Northstar Healthcare Inc. announces closing of over-allotment option



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/

    TORONTO, June 5 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) ("Northstar")
announced today that the underwriters of Northstar's initial public offering
this morning exercised their over-allotment option to purchase 1,813,154 
additional common shares at a purchase price of $12.25 per share, for gross
proceeds of $22,211,136. The net proceeds of the over-allotment option were
used by Northstar to indirectly acquire an additional 15% partnership interest
in The Palladium for Surgery - Houston.

    On May 17, 2007, Northstar completed its initial public offering of
12,087,698 common shares. The offering, which raised gross proceeds of
C$148,074,300, was underwritten by a syndicate led by BMO Nesbitt Burns Inc.
and which also included CIBC World Markets Inc., RBC Dominion Securities Inc.,
National Bank Financial Inc., Canaccord Capital Corporation and Wellington
West Capital Markets Inc.

    Northstar is a corporation formed to indirectly acquire and/or manage
ambulatory surgery centres in the United States, focusing initially on Houston
and other metropolitan areas in Texas. Northstar indirectly holds a 70%
partnership interest in The Palladium for Surgery - Houston and a 60%
partnership interest in Medical Ambulatory Surgical Suites, two ambulatory
surgery centres located in Houston. In addition, Northstar manages an
ambulatory surgery centre in Dallas and three pain management clinics in
Houston.

    Goodmans LLP is legal counsel to Northstar in connection with the
transaction, with U.S. legal representation from Kaye Scholer LLP and Cokinos,
Bosien & Young P.C. Borden Ladner Gervais LLP is legal counsel to the
underwriters, with U.S. legal representation from Shearman & Sterling LLP and
Gardere Wynne Sewell LLP.

    Northstar was founded and sponsored by Donald Kramer, M.D., its Chief
Executive Officer, and Stewart A. Feldman. Mr. Feldman also served as the
co-principal in and Chairman and Chief Executive Officer of Healthcare
Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its
President.

    The securities offered have not been, nor will be, registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of such Act. The securities are being offered only
by means of a prospectus. Accordingly, 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 jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction.

    This press release may contain forward-looking statements (within the
meaning of applicable securities laws) relating to business of Northstar
Healthcare Inc. (the "Company") and the environment in which it operates.
Forward-looking statements are identified by words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may", and other similar
expressions. These statements are based on the Company's expectations,
estimates, forecasts and projections. They are not guarantees of future
performance and involve risks and uncertainties that are difficult to control
or predict. These risks and uncertainties are discussed in the Company's
regulatory filings available on the Company's web site at
www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance
that forward-looking statements will prove to be accurate as actual outcomes
and results may differ materially from those expressed in these
forward-looking statements. Readers, therefore, should not place undue
reliance on any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is made. The
Company undertakes no obligation to publicly update any such statement or to
reflect new information or the occurrence of future events or circumstances.

    %SEDAR: 00025141E




For further information:

For further information: Donald L. Kramer, M.D., Chief Executive
Officer, (713) 355-8614, DKramer@Northstar-Healthcare.com

Organization Profile

Northstar Healthcare Inc.

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