS:IPCM) LHC Group, Inc. (NasdaqNM:LHCG) Lincare Holdings Inc. (NasdaqNM:LNCR) National Healthcare Corp. (AMEX:NHC) Res-Care Inc. (NasdaqGS:RSCR) Rotech Healthcare Inc. (OTCBB:ROHI) Skilled Healthcare Group, Inc. (NYSE:SKH) Sun Healthcare Group Inc. (NasdaqNM:SUNH) 3.97 2.50 29.63 23.80 0.40 56.97 21.85 27.30 23.19 25.08 37.07 13.27 1.76 3.93 8.47 9.72 3.40 44.12 64.28 1.09 58.97 30.88 38.50 37.49 33.45 38.20 14.85 3.65 9.36 10.34 3.75 1.86 23.50 22.82 0.35 43.07 18.93 21.17 19.61 19.87 33.02 8.59 0.30 1.43 6.68 42.67 110.06 274.05 685.94 70.75 1,298.23 651.30 443.82 432.70 2,460.00 510.79 390.39 45.03 148.51 633.33 91.29 78.10 245.68 775.37 103.76 1,344.76 692.94 409.21 450.55 2,830.55 595.52 598.35 509.13 650.54 693.89 264.27 270.51 321.70 1,629.04 102.95 1,223.85 1,185.49 335.02 574.68 1,652.88 670.90 1,569.07 493.39 769.81 1,892.83 16.40 18.91 51.90 274.71 (11.46) 156.92 144.75 37.22 96.20 333.08 78.91 98.22 90.68 106.58 97.67 (0.28) 0.22 3.16 5.04 (0.18) 3.30 2.14 1.28 2.56 1.80 2.41 (0.38) (0.50) (3.75) 0.42 0.3x 0.3x 0.8x 0.5x 1.0x 1.1x 0.6x 1.2x 0.8x 1.7x 0.9x 0.4x 1.0x 0.8x 0.4x 5.6x 4.1x 4.7x 2.8x NM 8.6x 4.8x 11.0x 4.7x 8.5x 7.5x 6.1x 5.6x 6.1x 7.1x NM 11.2x 9.4x 4.7x NM 17.3x 10.2x 21.3x 9.1x 13.9x 15.4x NM NM NM 20.2x

MEAN (HOME HEALTH & HOSPICE) MEDIAN (HOME HEALTH & HOSPICE)

0.8x 0.8x

6.2x 5.9x

13.3x 12.6x

PROVIDERS - NON-ACUTE
Alliance Healthcare Services, Inc. (NYSE:AIQ) Allied Healthcare International Inc. (NasdaqNM:AHCI) AmSurg Corp. (NasdaqNM:AMSG) Continucare Corp. (AMEX:CNU) DaVita, Inc. (NYSE:DVA) Hanger Orthopedic Group Inc. (NYSE:HGR) HEALTHSOUTH Corp. (NYSE:HLS) LCA-Vision Inc. (NasdaqNM:LCAV) NovaMed Inc. (NasdaqGS:NOVA) Psychiatric Solutions, Inc. (NasdaqGS:PSYS) RadNet, Inc. (NasdaqNM:RDNT) Rehabcare Group Inc. (NYSE:RHB) Res-Care Inc. (NasdaqNM:RSCR) Select Medical Holdings Corporation (NYSE:SEM) US Physical Therapy Inc. (NasdaqNM:USPH) VCA Antech Inc. (NasdaqGS:WOOF) 4.58 2.50 17.48 4.20 69.03 14.54 19.20 5.57 9.65 33.55 2.40 20.22 13.27 7.70 16.72 21.09 6.47 3.40 23.61 5.25 69.42 19.53 22.22 9.40 16.50 33.58 4.20 34.88 14.85 10.88 19.38 29.28 3.32 1.86 16.35 2.57 52.71 13.01 14.44 3.94 7.71 17.63 1.80 15.88 8.59 5.95 13.46 19.12 241.55 110.06 540.48 254.33 7,082.48 470.14 1,794.36 104.18 76.79 1,921.41 88.75 504.10 390.39 1,232.08 194.49 1,813.21 813.89 78.10 956.97 216.44 10,275.32 805.80 3,777.46 56.45 193.64 3,006.41 590.27 949.20 598.35 2,560.40 199.93 2,168.35 483.78 270.51 688.90 310.79 6,288.44 781.52 1,944.50 109.91 154.47 1,894.79 528.35 1,124.13 1,569.07 2,283.85 205.96 1,338.43 154.64 18.91 249.23 39.02 1,190.98 111.66 395.40 (10.43) 42.61 333.86 89.97 113.04 98.22 317.68 35.85 263.97 (0.19) 0.22 1.71 0.36 4.19 1.09 1.31 (1.52) 0.85 2.28 (0.47) 1.67 (0.38) 0.54 1.10 1.42 1.7x 0.3x 1.4x 0.7x 1.6x 1.0x 1.9x 0.5x 1.3x 1.6x 1.1x 0.8x 0.4x 1.1x 1.0x 1.6x 5.3x 4.1x 3.8x 5.5x 8.6x 7.2x 9.6x NM 4.5x 9.0x 6.6x 8.4x 6.1x 8.1x 5.6x 8.2x NM 11.2x 10.2x 11.7x 16.5x 13.4x 14.7x NM 11.4x 14.7x NM 12.1x NM 14.4x 15.2x 14.9x

MEAN (NON-ACUTE) MEDIAN (NON-ACUTE)

1.1x 1.1x

6.7x 6.6x

13.4x 13.9x

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Stock Price 52 Wk High Stock Price 52 Wk Low LTM4 Diluted EPS Before Extra

Company Name (Ticker Symbol)

Stock Price

Market Cap

TEV

LTM4 Revenue

LTM4 EBITDA5

TEV3/ Revenue

TEV3/ EBITDA5

P/ Diluted EPS Before Extra

PROVIDERS - LONG-TERM CARE

Advocat Inc. (NasdaqSC:AVCA) Assisted Living Concepts Inc. (NYSE:ALC) Brookdale Senior Living Inc. (NYSE:BKD) Capital Senior Living Corp. (NYSE:CSU) Emeritus Corp. (NYSE:ESC) Ensign Group, Inc. (NasdaqNM:ENSG) Five Star Quality Care Inc. (AMEX:FVE) Sunrise Senior Living Inc. (NYSE:SRZ) 5.66 30.44 16.31 5.33 17.06 17.95 5.05 3.43 8.94 37.48 22.21 6.39 24.83 18.98 5.29 5.99 4.00 19.56 12.66 4.21 14.55 13.50 2.72 2.18 32.50 354.88 1,961.40 144.33 672.95 372.50 180.41 191.90 49.27 461.17 4,530.77 288.38 2,226.73 454.63 206.04 477.48 306.64 231.14 2,117.76 195.23 928.74 591.66 1,225.63 1,434.09 13.50 55.63 343.79 31.03 140.56 80.80 31.61 21.71 0.49 1.29 (0.55) 0.14 (1.47) 1.68 0.49 (1.61) 0.2x 2.0x 2.1x 1.5x 2.4x 0.8x 0.2x 0.3x 3.7x 8.3x 13.2x 9.3x 15.8x 5.6x 6.5x NM 11.6x 23.6x NM NM NM 10.7x 10.4x NM

