BALTIMORE, MD–(Marketwire – November 22, 2010) – Prometric, the leading provider of testing and assessment services, today announced that it has signed an exclusive long term contract with the American College of Radiology to convert its paper and pencil Diagnostic Radiology In-Training exam (DXIT™) to computer based format for the first time in the exam’s history. Prometric will also manage the final paper based administration for the College, which will occur in February 2011.

Beginning in 2012, physicians in residency training programs served by the American College of Radiology will be able to take the Diagnostic Radiology In-Training exam on a computer at any of Prometric’s hundreds of secure test centers across North America. The computerized test will also be available at select non-U.S. locations. In addition to the increased exam accessibility, computerized delivery will enable candidates to use convenient online registration and their residency programs will receive their scores much more quickly than with the paper based version.

“As a leading test services provider our goal is to work with each client to design a test program that matches their unique needs and requirements,” said Bill Murtagh, senior vice president, sales and client services at Prometric. “The logistical details surrounding paper based exams, such as exam publishing, printing, shipping, scanning, scoring or security, are more manually laborious, and can add time to the overall test process. It also requires a longer turnaround to produce scores, which the residency programs are obviously anxious to get. Offering the test in a modern computerized format will create efficiencies throughout the entire test lifecycle, speeding up the entire process and making it more manageable for the College.”

“Historically, the paper and pencil version of the Diagnostic Radiology In-Training Exam has been offered to candidates once per year,” said Ronald Freedman, assistant executive director, education, marketing, and business development at the American College of Radiology. “Computerizing the test allows us to better leverage technology to enhance security, widen the window of time during which it is available, facilitate easy access for our residents and get the residency programs their scores more quickly.”

About Prometric

Prometric, a wholly-owned subsidiary of ETS, is the recognized global leader in technology-enabled testing and assessment services. Its comprehensive suite of services, including test development, test delivery and data management capabilities, allows clients to develop and launch global testing programs as well as accurately measure program results and data. Prometric reliably delivers and administers more than nine million tests a year on behalf of approximately 400 clients in the academic, professional, healthcare, government, corporate and information technology markets. It delivers tests flexibly via the Web or by utilizing a robust network of more than 10,000 test centers in 163 countries. For more information, please visit www.prometric.com.

About the American College of Radiology

The 34,000 members of the American College of Radiology include radiologists, radiation oncologists, medical physicists, interventional radiologists and nuclear medicine physicians. For over three quarters of a century, the ACR has devoted its resources to making imaging safe, effective and accessible to those who need it.

The mission of the ACR is to serve patients and society by maximizing the value of radiology, radiation oncology, interventional radiology, nuclear medicine and medical physics by advancing the science of radiology, improving the quality of patient care, positively influencing the socio-economics of the practice of radiology, providing continuing education for radiology and allied health professions and conducting research for the future of radiology.

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SUNNYVALE, CA–(Marketwire – November 22, 2010) – Healthmed Services, Ltd. (PINKSHEETS: HEME) is pleased to announce the launch of “HealthTrac” software. HealthTrac is a Web-based open-source practice management solution for hospitals and physicians focusing on creating practice management as well as sales and marketing. Healthmed is committed to the continued expansion of its state of the art products that meet the demands of the healthcare industry.

According to Compass Intelligence, the U.S. market for health information technology will expand to $85 billion in 2014 from an estimated $73.1 billion in 2010, representing a 4.5 percent compound annual growth rate. Analysts have reported that nearly $2.5 trillion in healthcare was spent in 2009, which was $134 billion more than the previous year, when healthcare consumed 16.2 percent of the gross domestic product.

Please read more about the Company and its product developments on its website: www.healthmedltd.com.

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed with the Securities and Exchange Commission.

LOUISVILLE, CO–(Marketwire – October 30, 2010) –  GlobeImmune Inc. today announced additional data from the GI-5005-02 Phase 2b study demonstrating that GI-5005, the Company’s investigational Tarmogen^® product, improved sustained virologic response (SVR) by 12% in patients with genotype 1 chronic hepatitis C virus (HCV) infection who had failed prior treatment with standard of care (SOC, pegylated-interferon alpha 2a plus ribavirin). This study suggests that GI-5005 may have the potential to be the first successful therapeutic vaccine for patients chronically infected with HCV. 

Paul J. Pockros, M.D., of Scripps Clinic will deliver the oral presentation of the results in a late-breaker session at 6 p.m. EDT Monday November 1, 2010 at the 61^st Annual Meeting of the American Association for the Study of the Liver Diseases (AASLD) in Boston.

On an intent-to-treat basis (subjects who received at least one dose of combination therapy), prior non-responders receiving GI-5005 plus SOC as a triple therapy had an SVR rate of 17%, compared to an SVR rate of only 5% in patients receiving SOC alone. Prior non-responders in this study were defined as patients who did not clear virus after a minimum of 12 weeks of SOC, including null responders, poor responders, and partial responders. Relapsers and on-treatment breakthroughs were not enrolled in the study. The most common adverse events associated with GI-5005 were injection site reactions that were generally mild and transient in nature. Discontinuation rates due to adverse events in the GI-5005 triple therapy arm were comparable to the discontinuation rates in the SOC alone arm.

“Only 4-7% of patients with genotype 1 HCV who were null, poor or partial responders to their first course of pegylated interferon-based therapy would be expected to achieve a sustained virologic response with a second course of treatment,” said Dr. Pockros. “In this study, GI-5005 conferred a three-fold improvement in SVR, an important treatment effect in this challenging patient population.” 

Additional immunology data from the study will be presented in a poster on Tuesday, November 2, 2010 by John M. Vierling, M.D., of Baylor College of Medicine. These data show that GI-5005 improved HCV-specific T cell responses 10-fold over SOC alone in patients with the IL28B T/T genotype (~20% of chronically infected patients), the subgroup most likely to fail treatment with SOC alone. Patients with the IL28B T/T genotype receiving SOC alone had an HCV-specific cellular immune response that was 17-fold lower than patients in the IL28B C/C or C/T subgroups. The improved HCV-specific T cell immunity in IL28B T/T patients receiving GI-5005 plus SOC correlates with previously reported data that demonstrated GI-5005 increased SVR rates by 60% in interferon-naïve T/T patients compared to T/T patients receiving SOC alone.

“These data suggest that the fundamental deficit in patients carrying the T allele of the IL28B gene is a deficit in adaptive cellular immunity, the mechanism that GI-5005 was designed to address,” said David Apelian, M.D., Ph.D., Chief Medical Officer at GlobeImmune. “We are confident that GI-5005 will become a cornerstone of HCV therapy, particularly for difficult to treat populations, such as IL28B T/T patients.”

A 40 patient expansion of this study in patients having the IL28B T/T genotype was initiated last week to further explore the potential treatment effect of GI-5005 in this patient population.

GI-5005 is a therapeutic vaccine candidate designed to generate HCV-specific T-cell responses and improve virologic responses in patients with chronic hepatitis C virus infection. 

About GlobeImmune

GlobeImmune Inc. is a private company developing therapeutic vaccines called Tarmogens for the treatment of cancer and infectious diseases. Tarmogens generate activated killer T cells that are designed to locate and eliminate virally-infected cells and/or cancer cells. The Company’s lead product candidate, GI-5005, is a Tarmogen being developed for the treatment of chronic hepatitis C virus (HCV) infection. GI-5005 is designed to complement both the current standard of care and emerging novel therapies for HCV. The Company’s lead oncology program, GI-4000, targets cancers caused by mutated versions of the Ras oncoprotein. GI-4000 is being investigated in clinical trials for the treatment of pancreas cancer as well as other cancers that contain mutated Ras, including non-small cell lung cancer and colorectal cancer. In May 2009, the Company announced a global partnership with Celgene focused on the discovery, development and commercialization of multiple product candidates for the treatment of cancer.

For additional information, please visit the company’s website at www.globeimmune.com.

This news release and the anticipated presentation contain forward-looking statements that involve risks and uncertainties, including statements relating to initiation and progress of the Company’s clinical trial programs and the results from the clinical trials. Actual results could differ materially from those projected and the Company cautions readers not to place undue reliance on the forward-looking statements contained in the release and anticipated presentation.

LOUISVILLE, CO–(Marketwire – October 30, 2010) –  GlobeImmune Inc. today announced additional data from the GI-5005-02 Phase 2b study demonstrating that GI-5005, the Company’s investigational Tarmogen^® product, improved sustained virologic response (SVR) by 12% in patients with genotype 1 chronic hepatitis C virus (HCV) infection who had failed prior treatment with standard of care (SOC, pegylated-interferon alpha 2a plus ribavirin). This study suggests that GI-5005 may have the potential to be the first successful therapeutic vaccine for patients chronically infected with HCV. 

Paul J. Pockros, M.D., of Scripps Clinic will deliver the oral presentation of the results in a late-breaker session at 6 p.m. EDT today at the 61^st Annual Meeting of the American Association for the Study of the Liver (AASLD) in Boston.

On an intent-to-treat basis (subjects who received at least one dose of combination therapy), prior non-responders receiving GI-5005 plus SOC as a triple therapy had an SVR rate of 17%, compared to an SVR rate of only 5% in patients receiving SOC alone. Prior non-responders in this study were defined as patients who did not clear virus after a minimum of 12 weeks of SOC, including null responders, poor responders, and partial responders. Relapsers and on-treatment breakthroughs were not enrolled in the study. The most common adverse events associated with GI-5005 were injection site reactions that were generally mild and transient in nature. Discontinuation rates due to adverse events in the GI-5005 triple therapy arm were comparable to the discontinuation rates in the SOC alone arm.

“Only 4-7% of patients with genotype 1 HCV who were null, poor or partial responders to their first course of pegylated interferon-based therapy would be expected to achieve a sustained virologic response with a second course of treatment,” said Dr. Pockros. “In this study, GI-5005 conferred a three-fold improvement in SVR, an important treatment effect in this challenging patient population.” 

Additional immunology data from the study will be presented in a poster on Tuesday, November 2, 2010 by John M. Vierling, M.D., of Baylor College of Medicine. These data show that GI-5005 improved HCV-specific T cell responses 10-fold over SOC alone in patients with the IL28B T/T genotype (~20% of chronically infected patients), the subgroup most likely to fail treatment with SOC alone. Patients with the IL28B T/T genotype receiving SOC alone had an HCV-specific cellular immune response that was 17-fold lower than patients in the IL28B C/C or C/T subgroups. The improved HCV-specific T cell immunity in IL28B T/T patients receiving GI-5005 plus SOC correlates with previously reported data that demonstrated GI-5005 increased SVR rates by 60% in interferon-naïve T/T patients compared to T/T patients receiving SOC alone.

“These data suggest that the fundamental deficit in patients carrying the T allele of the IL28B gene is a deficit in adaptive cellular immunity, the mechanism that GI-5005 was designed to address,” said David Apelian, M.D., Ph.D., Chief Medical Officer at GlobeImmune. “We are confident that GI-5005 will become a cornerstone of HCV therapy, particularly for difficult to treat populations, such as IL28B T/T patients.”

A 40 patient expansion of this study in patients having the IL28B T/T genotype was initiated last week to further explore the potential treatment effect of GI-5005 in this patient population.

GI-5005 is a therapeutic vaccine candidate designed to generate HCV-specific T-cell responses and improve virologic responses in patients with chronic hepatitis C virus infection. 

About GlobeImmune

GlobeImmune Inc. is a private company developing therapeutic vaccines called Tarmogens for the treatment of cancer and infectious diseases. Tarmogens generate activated killer T cells that are designed to locate and eliminate virally-infected cells and/or cancer cells. The Company’s lead product candidate, GI-5005, is a Tarmogen being developed for the treatment of chronic hepatitis C virus (HCV) infection. GI-5005 is designed to complement both the current standard of care and emerging novel therapies for HCV. The Company’s lead oncology program, GI-4000, targets cancers caused by mutated versions of the Ras oncoprotein. GI-4000 is being investigated in clinical trials for the treatment of pancreas cancer as well as other cancers that contain mutated Ras, including non-small cell lung cancer and colorectal cancer. In May 2009, the Company announced a global partnership with Celgene focused on the discovery, development and commercialization of multiple product candidates for the treatment of cancer.

For additional information, please visit the company’s website at www.globeimmune.com.

This news release and the anticipated presentation contain forward-looking statements that involve risks and uncertainties, including statements relating to initiation and progress of the Company’s clinical trial programs and the results from the clinical trials. Actual results could differ materially from those projected and the Company cautions readers not to place undue reliance on the forward-looking statements contained in the release and anticipated presentation.

LEEDS, UNITED KINGDOM–(Marketwire – Oct. 29, 2010) – MYA Cosmetic Surgery is now offering Advanced Laser Lipolysis as a less invasive way to shape your body compared to conventional liposuction. Advanced Laser Lipo is ideal to remove unwanted deposits of fat that won’t respond to diet and exercise, perfect for those of us looking for quicker recovery times and a less invasive method of fat removal.

MYA is always looking to push forward with new techniques and methods developing in cosmetic surgery and we are proud to announce that we now offer Advanced Laser Lipolysis (A.L.L.) alongside our other popular services. While there are various forms of Liposculpture, A.L.L. is the one chosen by MYA since it actually removes fat from the body giving you the body shape and contour you desire.

John Ryan, MYA Chairman says, “I think it’s amazing. I’ve seen the operation being done myself and I’ve seen the great results that can be achieved. The beauty of this procedure is that it uses local anaesthetic and the procedure is much less disruptive to the patient’s life.” He continues “Liposuction is the number one procedure in the United States and Laser Liposuction is going to be really big in the future”. With over 1.6 million liposuction procedures performed worldwide in 2009*, A.L.L. is destined to be the next big thing for the cosmetic surgery industry.

The Laser Lipo treatment involves making tiny incisions and using the laser technology to ‘melt’ the fat away. After the unwanted fat is removed, the laser is used to encourage contraction to ensure an even, natural looking result is achieved. This is another great advantage of the procedure. Results can usually be seen from day one and the most popular areas for treatment include the abdomen, flanks (love handles), thighs, bra area and arms.

Advanced Laser Lipolysis is proving popular with both men and women as the benefits are comparable to traditional liposuction with a lot less downtime for the patient. The A.L.L. process provides a smooth, uniform result thanks to the accuracy of the Laser Lipolysis machine and our highly skilled surgeons.

One of our recent patients Charlotte comments, “I am a personal trainer and work out five times a week but despite the amount of exercise I do I just couldn’t get rid of the fat around my thighs and hips. I had the procedure over two weeks ago and I can already see a huge difference in my shape. I just wish I had it done sooner!”

Liposuction was the most popular cosmetic surgery procedure in the UK during 2009* with Breast Enlargement following closely behind and with no signs of slowing, Laser Liposuction shows great promise to capture the market and help people shift those stubborn areas of fat in a less invasive way.

For information please call 08000 27 97 76 or visit us at www.mya.co.uk/cosmetic-surgery/laser-liposuction.php

*From The International Society of Aesthetic Plastic Surgery’s “Raw Data – Total Procedures for Top 25 Countries”

Notes to editors:

MYA Profile

MYA (Make Yourself Amazing) Cosmetic Surgery Ltd is a pioneering cosmetic surgery provider brought to you by John Ryan, the former owner of Transform Medical Group and current chairman of Doncaster Rovers. John has over 25 years experience and has returned to cosmetic surgery enlisting the experience of the very best cosmetic surgeons and medical professionals in the industry. MYA pride themselves on their commitment to high quality service and medical supplies and have a comprehensive after-care policy. MYA’s world class expertise, competitive finance and state of the art national consultation centres are designed to ensure that Making Yourself Amazing is a reassuringly unique experience.

IRVINE, CA–(Marketwire – October 29, 2010) –  Sun Healthcare Group, Inc. (NASDAQ: SUNH) today announced that L. Bryan Shaul, chief financial officer, and Brandi Riddle, treasurer, will be presenting at the Credit Suisse 2010 Healthcare Conference on Thursday, Nov. 11, at 1 p.m. Mountain. 

The conference is being held at the Arizona Biltmore Resort and Spa in Phoenix, Ariz., Nov. 10-12. 

A copy of the presentation material will be available on the company’s web site at www.sunh.com immediately prior to Sun’s scheduled presentation.

About Sun Healthcare Group, Inc.  

Sun Healthcare Group, Inc.’s (NASDAQ: SUNH) subsidiaries provide nursing, rehabilitative and related specialty healthcare services principally to the senior population in the United States. Sun’s core business is providing, through its subsidiaries, inpatient services, primarily through 166 skilled nursing centers, 16 combined skilled nursing, assisted and independent living centers, 10 assisted living centers, two independent living centers and eight mental health centers. On a consolidated basis, Sun has annual revenues of $1.9 billion and approximately 30,000 employees in 46 states. At Oct. 1, 2010, SunBridge centers had 23,189 licensed beds located in 25 states, of which 22,407 were available for occupancy. Sun also provides rehabilitation therapy services to affiliated and non-affiliated centers through its SunDance subsidiary, medical staffing services through its CareerStaff Unlimited subsidiary and hospice services through its SolAmor subsidiary.

MIAMI BEACH, FL–(Marketwire – October 29, 2010) –  When it comes to breast cancer, removal of the cancerous tissue is only part of the healing process. Reconstructing the breast at the same time can be critical for the wellbeing — and even survival — of the patient.

In support of Breast Cancer Awareness Month, New You magazine’s current issue addresses the issue of breast reconstruction at the time of initial surgery. In fact, say experts interviewed by New You, having a cosmetic or plastic surgeon involved right from the start means a more successful outcome for recreating a normal appearance and returning a woman’s sense of self and self-confidence.

“The cosmetic surgeon should be consulted right away, prior to any other surgery, and it should be a joint effort between the plastic or cosmetic surgeon and the breast surgeon,” says Dr. Michael S. Kluska, a board-certified plastic and cosmetic surgeon who practices near Pittsburgh, PA.

According to New You, the national consumer magazine for cosmetic surgery, the reasons for this include making sure the procedure performed by the breast surgeon removing the cancer is done so that optimal reconstruction is possible. The results can make a huge difference for the patient.

“Patients who undergo a mastectomy with simultaneous reconstruction tend to have better results long term than those who have the mastectomy [and] wait a few years,” Dr. Kluska told the magazine.

