Medical Facilities Corporation Completes Acquisition of 51% Interest in the Surgery Center of Newport Coast LLC



    TORONTO, Jan. 8 /CNW/ - Medical Facilities Corporation ("Medical
Facilities" or the "Corporation") (TSX: DR.UN), today announced that it has
successfully completed the acquisition of 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.
    Newport Coast is a licensed ASC with two operating rooms and one
procedure room. It specializes in General Surgery, Gastroenterology,
Gynecology, Orthopedics, Podiatry, Otolaryngology, Pain Management and Plastic
Surgery on an outpatient basis. The physician-owners of Newport Coast retained
a 49% interest. Newport Coast generated approximately US$11.6 million in net
patient service revenue in fiscal 2006. The transaction is immediately
accretive on a pro-forma basis (for the 12-month period ended December 31,
2007) to Medical Facilities' cash available for distribution per IPS.
    The acquisition was financed through Medical Facilities' acquisition
credit facility with a consortium of Canadian banks led by National Bank of
Canada. While Medical Facilities utilized a portion of the credit facility for
100% of the purchase price of its 51% ownership stake in Newport Coast, and
may draw on the facility for other potential transactions, it is the
Corporation's intent to maintain a conservative capital structure and
financial flexibility over the long term.

    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


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