MEAN (LONG-TERM CARE) MEDIAN (LONG-TERM CARE)

1.2x 1.1x

8.9x 8.3x

14.1x 11.1x

PROVIDERS - ACUTE
Chindex International Inc. (NasdaqGS:CHDX) Community Health Systems, Inc. (NYSE:CYH) Health Management Associates Inc. (NYSE:HMA) Kindred Healthcare Inc. (NYSE:KND) Lifepoint Hospitals Inc. (NasdaqNM:LPNT) MedCath Corp. (NasdaqNM:MDTH) NovaMed Inc. (NasdaqNM:NOVA) Prospect Medical Holdings Inc. (NasdaqGM:PZZ) Select Medical Holdings Corporation (NYSE:SEM) Tenet Healthcare Corp. (NYSE:THC) Universal Health Services Inc. (NYSE:UHS) 15.11 30.97 7.66 13.02 35.06 10.07 9.65 8.50 7.70 4.72 38.86 16.25 42.30 9.81 20.00 39.61 12.94 16.50 8.81 10.88 6.46 43.80 9.94 25.63 5.84 11.50 27.00 6.62 7.71 2.80 5.95 3.92 27.59 243.35 2,911.18 1,919.76 514.05 1,901.16 206.35 76.79 180.11 1,232.08 2,290.26 3,777.50 185.18 12,082.13 4,941.17 578.22 3,151.36 272.26 193.64 309.02 2,560.40 6,239.26 4,896.77 167.35 12,509.65 4,853.48 4,298.68 3,068.70 611.45 154.47 468.06 2,283.85 9,165.00 5,271.79 15.11 1,692.94 714.35 201.71 504.80 38.03 42.61 53.89 317.68 1,024.00 701.06 0.37 2.85 0.57 1.33 2.78 (4.47) 0.85 0.27 0.54 0.28 2.53 1.1x 1.0x 1.0x 0.1x 1.0x 0.4x 1.3x 0.7x 1.1x 0.7x 0.9x 12.3x 7.1x 6.9x 2.9x 6.2x 7.2x 4.5x 5.7x 8.1x 6.1x 7.0x NM 10.9x 13.5x 9.8x 12.6x NM 11.4x NM 14.4x 16.7x 15.3x

MEAN (ACUTE) MEDIAN (ACUTE)

0.8x 1.0x

6.7x 6.9x

13.1x 13.0x

MEAN (PROVIDERS) MEDIAN (PROVIDERS)

1.1x 1.0x

7.1x 7.0x

13.6x 13.4x

PRODUCTS - CLINICAL DEVICES

Abiomed Inc. (NasdaqNM:ABMD) Accuray Incorporated (NasdaqNM:ARAY) Affymetrix Inc. (NasdaqNM:AFFX) Align Technology Inc. (NasdaqNM:ALGN) Alphatec Holdings, Inc. (NasdaqNM:ATEC) American Medical Systems Holdings Inc. (NasdaqNM:AMMD) AngioDynamics Inc. (NasdaqNM:ANGO) AtriCure, Inc. (NasdaqNM:ATRC) Baxter International Inc. (NYSE:BAX) Boston Scientific Corp. (NYSE:BSX) Bruker BioSciences Corp. (NasdaqNM:BRKR) Cepheid (NasdaqNM:CPHD) 10.61 6.22 4.56 19.58 2.13 19.58 15.24 7.87 47.71 6.13 14.03 18.71 11.73 7.75 10.06 20.56 7.62 24.12 17.86 8.64 61.88 10.60 15.85 21.02 7.80 4.93 3.75 13.18 1.85 15.07 13.53 3.94 40.25 5.04 10.04 11.93 401.05 364.55 322.67 1,481.76 185.96 1,488.04 378.57 122.48 27,880.29 9,298.61 2,311.71 1,117.55 346.13 219.23 242.11 1,236.96 205.84 1,707.42 286.31 114.39 30,630.29 14,520.61 2,256.21 1,073.71 87.80 221.63 318.84 364.17 155.65 540.54 217.45 55.23 12,815.00 7,883.00 1,210.10 188.53 (20.46) 11.86 23.15 101.68 16.77 173.82 33.26 (2.71) 3,131.00 1,747.00 201.30 1.15 (0.47) 0.05 (0.31) 0.12 (0.17) 1.21 0.49 (0.66) 2.73 (1.57) 0.60 (0.24) 3.9x 1.0x 0.8x 3.4x 1.3x 3.2x 1.3x 2.1x 2.4x 1.8x 1.9x NM NM 18.5x 10.5x 12.2x 12.3x 9.8x 8.6x NM 9.8x 8.3x 11.2x NM NM NM NM NM NM 16.2x NM NM 17.5x NM 23.5x NM

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Stock Price 52 Wk High 4.35 22.39 22.44 25.35 90.00 8.25 26.92 14.06 14.18 69.29 6.27 22.34 81.88 51.33 21.73 19.72 50.93 7.07 46.73 393.92 30.50 53.01 7.36 14.90 31.43 46.66 24.97 18.09 46.83 19.49 38.60 1.70 6.48 16.50 17.50 35.33 43.45 10.94 34.25 142.52 Stock Price 52 Wk Low Market Cap2 1.88 296.53 10.87 12.25 16.75 73.99 4.80 14.08 8.80 6.53 33.83 3.30 14.03 53.24 40.50 11.94 13.22 25.59 3.40 29.69 241.27 19.70 31.84 3.79 8.47 21.05 30.80 16.03 11.68 26.92 5.38 26.50 0.93 2.55 8.56 10.48 21.44 26.15 8.27 21.89 103.17 503.64 427.24 645.25 7,625.76 171.39 745.07 129.49 765.76 7,600.18 223.26 210.64 13,012.76 2,358.98 385.08 4,149.01 6,114.87 153.51 1,147.42 11,165.74 257.09 2,628.05 109.88 323.79 1,606.40 36,262.57 888.71 420.78 1,383.99 928.66 554.28 766.80 117.86 191.63 313.15 4,971.57 1,991.21 8,104.87 464.58 8,060.35 LTM4 Diluted EPS LTM4 Before Extra EBITDA5 0.36 (0.07) (76.15) 23.79 101.61 846.30 20.02 44.35 (4.64) (41.24) 314.40 0.16 32.87 3,414.99 176.84 5.24 597.28 193.94 (1.60) 147.02 567.96 37.28 615.04 7.29 (36.23) 91.68 5,874.00 50.80 25.82 59.12 (9.33) 103.21 73.07 5.14 (7.34) 57.28 304.95 211.32 1,172.00 32.03 442.67 (3.37) 0.32 0.71 4.91 0.32 2.69 (1.63) (1.14) 1.91 (0.03) 0.73 3.46 1.98 (0.07) 0.53 0.58 (0.19) 2.03 8.40 1.77 3.33 0.32 (1.21) 1.13 3.16 0.74 0.37 0.37 (0.77) 2.47 0.08 (0.14) (0.71) 1.02 1.23 1.63 0.62 0.31 5.09