Kluska’s comments are supported by new research released last week in Toronto at the joint annual scientific meetings of the American Society of Plastic Surgery and the Canadian Society of Aesthetic Plastic Surgery, which showed that reconstruction of the breast immediately after mastectomy is associated with significantly improved breast-cancer-specific survival. Analysis of figures from the U.S. National Cancer Institute showed a 26% reduction in breast-cancer specific mortality for patients with immediate reconstruction; reasons included reduced depression and an improved sense of wellbeing.

About New You Magazine

New You is the official magazine of the American Academy of Cosmetic Surgery (AACS), published by Miami Beach-based New You Publishing, LLC. The mission of New You is to inform readers about the latest cosmetic procedures, to educate them about safety, cost and personal experience, and to locate the best possible cosmetic surgeon. For more information visit: http://newyoumag.com.

About The American Academy of Cosmetic Surgery

The American Academy of Cosmetic Surgery is a professional medical society dedicated to patient safety and physician education in cosmetic surgery. The AACS represents cosmetic surgeons in the American Medical Association through its seat in the AMA House of Delegates. Members of AACS are dermatological, facial plastic, head and neck, oral and maxillofacial, general, plastic, gynecological or ocular plastic surgeons specializing in cosmetic surgery. Founded in 1985, the AACS has over 2,500 members.

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MORRISVILLE, NC–(Marketwire – October 29, 2010) –  Banner Health, one of the largest nonprofit healthcare systems in the United States, with more than 23 hospitals in seven states, uses Redwood Software‘s Report2Web to achieve secure, fast, and efficient delivery and management of clinical, financial, and IT reports throughout the organization. Report2Web gives executives, along with clinical, staffing, and billing managers the specific information they need to keep the hospital system working at optimum levels at all times.

Every day, healthcare organizations rely on up-to-date staffing, patient load, and payment reports to manage the dynamic balance necessary to maintain quality of care. For Banner, these reports were often extremely large and complex. Typically, the final reports were emailed around the organization in their entirety and stored multiple times on multiple networks, creating a bandwidth and storage nightmare. In addition, the reports could not be split apart, which made simply finding key information an inexact, labor-intensive manual process, delaying critical decision making. “Since we have implemented Report2Web, essential reporting processes that once took many people and days to complete, now take one person a few minutes to accomplish,” says Bill Beaver, IT Director, Enterprise Integration Services for Banner Health. “We save time and money every day because of Report2Web.”

Through strict security and control, Report2Web gives managers only the information required for their specific role or task. “Banner has more than 6,000 unique reports, and we store this information indefinitely,” says Beaver. “We currently have more than seven million reports in our system. That’s equivalent to 24,000 four-drawer filing cabinets. These filing cabinets would completely fill 1.3 football fields. We needed a powerful solution to make this information more readily available and useful to us. With Report2Web we have it.”

Report2Web’s flexibility and ease of customizing reports resulted in even greater time savings. Now Banner can automatically create custom report packages and apply business rules to extract totals from specific reports. This allows managers to focus on analyzing key figures rather than just finding them. “This saves us immeasurable time. If the totals are correct, managers often don’t need to see the detail,” says Beaver. “If the totals are incorrect, the manager can quickly get that detail and investigate.”

For Banner, Report2Web was not just an improvement, it is a core solution. It provides the organization with the system they needed to enforce security and make critical, time-sensitive business decisions that directly impact the hospital’s critical care and financial health — every single day. Report2Web offers the flexibility and power to handle high volumes of sensitive information quickly and efficiently. As Banner Health continues to grow, they can focus on providing world-class healthcare while their report management system grows right along with them.

About Redwood
Redwood Software is a global company providing enterprise report management, workload automation, job scheduling, and financial process automation solutions that enable organizations to maximize the value of their information management and technology investments. Serving thousands of customer installations worldwide, Redwood helps companies meet the challenges of today’s competitive environment by delivering solutions that make business operations faster, more effective, and more efficient. Redwood serves businesses worldwide through locations in Europe, North America, and Australia, and through its alliances, including its strategic partnership with SAP AG.

About Banner Health
Headquartered in Phoenix, Banner Health is one of the largest, nonprofit health care systems in the country. The system owns or manages 23 acute-care hospitals, long-term care centers, outpatient surgery centers and an array of other services including family clinics, home care and hospice services, and a nursing registry. Banner Health is in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming. In 2010, Thomson Reuters named Banner Health one of the Top 10 Hospital Systems in the U.S.

The original press release can be viewed at: www.redwood.com/banner-health

Redwood, Cronacle and Cronacle Mobile are trademarks or registered trademarks of Redwood Software. All other products or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

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RED BANK, NEW JERSEY–(Marketwire – Oct. 29, 2010) – Ansell Healthcare announces the launch of the Ansell Protects Program, a major new initiative aimed at helping healthcare facilities understand the risks associated with chemical allergies and providing solutions for them.

It is estimated that hand dermatitis affects up to 33% of all nurses, costing the U.S. an estimated $1 billion per year. The Ansell Protects Program was developed to improve the health of employees and also significantly reduce long-term costs for healthcare facilities.

Chemical allergies – otherwise known as Type IV allergies or allergic contact dermatitis – can cause physical, emotional and occupational issues for those affected. The only treatment is allergen avoidance. The Ansell Protects Program provides the tools to help healthcare facilities understand the impact of chemical allergies, assess their risk level, estimate their potential savings and find the right medical gloves to ensure they promote a healthy workplace.

“The effects of chemical allergies are wide-ranging, and the costs are high,” explained Patty Taylor, RN, BA, Vice President of Marketing – Medical Division, of Ansell Healthcare. “The Ansell Protects Program will help facilities understand the threat of chemical allergies – and will identify solutions that will foster better health and significant long-term savings.”

Costs associated with chemical allergies include diagnosis, workers’ compensation, disability, increased sick leave, decreased job productivity, and medical care costs.

Supporting its Ansell Protects Program are products that help reduce risk for facilities. Ansell is the first manufacturer to offer both a surgical and exam glove that help protect against Type I and Type IV allergies, including Derma Prene^® Ultra neoprene surgical gloves; Derma Prene^® Ultra HydraSoft^® hand friendly neoprene surgical gloves; and Micro-Touch^® NitraFree^™ nitrile examination gloves.

For more information on the physiology and effects of allergic contact dermatitis – including a breakdown of costs – visit www.AnsellProtects.com

About Ansell

Ansell Limited (“Ansell”) is a global leader in protection solutions. With operations in the Americas, Europe and Asia, Ansell employs over 10,000 people in 33 countries. Ansell designs, develops, manufactures and markets a wide range of surgical, examination, industrial and household gloves, protective clothing and condoms. People in over 100 countries around the world put their trust in Ansell’s innovative, high-quality solutions that offer superior protection, combined with high levels of comfort and performance. Operational headquarters are located in Red Bank, NJ.

UNION, NJ–(Marketwire – October 29, 2010) –  Considering that more than 80 percent of Americans will suffer from back pain at some point in their life, it isn’t surprising that Spine Centers of America is opening its second endoscopic spine surgery center in the New Jersey area in early November.

Advanced Spine Surgery Center, at 855 Lehigh Ave, Union, NJ, is a state-of-the-art facility that has been developed under the leadership of Bryan J. Massoud, M.D., a board certified, Fellowship-trained orthopedic spine surgeon. Dr. Massoud founded the New Jersey Back Institute and Spine Centers of America, which currently operates one other spine surgery center in New Jersey. Specializing in minimally invasive endoscopic laser spine surgery, diagnostic, and pain management procedures, Advanced Spine Surgery Center is an ambulatory surgery center that relieves patient neck and back pain when other treatments have failed. 

Key advantages of new endoscopic laser spine surgery over traditional open spine surgery include:

• Less trauma to body
• Reduced post-operative pain
• Less scarring and smaller scars
• Shorter recovery time
• Improved post-surgical function and mobility
• Reduced blood loss
• Reduction/elimination of time under general anesthesia

Advanced Spine Surgery Center has three Class C operating suites featuring the latest equipment and endoscopic spine surgery technologies. The operating suites, pre-op and post-op areas, occupying 10,000 sq. ft., will be staffed with board certified orthopedic spine surgeons, anesthesiologists, pain management physicians and nursing staff to provide outpatient care. The facility includes numerous medical offices for affiliated medical professionals.

The Grand Opening event for healthcare professionals will take place on November 16 with private previews available in advance by appointment. Healthcare professionals interested in attending should call 1.877.722.6008.

Spine Centers of America offers the advantage of numerous advanced endoscopic spine surgery techniques developed by Dr. Massoud and his associates that will be performed at the Advanced Spine Surgery Center. These procedures include:

• Anterior cervical endoscopic foraminotomy for treating bone spurs and foraminal stenosis
• Epiduragram-guided endoscopic discectomy to further enhance safety of discectomy procedures;
• The “between” technique in transforaminal endoscopic lumbar procedures for disc herniations.

Endoscopic laser spine surgery techniques that are employed by Advanced Spine Surgery Center use “twilight” or local anesthesia, which allows patients to remain alert during surgery and usually walk out of surgery under their own power. Dr. Massoud has personally performed more than 1000 endoscopic spine surgeries with a high success rate, enabling patients with debilitating spinal pain to get “back to life” free of pain. 

Spine Centers of America surgeons at Advanced Spine Surgery Center will treat spine conditions including: bone spurs; bulging disc, disc degeneration; disc tear; facet joint disease; failed back and neck surgery; foraminal stenosis; herniated disc; pinched nerve; radiculitis; radiculopathy; sciatica; spinal stenosis and spondylolisthesis. SCA’s surgeons have extensive experience performing the endoscopic spine procedures to diagnose or treat these conditions.

Because Spine Centers of America offers highly successful endoscopic techniques not yet available elsewhere, the new center, located minutes from Newark Airport, is expected to draw patients from across the country. Spine Centers of America hosts monthly seminars to educate the public about spinal conditions and advanced options for spinal pain relief via minimally invasive spine surgery techniques. For more information call 201.870.3030 or visit www.SpineCentersOfAmerica.com.

About Spine Centers of America:

Spine Centers of America offers the newest techniques in endoscopic spine surgery always performed by board certified spine surgeons. Considered a pioneer in minimally invasive spine surgery, SCA’s founder Dr. Bryan J. Massoud is among the most experienced Board certified orthopedic spine surgeons performing endoscopic laser spine procedures in the country. Recognized as an expert by his peers, Dr. Massoud instructs orthopedic residents and colleagues in new procedures such as kyphoplasty and endoscopic techniques. 

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ARLINGTON, VA–(Marketwire – October 28, 2010) –  Vangent, Inc., a leading global provider of information management and strategic business process solutions, today announced it was awarded the Patient Movement Item Tracking System (PMITS) Sustainment contract from the Military Health System in support of the Defense Health Services Systems Program Office.

PMITS is an award-winning MHS system, receiving the Agency Information Technology Award from Government Computer News in 2009. PMITS automatically tracks the storage of patient movement items during peacetime and its movement during contingency and wartime operations. PMITS ensures critical patient-movement equipment is available throughout patient evacuation to save critically injured warfighters’ lives.

Military commanders use PMITS to manage and redistribute patient movement assets to avoid shortages during patient evacuations. PMITS prevents the loss, shortages, and overages of aeromedical equipment by managing the equipment inventory, tracking its movement, and providing valuable information to personnel supporting aeromedical equipment, such as item identification, item location, and status. 

“Vangent is proud to support the Military Health System with a mission-critical system that provides essential equipment for our military’s wounded warriors,” said Kerry Weems, Senior Vice President and General Manager of Vangent’s Health Solutions business. 

Vangent’s subcontractor partner on this contract is Akimeka, LLC.

About Vangent, Inc. 
Vangent, Inc. is a global provider of consulting, systems integration, human capital management, and business process services to the U.S. federal and international governments, higher education institutions, and corporations. Vangent’s 8,500 employees support clients including the Centers for Medicare & Medicaid Services, the U.S. Departments of Defense, Education, Health and Human Services, Labor and Veterans Affairs; and the U.S. Office of Personnel Management, the U.S. Census Bureau, as well as Fortune 500 companies. Headquartered in Arlington, Virginia, the company has offices throughout the U.S. and in the U.K and Canada. For more information, visit www.vangent.com.

Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “projects,” “likely,” “will,” “would,” “could” and similar expressions or phrases identify forward-looking statements. All forward-looking statements involve risks and uncertainties. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MANHATTAN BEACH, CA–(Marketwire – October 28, 2010) – Beach Business Bank (OTCBB: BBBC) (the
“Bank”) is pleased to report its results of operations for the third
quarter of 2010, the year to date 2010, and the trailing 12 months which
includes the fourth quarter of 2009.

Third Quarter Highlights

-- Improving After-Tax Earnings.  For the trailing 12 months, the Bank
   earned $1,201,000, a historical earnings record for the Bank.
   All three of the Bank's offices: Orange County, Long Beach and
   Manhattan Beach, performed well in the quarter.


                                        Third
(U.S.         Third       Second       Quarter      First 9      First 9
 Dollars)  Quarter 2010 Quarter 2010     2009     Months 2010  Months 2009
           ------------ ------------ -----------  ------------ -----------
Net Income      450,000      256,000  (5,895,000)    1,058,000  (5,693,000)
           ------------ ------------ -----------  ------------ -----------

-- Loan Growth and Improving Funding Quality.  The Bank's niche lending
   businesses to physicians and dental professionals and the Bank's SBA
   lending practice showed strength, resulting in further loan
   originations. Development of non-interest-bearing deposits was strong
   during the quarter. The Bank's non-CD based deposits were 89% of total
   deposits at the end of the third quarter.


                                        9/30/2010   9/30/2010   9/30/2010
                                            vs.         vs.         vs.
% growth                                6/30/2010   12/31/2009  9/30/2009
                                        ---------   ----------  ----------
Net Loans                                    (.04)%      13.51%      30.22%
                                        ---------   ----------  ----------
Total Assets                                 18.7%        18.5%       18.7%
                                        ---------   ----------  ----------
Demand deposits (non-interest-bearing)       11.9%        52.0%       56.5%
                                        ---------   ----------  ----------
Total Deposits                               10.8%       22.71%       23.1%
                                        ---------   ----------  ----------

-- Total new loan commitments in the quarter amounted to more than
   $20 million. Non-interest bearing demand deposits totaled $49.1 million
   at quarter end. Overall deposits totaled $260.3 million at quarter end.
   Total assets increased by $47.6 million, to $302.5 million at
   quarter-end, as compared to $254.9 million for the same quarter end
   last year.

Stronger Operating Performance

                                                                    YTD
                          3Q 2010   2Q 2010   3Q 2009   YTD 2010    2009
                          --------  --------  -------   --------  -------

Return on Average Assets      0.60%     0.38%   (9.08)%     1.52%   (2.30)%
                          --------  --------  -------   --------  -------
Return on Average Common
 Equity                       6.09%     3.50%  (68.21)%    14.41%  (65.81)%
                          --------  --------  -------   --------  -------
Net Interest Margin           3.85%     3.98%    3.33%      3.92%    3.56 %
                          --------  --------  -------   --------  -------
Efficiency Ratio             65.79%    68.52%  144.56%     72.85%  110.35 %
                          --------  --------  -------   --------  -------
Tangible Book Value per
 Common Share             $   7.30  $   7.21  $  7.10   $   7.30  $  7.10
                          --------  --------  -------   --------  -------

“We are pleased to be able to report these strong results,” commented Jim
Gray, the co-chairman of the Bank’s board of directors. He continued, “We
are committed to helping the small businesses in our market area to get
back to hiring new employees and increasing their business again. The
recently passed Small Business Bill that the President signed into law on
September 27 will be a huge benefit for business banks like ours, and for
our small business customers.”

Robert Franko, president and chief executive officer of the Bank,
commented, “Our team of skilled bankers has worked tirelessly to achieve
these results, by continuing to build our franchises among small businesses
in our local market areas and among medical professionals nationwide. To
support further growth we continue to make additional provisions from our
core earnings to give us the necessary balance sheet strength. Our local
community has continued to provide us with strong core deposit
relationships, even as our funding costs have continued to decline. We are
fortunate to be located in the finest market areas in the world, and to
have the support of so many excellent and enduring business relationships.”

Loan Portfolio and Credit Quality

-- The Bank's Allowance for Loan & Lease Losses (ALLL) stood at
   $6.2 million or 2.5% of loans outstanding at the quarter end.
-- As of the quarter end, non-accrual loans stood at $5.0 million, with
   no other loans more than 30 days past due.
-- The Bank had net charge-offs of $361,000 in the quarter. The Bank
   provided $520,000 to the ALLL in the quarter.
-- As of the quarter end, the aggregate of non-accrual loans and OREO
   measured as a percentage of Capital and Reserves (sometimes referred to
   as the Texas Ratio) stood at 12.03%.
-- At the quarter end, the Bank's Total Risk-based Capital Ratio was
   14.89%, compared to the regulatory minimum of 10.0% to be
   "Well Capitalized."
-- The Bank's other regulatory Capital measurements also continued to be
   significantly above the regulatory minimums for Well Capitalized.
   For example, the Bank's Tier 1 Risk-Based Capital was 13.62%, compared
   to the regulatory minimum of 6.0%, and the Bank's Tier 1 Leverage Ratio
   was 11.88%, compared to the regulatory minimum of 5.0%.

Financial statements in the form of the Bank’s Call Report, as filed with
the FDIC, will be available on the Bank’s web site at
www.beachbusinessbank.com, and should be available for review or
downloading from the FDIC web site at www.fdic.gov shortly after the end of
this month.

Beach Business Bank is headquartered at 1230 Rosecrans Avenue, Lobby Level,
in Manhattan Beach, and has two other full-service offices at 180 E. Ocean
Blvd. in Long Beach, CA and at 650 Town Center Drive in Costa Mesa, CA. The
Bank is first and foremost a community business bank serving Los Angeles,
Long Beach, the South Bay and Orange County residents and businesses. The
Bank also has a division named The Doctors Bank®, which serves physicians
and dentists nationwide. In addition, Beach Business Bank provides loans to
small businesses, focused around the SBA 7(a) and Express lending programs.
For more information on the Bank, please visit www.beachbusinessbank.com or
call toll-free to (866) 862-3878.

