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For Immediate Release

Acadia Healthcare, Majority Owned by Waud Capital Partners, Completes Merger with PHC, Inc. and Becomes Publicly Traded Company

Begins Trading on NASDAQ under Symbol "ACHC"

Chicago, IL, November 1, 2011 – Waud Capital Partners ("WCP"), a Chicago based middle-market private equity firm, today announced that Acadia Healthcare Company, Inc. ("Acadia" or the "Company"), majority owned by WCP, has completed its merger with PHC, Inc., d/b/a Pioneer Behavioral Health (AMEX:PHC). As a result of the transaction, Acadia is the country’s leading publicly traded pure-play provider of inpatient behavioral health care services, based upon licensed beds. The Company operates 34 facilities, with approximately 1,950 licensed beds in 18 states, which would have produced annual revenues of more than $325 million on a pro forma basis for the twelve months ending June 30, 2011.

Commenting on the announcement, Joey Jacobs, Chairman and Chief Executive Officer of Acadia, said, "The completion of this merger brings a great team of dedicated and skilled professionals to Acadia and an outstanding portfolio of facilities and services. In addition, by improving the Company’s access to capital as a public company, the transaction enhances our ability to drive Acadia’s growth through additional acquisitions in the highly fragmented behavioral health care services industry. Based on our management team’s significant industry experience and expertise, we are confident of our ability to complete and successfully integrate such transactions, as well as to produce increased organic growth, productivity and efficiency in the facilities we operate."

Following the merger, Acadia shareholders own approximately 77.5% of the equity of the combined entity with PHC’s current shareholders owning the balance. The merged company will be headquartered in Franklin, TN, and operate as Acadia Healthcare Company, Inc., while continuing to provide the same high-quality treatment in the communities each company currently serves. Mr. Jacobs will serve as CEO of the merged company and as Chairman of the Board of Directors.

Acadia was formed by WCP in late 2005 to acquire, develop and operate a national network of behavioral health facilities. The merger with PHC represents the eighth transaction completed by Acadia over a six-year period.

Chuck Edwards, Principal of WCP, commented, "This is a very exciting time for Acadia. Under the continued leadership of Joey Jacobs and the Acadia team, we believe the Company is strongly positioned for future acquisitions and continued growth. Congratulations to Joey and the Acadia team on completing the transaction."

"Acadia’s continued growth and merger with PHC is another successful example of our investment strategy. WCP’s defined investment approach creates industry-leading organizations by partnering with world-class management teams to build value in our portfolio companies for our investors," said Reeve Waud, Managing Partner of WCP.

Risk Factors
This news release contains forward-looking statements. Generally words such as "may", "will", "should", "could", "anticipate", "expect", "intend", "estimate", "plan", "continue", and "believe" or the negative of or other variation on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this news release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. Factors that may cause actual results to differ materially include the risk that (i) payments received from the government and third-party payors may be reduced; (ii) Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (iii) the businesses of Acadia and Pioneer Behavioral Health may not be integrated successfully; and (iv) Acadia may not be able to identify, finance and integrate future acquisitions. These factors and others are more fully described in Acadia’s Registration Statement on Form S-4 and its periodic reports and other filings with the SEC.

About Acadia Healthcare Company, Inc.
Founded in December 2005, Acadia is a leading provider of inpatient behavioral health care services. Acadia operates a network of 34 behavioral health facilities, with approximately 1,950 licensed beds in 18 states. Acadia provides premier psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

For additional information about Acadia, visit the Company’s website at www.acadiahealthcare.com.

About Waud Capital Partners
Waud Capital Partners is a private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle market growth equity investments, buyouts, industry consolidations and recapitalizations. The firm seeks to invest $10 million to $100 million in private companies in the following four areas: health care services, business and consumer services, specialty distribution and value-added industrial businesses. Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million. The firm has completed more than 100 acquisitions since its founding and currently has approximately $1 billion of capital under management.

For additional information on WCP, visit the firm's website at www.waudcapital.com.

For Further Information:
Chuck Edwards, Principal
Waud Capital Partners
312-676-8400
cedwards@waudcapital.com

For Media Inquiries:
Jen Dowd, Vice President
BackBay Communications
212-209-3844
jen.dowd@backbaycommunications.com

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