Company Name (Ticker Symbol) Clarient, Inc. (NasdaqSC:CLRT) Clinical Data Inc. (NasdaqNM:CLDA) Conceptus, Inc. (NasdaqNM:CPTS) CONMED Corp. (NasdaqNM:CNMD) CR Bard Inc. (NYSE:BCR) CryoLife Inc. (NYSE:CRY) Cyberonics Inc. (NasdaqNM:CYBX) Cynosure, Inc. (NasdaqNM:CYNO) DexCom, Inc. (NasdaqNM:DXCM) Edwards Lifesciences Corp. (NYSE:EW) Endologix Inc. (NasdaqNM:ELGX) Exactech Inc. (NasdaqNM:EXAC) Fresenius AG (DB:FRE) Gen-Probe Inc. (NasdaqNM:GPRO) Genomic Health Inc. (NasdaqGM:GHDX) Hologic Inc. (NasdaqNM:HOLX) Illumina Inc. (NasdaqNM:ILMN) IMRIS, Inc. (TSX:IM) Integra LifeSciences Holdings Corp. (NasdaqNM:IART) Intuitive Surgical Inc. (NasdaqNM:ISRG) Kensey Nash Corp. (NasdaqNM:KNSY) Kinetic Concepts Inc. (NYSE:KCI) LeMaitre Vascular, Inc. (NasdaqNM:LMAT) MAKO Surgical Corp. (NasdaqNM:MAKO) Masimo Corporation (NasdaqNM:MASI) Medtronic Inc. (NYSE:MDT) Meridian Bioscience Inc. (NasdaqNM:VIVO) Natus Medical Inc. (NasdaqNM:BABY) NuVasive, Inc. (NasdaqNM:NUVA) Nxstage Medical, Inc. (NasdaqNM:NXTM) Orthofix International NV (NasdaqNM:OFIX) Ossur Hf. (ICSE:OSSR) Osteotech Inc. (NasdaqNM:OSTE) Palomar Medical Technologies Inc. (NasdaqNM:PMTI) Quidel Corp. (NasdaqNM:QDEL) ResMed Inc. (NYSE:RMD) Sirona Dental Systems Inc. (NasdaqNM:SIRO) Smith & Nephew plc (LSE:SN.) SonoSite Inc. (NasdaqNM:SONO) Sonova Holding AG (SWX:SOON)

Stock Price 3.38 16.87 13.75 22.41 81.43 6.07 26.68 10.21 13.22 67.05 4.56 16.32 80.42 48.46 13.36 16.01 49.20 4.66 39.46 283.74 28.89 36.58 7.05 9.58 27.31 33.58 21.87 14.58 35.14 19.10 31.42 1.69 6.46 10.33 10.99 32.81 36.04 9.12 33.51 122.34

TEV 327.17 487.35 450.04 840.34 7,200.06 136.03 695.46 35.69 729.86 7,457.38 200.95 234.11 31,268.31 2,136.16 323.29 5,087.67 5,630.20 133.23 1,425.70 10,197.84 228.34 3,576.57 84.07 275.30 1,497.19 42,853.57 830.49 381.90 1,447.52 947.79 764.13 906.74 119.87 89.51 382.08 4,600.23 2,138.55 8,851.94 449.82 8,190.99

LTM4 Revenue 100.04 14.84 141.41 723.56 2,638.60 115.81 174.07 77.58 39.06 1,378.10 57.57 187.37 18,364.34 535.64 163.77 1,654.02 743.06 55.69 707.11 1,346.77 77.87 2,014.79 54.90 33.08 378.90 15,657.00 149.92 197.74 430.52 162.96 560.78 348.54 95.80 62.47 176.15 1,092.36 775.55 3,935.00 240.83 1,425.33

TEV3/ Revenue 3.3x NM 3.2x 1.2x 2.7x 1.2x 4.0x 0.5x NM NM 3.5x 1.2x 1.7x 4.0x 2.0x 3.1x NM 2.4x 2.0x NM 2.9x 1.8x 1.5x NM 4.0x 2.7x NM 1.9x 3.4x NM 1.4x 2.6x 1.3x 1.4x 2.2x 4.2x 2.8x 2.2x 1.9x NM

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra NM NM NM 18.9x 8.3x 8.5x 6.8x 15.7x NM NM NM NM 7.1x 9.2x 12.1x NM 8.5x NM NM 9.7x 18.0x 6.1x 5.8x 11.5x NM 16.3x 7.3x 16.3x 14.8x NM NM 7.4x 12.4x NM NM 6.7x 15.1x 10.1x 7.6x 14.0x 18.5x NM NM NM 16.6x 19.0x 9.9x NM NM NM NM 22.3x 23.2x 24.5x NM NM NM NM 19.5x NM 16.3x 11.0x 22.3x NM 24.2x 10.6x NM NM NM NM 12.7x 20.7x NM NM 10.8x NM 22.1x 14.7x NM 24.0x

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Stock Price 52 Wk High 7.99 42.87 6.74 6.02 59.72 12.05 16.72 3.40 47.93 30.21 61.38 26.16 9.00 19.61 64.77 33.23 Stock Price 52 Wk Low Market Cap2 4.73 179.50 31.66 2.47 3.00 42.74 6.92 11.47 1.60 25.25 24.11 35.50 14.20 3.80 13.03 46.27 19.00 12,880.07 189.05 208.54 19,866.85 346.50 169.29 40.53 2,161.85 105.71 7,358.49 1,322.33 115.44 565.16 10,516.29 694.06 LTM4 Diluted EPS LTM4 Before Extra EBITDA5 9.93 (0.28) 1,578.36 2.90 (20.82) 2,345.20 48.61 7.76 (4.76) 116.82 9.90 586.76 10.41 20.56 69.22 1,436.10 42.75 2.55 (0.14) (0.52) 3.22 0.34 0.62 (0.37) 0.87 1.69 2.88 (0.30) 0.56 0.28 3.25 0.70

