Medical Facilities Corporation Acquires Ambulatory Surgery Center in Newport Beach, California



    - Company Secures Acquisition Credit Facility with Consortium of Senior
    Lenders -

    TORONTO, Dec. 24 /CNW/ - Medical Facilities Corporation ("Medical
Facilities") (TSX: DR.UN), today announced that it has entered into a
definitive agreement to acquire a 51% interest in the Surgery Center of
Newport Coast, LLC, ("Newport Coast") an Ambulatory Surgery Center ("ASC") in
Newport Beach, California, for total cash consideration of US$29 million. The
transaction is expected to close in January 2008, subject to satisfaction of
closing conditions. Medical Facilities also announced that it has secured a
$100 million, one-year acquisition credit facility with a consortium of
Canadian banks led by National Bank of Canada, to finance this transaction and
other potential future acquisitions.
    "Our acquisition of a majority interest in the Surgery Center of Newport
Coast and our previously announced acquisition of a majority interest in
Barranca Surgery Center, LLC, ("Barranca") in Irvine, California, mark our
entry into both the ASC market and the large healthcare services market of
southern California. We expect both acquisitions to be immediately accretive
to distributable cash," said Dr. Donald Schellpfeffer, CEO of Medical
Facilities. "We consider these ASCs to be well managed, both in terms of
exceptional patient care and specialty diversification, as well as enterprise
processes, and they have solid relationships with a diverse base of payors. We
also believe that Newport Coast and Barranca offer strong growth potential
through enhanced capacity utilization. The founding surgeons of both ASCs
remain as stakeholders and will continue their respective medical practices
utilizing the facilities of the acquired Centers."
    Newport Coast is a licensed ASC with two operating rooms and one
procedure room. Newport Coast specializes in General Surgery,
Gastroenterology, Gynecology, Orthopedics, Podiatry, Otolaryngology, Pain
Management and Plastic Surgery. It generated approximately US$11.6 million in
net patient service revenue in fiscal 2006.
    Medical Facilities, in its 2007 third quarter results news release and
interim filings, disclosed its acquisition of a 51% interest in Barranca
Surgery Center, LLC, for total cash consideration of US$9.5 million. Barranca
is a licensed ASC located in Irvine, California, with three operating rooms.
Barranca specializes in General Surgery, Gastroenterology, Gynecology, and
Otolaryngology. It generated approximately US$4.2 million in net patient
service revenue in fiscal 2006.
    Medical Facilities' $100 million, one-year acquisition credit facility
bears interest at a floating rate and is subject to certain financial
covenants.
    Medical Facilities also announced today that its Sioux Falls Surgical
Center, LLP ("SFSC") unit has been granted a building permit by the City of
Sioux Falls to proceed with an US$11 million facility expansion which is
planned to occur over two years so as not to disrupt present operations. The
expansion will increase the number of overnight stay beds at SFSC to 22 from
the current 13. Combined with the recently completed addition of two new
operating rooms, the additional capacity will enable SFSC to continue its
growth in providing surgical services to the people of Sioux Falls and
surrounding areas.

    About Medical Facilities Corporation

    Medical Facilities Corporation owns controlling interests in four
specialty surgical hospitals, located in South Dakota and Oklahoma, as well as
two ambulatory surgery centers in California. The specialty hospitals perform
scheduled surgical, imaging and diagnostic procedures and derive their revenue
from the fees charged for the use of their facilities. The ambulatory surgery
centers specialize in outpatient surgical procedures, with patient stays of
less than 24 hours. Medical Facilities is structured so that a majority of its
free cash flow from operations are distributed to holders of its Income
Participating Securities ("IPS"), with a portion of such distributions being
interest payment on subordinated debt and a portion dividend. For more
information, please visit www.medicalfacilitiescorp.ca.

    Caution concerning forward-looking statements
    ---------------------------------------------
    Statements made in this news release, other than those concerning
historical financial information, may be forward-looking and therefore subject
to various risks and uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate", "expect",
"intend", or "continue" or the negative thereof or similar variations. 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. Factors that could cause results to vary include
those identified in Medical Facilities' filings with Canadian securities
regulatory authorities such as legislative or regulatory developments,
intensifying competition, technological change and general economic
conditions. All forward-looking statements presented herein should be
considered in conjunction with such filings. Medical Facilities does not
undertake to update any forward-looking statements; such statements speak only
as of the date made.

    %SEDAR: 00020386E




For further information:

For further information: Michael Salter, Chief Financial Officer,
Medical Facilities Corp., (416) 848-7980 or 1-877-402-7162; Bruce Wigle,
Investor Relations, The Equicom Group Inc., (416) 815-0700 ext. 228 or
1-800-385-5451 ext.228, Email: bwigle@equicomgroup.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890