“Safe Harbor” statement under the Private Securities Litigation Reform Act
of 1995:

The financial information in this press release is based on our unaudited
financial results. Certain statements in this press release, including
statements regarding the anticipated development and expansion of the
Bank’s business, and the intent, belief, and current expectations of the
Bank, its directors, or its officers, are “forward-looking” statements (as
such term is defined in the Private Securities Litigation Reform Act of
1995). Such forward-looking statements are subject to risks and
uncertainties and therefore the Bank’s actual results may differ materially
from those expressed or implied by such forward-looking statements. The
risks and uncertainties that the Bank is subject to include, but are not
limited to, risks related to the local and national economy, including
fluctuations in interest rates and costs and changes in economic policy;
the ability of the Bank to perform in accordance with its plans;
competition; regulatory matters; and other risks detailed in its filings
with the State of California Department of Financial Institutions and the
Federal Deposit Insurance Corporation. The Bank cautions readers not to
place undue reliance on any forward-looking statements. The Bank does not
undertake, and specifically disclaims any obligation, to revise any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

Summary Financial Information

The following tables present relevant financial data from
Beach Business Bank's recent performance.

                                           September  December   September
                                           30, 2010   31, 2009   30, 2009
                                           ---------  ---------  ---------
Balance Sheet Results (In thousands),
 except per share data:
       Total Assets                        $ 302,465  $ 255,321  $ 254,883
       Gross Loans                         $ 245,496  $ 217,361  $ 193,687
       Loans Held for Sale                 $   1,542  $   1,026  $   4,285
       Allowance for Loan Losses           $   6,188  $   6,870  $   6,819
       Total Net Loans                     $ 237,765  $ 209,465  $ 182,582
       Total Deposits                      $ 260,293  $ 212,083  $ 211,465
       Other Real Estate Owned             $       -  $   2,100  $   2,399
       Preferred Stock                     $   6,078  $   6,033  $   6,018
       Common Stock                        $  29,618  $  28,899  $  28,680
       Total Shareholders' Equity          $  35,696  $  34,932  $  34,698
       Net Loans to Deposits                   91.35%     98.77%     86.34%
       ALLL to Loans HTM                        2.54%      3.18%      3.60%
       Equity to Assets                        11.80%     13.68%     13.61%
       Ending Shares outstanding           4,055,972  4,036,984  4,036,984
       Ending Book Value per Common Share  $    7.30  $    7.16  $    7.10

                                                  Three Months Ended
                                           September  December   September
                                           30, 2010   31, 2009   30, 2009
                                           ---------  ---------  ---------
Quarterly Operating Results (In
 thousands):
       Net Interest Income                 $   2,780  $   2,230  $   2,041
       Non-interest Income                 $      57  $     583  $     302
       Non-interest Expense**              $   1,866  $   1,770  $   3,387
       Income Before Provision & Taxes     $     970  $   1,043  $  (1,045)
       Provision for Loan Losses           $     520  $     900  $   4,850
       Income Tax Expense                  $       -  $       -  $       -
       Net Income                          $     450  $     143  $  (5,895)
       Quarterly Return on Average Assets*      0.60%      0.22%     -9.08%
       Quarterly Return on Average Equity*      5.05%      1.63%    -58.11%
       Quarterly Net Interest Margin*           3.85%      3.46%      3.33%
       Quarterly Efficiency Ratio*             65.79%     62.93%    144.56%

                                            Nine Months Ended
                                           September  September
                                            30, 2010   30, 2009
                                           ---------  ---------
YTD Operating Results (In thousands):
       Net Interest Income                 $   7,909  $   6,410
       Non-interest Income                 $   1,072  $   1,060
       Non-interest Expense                $   6,542  $   8,243
       Income Before Provision & Taxes     $   2,438  $    (773)
       Provision for Loan Losses           $   1,380  $   4,920
       Income Tax Expense                  $       -  $       -
       Net Income                          $   1,058  $  (5,693)
       YTD Return on Average Assets*            0.38%     -2.30%
       YTD Return on Average Equity*            2.99%    -14.24%
       YTD Net Interest Margin*                 3.92%      3.56%
       YTD Efficiency Ratio*                   72.85%    110.35%


       *Percentages are reported on an annualized basis.
       Source: FDIC quarterly Call Reports for Beach Business Bank for the
       periods indicated.

MUNDELEIN, IL–(Marketwire – October 28, 2010) –  ClearCount Medical Solutions and Medline Industries, Inc. today announced that Hunt Regional Medical Center has become the first Texas hospital to deploy the most comprehensive technology for the prevention retained surgical sponge incidents. Hunt Regional Medical Center (HRMC) has implemented the SmartWand-DTX, part of ClearCount’s radio-frequency identification (RFID)-based platform that uniquely identifies each sponge so that they can be easily counted and detected. Medline is the exclusive distributor for the SmartWand-DTX and the SmartSponge System, the first FDA-cleared systems using RFID.

“The deployment of the latest safety technology in our OR is consistent with our commitment to both our community and our employees,” said Richard Carter, chief executive officer at HRMC. “We are pleased to be on the cutting edge of technology in this area, and our deployment reinforces our commitment to bringing the best care to the community we serve.”

“The SmartWand-DTX provides a safety net for human error. Anything that we can do to improve patient safety is extremely crucial. This technology not only allows our staff to operate at an exceptional level of patient safety, but also provides staff with a safer and more efficient method for reconciling our surgical counts,” said Katherine Magee, RN, OR director at Hunt Regional Medical Center.

HRMC has implemented the SmartWand-DTX into its full suite of operating rooms. The hospital is part of Hunt Regional Healthcare which is affiliated with Baylor Health Care System.

“We’re pleased to add Hunt Regional Medical Center to our rapidly expanding customer base,” said David Palmer, chief executive officer of ClearCount. “Their selection of our safety technology demonstrates the trend that many hospitals are now taking action to make retained sponge incidents a true ‘Never Event’ through the use of RFID technology.”

Despite designation as a “never event,” retained items are estimated to occur in one of every 1,000 to 1,500 abdominal surgical procedures, which can lead to hospital inefficiencies, unnecessary costs, serious infections and even death. Hospital infections add an estimated $30.5 billion to the nation’s hospital costs each year. In one study using a retrospective review of medical malpractice claims data from a statewide insurer in Massachusetts, sponge counts had been falsely thought to be correct in 76 percent of non-vaginal surgical cases involving retained sponges. “Falsely correct” sponge counts were attributed to team fatigue, difficult or long operations, sponges “sticking together,” shift changes or procedures with a large number of sponges. In July 2010, new Association of periOperative Registered Nurses (AORN) Recommended Practices for the Prevention of Retained Surgical Items highlighted that membership may consider use of adjunct technologies to enhance surgical count procedures in order to avoid retained incidents.

About ClearCount Medical Solutions
ClearCount Medical Solutions is a medical device company focused on patient safety solutions. ClearCount has assembled an extendable RFID-based platform that provides a comprehensive solution to improve efficiency while preventing medical errors, distributed exclusively by Medline. ClearCount Medical Solutions has been recognized with a Popular Science 2009 Best of What’s New Award, and has received additional recognition from TIME and WIRED magazines, the 2009 Wall Street Journal Technology Innovation Award, the International Design Excellence Award (IDEA) and more. ClearCount’s SmartSponge and SmartWand-DTX systems are the first RFID enabled systems for counting and detecting surgical sponges, thereby improving patient and OR safety, enhancing productivity, and reducing cost. To learn more, visit www.clearcount.com.

About Medline Industries, Inc. 
Medline, the nation’s largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended-care facilities, surgery centers, home care dealers and agencies. Headquartered in Mundelein, Ill., Medline has more than 900 dedicated sales representatives nationwide to support its broad product line and cost management services.

Over the past five years, Medline has been the fastest-growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 450 major hospitals and healthcare systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities and on-staff clinicians.

OAKBROOK TERRACE, IL–(Marketwire – October 28, 2010) –  The Joint Commission Center for Transforming Healthcare today announced the establishment of a Leadership Advisory Council to guide the progress of the Center as it addresses and develops solutions to improve health care quality and patient safety. The first meeting of the Center’s Leadership Advisory Council will be held October 29.

Meeting three times a year, members of the Leadership Advisory Council include executives from among the Center’s major sponsors and CEOs representing the participating hospitals. The CEOs will serve on a rotating basis to allow new membership each year. The Council will be chaired by Mark Chassin, M.D., M.P.P., M.P.H., president, The Joint Commission. Council members are:

• Jack E. Bailey, GlaxoSmithKline
• Paul Chaffin, Ecolab
• George Halvorson, Kaiser Permanente
• Donny C. Lambeth, Wake Forest University Baptist Medical Center
• Alberto Mas, BD
• Rich Miller, Virtua
• Andy Mills, Medline Industries
• Ronald R. Peterson, The Johns Hopkins Hospital and Health System
• Thomas M. Priselac, Cedars-Sinai Health System
• Gary Pruden, Johnson & Johnson Company
• Michael J. Swinford, GE Healthcare
• Richard Umbdenstock, American Hospital Association
• Dan Wolterman, Memorial Hermann Healthcare System

“The response from accredited health care organizations to the Center has been extremely positive, a fact due in large part to the ongoing commitment of participating hospitals and health systems and sponsors to address the toughest and most persistent problems facing health care across the country,” says Dr. Chassin. “The perspectives of the Leadership Advisory Council members will help us to bring everyone interested in safe, reliable health care together to create lasting solutions.”

Established in 2009, the Joint Commission Center for Transforming Healthcare aims to solve health care’s most critical safety and quality problems. The Center’s participants — which include some of the nation’s leading hospitals and health systems — use a systematic approach to analyze specific breakdowns in care and discover their underlying causes to develop targeted solutions that solve these complex problems. Center projects include hand hygiene, wrong-site surgery, hand-off communications and the reduction of surgical site infections (SSI) following colorectal surgery. Future projects are expected to focus on preventable hospitalizations, medication errors, and other aspects of infection control.

All Joint Commission-accredited health care organizations can access the solutions on their secure Joint Commission Connect extranet through the Targeted Solutions Tool™ (TST). The TST provides a step-by-step process to measure performance, identify barriers to excellent performance, and implement the Center’s proven solutions that are customized to address an organization’s specific barriers.

The first set of targeted solutions, created by eight hospitals and health care systems working in collaboration with the Center, focuses on improving hand hygiene. The second set of solutions, announced last week, focuses on improving hand-off communications. The targeted solutions for hand-off communications will be pilot tested to prove their effectiveness in demographically diverse hospitals and will be added to the TST in the second half of 2011.

For more information about the Joint Commission Center for Transforming Healthcare, visit www.centerfortransforminghealthcare.org.

Established in 2009, the Joint Commission Center for Transforming Healthcare aims to transform American health care into a high-reliability industry that ensures patients receive the safest, highest quality care they expect and deserve. The Center’s participants — the nation’s leading hospitals and health systems — use a proven, systematic approach to analyze specific breakdowns in care and discover their underlying causes to develop targeted solutions for health care’s most critical safety and quality problems. The Center is a not-for-profit affiliate of The Joint Commission, which shares the Center’s proven effective solutions with its more than 18,000 accredited health care organizations. Learn more about the Center at www.centerfortransforminghealthcare.org.

To view this release in a media-rich format, go to: http://www.pwrnewmedia.com/2010/jointcommission_01028_leadership_council/index.html

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WARREN, NJ–(Marketwire – October 28, 2010) –  Health care reform has spawned a host of privacy, information security and other liability exposures for the emerging healthcare information technology industry. In response, the Chubb Group of Insurance Companies has established a program to address the industry’s specialized risk needs.

“Chubb has brought together its information and network technology and life sciences expertise to tailor insurance and loss control solutions to this rapidly growing market sector,” said Stephen Harris, a Chubb vice president and co-program manager.

More than 1,000 companies supply information technology products and services to the healthcare and medical research industries in the United States and Canada. The sector is poised for additional growth after the allocation of nearly $20 billion in federal stimulus funds to incentives to create electronic health records and to other investments in the sector.

“Chubb’s Healthcare Information Technology program will provide insurance products and services, on a global basis, that can help this emerging industry face privacy and information security requirements, as well as a host of new professional liability exposures,” said Richard Reed, a Chubb vice president and co-program manager.

An integrated liability solution from Chubb can help protect healthcare information technology companies from:

• general and products liability when software or hardware that is defective or contains inaccurate or incomplete information causes or contributes to patient injuries;
• errors and omission liability when a product defect or service deficiency results in economic injury to a customer;
• third-party liability to patients, healthcare providers and others associated with database security breaches; and
• costs incurred to comply with state, federal and foreign laws requiring companies to notify consumers of a privacy data breach.

In addition, Chubb can provide these firms with insurance addressing property, business interruption, workers compensation and auto exposures.

The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s global network includes branches throughout North America, Europe, Latin America, Asia and Australia.

CLARK, NJ–(Marketwire – October 28, 2010) –  HealthEd, a specialized agency focused on turning health education into positive outcomes, today announced several key senior-level appointments — Mike Brzozowski as chief strategy officer, Sonja “Sunny” Foster-Storch as executive vice president, managing director for HealthEd, and Paul Steiner as executive vice president, managing director for Encore, a HealthEd company. With these additions to the executive leadership team, HealthEd Group signals its focus on expanding its strategic and consultative services to meet changing client needs.

“We are very excited to have Mike, Sunny, and Paul on board,” said Roy Broadfoot, CEO and president of HealthEd. “The business needs and requirements of our clients are becoming increasingly complex. We have heard them and have responded by recruiting top executives who can strategically lead our cross-functional teams to deliver innovative and engaging solutions.”

Mr. Brzozowski comes to HealthEd with more than 20 years of experience in relationship marketing, strategic planning, and business analysis. He is responsible for leading and expanding strategic marketing and health education consulting services. With Mr. Brzozowski at the helm, the health educators and marketers combine to provide a unique insight into patient motivations and behaviors. Most recently, Mr. Brzozowski worked at Draftfcb as executive vice president of customer relationship marketing and before that was at Ogilvyone Worldwide as senior partner, executive director of relationship marketing strategy.

Ms. Foster-Storch will lead HealthEd’s client services group, while Mr. Steiner will lead Encore’s. The two help form a structured leadership team for both organizations by integrating resources and focusing on client development. Both report directly to Larry Moran, chief operating officer.

Ms. Foster-Storch comes to HealthEd from The CementBloc, where she led the market development and marketing strategy team. Before that, she cofounded Clinical CONNEXION, a medical education company. 

Mr. Steiner joins Encore from Draftfcb, where he was senior vice president, director of customer relationship marketing. Previously, he served as senior vice president, group account director, at Omnicom’s Unit 7 relationship marketing agency. 

“Sunny and Paul both bring over 20 years of strategic planning and healthcare marketing experience to our company,” said Anita St. Clair, HealthEd’s chief client development officer. “And Mike’s success in creating integrated marketing solutions is just what the doctor ordered. His belief that effective relationship marketing helps deliver engaging, individualized, dialog-driven customer experiences aligns perfectly with our clients’ needs and our company mission.”

About HealthEd
HealthEd is a specialized agency that uses education to help people develop the knowledge, skills, motivation, and confidence to manage important health decisions and activities and ultimately achieve better health outcomes. For more information about HealthEd and the services we offer, please visit http://www.HealthEd.com or contact Anita St. Clair, chief client development officer, at 908-389-2133.

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TAMPA, FL–(Marketwire – October 28, 2010) –  The Certification Commission for Health Information Technology (CCHIT^®) today announced that Visionary HealthWare’s Alteer Office 8.0 is a pre-market CCHIT Certified^®  2011 Ambulatory EHR. Ambulatory EHRs are designed for physician offices and clinics where most Americans get their healthcare. Alteer Office is part of Visionary HealthWare’s offerings of practice management and electronic healthcare record solutions. Visionary HealthWare is a subsidiary of CompuGroup Medical U.S.

As a CCHIT Certified 2011 product, Visionary HealthWare’s Alteer Office demonstrated compliance with the advanced ePrescribing module requirements and has passed all required criteria in the CCHIT 2011 Ambulatory and Security test scripts for:

• Functionality (ability to create and manage electronic records for all patients, as well as automating workflow in a physician’s office),
• Interoperability (ability to receive and send electronic data to other entities such as laboratories), and
• Security (ability to keep patients’ information safe).

The CCHIT Certified program is an independently developed certification that includes a rigorous inspection of an EHR’s integrated functionality, interoperability, and security using criteria developed by CCHIT’s broadly representative, expert work groups. By looking to products with the CCHIT Certified seal, physicians and other providers can be assured they are making a reliable investment and insurers and other payers know the products meet expected industry standards. This program is intended to serve health care providers looking for greater assurance that a product will meet their complex needs.

“We believe that achieving CCHIT Certification confirms the quality and comprehensiveness of Visionary HealthWare’s Alteer Office as well as validates VHW’s commitment to providing our customers with the most up-to-date advancements in healthcare IT,” said Chris Grady, CIO of Visionary HealthWare. “Alteer Office provides the features, functionality, and ease of use necessary for physicians to adopt the EHR quickly while minimizing disruption to their current workflow.”

“Visionary HealthWare’s solution improves clinical outcomes by providing more comprehensive and timely information for clinical decision-making, and decreases time spent on administrative activities that can better be spent on direct patient care,” adds Jason Patchen, CEO of Visionary HealthWare. “All of these improvements contribute to a safer care environment for patients.”

About Visionary HealthWare
Visionary HealthWare (VHW) is a provider-based healthcare information technology company with operations in Florida, California and Maryland. VHW delivers innovative, effective, easy-to-use, services and software solutions designed to manage patient, clinical and financial information at all levels while helping practices prove “meaningful use”. Solutions include fully integrated Electronic Health Records, Practice Management, Laboratory Information Systems, Revenue Cycle Management, Document Management, e-Prescribing, and services for any size practice. VHW reaches over 60,000 providers nationwide and was ranked by Healthcare Informatics Magazine in the top 100 Healthcare Information Technology companies in America. VHW brands include Visionary Medical Systems, Antek HealthWare, Soft-Aid, USMD, and Alteer Corporation. Visionary HealthWare (www.visionaryhealthware.com). Visionary HealthWare is a subsidiary of CompuGroup Medical U.S.

About CompuGroup Medical

CompuGroup Medical is one of the leading e-health companies worldwide. Its software products, designed to support all medical and organizational activities in doctors’ offices and hospitals, its information services for all parties involved in the healthcare system and its web-based personal health records, contribute towards safer and more efficient healthcare.