Company Name (Ticker Symbol) The Spectranetics Corporation (NasdaqNM:SPNC) St. Jude Medical Inc. (NYSE:STJ) STAAR Surgical Co. (NasdaqNM:STAA) Stereotaxis Inc. (NasdaqNM:STXS) Stryker Corp. (NYSE:SYK) Symmetry Medical, Inc. (NYSE:SMA) Synovis Life Technologies Inc. (NasdaqNM:SYNO) Thermogenesis Corp. (NasdaqSC:KOOL) Thoratec Corp. (NasdaqNM:THOR) Utah Medical Products Inc. (NasdaqNM:UTMD) Varian Medical Systems Inc. (NYSE:VAR) Volcano Corporation (NasdaqNM:VOLC) Winner Medical Group Inc. (NasdaqGM:WWIN) Wright Medical Group Inc. (NasdaqNM:WMGI) Zimmer Holdings Inc. (NYSE:ZMH) ZOLL Medical Corp. (NasdaqNM:ZOLL)

Stock Price 5.42 39.34 5.41 4.14 50.05 9.64 14.95 2.89 36.98 29.25 60.50 25.98 4.82 14.41 52.33 32.27

TEV 157.61 14,174.86 184.57 213.18 16,853.55 429.79 115.06 29.80 1,943.57 85.58 6,794.34 1,194.87 103.46 606.30 10,660.19 630.87

LTM4 Revenue 117.54 4,937.53 77.45 53.01 7,159.10 336.89 65.46 23.09 434.46 25.88 2,346.46 264.89 114.46 506.65 4,203.40 431.46

TEV3/ Revenue 1.3x 2.9x 2.4x 4.0x 2.4x 1.3x 1.8x 1.3x 4.5x 3.3x 2.9x 4.5x 0.9x 1.2x 2.5x 1.5x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 15.9x NM 9.0x NM NM 7.2x 8.8x 14.8x NM 16.6x 8.6x 11.6x NM 5.0x 8.8x 7.4x 14.8x 15.5x NM NM 15.6x NM 24.2x NM NM 17.3x 21.0x NM 8.6x NM 16.1x NM

MEAN (CLINICAL) MEDIAN (CLINICAL)

2.3x 2.2x

11.1x 9.8x

17.9x 17.4x

PRODUCTS - NON-CLINICAL DEVICES

Abaxis Inc. (NasdaqNM:ABAX) Beckman Coulter Inc. (NYSE:BEC) Caliper Life Sciences, Inc. (NasdaqNM:CALP) Careview Communications, Inc. (OTCPK:CRVW) Cerus Corp. (NasdaqNM:CERS) Cutera Inc. (NasdaqNM:CUTR) Getinge AB (OM:GETI B) Haemonetics Corp. (NYSE:HAE) Hillenbrand Inc. (NYSE:HI) IDEXX Laboratories Inc. (NasdaqNM:IDXX) Invacare Corp. (NYSE:IVC) Omnicell Inc. (NasdaqGS:OMCL) Solta Medical, Inc. (NasdaqGM:SLTM) Steris Corp. (NYSE:STE) SurModics Inc. (NasdaqGS:SRDX) Thermo Fisher Scientific, Inc. (NYSE:TMO) TSO3 Inc. (TSX:TOS) 23.10 48.79 3.99 1.62 3.84 8.10 23.21 58.53 21.51 61.72 26.51 13.08 2.00 33.22 11.92 47.88 1.36 28.50 69.90 4.62 2.47 4.01 12.04 26.23 60.70 26.21 68.57 30.31 15.38 3.07 38.16 31.00 57.40 1.98 17.54 43.95 2.02 0.65 1.57 6.92 16.58 50.50 17.80 47.52 19.58 9.62 1.49 25.65 10.62 41.74 1.09 515.85 3,378.41 200.59 205.33 149.38 109.81 5,532.18 1,443.94 1,339.62 3,561.61 858.56 427.56 119.04 1,978.95 207.52 19,507.80 78.56 451.00 4,430.11 162.95 204.11 147.86 17.19 7,614.28 1,371.27 1,632.32 3,584.03 1,089.87 242.40 92.41 1,963.66 185.80 20,330.00 57.08 129.89 3,595.50 127.53 0.17 21.95 53.55 2,917.66 654.38 690.30 1,079.46 1,715.67 217.46 102.17 1,163.17 73.56 10,694.60 0.87 25.70 798.70 4.27 (6.21) (17.36) (7.23) 655.38 153.22 167.50 239.62 137.38 15.95 (0.63) 158.18 19.06 2,077.80 (8.29) 0.57 2.10 0.19 (0.08) (0.55) (1.44) 1.13 2.24 1.53 2.20 1.04 0.13 (0.13) 0.97 0.19 2.30 (0.16) 3.5x 1.2x 1.3x NM NM 0.3x 2.6x 2.1x 2.4x 3.3x 0.6x 1.1x 0.9x 1.7x 2.5x 1.9x NM 17.6x 5.5x NM NM NM NM 11.6x 8.9x 9.7x 15.0x 7.9x 15.2x NM 12.4x 9.8x 9.8x NM NM 23.2x 21.2x NM NM NM 20.6x NM 14.0x NM NM NM NM NM NM 20.9x NM

MEAN (NON-CLINICAL) MEDIAN (NON-CLINICAL)

1.8x 1.8x

11.2x 9.8x

20.0x 20.9x

PRODUCTS - DISPOSABLES
ATRION Corp. (NasdaqNM:ATRI) 157.51 164.56 118.00 318.49 309.86 104.38 35.89 8.98 3.0x 8.6x 17.5x

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Stock Price 52 Wk High 80.56 2.00 39.02 17.74 19.90 25.37 13.92 68.58 13.22 Stock Price 52 Wk Low Market Cap2 66.20 17,202.02 0.97 30.55 7.61 13.78 19.33 8.51 49.19 7.60 55.01 501.59 147.94 448.38 1,325.31 133.07 10,068.01 193.11 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra 2,259.68 5.06 (1.50) 60.91 31.21 45.92 429.68 1.64 934.36 10.64 (0.05) 2.01 0.89 0.74 1.26 (0.05) 2.30 0.48

Company Name (Ticker Symbol) Becton Dickinson & Co. (NYSE:BDX) CRH Medical Corporation (CDNX:CRM) ICU Medical Inc. (NasdaqNM:ICUI) Medical Action Industries Inc. (NasdaqNM:MDCI) Merit Medical Systems Inc. (NasdaqNM:MMSI) Nipro Corp. (TSE:8086) Rochester Medical Corp. (NasdaqNM:ROCM) Terumo Corp. (TSE:4543) Vascular Solutions Inc. (NasdaqNM:VASC)

