Medical Facilities Corporation Announces Approval of Normal Course Issuer Bid for Debentures and Automatic Securities Purchase Plans

    TORONTO, Jan. 5 /CNW/ - Medical Facilities Corporation ("Medical
Facilities" or the "Company") (TSX: DR.UN), announced today that the Toronto
Stock Exchange has approved its notice of intention to make a normal course
issuer bid for up to $2,150,000 aggregate principal amount of its outstanding
7.50% convertible secured debentures (the "Debentures") (TSX: DR.DB),
representing 5% of its $43,000,000 aggregate principal amount of the
Debentures outstanding as of December 30, 2008. The Company may purchase the
Debentures at prevailing market prices during the period from January 7, 2009
to January 6, 2010. Purchases will be made at market prices in accordance with
the rules and policies of the Toronto Stock Exchange. Subject to the Toronto
Stock Exchange's block purchase exceptions, daily purchases will be limited to
$19,170 aggregate principal amount of Debentures on any trading day to and
including March 31, 2009, and thereafter will not exceed $9,585 aggregate
principal amount of Debentures. All Debentures purchased by Medical Facilities
under the normal course issuer bid will be cancelled.
    Medical Facilities believes that from time to time, the market price of
its Debentures may not reflect their underlying value and that the purchase of
its Debentures may represent an appropriate and desirable use of Company
funds. Medical Facilities intends to fund the purchases out of available cash.
    The Company has also implemented automatic securities purchase plans (the
"Plans") in connection with its normal course issuer bid for its Debentures as
well as for its current normal course issuer bid for its Income Participating
Securities (the "IPS Units") announced on April 22, 2008, as amended on
November 12, 2008, to purchase up to 1,454,933 IPS Units of the Company.
Pursuant to the Plans, the Company may purchase Debentures and IPS Units under
their respective normal course issuer bids during such times that are
considered, under the insider trading and disclosure policy of Medical
Facilities, outside of a permitted trading window or during a designated
blackout period. The Plans are effective as of today and terminate with their
respective normal course issuer bids for the Debentures and IPS Units. The
Plans constitute "automatic plans" for purposes of applicable Canadian
securities legislation and have been approved by the Toronto Stock Exchange.

    About Medical Facilities

    Medical Facilities 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 is distributed to holders of its IPS units, of which a
portion is interest on subordinated debt and a portion is dividend. For more
information, please visit

    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 or
Adriana Braczek, Investor Relations, The Equicom Group Inc., (416) 815-0700 or
1-800-385-5451 ext. 228 or 240, or

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