The services of CompuGroup Medical are based on its unique customer base of around 370,000 doctors, dentists, hospitals and networks as well as other service providers. CompuGroup Medical is the e-Health company with one of the biggest coverage among e-health service providers worldwide. The company operates in 14 European countries as well as in Malaysia, Saudi Arabia, South Africa and in the USA and currently employs around 3,000 people.

ABOUT CCHIT
The Certification Commission for Health Information Technology (CCHIT®) is an independent, 501(c)3 nonprofit organization with the public mission of accelerating the adoption of robust, interoperable health information technology. The Commission has been certifying electronic health record technology since 2006 and is recognized by the Office of the National Coordinator for Health Information Technology (ONC), U.S. Department of Health and Human Services (HHS) as an Authorized Testing and Certification Body (ONC-ATCB). More information on CCHIT, CCHIT Certified® products and HHS certified electronic health record technology is available at http://cchit.org and http://ehrdecisions.com. 

“CCHIT®” and “CCHIT Certified®” are registered trademarks of the Certification Commission for Health Information Technology.

WALNUT CREEK, CA–(Marketwire – October 28, 2010) –  Dr. Mark Wolpa, founder of the Bay Area Foot & Laser Podiatry Group, is proud to announce that the PinPointe laser has received official FDA clearance for the treatment of toenail fungus. PinPointe™ is the first and only laser to receive this coveted FDA clearance specifically for treating toenail fungus, an embarrassing infection that causes a thickening and yellowing of the toenails. It is estimated that about 10 percent — or nearly 35 million adults in the United States alone have this embarrassing condition.

The PinPointe™ FootLaser™ is the only laser that has been clinically proven and has passed the rigorous testing by the FDA to receive clearance. Dr. Wolpa has successfully treated over 1600 patients and has seen dramatic results. “After many years of not having a successful way to treat my patients suffering with toenail fungus, I am thrilled to see such positive results using this leading edge laser technology,” says Dr. Wolpa.

About Bay Area Foot & Laser Podiatry Group

The Bay Area Foot & Laser Podiatry Group’s Dr. Mark Wolpa is Board Certified by the American Board of Podiatric Surgery and has been in practice in the Bay Area for over 30 years. He was the Chief of Podiatry at Alta Bates-Summit Hospital in Berkeley for the past 10 years and has authored articles, books, and appeared on radio and television programs discussing foot problems.

He has offices in Berkeley, Walnut Creek, Santa Rosa, and Marin. For more information about Dr. Wolpa and The PinPointe FootLaser visit www.BayAreaFootandLaser.com

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SUN VALLEY, CA–(Marketwire – October 28, 2010) –  XTend Medical, (PINKSHEETS: XMDC), a company that specializes in delivering life changing medical technology to healthcare organizations globally, announced today that the company will soon be launching a new website within the next few weeks. The company issued the following statement:

“XTend has contracted with GoDaddy’s website design professionals to build a new website for the company. After the issues they ran into last year using an independent web developer, the need for professionally trained web engineers and graphics persons was instrumental in their decision to have the GoDaddy Team of experts build out the site. The information has been sent to the website team and we’re awaiting the Beta version so we can make any last minute changes before launching the new site. We expect to have the site live within the next week or so and feel this new site will properly represent the company in cyberspace.”

In other news, the company is working to position itself so the auditing process for becoming a fully reporting company is met and the company is strategically positioned to attract the proper investment structure to commercialize the BioHarp. Any changes made to the company will be done in accordance with corporate counsel’s advice and with the future of the company and its shareholders securely in the minds of management. 

About XTend Medical
XTend Medical is a company that specializes in the sales, manufacturing and distribution of the latest in medical devices and telemedicine solutions for the healthcare industry. Their dedication to insuring the products and services offered to healthcare organizations, third-world countries, and physician groups are at the forefront of medical technology. Their recent acquisition of the BioHarp medical device will assist the company in becoming known as a leader in the healthcare sector globally. For further information, please contact them at [email protected] or visit their website at www.bioharpunius.com

Forward-Looking Statements

This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that we may not produce today and that meet defined specifications. When used in this press release, the words “plan,” “expect,” “believe,” and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.

MERIDIAN, ID–(Marketwire – October 28, 2010) –  MWI Veterinary Supply, Inc. (NASDAQ: MWIV) announced today that the Company will release financial results for its fourth quarter and fiscal year ended September 30, 2010 and provide its business outlook for its fiscal year ending September 30, 2011 on Thursday, November 4, 2010. MWI will host a conference call the same day at 11 am eastern time to discuss these results and its business outlook.

For calls within the United States you can access the conference call by dialing (877) 638-4561 and international callers can access the conference by dialing (720) 545-0002. Participants will be required to register their name and company affiliation for the conference call. The conference call will also be carried live on the Company’s web site at www.mwivet.com. Audio replay will be made available through November 18, 2010 by calling (800) 642-1687 for calls within the United States or (706) 645-9291 for international calls using the passcode 19698332 or by accessing the Company’s web site.

About MWI Veterinary Supply, Inc.
MWI Veterinary Supply, Inc. is a leading distributor of animal health products to veterinarians across the United States and United Kingdom. The products MWI sells include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, veterinary pet food and nutritional products. We market these products to veterinarians in both the companion animal and production animal markets.

MIAMI, FL–(Marketwire – October 28, 2010) –  GetWellNetwork, Inc. today announced that David Wright, the Company’s chief outcomes officer, will address the South Florida Healthcare Trade Faire & Regional Conference, sponsored by HIMSS South Florida Chapter on how hospitals can strengthen their position in the “Pay for Performance” provisions of the new health care reform law (1). The fall regional health information symposium is being held today at the Signature Grand hotel.

Mr. Wright is an expert on patient-centered care models and uniquely qualified to help hospitals prepare for “Pay for Performance” provisions by targeting performance areas such as clinical care processes; health outcomes; patient safety; patient experience and satisfaction; and IT investment and use.

Mr. Wright will also explain how leading hospitals and health systems are using interactive patient care technology to achieve evidence-based outcomes and to improve hospital performance in the areas that directly impact “Pay for Performance” provisions.

“Forums such as the regional HIMSS conference provide an opportunity for clinicians and hospitals to engage in important discussions about policy changes that directly impact the patient care factors of the Pay for Performance provision,” said David Wright, chief outcomes officer, GetWellNetwork, Inc. “To ensure continuation of current reimbursement rates from the Federal government, all hospitals should be developing strategic plans that not only elevate patient safety and care but deliver operational efficiencies through the use of technology solutions.”

About GetWellNetwork
GetWellNetwork, Inc. uses the bedside TV to entertain, educate and empower hospital patients and caregivers to be more actively engaged in their care. This patient-centered approach improves both satisfaction and outcomes for patients and hospitals. GetWellNetwork is the leader in interactive patient care solutions and exclusively endorsed by the American Hospital Association. More information about GetWellNetwork can be found at www.GetWellNetwork.com.

(1) More information about CMS’ Value-Based Purchasing Program is available at http://www.cms.gov/AcuteInpatientPPS/downloads/HospitalVBPPlanRTCFINALSUBMITTED2007.pdf and http://www.cms.gov/QualityInitiativesGenInfo/downloads/VBPRoadmap_OEA_1-16_508.pdf

TUSTIN, CA–(Marketwire – October 28, 2010) –  Radient Pharmaceuticals Corporation (RPC) (NYSE Amex: RPC) announced today the launch of the RPC Investor Channel — a new and innovative video website developed to enhance communications and corporate access for key audiences interested in RPC.

Through this dynamic mode of communication everyone from existing and prospective shareholders, the broad investment community at large, healthcare professionals and their patients can learn about Radient Pharmaceuticals and its portfolio of in vitro diagnostic (IVD) cancer tests and products. In addition, financial Advisors have the ability to distribute RPC Investor Channel content to clients and securely track consumption when campaigning to clients about RPC, enhancing Radient’s ability to scale consideration into new investor communities.

The site also features videos communicating RPC’s business model, target markets and international distribution, sales and growth strategy; RPC as an investment opportunity; updates and progress on RPC’s portfolio of cancer diagnostic products, including its FDA-approved Onko-Sure® IVD cancer test kit; and educational information specifically targeted towards patients, physicians and the healthcare community in general.

According to Mr. Douglas Maclellan, Executive Chairman and CEO of RPC, “As a publicly-traded Company, superior investor communications is of utmost importance to our executive management team. With the launch of RPC’s new Investor Relations Video Channel, we are expanding our traditional lines of communication to now include a multi-media platform that offers added flexibility, reach and the ability to disseminate relevant Company information in a ‘high-touch’. We are very excited to offer this service to our valued stakeholders.”

Videos are accessible and viewable through personal computers and handsets with a 3G connection by visiting http://investorchannel.radient-pharma.com. For additional information on Radient Pharmaceuticals and its portfolio of IVD cancer products visit the Company’s corporate website at www.Radient-Pharma.com. For Investor Relations information contact Kristine Szarkowitz at [email protected] or 1.206.310.5323.

About Radient Pharmaceuticals:
Headquartered in Tustin, California, Radient Pharmaceuticals is dedicated to saving lives and money for patients and global healthcare systems through the deployment of its Onko-Sure® In Vitro Diagnostic cancer test. The company’s focus is on the discovery, development and commercialization of unique high-value diagnostic tests that help physicians answer important clinical questions related to early disease detection; treatment strategy; and the monitoring of disease progression, prognosis, and diagnosis to ultimately improve patient outcomes. Radient Pharmaceutical’s current Onko-Sure® cancer test is used to guide decisions regarding patient treatment, which may include decisions to refer patients to specialists, perform additional testing, or assist in the selection of therapy. To learn more about our company, people and potentially life-saving cancer test, visit www.Radient-Pharma.com.

Forward Looking Statements:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this document include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company’s operations, markets, services, products, and prices. With respect to Radient Pharmaceuticals Corporation, except for the historical information contained herein, the matters discussed in this document are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.

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ATLANTA, GA–(Marketwire – October 28, 2010) –  ExamWorks Group, Inc. (NYSE: EXAM), a leading provider of independent medical examinations (IMEs), peer reviews, bill reviews and related services for the insurance and legal industries, today announced the pricing of its initial public offering of 10,300,000 shares of its common stock at a price to the public of $16.00 per share. Of the 10,300,000 shares being offered to the public 7,745,114 shares are being offered by ExamWorks Group and 2,554,886 shares are being offered by selling stockholders. In addition, the underwriters have a 30-day option to purchase up to an additional 1,545,000 shares from the company.

ExamWorks Group’s common stock is expected to begin trading on the New York Stock Exchange under the symbol “EXAM” on October 28, 2010. To celebrate the company’s IPO and NYSE listing, ExamWorks Group, led by Richard E. Perlman, Executive Chairman and James K. Price, Chief Executive Officer, will ring the NYSE Opening Bell.

Goldman, Sachs & Co., Credit Suisse and Barclays Capital are joint book runners for the offering. William Blair & Company and Needham & Company LLC are acting as co-managers of the offering.

A registration statement relating to this offering was declared effective by the U.S. Securities and Exchange Commission on October 27, 2010. This offering is being made solely by means of a prospectus. A copy of the prospectus relating to this offering may be obtained from Goldman, Sachs & Co., 200 West Street, New York, New York 10282-2198, Attention: Prospectus Department, telephone (866) 471-2526; or from Credit Suisse Securities (USA) LLC, 11 Madison Avenue, New York, New York 10010, Attention: Prospectus Department, telephone (800) 221-1037.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ExamWorks Group

ExamWorks Group, Inc. is a leading provider of independent medical examinations, or “IMEs”, peer and bill reviews, and related services, which include, litigation support services, administrative support services, and medical record retrieval services, and which we collectively refer to as IME services or the IME industry. We provide these IME services through our medical panel of independently contracted, credentialed physicians and other medical providers. Our clients include property and casualty insurance carriers, law firms, third-party claim administrators and government agencies that use independent services to confirm the veracity of claims by sick or injured individuals for workers’ compensation, automotive, personal injury liability and disability insurance coverage. We help our clients manage costs and enhance their risk management processes by verifying the validity, nature, cause and extent of claims, identifying fraud and providing fast, efficient and quality IME services. ExamWorks is focused on providing carriers with the national presence they need and with the local service that they have come to expect.

IRVINE, CA–(Marketwire – October 27, 2010) – Sun Healthcare Group, Inc. (NASDAQ: SUNH) today
announced its operating results for the third quarter ended Sept. 30, 2010.

Normalized results for the third-quarter period ended Sept. 30, 2010:

--  consolidated revenues rose 1.1 percent to $476.0 million, compared to
    the same period in 2009;
    --  increased patient acuity resulted in solid reimbursement rates in
        quarter;
    --  hospice and rehabilitation therapy businesses showed revenue
        growth;
--  consolidated adjusted EBITDAR was $60.6 million and adjusted EBITDAR
    margin was 12.7 percent;
--  diluted earnings per share from continuing operations (after giving
    effect to the issuance of 30.76 million shares in the Company's equity
    offering) were $0.18;
--  diluted earnings per share from continuing operations would have been
    $0.23 based on shares outstanding prior to the issuance of
    30.76 million shares in the Company's August equity offering and before
    the application of the offering proceeds, which equals the mean of
    diluted earnings per share from continuing operations estimates for the
    third quarter from analysts who publish on First Call;
--  free cash flow was $21.3 million for the quarter; and
--  results have been normalized to exclude the impact of $4.7 million for
    transaction costs associated with the separation transaction described
    in further detail below in this press release.

Commenting on the Company’s third-quarter results, Richard K. Matros, Sun’s
chairman and chief executive officer, remarked, “Although our sector
continues to experience a tough operating environment, I am pleased with
our ability to turn in a solid quarter, with normalized adjusted EBITDAR
comparable to that achieved in last year’s third quarter.”

Matros added, “With respect to the previously announced separation of our
operating assets and real estate assets, we have completed debt financings
for both the operating company and the real estate company and have
received all necessary regulatory approvals. We look forward to our
stockholders’ meeting on November 4 and to completing the separation
transaction on November 15.”

Segment Updates

On a year-over-year basis for the quarter, revenue growth in Sun’s
inpatient services business totaled $3.8 million, or 0.9 percent, due
principally to revenue growth in its hospice business, SolAmor. SolAmor’s
revenues increased from $7.2 million to $11.3 million, due to census
expansion derived from same store census growth as well as an October 2009
acquisition. SolAmor contributed $2.5 million of adjusted EBITDA for the
quarter and an adjusted EBITDA margin of 22.3 percent. In the quarter,
revenues from SunBridge’s nursing center operations were flat on a
year-over-year basis due to declines in nursing center customer base and
the lingering effect of the October 2009 Medicare rate reduction, partially
offset by acuity-driven rate growth. SunBridge’s acuity growth was
evidenced by its Medicare Rehab RUG use of 91.2 percent, which was up 250
basis points year-over-year, and its Medicare REX utilization of 44.4
percent, which was up 240 basis points year-over-year. On an overall basis,
the inpatient services business reported adjusted EBITDAR of $69.0 million
for the quarter, with an adjusted EBITDAR margin of 16.3 percent.

SunDance, Sun’s rehabilitation therapy services business, experienced
revenue growth of $6.8 million, or 15.0 percent, in the quarter on the
strength of growth in revenue per contract of 8.5 percent and growth in
total non-affiliated contracts of 4.9 percent. Given the strong revenue
results, adjusted EBITDA margin also expanded in the quarter by 190 basis
points, producing an 8.0 percent adjusted EBITDA margin.

Industry demand for temporary medical staffing continues to be down as a
result of the slow economy. Accordingly, revenues from CareerStaff, Sun’s
medical staffing services business, were down compared to revenues in the
same quarter of 2009, resulting in adjusted EBITDA margin of 6.2 percent
for the quarter.

Bill Mathies, president and chief operating officer of SunBridge and chief
operating officer over Sun’s operating subsidiaries, commented on the
segment results: “Our early assessment of the implementation of RUG IV, the
changes to concurrent therapy and the elimination of the look-back period
is that they are neutral on a consolidated basis, with the market basket
rate increases we received on October 1 being accretive to our results. Our
experience to date affirms our positive view of the opportunity that these
changes in the reimbursement system afford us, given our strategy of
serving
clinically-complex patients, as well as the savings the changes will
achieve for the Medicare program. Continuing our focus on short-stay
high-acuity patients requires the expansion of our portfolio of Rehab
Recovery Suites® (RRS). At the end of the quarter, our RRS centers
aggregated 1,647 beds, an increase of 44.6 percent over the number of RRS
beds in service in the third quarter of 2009. Our rehabilitation business
achieved solid revenue growth in the quarter, driven by the increase in
contracts as well as the increase in revenue per contract. Our hospice
business continues to perform consistently with our expectations. Our
medical staffing business, as noted, continued to show a decline in
revenues, EBITDA, and margins but the revenue decline has slowed and
billable hours were actually up for the quarter.”

Conference Call

As previously announced, investors and the general public are invited to
listen to a conference call with Sun’s senior management on Thursday, Oct.
28, 2010, at 10 a.m. Pacific / 1 p.m. Eastern to discuss the Company’s
earnings for the third quarter of 2010.

To listen to the conference call, dial (888) 437-9364 and refer to Sun
Healthcare Group. A recording of the call will be available from 4 p.m.
Eastern on Oct. 28, 2010, until midnight Eastern on Nov. 28, 2010, by
calling (888) 203-1112 and using access code 4118106.

About Sun Healthcare Group, Inc.

Sun Healthcare Group, Inc.’s (NASDAQ: SUNH) subsidiaries provide nursing,
rehabilitative and related specialty healthcare services principally to the
senior population in the United States. Sun’s core business is providing,
through its subsidiaries, inpatient services, primarily through 166 skilled
nursing centers, 16 combined skilled nursing, assisted and independent
living centers, 10 assisted living centers, two independent living centers
and eight mental health centers. On a consolidated basis, Sun has annual
revenues of $1.9 billion and approximately 30,000 employees in 46 states.
At Oct. 1, 2010, SunBridge centers had 23,189 licensed beds located in 25
states, of which 22,407 were available for occupancy. Sun also provides
rehabilitation therapy services to affiliated and non-affiliated centers
through its SunDance subsidiary, medical staffing services through its
CareerStaff Unlimited subsidiary and hospice services through its SolAmor
subsidiary.