Stock Price 74.10 1.13 37.29 9.05 15.89 20.90 10.91 53.02 11.48

TEV 17,445.68 53.35 418.51 161.07 444.13 3,130.35 99.99 9,316.20 174.88

LTM4 Revenue 7,537.59 7.18 278.78 286.26 276.63 2,024.85 39.33 3,611.86 75.79

TEV3/ Revenue 2.3x NM 1.5x 0.6x 1.6x 1.5x 2.5x 2.6x 2.3x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 7.7x 14.7x NM 6.9x 5.2x 9.7x 7.3x NM 10.0x 16.4x NM 18.5x 10.2x 21.4x 16.6x NM 23.0x 24.1x

MEAN (DISPOSABLES) MEDIAN (DISPOSABLES)

2.0x 2.3x

9.0x 8.2x

18.2x 18.0x

PRODUCTS - COMMERCIAL
Bio-Rad Laboratories Inc. (NYSE:BIO) Cantel Medical Corp. (NYSE:CMN) Dentsply International, Inc. (NasdaqNM:XRAY) Hill-Rom Holdings, Inc. (NYSE:HRC) Hospira Inc. (NYSE:HSP) Immucor Inc. (NasdaqNM:BLUD) Ion Beam Applications SA (ENXTBR:IBAB) IRIS International Inc. (NasdaqNM:IRIS) Luminex Corp. (NasdaqNM:LMNX) OraSure Technologies Inc. (NasdaqNM:OSUR) SurModics Inc. (NasdaqNM:SRDX) West Pharmaceutical Services Inc. (NYSE:WST) Young Innovations Inc. (NasdaqNM:YDNT) 90.51 16.20 31.97 35.89 57.01 19.83 11.41 9.60 16.00 4.05 11.92 34.31 28.61 125.01 21.85 38.15 36.11 59.75 22.79 15.22 12.75 18.24 6.80 31.00 44.84 30.30 80.00 13.39 27.76 19.29 42.81 16.84 8.79 7.26 12.75 2.80 10.62 32.74 21.60 2,507.00 273.05 4,566.02 2,278.80 9,538.34 1,387.70 299.79 175.23 676.74 187.15 207.52 1,141.08 227.96 2,550.98 278.89 4,773.42 2,234.10 10,496.24 1,185.05 356.63 138.20 580.05 120.65 185.80 1,432.58 233.81 1,878.02 273.95 2,211.17 1,436.30 4,038.50 329.64 441.66 101.32 133.78 79.66 73.56 1,108.80 101.51 366.46 44.10 456.62 180.50 941.90 144.13 20.88 11.46 19.53 (0.18) 19.06 191.20 27.06 5.32 1.18 1.85 1.60 2.63 1.17 (0.63) 0.31 0.52 (0.08) 0.19 2.28 1.83 1.4x 1.0x 2.2x 1.6x 2.6x 3.6x 0.8x 1.4x 4.3x 1.5x 2.5x 1.3x 2.3x 7.0x 6.3x 10.5x 12.4x 11.1x 8.2x 17.1x 12.1x NM NM 9.8x 7.5x 8.6x 17.0x 13.8x 17.3x 22.5x 21.7x 16.9x NM NM NM NM NM 15.0x 15.7x

MEAN (COMMERCIAL) MEDIAN (COMMERCIAL)

2.0x 1.6x

10.0x 9.8x

17.5x 17.0x

PRODUCTS - CONSUMER
Alere Inc. (NYSE:ALR) Essilor International (ENXTPA:EI) Female Health Co. (NasdaqCM:FHCO) Insulet Corporation (NasdaqNM:PODD) Nutraceutical International Corp. (NasdaqGS:NUTR) NutriSystem Inc. (NasdaqGS:NTRI) Otix Global, Inc. (NasdaqGM:OTIX) Schiff Nutrition International Inc. (NYSE:WNI) SSL International plc (LSE:SSL) The Cooper Companies Inc. (NYSE:COO) 30.93 68.57 5.15 14.14 15.69 19.24 10.33 8.20 18.19 46.22 44.87 69.52 7.45 16.50 16.43 33.54 10.45 11.00 18.69 47.28 25.36 51.26 4.35 8.80 10.26 14.58 3.05 5.16 9.68 27.59 2,622.89 14,299.29 141.54 567.62 163.25 517.44 59.74 228.43 3,879.23 2,110.59 5,270.81 15,228.13 137.74 541.84 188.21 428.51 56.89 185.03 4,081.70 2,756.82 2,097.05 4,336.36 22.33 82.69 178.60 535.42 88.37 207.74 1,217.66 1,128.62 532.38 976.74 5.68 (40.79) 33.52 61.91 (4.52) 30.83 204.54 275.98 (0.04) 2.31 0.13 (1.95) 1.52 0.89 (4.35) 0.61 0.50 2.05 2.5x 3.5x NM NM 1.1x 0.8x 0.6x 0.9x 3.4x 2.4x 9.9x 15.6x NM NM 5.6x 6.9x NM 6.0x 20.0x 10.0x NM NM NM NM 10.3x 21.5x NM 13.4x NM 22.5x

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Stock Price 52 Wk High 45.00 Stock Price 52 Wk Low Market Cap2 24.34 636.64 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra 65.93 2.48

Company Name (Ticker Symbol) USANA Health Sciences Inc. (NasdaqGS:USNA)

Stock Price 40.36

TEV 608.21

LTM4 Revenue 472.65

TEV3/ Revenue 1.3x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra 9.2x 16.3x

MEAN (CONSUMER) MEDIAN (CONSUMER)

