Atlanta, Georgia, December 18, 2005–Regency Hospital Company announced today that the company has officially broken ground at their newest hospital site in Carrollton, Texas. Regency Hospital Company officials, along with Regency’s Construction Division, celebrated the ground breaking with a special ceremony. Regency Hospital of North Dallas is scheduled to open in the spring of 2006.

Regency Hospital of North Dallas will be a 44-bed freestanding Long Term Acute Care (LTAC) hospital. Regency Hospital will provide intensive critical care to medically complex patients needing acute care intervention and therapy for a longer time period than the traditional hospital is designed to provide.

Regency Hospital Company has spent the last year working with consultants to develop and finalize architectural, structural and engineering design plans in order to provide a state-of-the-art free-standing LTAC hospital. “We are pleased to bring this hospital to the North Dallas area and to provide this very specialized level of care,” commented Rod Laughlin, President and CEO of Regency Hospital Company.

“Regency Hospital will be a tremendous asset, not only to Dallas, but to the entire region,” stated George Bruton, Vice President of Construction and Design. “This hospital will be one of the finest LTAC hospitals in the country,” he continued.

Steve Laughlin has been appointed CEO of Regency Hospital of North Dallas and also of the Fort Worth project. Laughlin has been a member of the Fort Worth and Dallas healthcare communities for several years. “I look forward to bringing Regency to this area.

Regency Hospital Company is a leading developer of Long Term Acute Care (LTAC) hospitals across the United States. Regency presently has sixteen hospitals open including one in Odessa, Texas with several more in active development, including plans for building another hospital at a site in Fort Worth. Regency was formed by Rod Laughlin and Waud Capital Partners.

About Waud Capital Partners, L.L.C.
Waud Capital Partners, L.L.C. is a private equity investment firm founded in 1993 with more than $400 million of capital under management. WCP partners with exceptional management teams to invest in middle market buyouts, recapitalizations, industry consolidations and growth equity investments. The firm seeks to invest $10 million to $50 million in private companies in the following four areas: business and consumer services, healthcare services, industrial/specialty distribution and niche manufacturing businesses. Typically, the companies in which WCP invests have enterprise values between $30 million and $150 million. Since its founding, Waud Capital Partners has successfully made more than sixty investments in a wide range of industries, including adhesives, air and water treatment, alarm monitoring, automotive components, coatings, consumer products, lighting, litigation services, medical distribution, petroleum distribution, pharmaceuticals, publishing, sealants and specialty hospitals. The firm is backed by a number of institutions, including Citigroup, Middlebury College, SunAmerica, The St. Paul Travelers Companies and the University of Chicago Hospitals, among others, as well as a number of well-known families and high net worth individuals.

For more information contact:
Rod Laughlin, President & CEO
Regency Hospital Company
30000 Mill Creek Avenue, Suite 250
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