In May 2010, Sun announced a plan to restructure its business by separating
its real estate assets and its operating assets into two separate,
publicly-traded companies (the “Separation”), subject to the approval of
stockholders and other conditions. The Separation will be accomplished by
distributing to stockholders the stock of SHG Services, Inc., a Sun
subsidiary that will own and operate the operating subsidiaries.
Substantially all of Sun’s owned real estate assets will continue to be
owned by Sun, which will, after the Separation, merge into its subsidiary,
Sabra Health Care REIT, Inc. Following this merger, SHG Services, Inc. will
change its name to Sun Healthcare Group, Inc. The common stock of both
companies is expected to trade on the NASDAQ Global Select Market. The
Separation is expected to be completed on Nov. 15, 2010.

Forward-looking Statement

Statements made in this release that are not historical facts are
“forward-looking” statements (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risks and uncertainties and are
subject to change at any time. These forward-looking statements may
include, but are not limited to, statements containing words such as
“anticipate,” “believe,” “plan,” “estimate,” “expect,” “hope,” “intend,”
“may” and similar expressions. Forward-looking statements in this release
include all statements regarding the Company’s expected future financial
position and results of operations, business strategy, the impact of
reductions in reimbursements and other changes in government reimbursement
programs, the timing and impact of the Separation and transactions related
thereto, growth opportunities and plans and objectives of management for
future operations. Factors that could cause actual results to differ are
identified in the public filings made by the Company with the Securities
and Exchange Commission and include changes in Medicare and Medicaid
reimbursements; the impact that any healthcare reform legislation will have
on the Company’s business; the ability to maintain the occupancy rates and
payor mix at the Company’s healthcare centers; potential liability for
losses not covered by, or in excess of, the insurance; the effects of
government regulations and investigations; the significant amount of the
Company’s indebtedness; covenants in debt agreements that may restrict the
Company’s activities, including the Company’s ability to make acquisitions,
incur more indebtedness and refinance indebtedness on favorable terms;
Sun’s ability to accomplish the Separation and the transactions related
thereto; the impact of the current economic downturn on the business;
increasing labor costs and the shortage of qualified healthcare personnel;
and the Company’s ability to receive increases in reimbursement rates from
government payors to cover increased costs. More information on factors
that could affect the Company’s business and financial results are included
in Sun’s public filings made with the Securities and Exchange Commission,
including its Annual Report on Forms 10-K and Quarterly Reports on Form
10-Q, copies of which are available on Sun’s web site, www.sunh.com. There
may be additional risks of which the Company is presently unaware or that
it currently deems immaterial.

The forward-looking statements involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond the
Company’s control. Sun cautions investors that any forward-looking
statements made by Sun are not guarantees of future performance and are
only made as of the date of this release. Sun disclaims any obligation to
update any such factors or to announce publicly the results of any
revisions to any of the forward-looking statements to reflect future events
or developments.

Adjusted EBITDA, adjusted EBITDAR and free cash flow, as used in this press
release and in the accompanying tables, which are non-GAAP financial
measures, are each reconciled to their respective GAAP-recognized financial
measures in the accompanying tables. In addition, the normalizing
adjustments to adjusted EBITDAR and earnings per share as discussed in this
press release and shown, together with normalizing adjustments to other
financial measures, in the accompanying tables, are non-GAAP adjustments,
and are reconciled to GAAP financial measures in the accompanying tables.

Additional Information

In connection with the Separation, SHG Services, Inc. has filed with the
SEC a Registration Statement on Form S-1 and Sabra Health Care REIT, Inc.
has filed with the SEC a Registration Statement on Form S-4, each
containing an identical proxy statement/prospectus for the special meeting
of stockholders to be held on Nov. 4, 2010. The definitive proxy
statement/prospectus was mailed to Sun stockholders on or about Oct. 4,
2010. Before making any voting or investment decision, Sun stockholders and
investors are urged to read the proxy statement/prospectus and other
documents filed with the SEC carefully and in their entirety because they
contain important information about the proposed transactions.
Stockholders will be able to obtain these documents free of charge at the
SEC’s website at www.sec.gov. In addition, investors and stockholders of
Sun may obtain free copies of the documents filed with the SEC by
contacting Sun’s investor relations department at (505) 468-2341 (TDD
users, please call (505) 468-4458) or by sending a written request to
Investor Relations, Sun Healthcare Group, Inc. 101 Sun Avenue N.E.,
Albuquerque, N.M. 87109. Investors and stockholders may also obtain a copy
of these documents by requesting them in writing from Sun’s proxy
solicitation agent, Innisfree M&A, at 501 Madison Avenue, New York, NY
10022, or by telephone at (212) 750-5833.

Sun and its directors and executive officers and other members of its
management and employees may be deemed participants in the solicitation of
proxies from the stockholders of Sun in connection with the transactions
described in this release. Information about the directors and executive
officers of Sun and their ownership of shares of Sun common stock are set
forth in the Annual Report on Form 10-K for the year ended Dec. 31, 2009,
filed with the SEC on March 5, 2010, and in the definitive proxy
statement/prospectus for the special meeting of stockholders filed with the
SEC on Sept. 29, 2010. These documents may be obtained free of charge from
the sources indicated above. Additional information regarding the interests
of these participants is also included in the definitive proxy
statement/prospectus for the special meeting.

                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                       KEY INCOME STATEMENT FIGURES
                               CONSOLIDATED
                  (in thousands, except per share data)


                                           For the            For the
                                         Three Months       Three Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------

Revenue                                $        475,997   $        470,644

Depreciation and amortization                    12,733             11,457

Interest expense, net                            10,614             12,231

Pre-tax income                                   13,557             17,759

Income tax expense                                5,559              7,220

Income from continuing operations                 7,998             10,539

Loss from discontinued operations                  (442)              (881)
                                       ----------------   ----------------

Net income                             $          7,556   $          9,658
                                       ================   ================


Diluted earnings per share             $           0.13   $           0.22
                                       ================   ================


Adjusted EBITDAR                       $         55,858   $         60,509
Margin - Adjusted EBITDAR                          11.7%              12.9%

Adjusted EBITDAR normalized            $         60,605   $         60,509
Margin - Adjusted EBITDAR normalized               12.7%              12.9%


Adjusted EBITDA                        $         36,904   $         42,319
Margin - Adjusted EBITDA                            7.8%               9.0%

Adjusted EBITDA normalized             $         41,651   $         42,319
Margin - Adjusted EBITDA normalized                 8.8%               9.0%


Pre-tax income continuing operations -
 normalized                            $         18,304   $         18,631

Income tax expense - normalized        $          7,505   $          7,578

Income from continuing operations -
 normalized                            $         10,799   $         11,053

Diluted earnings per share from
 continuing operations - normalized    $           0.18   $           0.25

Net income - normalized                $         10,357   $         10,172

Diluted earnings per share -
 normalized                            $           0.17   $           0.23


See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
"Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."

See normalizing adjustments in the table "Normalizing Adjustments -
Quarter Comparison."





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                       KEY INCOME STATEMENT FIGURES
                               CONSOLIDATED
                  (in thousands, except per share data)


                                           For the            For the
                                         Nine Months        Nine Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------

Revenue                                $      1,423,443   $      1,406,949

Depreciation and amortization                    37,732             33,329

Interest expense, net                            34,366             37,422

Pre-tax income                                   49,205             56,066

Income tax expense                               19,990             22,795

Income from continuing operations                29,215             33,271

Loss from discontinued operations                (1,488)            (3,275)
                                       ----------------   ----------------

Net income                             $         27,727   $         29,996
                                       ================   ================


Diluted earnings per share             $           0.55   $           0.68
                                       ================   ================


Adjusted EBITDAR                       $        177,609   $        182,485
Margin - Adjusted EBITDAR                          12.5%              13.0%

Adjusted EBITDAR normalized            $        184,604   $        186,785
Margin - Adjusted EBITDAR normalized               13.0%              13.3%


Adjusted EBITDA                        $        121,303   $        127,730
Margin - Adjusted EBITDA                            8.5%               9.1%

Adjusted EBITDA normalized             $        128,298   $        132,030
Margin - Adjusted EBITDA normalized                 9.0%               9.4%


Pre-tax income continuing operations -
 normalized                            $         56,200   $         61,238

Income tax expense - normalized        $         22,858   $         24,916

Income from continuing operations -
 normalized                            $         33,342   $         36,322

Diluted earnings per share from
 continuing operations - normalized    $           0.66   $           0.83

Net income - normalized                $         31,854   $         33,395

Diluted earnings per share -
 normalized                            $           0.63   $           0.76


See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
"Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."

See normalizing adjustments in the table "Normalizing Adjustments -
Quarter Comparison."





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                        CONSOLIDATED BALANCE SHEETS
                    (in thousands, except share data)



                                         September 30,      December 31,
                                             2010               2009
                                       ----------------   ----------------
                                          (unaudited)        (unaudited)
                ASSETS

Current assets:
  Cash and cash equivalents            $        138,350   $        104,483
  Restricted cash                                21,961             24,034
  Accounts receivable, net                      216,391            220,319
  Prepaid expenses and other assets              15,093             21,757
  Deferred tax assets                            71,940             68,415
                                       ----------------   ----------------
    Total current assets                        463,735            439,008

Property and equipment, net                     622,355            622,682
Intangible assets, net                           51,428             53,931
Goodwill                                        338,364            338,296
Restricted cash, non-current                        350              3,317
Deferred tax assets                              89,818            108,999
Other assets                                      5,157              4,961
                                       ----------------   ---------------- 
    Total assets                       $      1,571,207   $      1,571,194
                                       ================   ================


 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                     $         47,799   $         57,109
  Accrued compensation and benefits              60,898             58,953
  Accrued self-insurance obligations,
   current                                       45,610             45,661
  Income taxes payable                            1,605                  -
  Other accrued liabilities                      58,234             55,265
  Current portion of long-term debt and
   capital lease obligations                     39,796             46,416
                                       ----------------   ----------------
  Total current liabilities                     253,942            263,404

Accrued self-insurance obligations,
 net of current portion                         127,040            121,948
Long-term debt and capital lease
 obligations, net of current portion            410,145            654,132
Unfavorable lease obligations, net               10,518             12,663
Other long-term liabilities                      60,016             69,983
                                       ----------------   ----------------
  Total liabilities                             861,661          1,122,130


Stockholders' equity:
  Preferred stock of $.01 par value,
   authorized 10,000,000 shares, no
   shares were issued and outstanding
   as of September 30, 2010 and
   December 31, 2009                                  -                  -
  Common stock of $.01 par value,
   authorized 125,000,000 shares,
   74,788,448 and 43,764,240 shares
   issued and outstanding as of
   September 30, 2010 and
   December 31, 2009, respectively                  748                438
  Additional paid-in capital                    885,083            655,667
  Accumulated deficit                          (176,285)          (204,012)
  Accumulated other comprehensive loss,
   net                                                -             (3,029)
                                       ----------------   ----------------
                                                709,546            449,064
                                       ----------------   ----------------
    Total liabilities and
     stockholders' equity              $      1,571,207   $      1,571,194
                                       ================   ================





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                      CONSOLIDATED INCOME STATEMENTS
                  (in thousands, except per share data)


                                           For the            For the
                                         Three Months       Three Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------
                                         (unaudited)        (unaudited)

Total net revenues                     $        475,997   $        470,644
                                       ----------------   ----------------
Costs and expenses:
  Operating salaries and benefits               270,052            265,597
  Self-insurance for workers'
   compensation and general and
   professional liability insurance              14,621             14,162
  Operating administrative costs                 13,343             12,462
  Other operating costs                          98,089             97,015
  Center rent expense                            18,954             18,190
  General and administrative expenses            14,146             15,586
  Depreciation and amortization                  12,733             11,457
  Provision for losses on accounts
   receivable                                     5,141              5,313
  Interest, net of interest income of
   $59 and $106, respectively                    10,614             12,231
  Transaction costs                               4,747                  -
  Restructuring costs                                 -                872
                                       ----------------   ----------------
Total costs and expenses                        462,440            452,885
                                       ----------------   ----------------

Income before income taxes and
 discontinued operations                         13,557             17,759
Income tax expense                                5,559              7,220
                                       ----------------   ----------------
Income from continuing operations                 7,998             10,539
                                       ----------------   ----------------

Discontinued operations:
  Loss from discontinued operations,
   net of related taxes                            (442)              (862)
  Loss on disposal of discontinued
   operations, net of related taxes                   -                (19)
                                       ----------------   ----------------
Loss from discontinued operations, net             (442)              (881)
                                       ----------------   ----------------

Net income                             $          7,556   $          9,658
                                       ================   ================


Basic income per common and common
 equivalent share:
  Income from continuing operations    $           0.13   $           0.24
  Loss from discontinued operations,
   net                                                -              (0.02)
                                       ----------------   ----------------
Net income                             $           0.13   $           0.22
                                       ================   ================

Diluted income per common and common
 equivalent share:
  Income from continuing operations    $           0.13   $           0.24
  Loss from discontinued operations,
   net                                                -              (0.02)
                                       ----------------   ----------------
Net income                             $           0.13   $           0.22
                                       ================   ================

Weighted average number of common and
 common equivalent shares outstanding:
  Basic                                          59,516             43,923
  Diluted                                        59,538             44,015





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                      CONSOLIDATED INCOME STATEMENTS
                  (in thousands, except per share data)


                                           For the            For the
                                         Nine Months        Nine Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------
                                          (unaudited)       (unaudited)

Total net revenues                     $      1,423,443   $      1,406,949
                                       ----------------   ----------------
Costs and expenses:
  Operating salaries and benefits               804,302            789,744
  Self-insurance for workers'
   compensation and general and
   professional liability insurance              43,702             45,617
  Operating administrative costs                 38,932             38,231
  Other operating costs                         291,348            287,233
  Center rent expense                            56,306             54,755
  General and administrative expenses            44,570             48,057
  Depreciation and amortization                  37,732             33,329
  Provision for losses on accounts
   receivable                                    15,985             15,582
  Interest, net of interest income of
   $222 and $310, respectively                   34,366             37,422
  Transaction costs                               6,995                  -
  Loss on sale of assets, net                         -                 41
  Restructuring costs                                 -                872
                                       ----------------   ----------------
Total costs and expenses                      1,374,238          1,350,883
                                       ----------------   ----------------

Income before income taxes and
 discontinued operations                         49,205             56,066
Income tax expense                               19,990             22,795
                                       ----------------   ----------------
Income from continuing operations                29,215             33,271
                                       ----------------   ----------------

Discontinued operations:
  Loss from discontinued operations,
   net of related taxes                          (1,488)            (2,941)
  Loss on disposal of discontinued
   operations, net of related taxes                   -               (334)
                                       ----------------   ----------------
Loss from discontinued operations, net           (1,488)            (3,275)
                                       ----------------   ----------------

Net income                             $         27,727   $         29,996
                                       ================   ================


Basic income per common and common
 equivalent share:
  Income from continuing operations    $           0.58   $           0.76
  Loss from discontinued operations,
   net                                            (0.03)             (0.08)
                                       ----------------   ----------------
Net income                             $           0.55   $           0.68
                                       ================   ================

Diluted income per common and common
 equivalent share:
  Income from continuing operations    $           0.58   $           0.76
  Loss from discontinued operations,
   net                                            (0.03)             (0.08)
                                       ----------------   ----------------
Net Income                             $           0.55   $           0.68
                                       ================   ================

Weighted average number of common and
 common equivalent shares outstanding:
  Basic                                          50,184             43,807
  Diluted                                        50,251             43,926





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)


                                           For the            For the
                                         Three Months       Three Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------
                                         (unaudited)        (unaudited)

Cash flows from operating activities:
  Net income                           $          7,556   $          9,658
  Adjustments to reconcile net income
   to net cash provided by operating
   activities, including discontinued
   operations:
     Depreciation and amortization               12,736             11,460
     Amortization of favorable and
      unfavorable lease intangibles                (504)              (474)
     Provision for losses on accounts
      receivable                                  5,289              5,318
     Loss on sale of assets, including
      discontinued operations, net                    -                 31
     Stock-based compensation expense             1,661              1,476
     Deferred taxes                               3,286              5,500
  Changes in operating assets and
   liabilities, net of acquisitions:
     Accounts receivable                         (1,307)             1,079
     Restricted cash                              2,769               (710)
     Prepaid expenses and other assets            5,399                382
     Accounts payable                            (4,909)            (6,762)
     Accrued compensation and benefits           (2,117)             4,561
     Accrued self-insurance obligations             199                  4
     Income taxes payable                         1,267                  -
     Other accrued liabilities                    4,429              9,355
     Other long-term liabilities                   (676)            (1,004)
                                       ----------------   ----------------
       Net cash provided by operating
        activities                               35,078             39,874
                                       ----------------   ----------------

Cash flows from investing activities:
  Capital expenditures                          (13,774)           (16,456)
                                       ----------------   ----------------
     Net cash used for investing
      activities                                (13,774)           (16,456)
                                       ----------------   ----------------

Cash flows from financing activities:
  Borrowings of long-term debt                   20,500             20,822
  Principal repayments of long-term
   debt and capital lease obligations          (234,116)           (22,562)
  Proceeds from issuance of common
   stock                                        226,001                 55
  Deferred financing costs                       (2,312)                 -
                                       ----------------   ----------------
     Net cash used for financing
      activities                                 10,073             (1,685)
                                       ----------------   ----------------

Net (decrease) increase in cash and
 cash equivalents                                31,377             21,733
Cash and cash equivalents at beginning
 of period                                      106,973             95,672
                                       ----------------   ----------------
Cash and cash equivalents at end of
 period                                $        138,350   $        117,405
                                       ================   ================

Reconciliation of net cash provided by
 operating activities to free cash
 flow:

  Net cash provided by operating
   activities                          $         35,078   $         39,874
  Capital expenditures                          (13,774)           (16,456)
                                       ----------------   ----------------
    Free cash flow                     $         21,304   $         23,418
                                       ================   ================

Free cash flow is defined as net cash flow provided by operating activities
less cash used for capital expenditures.  Free cash flow is used by
management to evaluate discretionary cash flow potentially available for
debt service and other financing activities.