1.8x 1.3x

10.4x 9.6x

16.8x 16.3x

PRODUCTS - PHARMACEUTICALS
Abbott Laboratories (NYSE:ABT) Acorda Therapeutics, Inc. (NasdaqNM:ACOR) Alcon Inc. (NYSE:ACL) Allergan Inc. (NYSE:AGN) Array Biopharma Inc. (NasdaqNM:ARRY) Astellas Pharma, Inc. (TSE:4503) AstraZeneca plc (LSE:AZN) AVI Biopharma, Inc. (NasdaqNM:AVII) Bristol-Myers Squibb Co. (NYSE:BMY) Cell Therapeutics, Inc. (NasdaqCM:CTIC) Cubist Pharmaceuticals Inc. (NasdaqNM:CBST) Cumberland Pharmaceuticals, Inc. (NasdaqGS:CPIX) Cypress Bioscience Inc. (NasdaqNM:CYPB) Durect Corp. (NasdaqNM:DRRX) Dyax Corp. (NasdaqNM:DYAX) Eli Lilly & Co. (NYSE:LLY) Endo Pharmaceuticals Holdings Inc. (NasdaqNM:ENDP) Forest Laboratories Inc. (NYSE:FRX) Glaxosmithkline plc (LSE:GSK) Hospira Inc. (NYSE:HSP) InterMune Inc. (NasdaqNM:ITMN) ISTA Pharmaceuticals Inc. (NasdaqNM:ISTA) Johnson & Johnson (NYSE:JNJ) King Pharmaceuticals Inc. (NYSE:KG) KV Pharmaceutical Co. (NYSE:KV.A) Lannett Co. Inc. (AMEX:LCI) Meda AB (OM:MEDA A) Medicis Pharmaceutical Corp. (NYSE:MRX) Merck & Co. Inc. (NYSE:MRK) Mylan Laboratories Inc. (NasdaqGS:MYL) Novartis AG (SWX:NOVN) Novo Nordisk A/S (CPSE:NOVO B) NuPathe, Inc. (NasdaqGM:PATH) Par Pharmaceutical Companies Inc. (NYSE:PRX) Perrigo Co. (NasdaqNM:PRGO) Pfizer Inc. (NYSE:PFE) 52.24 33.02 166.79 66.53 3.23 36.08 50.79 1.83 27.11 0.39 23.39 5.81 3.85 2.54 2.37 36.53 33.24 30.93 19.70 57.01 13.62 4.10 61.96 9.96 2.34 4.58 7.93 29.65 36.81 18.81 57.45 98.90 7.21 29.08 64.22 17.17 56.79 40.48 169.28 67.53 4.25 44.76 53.24 2.24 28.00 1.40 24.38 16.77 8.37 3.14 4.69 38.00 34.26 33.10 21.16 59.75 49.46 4.88 66.20 13.20 5.36 8.49 12.23 30.29 41.56 23.63 61.58 100.99 10.22 29.42 67.49 20.36 44.59 15.52 134.44 53.32 1.68 33.85 41.91 1.11 21.67 0.12 16.50 4.70 2.06 1.91 2.06 32.02 19.11 24.17 17.09 42.81 8.34 2.01 56.86 7.18 0.61 3.66 7.75 20.48 30.29 15.42 51.18 56.42 7.20 20.11 33.50 14.00 80,635.84 1,283.69 50,104.88 20,458.77 172.73 16,886.04 72,404.91 204.89 46,489.37 293.53 1,379.68 117.68 148.56 220.70 233.21 42,124.20 3,836.39 8,831.88 102,322.62 9,538.34 763.09 137.04 170,665.41 2,486.64 118.84 115.59 2,396.56 1,784.10 113,138.96 5,819.08 131,410.57 56,768.11 104.88 1,022.83 5,915.69 138,017.23 94,815.03 1,074.47 47,497.88 19,792.37 174.87 14,764.77 71,817.29 170.11 45,479.37 289.24 1,162.96 59.89 43.05 166.55 196.19 43,810.30 3,175.59 5,541.97 116,894.20 10,496.24 744.64 97.35 163,416.41 2,241.45 258.79 100.93 4,074.09 1,409.91 123,612.96 10,253.21 126,627.57 55,365.14 167.26 844.00 7,163.41 162,522.23 33,988.71 90.24 7,082.00 4,767.50 53.88 10,845.79 33,899.00 16.69 19,396.00 0.36 641.37 45.18 30.91 28.07 46.04 22,823.20 1,513.37 4,246.51 43,760.20 4,038.50 11.97 129.65 62,494.00 1,654.21 179.54 125.18 1,579.59 671.39 38,911.70 5,274.30 48,684.00 9,008.89 1,132.53 2,268.87 62,235.00 9,142.70 (63.70) 2,691.00 1,410.00 (58.32) 2,509.65 15,128.00 (18.32) 6,207.00 (96.91) 205.73 5.77 (16.01) (24.50) (13.65) 7,989.70 481.36 976.73 16,730.78 941.90 9.42 19,472.00 391.87 (110.77) 17.60 595.74 242.90 11,697.60 1,165.92 14,536.00 3,082.15 (15.13) 166.98 450.42 26,941.00 3.03 (1.84) 7.07 2.63 (1.55) 2.86 5.89 (0.20) 1.77 (0.29) 1.67 0.11 (0.44) (0.32) (0.34) 4.36 2.63 2.13 1.17 2.63 (1.11) 0.66 4.87 0.35 (3.75) 0.31 0.73 2.04 3.92 0.25 4.27 3.31 (2.22) 2.34 2.41 1.05 2.8x NM NM 4.2x 3.2x 1.4x 2.1x NM 2.3x NM 1.8x 1.3x 1.4x NM 4.3x 1.9x 2.1x 1.3x 2.7x 2.6x NM 0.8x 2.6x 1.4x 1.4x 0.8x 2.6x 2.1x 3.2x 1.9x 2.6x NM NM 0.7x 3.2x 2.6x 10.4x NM 17.7x 14.0x NM 5.9x 4.7x NM 7.3x NM 5.7x 10.4x NM NM NM 5.5x 6.6x 5.7x 7.0x 11.1x NM 10.3x 8.4x 5.7x NM 5.7x 6.8x 5.8x 10.6x 8.8x 8.7x 18.0x NM 5.1x 15.9x 6.0x 17.2x NM 23.6x NM NM 12.6x 8.6x NM 15.3x NM 14.0x NM NM NM NM 8.4x 12.6x 14.5x 16.8x 21.7x NM 6.2x 12.7x NM NM 14.8x 10.8x 14.5x 9.4x NM 13.4x NM NM 12.4x NM 16.3x

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Stock Price 52 Wk High 10.15 191.05 45.00 80.02 31.21 5.81 51.46 25.00 14.39 64.95 20.41 5.47 27.60 15.45 45.15 Stock Price 52 Wk Low Market Cap2 6.02 438.39 131.41 18.18 59.79 16.89 3.10 41.89 17.59 7.65 46.99 9.62 3.88 13.35 7.28 33.88 119,053.84 2,296.45 86,637.73 1,003.30 156.93 36,230.89 639.33 432.52 47,365.02 1,480.56 93.28 7,419.06 1,160.92 5,283.50 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra (45.82) (0.97) 17,558.71 (11.99) 15,004.60 104.70 3.49 5,786.14 (11.55) 87.13 4,967.00 (76.22) (16.08) 407.13 194.02 738.90 10.57 (1.18) 5.68 1.16 (0.02) 3.57 (0.53) 1.22 2.82 (1.32) (21.44) 0.90 1.02 2.20

