Statement from Northstar Healthcare

TORONTO, ON, and HOUSTON, TX, March 25 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced that it has been informed that Lake Breeze Surgical Affiliates, P.A., ("Lake Breeze") is not proceeding with its previously announced lawsuit against Palladium for Surgery - Houston, Ltd., a subsidiary of Northstar Healthcare.

Specifically, Lake Breeze has filed a notice of nonsuit, terminating the original lawsuit. Lake Breeze has indicated that it intends to pursue arbitration. Northstar's view, as expressed in a news release dated March 15, 2010, is that Lake Breeze's lawsuit was without merit and subject to mandatory arbitration.

Northstar also stated that, going forward, it does not intend to issue news releases in response to actions of this nature that it believes to be without merit.

    
    About Northstar Healthcare Inc.
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Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites.

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

    
    Forward-looking statements
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This news 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.

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For further information: Philip Koven, Tel: [phone] Ext. 235, E-mail: [email protected]