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)


                                           For the            For the
                                         Nine Months        Nine Months
                                             Ended              Ended
                                         September 30,      September 30,
                                             2010               2009
                                       ----------------   ----------------
                                         (unaudited)        (unaudited)

Cash flows from operating activities:
  Net income                           $         27,727   $         29,996
  Adjustments to reconcile net income
   to net cash provided by operating
   activities, including discontinued
   operations:
     Depreciation and amortization               37,744             33,336
     Amortization of favorable and
      unfavorable lease intangibles              (1,452)            (1,350)
     Provision for losses on accounts
      receivable                                 16,428             15,599
     Loss on sale of assets, including
      discontinued operations, net                    -                607
     Stock-based compensation expense             4,748              4,385
     Deferred taxes                              14,976             18,019
  Changes in operating assets and
   liabilities, net of acquisitions:
     Accounts receivable                        (12,500)           (20,588)
     Restricted cash                              5,040              8,811
     Prepaid expenses and other assets            8,012                144
     Accounts payable                            (3,628)           (11,825)
     Accrued compensation and benefits            1,945              4,927
     Accrued self-insurance obligations           5,041              1,255
     Income taxes payable                         1,605                  -
     Other accrued liabilities                    4,442              8,530
     Other long-term liabilities                 (5,775)               177
                                       ----------------   ----------------
       Net cash provided by operating
        activities                              104,353             92,023
                                       ----------------   ----------------

Cash flows from investing activities:
  Capital expenditures                          (41,488)           (41,458)
  Purchase of leased real estate                      -             (3,275)
  Proceeds from sale of assets held for
   sale                                               -              2,174
                                       ----------------   ----------------
     Net cash used for investing
      activities                                (41,488)           (42,559)
                                       ----------------   ----------------

Cash flows from financing activities:
  Borrowings of long-term debt                   20,500             20,822
  Principal repayments of long-term
   debt and capital lease obligations          (271,093)           (44,249)
  Payment to non-controlling interest            (2,025)              (311)
  Distribution to non-controlling
   interest                                         (69)              (549)
  Proceeds from issuance of common
   stock                                        226,001                 75
  Deferred financing costs                       (2,312)                 -
                                       ----------------   ----------------
     Net cash used for financing
      activities                                (28,998)           (24,212)
                                       ----------------   ----------------

Net increase in cash and cash
 equivalents                                     33,867             25,252
Cash and cash equivalents at beginning
 of period                                      104,483             92,153
                                       ----------------   ----------------
Cash and cash equivalents at end of
 period                                $        138,350   $        117,405
                                       ================   ================

Reconciliation of net cash provided by
 operating activities to free cash
 flow:

  Net cash provided by operating
   activities                          $        104,353   $         92,023
  Capital expenditures                          (41,488)           (41,458)
                                       ----------------   ----------------
    Free cash flow                     $         62,865   $         50,565
                                       ================   ================

Free cash flow is defined as net cash flow provided by operating activities
less cash used for capital expenditures.  Free cash flow is used by
management to evaluate discretionary cash flow potentially available for
debt service and other financing activities.





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

            RECONCILIATION OF NET INCOME TO EBITDA and EBITDAR
                              (in thousands)


                                           For the           For the
                                         Three Months      Three Months
                                             Ended            Ended
                                         September 30,    September 30,
                                             2010              2009
                                       ----------------   ----------------
                                          (unaudited)        (unaudited)

  Total net revenues                   $        475,997   $        470,644
                                       ----------------   ----------------

  Net income                           $          7,556   $          9,658
                                       ----------------   ----------------


    Income from continuing operations             7,998             10,539

    Income tax expense                            5,559              7,220

    Interest, net                                10,614             12,231

    Depreciation and amortization                12,733             11,457
                                       ----------------   ----------------

  EBITDA                               $         36,904   $         41,447

    Restructuring costs                               -                872
                                       ----------------   ----------------

  Adjusted EBITDA                      $         36,904   $         42,319


    Center rent expense                          18,954             18,190
                                       ----------------   ----------------

  Adjusted EBITDAR                     $         55,858   $         60,509
                                       ================   ================

EBITDA is defined as earnings before loss on discontinued operations,
income taxes, interest, net, depreciation and amortization.  Adjusted
EBITDA is defined as EBITDA before restructuring costs and loss on sale of
assets, net.  Adjusted EBITDAR is defined as Adjusted EBITDA before center
rent expense.  Adjusted EBITDA and Adjusted EBITDAR are used by management
to evaluate financial performance and resource allocation for each entity
within the operating units and for the Company as a whole.  Adjusted EBITDA
and Adjusted EBITDAR are commonly used as analytical indicators within the 
healthcare industry and also serve as measures of leverage capacity and
debt service ability.  Adjusted EBITDA and Adjusted EBITDAR should not be
considered as measures of financial performance under generally accepted
accounting principles.  As the items excluded from Adjusted EBITDA and
Adjusted EBITDAR are significant components in understanding and assessing
finance performance, Adjusted EBITDA and Adjusted EBITDAR should not be
considered in isolation or as alternatives to net income, cash flows
generated by or used in operating, investing or financing activities or
other financial statement data presented in the consolidated financial
statements as indicators of financial performance or liquidity.  Because
Adjusted EBITDA and Adjusted EBTIDAR are not measurements determined in
accordance with U.S. generally accepted accounting principles and are thus
susceptible to varying calculations.  Adjusted EBITDA and Adjusted EBITDAR
as presented may not be comparable to other similarly titled measures of
other companies.





                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

   RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA and ADJUSTED EBITDAR
                              (in thousands)


                                           For the            For the
                                         Nine Months        Nine Months
                                             Ended             Ended
                                         September 30,     September 30,
                                             2010               2009
                                       ----------------   ----------------
                                          (unaudited)        (unaudited)

  Total net revenues                   $      1,423,443   $      1,406,949
                                       ----------------   ----------------

  Net income                           $         27,727   $         29,996
                                       ----------------   ----------------


    Income from continuing operations            29,215             33,271

    Income tax expense                           19,990             22,795

    Interest, net                                34,366             37,422

    Depreciation and amortization                37,732             33,329
                                       ----------------   ----------------

  EBITDA                               $        121,303   $        126,817

    Loss on sale of assets, net                       -                 41

    Restructuring costs                               -                872
                                       ----------------   ----------------

  Adjusted EBITDA                      $        121,303   $        127,730


    Center rent expense                          56,306             54,755
                                       ----------------   ----------------

  Adjusted EBITDAR                     $        177,609   $        182,485
                                       ================   ================

EBITDA is defined as earnings before loss on discontinued operations,
income taxes, interest, net, depreciation and amortization.  Adjusted
EBITDA is defined as EBITDA before restructuring costs and loss on sale of
assets, net.  Adjusted EBITDAR is defined as Adjusted EBITDA before center
rent expense.  Adjusted EBITDA and Adjusted EBITDAR are used by management
to evaluate financial performance and resource allocation for each entity
within the operating units and for the Company as a whole.  Adjusted EBITDA
and Adjusted EBITDAR are commonly used as analytical indicators within the
healthcare industry and also serve as measures of leverage capacity and
debt service ability.  Adjusted EBITDA and Adjusted EBITDAR should not be
considered as measures of financial performance under generally accepted
accounting principles.  As the items excluded from Adjusted EBITDA and
Adjusted EBITDAR are significant components in understanding and assessing
finance performance, Adjusted EBITDA and Adjusted EBITDAR should not be
considered in isolation or as alternatives to net income, cash flows
generated by or used in operating, investing or financing activities or
other financial statement data presented in the consolidated financial
statements as indicators of financial performance or liquidity.  Because
Adjusted EBITDA and Adjusted EBTIDAR are not measurements determined in
accordance with U.S. generally accepted accounting principles and are thus
susceptible to varying calculations.  Adjusted EBITDA and Adjusted EBITDAR
as presented may not be comparable to other similarly titled measures of
other companies.








                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

  RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED
                        EBITDA and ADJUSTED EBITDAR
                             ($ in thousands)

              For the Three Months Ended September 30, 2010
                                (unaudited)



                          Rehabil-                    Elimination
                          itation   Medical                of
               Inpatient  Therapy   Staffing  Other &  Affiliated  Consoli-
                Services  Services  Services  Corp Seg  Revenue     dated
                --------  --------  --------  --------  --------  --------
Nonaffiliated
 revenue        $424,160  $ 30,342  $ 21,481  $     14  $      -  $475,997
Affiliated
 revenue               -    21,397       724         -   (22,121)        -
                --------  --------  --------  --------  --------  --------
  Total revenue $424,160  $ 51,739  $ 22,205  $     14  $(22,121) $475,997
                --------  --------  --------  --------  --------  --------

Income (loss)
 from
 continuing
 operations     $ 36,134  $  3,961  $  1,195  $(33,292) $      -  $  7,998
Income tax
 expense               -         -         -     5,559         -     5,559
Interest, net      2,570         -         -     8,044         -    10,614
Depreciation
 and
 amortization     11,630       173       181       749         -    12,733
                --------  --------  --------  --------  --------  --------

  EBITDA        $ 50,334  $  4,134  $  1,376  $(18,940) $      -  $ 36,904

Restructuring
 costs                 -         -         -         -         -         -
                --------  --------  --------  --------  --------  --------

  Adjusted
   EBITDA       $ 50,334  $  4,134  $  1,376  $(18,940) $      -  $ 36,904

Center rent
 expense          18,629       123       202         -         -    18,954
                --------  --------  --------  --------  --------  --------

  Adjusted
   EBITDAR      $ 68,963  $  4,257  $  1,578  $(18,940) $      -  $ 55,858
                ========  ========  ========  ========  ========  ========

  Normalized
   Adjusted
   EBITDA       $ 50,334  $  4,134  $  1,376  $(14,193) $      -  $ 41,651
  Normalized
   Adjusted
   EBITDAR      $ 68,963  $  4,257  $  1,578  $(14,193) $      -  $ 60,605


Adjusted EBITDA
         margin     11.9%      8.0%      6.2%                          7.8%
       Adjusted
 EBITDAR margin     16.3%      8.2%      7.1%                         11.7%
     Normalized
       Adjusted
  EBITDA margin     11.9%      8.0%      6.2%                          8.8%
     Normalized
       Adjusted
 EBITDAR margin     16.3%      8.2%      7.1%                         12.7%

   See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
   "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
   See normalizing adjustments in the table "Normalizing Adjustments -
   Quarter Comparison."









                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

  RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED
                        EBITDA and ADJUSTED EBITDAR
                             ($ in thousands)

               For the Nine Months Ended September 30, 2010
                                (unaudited)



                       Rehabil-                     Elimination
                       itation   Medical                 of
           Inpatient   Therapy   Staffing   Other &  Affiliated
            Services   Services  Services  Corp Seg   Revenue  Consolidated
           ----------  --------  --------  ---------  --------  ----------
Nonaffiliated
 revenue   $1,265,980  $ 89,723  $ 67,712  $      28  $      -  $1,423,443
Affiliated
 revenue            -    63,584     1,364          -   (64,948)          -
           ----------  --------  --------  ---------  --------  ----------
  Total
   revenue $1,265,980  $153,307  $ 69,076  $      28  $(64,948) $1,423,443
           ----------  --------  --------  ---------  --------  ----------

Income
 (loss)
 from
 continuing
 opera-
 tions     $  113,355  $ 11,757  $  4,479  $(100,376) $      -  $   29,215
Income tax
 expense            -         -         -     19,990         -      19,990
Interest,
 net            8,087         -        (1)    26,280         -      34,366
Depreciation
 and
 amortization  34,320       484       543      2,385         -      37,732
           ----------  --------  --------  ---------  --------  ----------

  EBITDA   $  155,762  $ 12,241  $  5,021  $ (51,721) $      -  $  121,303

Loss on
 sale of
 assets,
 net                -         -         -          -         -           -
Restructuring
 costs              -         -         -          -         -           -
           ----------  --------  --------  ---------  --------  ----------

  Adjusted
   EBITDA  $  155,762  $ 12,241  $  5,021  $ (51,721) $      -  $  121,303

Center
 rent
 expense       55,326       364       616          -         -      56,306
           ----------  --------  --------  ---------  --------  ----------

  Adjusted
   EBITDAR $  211,088  $ 12,605  $  5,637  $ (51,721) $      -  $  177,609
           ==========  ========  ========  =========  ========  ==========

  Normalized
   Adjusted
   EBITDA  $  155,762  $ 12,241  $  5,021  $ (44,726) $      -  $  128,298
  Normalized
   Adjusted
   EBITDAR $  211,088  $ 12,605  $  5,637  $ (44,726) $      -  $  184,604


  Adjusted
    EBITDA
    margin       12.3%      8.0%      7.3%                             8.5%
  Adjusted
   EBITDAR
    margin       16.7%      8.2%      8.2%                            12.5%
Normalized
  Adjusted
    EBITDA
    margin       12.3%      8.0%      7.3%                             9.0%
Normalized
  Adjusted
   EBITDAR
    margin       16.7%      8.2%      8.2%                            13.0%

   See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
   "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
   See normalizing adjustments in the table "Normalizing Adjustments -
   Quarter Comparison."










                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

  RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED
                        EBITDA and ADJUSTED EBITDAR
                             ($ in thousands)

              For the Three Months Ended September 30, 2009
                                (unaudited)


                          Rehabil-                    Elimination
                          itation   Medical                of
               Inpatient  Therapy   Staffing  Other &  Affiliated  Consoli-
                Services  Services  Services  Corp Seg  Revenue     dated
                --------  --------  --------  --------  --------  --------
Nonaffiliated
 revenue        $420,374  $ 26,394  $ 23,864  $     12  $      -  $470,644
Affiliated
 revenue               -    18,592       545         -   (19,137)        -
                --------  --------  --------  --------  --------  --------
  Total revenue $420,374  $ 44,986  $ 24,409  $     12  $(19,137) $470,644
                --------  --------  --------  --------  --------  --------

Income (loss)
 from
 continuing
 operations     $ 39,481  $  2,606  $  2,091  $(33,639) $      -  $ 10,539
Income tax
 expense               -         -         -     7,220         -     7,220
Interest, net      3,024         -        (1)    9,208         -    12,231
Depreciation
 and
 amortization     10,480       140       179       658         -    11,457
                --------  --------  --------  --------  --------  --------

  EBITDA        $ 52,985  $  2,746  $  2,269  $(16,553) $      -  $ 41,447

Restructuring
 costs                 -         -         -       872         -       872
                --------  --------  --------  --------  --------  --------

  Adjusted
   EBITDA       $ 52,985  $  2,746  $  2,269  $(15,681) $      -  $ 42,319
Center rent
 expense          17,848       119       223         -         -    18,190
                --------  --------  --------  --------  --------  --------

  Adjusted
   EBITDAR      $ 70,833  $  2,865  $  2,492  $(15,681) $      -  $ 60,509
                ========  ========  ========  ========  ========  ========

  Normalized
   Adjusted
   EBITDA       $ 52,985  $  2,746  $  2,269  $(15,681) $      -  $ 42,319
  Normalized
   Adjusted
   EBITDAR      $ 70,833  $  2,865  $  2,492  $(15,681) $      -  $ 60,509


Adjusted EBITDA
         margin     12.6%      6.1%      9.3%                          9.0%
       Adjusted
 EBITDAR margin     16.8%      6.4%     10.2%                         12.9%
     Normalized
       Adjusted
  EBITDA margin     12.6%      6.1%      9.3%                          9.0%
     Normalized
       Adjusted
 EBITDAR margin     16.8%      6.4%     10.2%                         12.9%

   See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
   "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
   See normalizing adjustments in the table "Normalizing Adjustments -
   Quarter Comparison."







                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

  RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED
                        EBITDA and ADJUSTED EBITDAR
                             ($ in thousands)

               For the Nine Months Ended September 30, 2009
                                (unaudited)


                       Rehabil-                       Elimina-
                       itation   Medical              tion of
           Inpatient   Therapy   Staffing   Other &   Affiliated
            Services   Services  Services  Corp Seg    Revenue
Consolidated
           ----------  --------  --------  ---------  --------  ----------
Nonaffiliated
 revenue   $1,251,524  $ 78,063  $ 77,335  $      27  $      -  $1,406,949
Affiliated
 revenue            -    55,168     1,668          -   (56,836)          -
           ----------  --------  --------  ---------  --------  ----------
  Total
   revenue $1,251,524  $133,231  $ 79,003  $      27  $(56,836) $1,406,949
           ----------  --------  --------  ---------  --------  ----------

Income
 (loss)
 from
 continuing
 opera-
 tions     $  120,395  $  8,572  $  6,401  $(102,097) $      -  $   33,271
Income tax
 expense            -         -         -     22,795         -      22,795
Interest,
 net            9,345        (2)       (1)    28,080         -      37,422
Depreciation
 and
 amortization  30,323       399       601      2,006         -      33,329
           ----------  --------  --------  ---------  --------  ----------

  EBITDA   $  160,063  $  8,969  $  7,001  $ (49,216) $      -  $  126,817

Loss on sale
 of assets,
 net                7        34         -          -         -          41
Restructuring
 costs              -         -         -        872         -         872
           ----------  --------  --------  ---------  --------  ----------

  Adjusted
   EBITDA  $  160,070  $  9,003  $  7,001  $ (48,344) $      -  $  127,730
Center
 rent
 expense       53,707       348       700          -         -      54,755
           ----------  --------  --------  ---------  --------  ----------

  Adjusted
   EBITDAR $  213,777  $  9,351  $  7,701  $ (48,344) $      -  $  182,485
           ==========  ========  ========  =========  ========  ==========

  Normalized
   Adjusted
   EBITDA  $  164,370  $  9,003  $  7,001  $ (48,344) $      -  $  132,030
  Normalized
   Adjusted
   EBITDAR $  218,077  $  9,351  $  7,701  $ (48,344) $      -  $  186,785


  Adjusted
    EBITDA
    margin       12.8%      6.8%      8.9%                             9.1%
  Adjusted
   EBITDAR
    margin       17.1%      7.0%      9.7%                            13.0%
Normalized
  Adjusted
    EBITDA
    margin       13.1%      6.8%      8.9%                             9.4%
Normalized
  Adjusted
   EBITDAR
    margin       17.4%      7.0%      9.7%                            13.3%

   See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
   "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
   See normalizing adjustments in the table "Normalizing Adjustments -
   Quarter Comparison."