Company Name (Ticker Symbol) Rigel Pharmaceuticals, Inc. (NasdaqNM:RIGL) Roche Holding AG (SWX:ROG) Salix Pharmaceuticals Ltd. (NasdaqNM:SLXP) Sanofi-Aventis (ENXTPA:SAN) Sciele Pharma Inc. (NasdaqNM:SCRX) Sucampo Pharmaceuticals, Inc. (NasdaqNM:SCMP) Takeda Pharmaceutical Co. Ltd. (TSE:4502) Targacept, Inc. (NasdaqNM:TRGT) Taro Pharmaceutical Industries Ltd. (OTCPK:TARO.F) Teva Pharmaceutical Industries Ltd. (NasdaqNM:TEVA) Theravance Inc. (NasdaqNM:THRX) Trius Therapeutics, Inc. (NasdaqGM:TSRX) Valeant Pharmaceuticals International (NYSE:VRX) ViroPharma Inc. (NasdaqNM:VPHM) Watson Pharmaceuticals Inc. (NYSE:WPI)

Stock Price 8.41 136.81 39.72 66.40 30.19 3.75 45.90 22.34 11.02 52.75 20.10 3.96 25.13 14.91 42.31

TEV 252.26 149,414.74 2,151.40 95,225.46 1,226.70 58.48 27,566.60 400.95 460.59 49,539.02 1,442.74 154.33 7,559.23 897.03 6,290.90

LTM4 Revenue 53.47 47,844.61 273.73 38,640.63 407.80 62.74 16,283.80 56.51 366.02 14,805.00 21.32 6.29 911.98 368.00 3,179.60

TEV3/ Revenue 4.7x 3.1x NM 2.5x 3.0x 0.9x 1.7x NM 1.3x 3.3x NM NM NM 2.4x 2.0x

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra NM NM 8.5x NM 6.3x 11.7x 16.8x 4.8x NM 5.3x 10.0x NM NM 18.6x 4.6x 8.5x 12.9x NM 11.7x NM NM 12.9x NM 9.1x 18.7x NM NM NM 14.6x 19.2x

MEAN (PHARMACEUTICALS) MEDIAN (PHARMACEUTICALS)

2.3x 2.2x

9.0x 7.9x

13.9x 13.4x

PRODUCTS - BIOTECH
Albany Molecular Research Inc. (NasdaqNM:AMRI) Alnylam Pharmaceuticals Inc. (NasdaqNM:ALNY) Amgen Inc. (NasdaqNM:AMGN) Amylin Pharmaceuticals Inc. (NasdaqNM:AMLN) Angiotech Pharmaceuticals Inc. (TSX:ANP) Biogen Idec Inc. (NasdaqNM:BIIB) Celera Group (NasdaqGS:CRA) Celgene Corporation (NasdaqNM:CELG) Cephalon Inc. (NasdaqNM:CEPH) Enzo Biochem Inc. (NYSE:ENZ) Enzon Pharmaceuticals Inc. (NasdaqNM:ENZN) Exelixis Inc. (NasdaqNM:EXEL) Genomic Health Inc. (NasdaqNM:GHDX) Genzyme Corp. (NasdaqNM:GENZ) Gilead Sciences Inc. (NasdaqNM:GILD) Human Genome Sciences Inc. (NasdaqNM:HGSI) Incyte Corporation (NasdaqNM:INCY) ISIS Pharmaceuticals Inc. (NasdaqNM:ISIS) Martek Biosciences Corp. (NasdaqNM:MATK) Myriad Genetics Inc. (NasdaqNM:MYGN) Nabi Biopharmaceuticals (NasdaqNM:NABI) Nanosphere, Inc. (NasdaqNM:NSPH) 6.38 12.27 55.11 20.85 0.58 56.12 6.74 57.61 62.44 3.80 11.24 3.92 13.36 70.79 35.61 29.79 15.99 8.40 22.63 16.41 4.80 5.03 9.73 22.87 61.85 24.21 1.82 60.28 7.72 65.79 72.87 7.81 11.60 8.00 21.73 71.99 49.50 34.49 16.05 14.59 25.03 27.52 6.42 7.85 5.06 12.24 50.26 11.01 0.42 41.75 5.94 48.02 53.05 3.33 8.03 2.86 11.94 45.39 31.73 17.30 5.30 7.59 17.09 14.11 3.16 2.91 198.53 516.53 52,821.50 2,995.58 49.49 13,576.27 552.60 26,487.12 4,695.36 144.97 680.91 425.93 385.08 18,040.11 29,863.72 5,605.20 1,951.20 833.09 757.68 1,543.77 206.38 142.88 151.37 257.34 50,030.50 3,155.41 604.20 13,726.90 229.72 23,363.40 4,845.41 110.57 380.85 449.28 323.29 18,320.07 29,709.29 5,605.07 1,811.83 448.36 735.42 1,140.54 102.72 86.42 189.89 102.06 15,017.00 717.97 252.03 4,569.14 144.04 3,100.12 2,448.02 97.08 230.26 188.85 163.77 4,373.38 7,983.11 157.10 74.94 112.46 418.48 362.65 NA 2.90 18.77 (36.02) 6,844.00 (82.95) 31.62 1,862.84 (13.69) 1,144.89 937.69 (12.79) 82.83 (82.69) 5.24 552.43 4,499.09 (112.38) (54.33) (36.47) 116.36 142.16 (2.95) (32.16) (0.74) (1.05) 4.71 (1.12) (0.52) 3.93 (0.22) 1.84 4.99 (0.59) 0.81 (1.11) (0.07) (0.08) 3.42 (0.93) (1.44) (0.63) 1.35 1.54 (0.08) (1.52) 0.8x 2.5x 3.3x 4.4x 2.4x 3.0x 1.6x NM 2.0x 1.1x 1.7x 2.4x 2.0x 4.2x 3.7x NM NM 4.0x 1.8x 3.1x NM NM 8.1x NM 7.3x NM 19.1x 7.4x NM NM 5.2x NM 4.6x NM NM NM 6.6x NM NM NM 6.3x 8.0x NM NM NM NM 11.7x NM NM 14.3x NM NM 12.5x NM 13.9x NM NM NM 10.4x NM NM NM 16.8x 10.7x NM NM

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Stock Price 52 Wk High 15.84 6.64 7.75 3.20 10.03 4.68 30.58 4.59 4.75 69.95 61.97 44.24 Stock Price 52 Wk Low Market Cap2 7.97 1,391.17 1.94 2.84 1.34 3.81 1.60 15.02 2.02 2.40 55.63 40.33 31.25 332.34 450.52 41.02 281.13 174.37 2,249.91 144.14 153.70 2,286.73 3,161.76 7,011.90 LTM4 Diluted EPS LTM4 Before EBITDA5 Extra (19.99) (0.48) (29.55) 18.68 (7.71) (54.18) 3.24 (76.07) 14.82 (14.46) 164.46 123.21 (581.29) (0.66) (0.38) (0.29) (1.20) (0.05) (1.16) 0.09 (0.51) 2.94 1.11 (3.53)

