Atlanta, Georgia, November 7, 2002–Regency Hospital Company today announced they will open two new long-term acute care (LTAC) hospitals in mid December, 2002. The first, Regency Hospital of Odessa in Odessa, Texas will be a 36-bed hospital located within Medical Center Hospital. The second, Regency Hospital of Meridian, is a 40-bed hospital located within Riley Hospital in Meridian, Mississippi. Regency hospitals provide specialized treatment for chronically ill acute level patients whose severity of illness requires that they receive acute level care for an extended period of time. Many of these patients have complex medical conditions and may require life support.

“Both of the host hospitals, Riley Hospital in Meridian and Medical Center Hospital in Odessa, recognized a need to expand the continuum of care available to their communities. Regency is honored to be selected as the provider of choice for these prominent hospitals to offer specialized services to the people of Meridian and Odessa,” commented Rod Laughlin, President & CEO of Regency Hospital Company.

Regency hospitals provide specialized treatment for chronically ill acute level patients whose severity of illness requires that they receive acute level care for an extended period of time. Many of these patients have complex medical conditions and may require life support. Regency is a leading developer and operator of long-term acute care (LTAC) hospitals in the United States. The Company collaborates with medical surgical hospitals to operate separately licensed LTAC hospitals within their facilities providing high quality solutions for the hospital’s medically complex patients. More information about Regency is available at www.regencyhospital.com or www.ltac.com

Regency was formed by Waud Capital Partners, L.L.C. and management to develop and operate LTACs throughout the United States. Founded in 1993, Waud Capital Partners, L.L.C. is a private equity investment firm that partners with management to acquire or develop outstanding middle market businesses. WCP invests in a broad range of companies and industries with strong growth characteristics. More information about the firm can be found at www.waudcapital.com.

For more information contact:
Rod Laughlin, President & CEO
Regency Hospital Company
3159 Royal Drive, Suite 320
Alpharetta, GA 30022
770-772-4345
rlaughlin@regencyhospital.com
www.regencyhospital.com

Reeve Waud, Founder and Managing Partner
Waud Capital Partners, L.L.C.
560 Oakwood Avenue, Suite 203
Lake Forest, IL 60045
847-604-9550
rwaud@waudcapital.com
www.waudcapital.com