                Sun Healthcare Group, Inc. and Subsidiaries
                      Selected Operating Statistics
                          Continuing Operations


                    For the                         For the
              Three Months Ended               Nine Months Ended
                 September 30,                   September 30,
            -----------------------       ---------------------------
              2010           2009            2010             2009
Consolidated
 Company
            --------       --------       ----------       ----------
Revenues -
 Non-
 affiliated
 (in
 thousands)
  Skilled
   Nursing
   and
   similar
   facilit-
   ies      $412,295       $412,550        1,230,684        1,230,551
  Hospice     11,277          7,242           33,633           19,249
  Other -
   Inpatient
   Services      588            582            1,663            1,724
            --------       --------       ----------       ----------
   Inpatient
    Services 424,160        420,374        1,265,980        1,251,524
  Rehabili-
   tation
   Therapy
   Services   30,342         26,394           89,723           78,063
  Medical
   Staffing
   Services   21,481         23,864           67,712           77,335
  Other -
   non-core
   businesses     14             12               28               27
            --------       --------       ----------       ----------
    Total   $475,997       $470,644       $1,423,443       $1,406,949
            ========       ========       ==========       ==========


Revenue Mix
 -
 Non-
 affiliated
 (in
 thousands)
  Medicare  $138,125   29% $137,857   29%    421,398   30%    417,059   30%
  Medicaid   194,936   41%  189,878   40%    574,856   40%    559,358   40%
  Private
   and
   Other     113,610   24%  114,143   25%    339,492   24%    341,424   24%
  Managed
   Care /
   Insurance  24,178    5%   24,393    5%     72,636    5%     76,591    5%
  Veterans     5,148    1%    4,373    1%     15,061    1%     12,517    1%
            --------  ---  --------  ---  ----------  ---  ----------  ---
    Total   $475,997  100% $470,644  100% $1,423,443  100% $1,406,949  100%
            ========  ===  ========  ===  ==========  ===  ==========  ===


Inpatient
 Services
 Stats
 Number of
  centers:       202            202              202              202
 Number of
  available
  beds:       22,407         22,331           22,407           22,331
 Occupancy
  %:            86.9%          88.1%            87.1%            88.3%


 Payor Mix
  % based
  on
  patient
  days:
   Medicare
    - SNF
    Beds        14.7%          15.3%            15.2%            15.8%
   Managed
    care /
    Ins. -
    SNF
    Beds         3.9%           3.9%             4.0%             4.1%
            --------       --------       ----------       ----------
     Total
      SNF
      skilled
      mix       18.6%          19.2%            19.2%            19.9%
            --------       --------       ----------       ----------
  Medicare      13.4%          14.0%            13.9%            14.4%
  Medicaid      62.5%          60.6%            62.2%            60.4%
  Private
   and
   Other        19.4%          20.8%            19.1%            20.4%
  Managed
   Care /
   Insurance     3.5%           3.6%             3.6%             3.8%
  Veterans       1.2%           1.0%             1.2%             1.0%

 Revenue
  Mix % of
  revenues:
   Medicare
    - SNF
    Beds        31.1%          32.2%            31.9%            32.9%
   Managed
    care /
    Ins. -
    SNF
    Beds         6.0%           6.1%             6.0%             6.4%
            --------       --------       ----------       ----------
     Total
      SNF
      skilled
      mix       37.1%          38.3%            37.9%            39.3%
            --------       --------       ----------       ----------
  Medicare      31.4%          31.9%            32.2%            32.4%
  Medicaid      46.0%          45.2%            45.4%            44.7%
  Private
   and
   Other        15.8%          16.1%            15.5%            15.8%
  Managed
   Care /
   Insurance     5.6%           5.8%             5.7%             6.1%
  Veterans       1.2%           1.0%             1.2%             1.0%


 Revenues
  PPD:
  LTC only
   Medicare
   (Part A) $ 463.36       $ 457.79       $   464.46       $   454.15
  Medicare
   Blended
   Rate
   (Part A
   & B)     $ 505.73       $ 496.11       $   504.05       $   491.94
  Medicaid  $ 173.49       $ 172.06       $   173.29       $   170.86
  Private
   and
   Other    $ 182.95       $ 175.29       $   184.95       $   175.82
  Managed
   Care /
   Insurance$ 375.76       $ 371.09       $   369.09       $   373.86
  Veterans  $ 238.74       $ 234.74       $   241.44       $   229.95

Rehab
 contracts
Affiliated       132            121              132              121
Non-affiliated   344            328              344              328

Average
 Qtrly
 Revenue
 per
 Contract
 (in thou-
 sands)     $    109       $    100       $      107       $       99






                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

               NORMALIZING ADJUSTMENTS - QUARTER COMPARISON
                  (in thousands, except per share data)

                             AS REPORTED - 3rd QUARTER 2010
             -------------------------------------------------------------
                                                  Income
                                                   from
                     Adjusted  Adjusted         Continuing  Disc     Net
             Revenue  EBITDAR   EBITDA  Pre-tax Operations   Ops    Income
             -------- -------  -------  -------  -------  -------  -------

As Reported
 3rd QUARTER
 2010        $475,997 $55,858  $36,904  $13,557  $ 7,998  $  (442) $ 7,556
  Percent of
     Revenue             11.7%     7.8%     2.8%     1.7%    -0.1%     1.6%
Normalizing
 Adjustments:

 REIT
  separation
  transaction
  costs             -   4,747    4,747    4,747    2,801        -    2,801
             -------- -------  -------  -------  -------  -------  -------

Normalized
 As Reported
 - 3rd
 QUARTER
 2010        $475,997 $60,605  $41,651  $18,304  $10,799  $  (442) $10,357
             ======== =======  =======  =======  =======  =======  =======
  Percent of
     Revenue             12.7%     8.8%     3.8%     2.3%    -0.1%     2.2%

Diluted EPS:
 As Reported                                     $  0.13  $     -  $  0.13
 As Normalized                                   $  0.18  $ (0.01) $  0.17



Weighted average
 number of common
 and common
 equivalent
 shares
 outstanding
 on a diluted                                                      Diluted
 basis:                                                             Shares
                                                                   -------

 As Reported
  / As
  Normalized
  diluted
  shares                                                            59,538
 Stock
  offering
  impact on
  diluted
  shares                                                           (15,412)
                                                                   -------

 As Adjusted
  diluted
  shares                                                            44,126
                                                                   =======






                             AS REPORTED - 3rd QUARTER 2009
             -------------------------------------------------------------
                                                  Income
                                                   from
                     Adjusted  Adjusted         Continuing  Disc     Net
             Revenue  EBITDAR   EBITDA  Pre-tax Operations   Ops    Income
             -------- -------  -------  -------  -------  -------  -------

As Reported
 - 3rd
 QUARTER
 2009        $470,644 $60,509  $42,319  $17,759  $10,539  $  (881) $ 9,658
Percent of
 Revenue                 12.9%     9.0%     3.8%     2.2%    -0.2%     2.1%
Normalizing
 Adjustments:

 Restructuring
  costs             -       -        -      872      514        -      514
             -------- -------  -------  -------  -------  -------  -------

Normalized
 As Reported
 - 3rd
 QUARTER
 2009        $470,644 $60,509  $42,319  $18,631  $11,053  $  (881) $10,172
             ======== =======  =======  =======  =======  =======  =======
  Percent of
     Revenue             12.9%     9.0%     4.0%     2.3%    -0.2%     2.2%

Diluted EPS:
 As Reported                                     $  0.24  $ (0.02) $  0.22
 As Normalized                                   $  0.25  $ (0.02) $  0.23





See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
"Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."

Normalizing adjustments are transactions or adjustments not related to
ongoing operations and consist of REIT separation transaction costs and
restructuring costs.

Normalizing adjustments do not include any adjustment for the August 2010
equity offering or the use of proceeds to pay down debt, avoiding interest
expense.

Since normalizing adjustments are not measurements determined in
accordance with U.S. generally accepted accounting principles and are thus
susceptible to varying calculations and interpretations, the information
presented herein may not be comparable to other similarly described
information of other companies.









                SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES

            NORMALIZING ADJUSTMENTS - YEAR TO DATE COMPARISON
                  (in thousands, except per share data)

                             AS REPORTED -NINE MONTHS 2010
             -------------------------------------------------------------
                                                    Income
                                                     from
                                                  Continuing
                        Adjusted  Adjusted   Pre-   Opera-   Disc     Net
              Revenue   EBITDAR    EBITDA     tax   tions     Ops   Income
             ---------- --------  --------  ------  ------  ------  ------

As Reported
 - Nine
 Months 2010 $1,423,443 $177,609  $121,303 $49,205 $29,215 $(1,488)$27,727
  Percent of
     Revenue                12.5%      8.5%    3.5%    2.1%   -0.1%    1.9%

Normalizing
 Adjustments:

 REIT
  separation
  transaction
  costs               -    6,995     6,995   6,995   4,127       -   4,127
             ---------- --------  --------  ------  ------  ------  ------

Normalized
 As Reported
 - Nine
 Months 2010 $1,423,443 $184,604  $128,298 $56,200 $33,342 $(1,488)$31,854
             ========== ========  ========  ======  ======  ======  ======
  Percent of
     Revenue                13.0%      9.0%    3.9%    2.3%   -0.1%    2.2%

Diluted EPS:
 As Reported                                        $ 0.58  $(0.03) $ 0.55
 As
  Normalized                                        $ 0.66  $(0.03) $ 0.63




Weighted average
 number of common and
 common equivalent
 shares
 outstanding
 on a diluted                                                      Diluted
 basis:                                                             Shares
                                                                    ------

 As Reported
  / As
  Normalized
  diluted
  shares                                                            50,251
 Stock
  offering
  impact on
  diluted
  shares                                                            (5,879)
                                                                    ------

 As Adjusted
  diluted
  shares                                                            44,372
                                                                    ======





                             AS REPORTED - NINE MONTHS 2009
             -------------------------------------------------------------
                                                    Income
                                                     from
                                                  Continuing
                        Adjusted  Adjusted   Pre-   Opera-   Disc     Net
              Revenue   EBITDAR    EBITDA     tax   tions     Ops   Income
             ---------- --------  --------  ------  ------  ------  ------

As Reported
 - Nine
 Months 2009 $1,406,949 $182,485  $127,730 $56,066 $33,271 $(3,275)$29,996
  Percent of
     Revenue                13.0%      9.1%    4.0%    2.4%   -0.2%    2.1%

Normalizing
 Adjustments:

 Restructuring
  costs               -        -         -     872     514       -     514
 Prior
  periods'
  self-
  insurance
  costs               -    4,300     4,300   4,300   2,537     348   2,885
             ---------- --------  --------  ------  ------  ------  ------

Normalized
 As Reported
 - Nine
 Months 2009 $1,406,949 $186,785  $132,030 $61,238 $36,322 $(2,927)$33,395
             ========== ========  ========  ======  ======  ======  ======
  Percent of
     Revenue                13.3%      9.4%    4.4%    2.6%   -0.2%    2.4%

Diluted EPS:
 As Reported                                        $ 0.76  $(0.08) $ 0.68
 As Normalized                                      $ 0.83  $(0.07) $ 0.76



See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table
"Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."

Normalizing adjustments are transactions or adjustments not related to
ongoing operations and consist of REIT separation transaction costs,
restructuring costs and prior periods' self-insurance costs.

Normalizing adjustments do not include any adjustment for the August 2010
equity offering or the use of proceeds to pay down debt, avoiding interest
expense.

Since normalizing adjustments are not measurements determined in
accordance with U.S. generally accepted accounting principles and are thus
susceptible to varying calculations and interpretations, the information
presented herein may not be comparable to other similarly described
information of other companies.

MADISON, WI–(Marketwire – October 27, 2010) – TomoTherapy Incorporated (NASDAQ: TOMO), maker of advanced radiation therapy solutions for cancer care, today
released financial results for the third quarter ended September 30, 2010.

Third Quarter Results

Third quarter 2010 revenue was $43.6 million, an increase of 27% from $34.4
million in the third quarter of 2009. Revenue from product sales was $29.8
million in the third quarter of 2010, up 23% compared to the same quarter
last year, and revenue from service and other was $13.8 million in the
third quarter of 2010, up 37% compared to the same quarter last year. The
company reported a third quarter 2010 loss from operations of $14.6
million, a 10% decrease from the $16.1 million loss from operations for the
same period last year.

The company incurred a net loss attributable to shareholders of $10.9
million, or $0.21 per share, for the third quarter of 2010, compared to a
net loss of $13.9 million, or $0.27 per share, for the third quarter of
2009.

As of September 30, 2010, the company had $140.0 million of cash, cash
equivalents and short-term investments, representing a $5.6 million
decrease from June 30, 2010. There were no borrowings against the
company’s credit facility during the quarter.

As of September 30, 2010, the company had a revenue backlog of $146.4
million, a 5% increase from the $139.2 million backlog as of June 30, 2010.
The backlog includes $35.0 million of equipment orders received during the
third quarter of 2010. Backlog includes firm orders that the company
believes are likely to ship within the next two years, as well as the
minimum payments for system rental contracts. Backlog does not include any
revenue from service contracts, which represents a growing portion of the
company’s overall revenue.

“We are encouraged by our third quarter financial performance, which
reflects substantial improvement from the same period last year and
demonstrates that our efforts on several key fronts are yielding results,”
said Fred Robertson, TomoTherapy’s CEO. “Importantly, our year-over-year
revenue growth is attributable to strength in product sales as well as
service. On the product side, we have increased our backlog for two
consecutive quarters as a result of a stronger, more integrated global
sales and marketing efforts combined with the market’s demand for our new,
more diverse product offerings. Service and other sales also continued to
grow at a significant rate in comparison to the prior year, and at the same
time, we maintained leading customer service rankings. We are focused on
driving product sales in the geographic regions we have targeted, while
simultaneously continuing to improve the reliability of our systems,
including enhancing machine uptime and reducing maintenance required, as we
continue on our path to return to profitability.”

Nine-Month Results

For the nine months ended September 30, 2010, revenue was $133.3 million, a
26% increase from $106.1 million for the nine months ended September 30,
2009. Revenue from product sales was $93.2 million in the first nine
months of 2010, up 23% compared to the first nine months of 2009, and
revenue from service and other was $40.1 million in the first nine months
of 2010, up 33% compared to the first nine months of 2009.

The company reported a year-to-date 2010 loss from operations of $28.9
million, a 27% decrease from the loss from operations of $39.8 million
during the first nine months of 2009. The company incurred a net loss
attributable to shareholders of $22.5 million, or $0.43 per share, for the
nine months ended September 30, 2010, compared to a net loss attributable
to shareholders of $34.0 million, or $0.67 per share, for the same period
last year.

During the first nine months of 2010, the company’s cash, cash equivalents
and short-term investments decreased by $14.3 million. In the same period,
the company’s backlog increased by $10.6 million, from $135.8 million as of
December 31, 2009 to $146.4 million as of September 30, 2010.

Outlook

The company is revising upward its revenue guidance for full-year 2010.
Management now expects 2010 revenue to be $175 million to $185 million, as
compared to the previous range of $160 million to $180 million.
Additionally, the net loss attributable to shareholders is now projected to
be in the range of $0.65 to $0.75 per share, as compared to the previous
projection of $0.65 to $0.85 per share.

Robertson concluded, “Our year-to-date results continue to show improving
revenue and margins. Coupled with our backlog growth, we now expect
stronger top-line results than we had anticipated earlier in the year.
While global market conditions remain difficult to assess, there have been
positive indications recently that demand is stabilizing. We are seeing
strong indications of interest in our new product offerings throughout
North America, Europe and the Asia Pacific region and continue to believe
there are significant growth opportunities across these geographies.
Moreover, based on many published reports regarding TomoTherapy treatment,
we believe that the market is increasingly recognizing the benefits of this
radiation therapy approach.”

Investor Conference Call

TomoTherapy will conduct a conference call regarding its third quarter 2010
results at 5:00 p.m. ET today, October 27, 2010 (4:00 p.m. CT). To hear a
live Webcast or replay of the call, visit the Investor Relations page at TomoTherapy.com, where it will
be archived for two weeks. To access the call via telephone, dial
1-800-638-4817 from inside the United States or 1-617-614-3943 from outside
the United States, and enter pass code 19539609. The replay can be
accessed by dialing
1-888-286-8010 from inside the United States or
1-617-801-6888 from outside the United States and entering pass code
40905886. The telephone replay will be available through 10:59 p.m. CT on
November 3, 2010.

About TomoTherapy Incorporated

TomoTherapy Incorporated develops, markets and sells advanced radiation
therapy solutions that can be used to efficiently treat a wide variety of
cancers, from the most common to the most complex. The ring gantry-based
TomoTherapy® platform combines integrated CT imaging with conformal
radiation therapy to deliver sophisticated radiation treatments with speed
and precision while reducing radiation exposure to surrounding healthy
tissue. TomoTherapy’s suite of solutions includes its flagship Hi-Art®
treatment system, which has been used to deliver more than three million
CT-guided, helical intensity-modulated radiation therapy (IMRT) treatment
fractions; the TomoHD™ treatment system, designed to enable cancer centers
to treat a broader patient population with a single device; and the
TomoMobile™ relocatable radiation therapy solution, designed to improve
access and availability of state-of-the-art cancer care. TomoTherapy’s
stock is traded on the NASDAQ Global Select Market under the symbol “TOMO.”
To learn more about TomoTherapy, please visit TomoTherapy.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Statements
concerning market acceptance of the company’s technology; growth drivers;
the company’s orders, revenue, backlog or earnings growth; future financial
results and any statements using the terms “should,” “believe,” “outlook,”
“expect,” “anticipate” or similar statements are forward-looking statements
that involve risks and uncertainties that could cause the company’s actual
results to differ materially from those anticipated. Such risks and
uncertainties include: demand for the company’s products; impact of sales
cycles and competitive products and pricing; the effect of economic
conditions and currency exchange rates; the company’s ability to develop
and commercialize new products; its reliance on sole or limited-source
suppliers; its ability to increase gross margins; the company’s ability to
meet U.S. Food and Drug Administration (FDA) and other regulatory agency
product clearance and compliance requirements; the possibility that
material product liability claims could harm future revenue or require the
company to pay uninsured claims; the company’s ability to protect its
intellectual property; the impact of managed care initiatives, other health
care reforms and/or third-party reimbursement levels for cancer care;
potential loss of key distributors or key personnel; risk of interruptions
to the company’s operations due to terrorism, disease or other events
beyond the company’s control; and the other risks listed from time to time
in the company’s filings with the U.S. Securities and Exchange Commission,
which by this reference are incorporated herein. TomoTherapy assumes no
obligation to update or revise the forward-looking statements in this
release because of new information, future events or otherwise.