Company Name (Ticker Symbol) Nektar Therapeutics (NasdaqNM:NKTR) Neurocrine Biosciences Inc. (NasdaqNM:NBIX) NPS Pharmaceuticals Inc. (NasdaqNM:NPSP) Oculus Innovative Sciences, Inc. (NasdaqCM:OCLS) Orexigen Therapeutics, Inc. (NasdaqNM:OREX) Orthovita Inc. (NasdaqNM:VITA) Regeneron Pharmaceuticals Inc. (NasdaqNM:REGN) RTI Biologics, Inc. (NasdaqNM:RTIX) Senomyx Inc. (NasdaqNM:SNMX) Techne Corp. (NasdaqNM:TECH) United Therapeutics Corp. (NasdaqNM:UTHR) Vertex Pharmaceuticals Inc. (NasdaqNM:VRTX)

Stock Price 14.77 6.06 6.84 1.56 5.93 2.27 27.40 2.63 3.98 61.73 56.01 34.57

TEV 1,287.51 200.95 655.11 36.12 222.98 190.04 2,101.38 138.50 98.28 2,147.92 3,041.14 6,164.94

LTM4 Revenue 125.03 6.87 86.49 7.78 0.09 94.60 433.68 163.73 22.42 269.05 472.51 112.90

TEV3/ Revenue NM NM NM 4.6x NM 2.0x 4.8x 0.8x 4.4x NM NM NM

P/ Diluted TEV3/ EPS Before 5 EBITDA Extra NM NM NM NM NM NM NM NM 9.3x NM 13.1x NM NM NM NM NM NM NM NM NM NM 21.0x NM NM

MEAN (BIOTECH) MEDIAN (BIOTECH)

2.8x 2.5x

8.6x 7.4x

13.9x 13.2x

PRODUCTS - DISTRIBUTION
AmerisourceBergen Corporation (NYSE:ABC) Animal Health International, Inc. (NasdaqGS:AHII) Cardinal Health, Inc. (NYSE:CAH) CVS Caremark Corporation (NYSE:CVS) Drugstore.com Inc. (NasdaqGM:DSCM) Henry Schein Inc. (NasdaqNM:HSIC) McKesson Corporation (NYSE:MCK) MWI Veterinary Supply, Inc. (NasdaqGS:MWIV) Owens & Minor Inc. (NYSE:OMI) Patterson Companies Inc. (NasdaqNM:PDCO) PetMed Express Inc. (NasdaqGS:PETS) PharMerica Corporation (NYSE:PMC) PSS World Medical Inc. (NasdaqNM:PSSI) Rite Aid Corp. (NYSE:RAD) Vitacost.com, Inc. (NasdaqGM:VITC) Vitamin Shoppe, Inc. (NYSE:VSI) Walgreen Co. (NYSE:WAG) 30.66 2.74 33.04 31.47 1.92 58.58 61.78 57.72 28.46 28.65 17.50 9.53 21.38 0.94 6.01 27.45 33.50 33.27 2.90 36.66 38.27 3.95 62.63 71.49 58.74 32.80 32.84 24.63 20.95 24.45 1.77 13.45 28.91 40.69 21.44 1.70 25.97 26.84 1.48 49.10 55.82 34.06 25.52 24.13 15.00 6.88 18.15 0.86 5.42 17.35 26.26 8,492.82 66.66 11,524.91 42,673.32 203.56 5,361.01 16,152.44 712.21 1,802.57 3,552.23 401.03 292.07 1,206.99 836.27 166.82 763.41 32,601.46 8,542.27 193.76 10,875.51 53,559.32 186.08 5,914.85 15,165.44 731.61 1,852.84 3,784.30 324.13 440.87 1,341.98 7,054.29 133.65 856.59 33,122.46 76,954.67 668.92 98,502.80 98,231.00 458.50 7,055.23 109,495.00 1,117.93 8,064.78 3,297.58 234.26 1,825.10 2,040.47 25,372.16 209.77 714.64 67,420.00 1,152.29 20.51 1,627.10 7,751.00 7.79 595.66 2,424.00 56.57 237.66 409.17 39.01 94.10 155.43 732.18 4.51 72.66 4,488.00 2.16 0.05 1.62 2.61 (0.08) 3.54 4.66 2.52 1.96 1.85 1.05 1.13 1.19 (0.65) (0.01) 0.73 2.12 0.1x 0.3x 0.1x 0.5x 0.4x 0.8x 0.1x 0.7x 0.2x 1.1x 1.4x 0.2x 0.7x 0.3x 0.6x 1.2x 0.5x 7.4x 9.4x 6.7x 6.9x NM 9.9x 6.3x 12.9x 7.8x 9.2x 8.3x 4.7x 8.6x 9.6x NM 11.8x 7.4x 14.2x NM 20.3x 12.1x NM 16.6x 13.2x 22.9x 14.5x 15.5x 16.7x 8.4x 18.0x NM NM NM 15.8x

MEAN (DISTRIBUTION) MEDIAN (DISTRIBUTION)

0.6x 0.5x

8.5x 8.3x

15.7x 15.7x

MEAN (PRODUCTS) MEDIAN (PRODUCTS) 1) 2) 3) 4) Source: Financial Information from SEC filings and other publicly-available sources Market Cap: Total Value of Company's Stock; Equal to the Number of Shares Outstanding Times the Price per Share TEV (Total Enterprise Value): Market Capitalization Plus Debt Less Cash LTM: Latest Twelve Months

2.1x 2.0x

9.9x 8.8x

16.3x 16.1x

5) EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization 6) NA: Not Available 7) NM: Not Meaningful

Copyright 2010 Scott-Macon, Ltd.

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ABOUT SCOTT-MACON
Scott-Macon is an investment banking firm providing corporate advisory services to a broad range of industries, including a specific focus on the healthcare, medical and pharmaceutical services and products industries. Founded in 1973, ScottMacon has 20 senior professionals with an average of 20 years experience in investment banking.

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Corporate Sales Assisting privately-held and publicly-traded companies to arrange sale, divestiture and merger transactions as well as corporate valuations for board or management use. Acquisition Advisory Providing assistance in identifying acquisition prospects, contacting companies, and negotiating acquisition transactions. Capital Raising Arranging for the private placement of equity and debt securities. Strategic Planning Planning overall corporate objectives, reviewing strategic alternatives, and creating plans for maximizing value.

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