                TOMOTHERAPY INCORPORATED AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                                (unaudited)



                                 Three Months Ended     Nine Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Revenue:
 Product                        $  29,759  $  24,252  $  93,230  $  75,937
 Service and other                 13,823     10,126     40,062     30,144
                                ---------  ---------  ---------  ---------
  Total revenue                    43,582     34,378    133,292    106,081
                                ---------  ---------  ---------  ---------
Cost of revenue:
 Product                           16,233     13,782     46,372     39,779
 Service and other                 20,339     17,038     54,848     51,690
                                ---------  ---------  ---------  ---------
  Total cost of revenue            36,572     30,820    101,220     91,469
                                ---------  ---------  ---------  ---------
   Gross profit                     7,010      3,558     32,072     14,612
                                ---------  ---------  ---------  ---------
Operating expenses:
  Research and development          8,228      7,218     24,728     20,086
  Selling, general and
   administrative                  13,342     12,470     36,286     34,347
                                ---------  ---------  ---------  ---------
   Total operating expenses        21,570     19,688     61,014     54,433
                                ---------  ---------  ---------  ---------
Loss from operations              (14,560)   (16,130)   (28,942)   (39,821)
Other income (expense):
  Interest income                     342        617      1,289      2,009
  Interest expense                     (4)       (18)       (27)       (47)
  Other income (expense), net       1,539        105        513       (258)
                                ---------  ---------  ---------  ---------
   Total other income (expense)     1,877        704      1,775      1,704
                                ---------  ---------  ---------  ---------
Loss before income tax and
 noncontrolling interests         (12,683)   (15,426)   (27,167)   (38,117)
  Income tax expense (benefit)         47        256         13       (162)
                                ---------  ---------  ---------  ---------
Net loss                          (12,730)   (15,682)   (27,180)   (37,955)
  Noncontrolling interests          1,842      1,802      4,691      3,953
                                ---------  ---------  ---------  ---------
Net loss attributable to
 shareholders                   $ (10,888) $ (13,880) $ (22,489) $ (34,002)
                                =========  =========  =========  =========

Weighted-average common shares
 outstanding -
 basic and diluted                 51,934     50,748     51,739     50,645
                                =========  =========  =========  =========

Loss per common share - basic
 and diluted                    $   (0.21) $   (0.27) $   (0.43) $   (0.67)
                                =========  =========  =========  =========



                TOMOTHERAPY INCORPORATED AND SUBSIDIARIES

                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)
                                (unaudited)

                                                 September 30, December 31,
                                                      2010         2009
                                                  ------------ ------------
                   ASSETS
Cash and cash equivalents                         $    110,424 $     76,108
Short-term investments                                  29,612       78,225
Receivables, net                                        34,454       33,559
Inventories, net                                        53,014       47,669
Prepaid expenses and other current assets                3,352        3,633
                                                  ------------ ------------
  Total current assets                                 230,856      239,194
Property and equipment, net                             21,305       18,628
Other non-current assets, net                           11,168       12,429
                                                  ------------ ------------
 TOTAL ASSETS                                     $    263,329 $    270,251
                                                  ============ ============


           LIABILITIES AND EQUITY
Accounts payable                                  $     14,095 $      6,269
Accrued expenses                                        23,415       19,588
Accrued warranty                                         4,115        4,173
Deferred revenue                                        30,877       34,145
Customer deposits                                       14,801       13,266
                                                  ------------ ------------
  Total current liabilities                             87,303       77,441
Other non-current liabilities                            3,213        5,475
                                                  ------------ ------------
  TOTAL LIABILITIES                                     90,516       82,916

Total shareholders' equity                             167,007      183,424
Noncontrolling interests                                 5,806        3,911
                                                  ------------ ------------
  TOTAL EQUITY                                         172,813      187,335
                                                  ------------ ------------
  TOTAL LIABILITIES AND EQUITY                    $    263,329 $    270,251
                                                  ============ ============

CHICAGO, IL–(Marketwire – October 27, 2010) –  Saints Mary and Elizabeth Medical Center (SMEMC) is among the top 5 percent of U.S. hospitals for stroke care, gastrointestinal surgery and gastrointestinal care, according to a newly published health care study.

SMEMC ranks fifth in the state for gastrointestinal surgery and gastrointestinal care.

The nation’s nearly 5,000 hospitals were included in this sweeping study, which examined mortality rates and complication rates. The 13^th Annual HealthGrades Hospital Quality in America study, the largest annual report of its kind, analyzed patient outcomes from nearly 40 million Medicare hospitalization records from 2007 to 2009. HealthGrades, an independent ratings company, conducted the study.

For 2011, SMEMC was recognized with nine clinical achievements:

• HealthGrades Stroke Care Excellence Award™ (second year in a row)
• HealthGrades Gastrointestinal Surgery Excellence Award™
• HealthGrades Gastrointestinal Care Excellence Award™
• Five-star ratings, the highest level, in six areas — heart attack, pneumonia, sepsis (complication of a serious bacterial infection), gastrointestinal bleed, bowel obstruction and cholecystectomy (gall bladder removal)

“Our mission — since we opened our doors 123 years ago — is to provide patients with the highest level of quality care,” said Margaret McDermott, executive vice president/chief executive officer, SMEMC. “I am proud of our entire health care team for their commitment to delivering excellent care with excellent results.”

McDermott said patients are increasingly seeking independent information on hospital quality performance. “I hope this study will help guide individuals confronted with important health care decisions,” she said.

According to the study, top-performing hospitals had dramatically lower mortality rates than other hospitals. HealthGrades analyzed mortality rates for 17 procedures and diagnoses. Results showed that patients at hospitals ranking in the top 5 percent had a 72 percent lower chance of dying when compared with the lowest-performing hospitals, and a 53 percent lower chance of dying when compared to the U.S. national average.

HealthGrades rates hospitals independently based on data that hospitals submit to the Centers for Medicare and Medicaid services, part of the U.S. Department of Health and Human Services.

To read the full study and FAQ, visit http://www.reshealth.org/sub_smemc/about/healthgrades/default.cfm.

About SMEMC
Part of Resurrection Health Care, SMEMC is an award-winning medical center on Chicago’s near northwest side and includes two campuses: Saint Mary Campus, 2233 W. Division St., and Saint Elizabeth Campus, 1431 North Claremont Ave. Visit smemc.reshealthcare.org.

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WEST PALM BEACH, FLORIDA–(Marketwire – Oct. 27, 2010) – The Medical Tourism Association and the University of Richmond have launched a “Medical Tourism Certification” program, which will officially launch in 2011. The University of Richmond’s School of Continuing Studies will work in partnership with the Medical Tourism Association in creating a curriculum and selecting instructors.

The professional certificate program will require six courses to complete, and each course will be available in both English and Spanish. The courses will be offered completely online, allowing the program to reach an international audience. Each course will cost $199 and will take four weeks to complete. Students will be able to participate in these courses anywhere, at any time, and at their own pace during the four-week period.

In the online classroom, students will be able to view lectures and presentations, read articles, engage in discussions with other students and faculty, answer questions and take quizzes.

In addition to earning the Professional Studies Certificate from the University of Richmond, students will also earn Continuing Education Units, or CEUs, for each class they complete. Courses can be taken individually, or as part the entire certificate program. The Medical Tourism Certification will provide a standard of best practices for those who work in this field.

“This is the first certification program for medical tourism taught by an established and leading university and educational system. This program will be a great opportunity for those individuals in the industry who are looking for advanced education and to set them apart,” said, Renée-Marie Stephano, President of the Medical Tourism Association and Chief Editor of the Medical Tourism Magazine.

“We are very excited to partner with the Medical Tourism Association, who has clearly established itself as the leader in the industry. We feel this program will be invaluable to potential students from around the world who are looking for certification in medical tourism,” said Stephanie Bowlin, Non-Credit Program Manager at the University of Richmond. “We are looking forward to working with the MTA to put together a cutting edge curriculum and schedule and bringing in some of the leaders in medical tourism and international healthcare as professors and teachers for this online certificate program.” 

About the Medical Tourism Association

The Medical Tourism Association™ (Global Healthcare Association) is the international non-profit trade association for the medical tourism and global healthcare industry made up of the top international hospitals, healthcare providers, medical travel facilitators, insurance companies, and other affiliated companies and members with the common goal of promoting the highest level of quality of healthcare to patients in a global environment. Our Association promotes the interests of its healthcare provider and medical tourism facilitator members. The Medical Tourism Association™ (Global Healthcare Association) has three tenets: Transparency in Quality and Pricing, Communication and Education.

For more information about the MTA http://www.medicaltourismassociation.com.

About the University of Richmond

The University of Richmond is a highly selective, liberal arts university located on a 350-acre suburban campus located in Richmond, Virginia. Founded in 1830, the University of Richmond provides a learning environment unlike any other in higher education, offering students an extraordinary combination of the liberal arts with law, business, leadership studies, and continuing education. The School of Continuing Studies primarily serves non-traditional students, offering a variety of undergraduate and graduate degrees for adults as well as non-credit certification and professional development programs.

For More Information on University of Richmond: http://scs.richmond.edu/medical-tourism. 

For More Information about this Medical Tourism Certification or to request an opportunity to provide curriculum for the program, please contact:

Gaby Vicuña

Global Program Coordinator

[email protected]

US 561-791-2000

YPSILANTI, MI–(Marketwire – October 27, 2010) –  Integrated Sensing Systems, Inc. (ISSYS) announced that the U.S Patent Office has granted a patent titled “Wireless Device and System for Monitoring Physiological Parameters” (US Patent No. 7,686,762) which covers the overall structure of ISSYS’ miniature, wireless, batteryless, implantable sensors for non-invasive monitoring of biological pressures for the effective management of chronic diseases.

ISSYS has also developed accompanying anchors and delivery systems that allow its wireless, batteryless, sensors to be implanted within the body via 3 distinct approaches: transcatheter delivery, open heart surgery, and minimally invasive surgery. 

Dr. Nader Najafi, ISSYS CEO, stated that “ISSYS’ intellectual properties (patents, know how, and trade secrets) cover a wide spectrum including MEMS pressure sensor, the overall system, delivery and anchoring, and a variety of medical applications. Another major competitive advantage for ISSYS is its newly expanded manufacturing facility that is capable of producing tens of thousands of the miniature implants per year. The particular targets of ISSYS products are cardiovascular disease, especially congestive heart failure (CHF), hydrocephalus (high brain pressure), and traumatic brain injuries (TBI). ISSYS plans to start its cardiovascular clinical studies in 2011.”

Company Background: ISSYS is a leader in advanced MEMS technologies for industrial, medical, microfluidic and scientific analytical sensing applications. Founded in 1995, ISSYS is one of the oldest independent MEMS companies in the US. ISSYS operates a comprehensive, state-of-the-art MEMS fabrication facility located near Ann Arbor, Michigan. ISSYS is currently ISO 9001:2008 certified and compliant to EN13980:2002 for its ATEX (intrinsically safe) and CE approved products. ISSYS Quality System is also designed to meet the ISO13485:2003 standard. ISSYS is a vertically integrated company dedicated to developing and manufacturing system-level products based on MEMS technology (MEMS Inside), please visit: http://www.mems-issys.com/

MONTVALE, NJ–(Marketwire – October 27, 2010) –  SRS, the leading provider of productivity-enhancing technology and services for high-performance specialty practices, today announced that Advanced Pain Management has selected the SRS Hybrid EMR for its high-volume practice. Advanced Pain Management is headquartered in Annapolis, MD, with additional office locations throughout central and southern Maryland, and the eastern shore of Maryland.

“For over two years, we performed our due diligence and conducted site visits to find the EMR that would fulfill our practice needs,” says Dr. Paul W. Davies, managing partner & President, Advanced Pain Management. “The resulting reluctance to proceed was based on the reports of drastic productivity loss from virtually every physician we spoke with, even those at vendor-selected sites. The physicians also noted that using their EMR systems required so much attention that they could not give patients the time they needed. Even when vendor representatives were present, we were hard-pressed to find any physicians willing to make positive comments about the usability of their EMR. Our SRS site visit was dramatically different — it was the first time that we saw providers genuinely excited to share their experience. Physicians of all ages and levels of technological proficiency were uniformly delighted with the SRS Hybrid EMR, and the entire office staff was highly enthusiastic — they made these comments even when no one from SRS was present! Physicians reported no downtime during implementation and training, and no loss in productivity. Our own implementation went flawlessly and we are already enjoying the clinical and business benefits that we were anticipating.”

“Our hospital was offering its EMR product to practices whose members were on the medical staff, but we knew it would not meet our needs,” says Bill Hughes, Chief Operating Officer, Advanced Pain Management. “We know that we made the right choice — if we had any doubt at all, attending our first SRS User Summit has erased it completely. I have never seen so many satisfied and happy customers at any company-sponsored event.”

“We are seeing firsthand how, in an era of declining reimbursements and increased costs, physicians are using SRS to efficiently and cost-effectively manage their practices,” says Evan Steele, CEO of SRSsoft. “Advanced Pain Management adopted the SRS Hybrid EMR because they value both the clinical and business improvements for which SRS is recognized.”

About SRS
SRS is the leading provider of productivity-enhancing EMR technology and services for high-performance specialty practices — with a successful adoption rate unparalleled in the industry. Offered via the Unified Desktop™, the robust SRS Hybrid EMR, SRS CareTracker PM, and SRS PACS increase speed, free physicians’ time, boost revenue, and heighten patient care and satisfaction. For more information on SRS, visit www.srssoft.com, e-mail [email protected], fax 201.802.1301, or call 800.288.8369.

About Advanced Pain Management
Advanced Pain Management has assembled the top specialists in their region to offer the most advanced, minimally invasive treatments for spine pain. While they are experienced with all types of chronic pain, they specialize in neck and spine related conditions, the most common and often debilitating ailments affecting so many today. For more information, visit www.mypainspecialist.com.

WINNIPEG, MANITOBA–(Marketwire – Oct. 27, 2010) – DiaMedica (TSX VENTURE:DMA) today announces that DM-199 has been validated by demonstrating significantly increased insulin sensitivity in animals using the hyperinsulemic euglycemic clamp model. Type 2 diabetes is a severely debilitating condition characterized by high blood sugar primarily due to a decrease in insulin sensitivity, which results in a number health problems including cardiovascular disease. 

The amount of glucose being processed in an animal model of type 2 diabetes with DM-199 was measured using the hyperinsulinemic euglycemic clamp, the gold standard method for characterizing the actions of insulin. Animals treated with a single dose of DM-199 had a 122% increase in maximal glucose infusion rate. This enabled animals to process 77% more total glucose compared to untreated animals. In a second study, DM-199 also had a pronounced anti-hypertensive effect on systolic blood pressure. This is important as approximately 70% of type 2 diabetes patients take multiple medications to treat high blood pressure.

“The clamp study clearly shows that treatment with DM-199 results in a major increase in insulin sensitivity in an animal model of type 2 diabetes. It is notable that the results of these studies actually provide an underestimate of the true effectiveness of DM-199. This is because the potency of DM-199 was so great that it was difficult to maintain the euglycemic clamp.” stated Dr. David Wasserman, Ron Santo Chair in Diabetes Research & Professor molecular physiology and biophysics at Vanderbilt University. “I very much look forward to seeing the future development of DM-199.”

“The results from both studies provide further validation of DM-199, our next generation form of DM-99, as a potential treatment for type 1 diabetes, type 2 diabetes and other diseases,” said Mr. Rick Pauls, CEO of DiaMedica. “This DM-199 data builds on compelling earlier animal and human proof of concept data with DM-99, and gives us confidence in moving forward with this very promising recombinant protein,” continued Mr. Pauls. “The dual benefits shown by DM-199 to increase the body’s ability to metabolize glucose and its positive effect on lowering systolic blood pressure may ultimately alleviate the need for diabetics to take multiple drugs for diabetes and hypertension.”

About DiaMedica

DiaMedica is a biopharmaceutical company focused on developing novel treatments for type 1 diabetes, type 2 diabetes and other disorders. DiaMedica has completed two successful proof-of-concept Phase II studies with DM-71 and DM-99, which demonstrated human efficacy in lowering blood glucose levels in patients with type 2 diabetes.

DiaMedica’s lead product DM-199 is a novel recombinant next generation form of DM-99, which has shown the potential to increase insulin sensitivity, reduce the autoimmune attack and trigger proliferation of pancreatic beta cells, neural stem cells and bone marrow cells. DiaMedica is listed on the TSX Venture Exchange under the trading symbol “DMA”. For further information please visit www.diamedica.com.

Caution Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, the “forward-looking statements“). These forward-looking statements relate to, among other things, DiaMedica’s objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, and can, in some cases, be identified by the use of words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Specifically, this press release contains forward-looking statements regarding matters such as, but not limited to, the anticipated use of proceeds from the Offering, management’s assessment of DiaMedica’s future plans, information with respect to the advancement of DiaMedica’s research and development programs, and DiaMedica’s other estimates and expectations. These statements reflect management’s current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: uncertainties and risks related to our research and development programs, the availability of additional financing, risks and uncertainties relating to the anticipated use of proceeds, changes in debt and equity markets, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, the cost and supply of raw materials, management of growth, effects of insurers’ willingness to pay for products, risks related to regulatory matters and risks related to intellectual property matters.

Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, as well as under the heading “Risk Factors” contained in DiaMedica’s 2009 annual information form. DiaMedica cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on DiaMedica’s forward-looking statements to make decisions with respect to DiaMedica, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Such forward-looking statements are based on a number of estimates and assumptions, which may prove to be incorrect, including, but not limited to, assumptions regarding the availability of additional financing for research and development companies, and general business and economic conditions. These risks and uncertainties should be considered carefully and investors and others should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, DiaMedica cannot provide assurance that actual results will be consistent with these forward-looking statements. DiaMedica undertakes no obligation to update or revise any forward-looking statement.