Houston’s largest provider of long term acute care becomes third largest provider nationally.

Houston, Texas/September 1, 2005 - Triumph HealthCare, the largest Houston provider of long-term acute care (LTAC), today announced the acquisition of Dallas based SCCI Hospitals. SCCI is a national competitor operating thirteen hospitals in six states, including Texas. Triumph Healthcare operates six Houston area locations with a seventh scheduled to open the end of October. At that time Triumph will become the third largest provider for LTAC services nationally.

“I am very excited about the acquisition of SCCI. We have evaluated many LTAC Hospital companies and feel that the combinations created by this acquisition will make both operations stronger,” said Charles Allen, CEO for Triumph Healthcare. “SCCI has a reputation nationally as a quality provider for treating high acuity patients.” added Allen.

This acquisition of SCCI will lift Triumph’s annual revenue to $300 million and will diversify the company outside of Houston. In addition to the acquision, Triumph has recently named Brock Hardaway as Chief Operating Officer and Larry Humphrey as Chief Financial Officer.

“Triumph will maintain the Dallas office as a regional base to support operations. We anticipate a very smooth transition and plan no reduction of workforce at the hospitals. Combined we will employ 2,400 employees nationally, with 1,200 in greater Houston,” stated Allen.

The company, whose hospitals house patients too ill for nursing homes or for rehabilitation centers to treat, has 560 licensed beds and will add 453 additional beds after the acquisition. This will bring to seven the number of Houston area hospitals including SCCI’s one Houston area hospital in mid-town close to the Houston Medical Center. Triumph Hospital Town & Country is scheduled to open 34 beds in October 2005. This “hospital within hospital” will be located in the new Town & Country Hospital in west Houston. With the addition of this facility to the system, Triumph will be the third largest LTAC Company in the United States, operating 1,047 licensed beds.

Triumph HealthCare's hospitals (594 beds):

• Triumph Hospital North Houston, 130 beds. Triumph owns the five-story medical office building adjacent to the hospital, which also houses Triumph HealthCare's corporate offices.
• Triumph Hospital East Houston, 93 beds.
• Triumph Hospital Baytown, Texas, 37 beds.
• Triumph Hospital Northwest Houston, 115 beds.
• Triumph Hospital Southwest Houston, 85 beds.
• Triumph Hospital Clear Lake, Texas, 100 beds.
• Triumph Hospital Town & Country (Houston), 34 beds, opening October 2005

SCCI’s hospitals (453 beds):

• SCCI of Amarillo, 62 beds, Amarillo, Texas
• SCCI of Aurora, 37 beds, Aurora, Colorado
• SCCI of Central Dakotas, 24 beds, Mandan, North Dakota
• SCCI of Detroit, 53 beds, Detroit, Michigan
• SCCI of Easton, 31 beds, Easton, Pennsylvania
• SCCI of El Paso, 29 beds, El Paso, Texas
• SCCI of Fargo, 31 beds, Fargo, North Dakota
• SCCI of Harrisburg, 36 beds, Harrisburg, Pennsylvania
• SCCI of Houston Central, 40 beds, Houston, Texas
• SCCI of Lima, 26 beds, Lima, Ohio
• SCCI of Mansfield, 33 beds, Mansfield, Ohio
• SCCI of San Angelo, 28 beds, San Angelo, Texas
• SCCI of Victoria, 23 beds, Victoria, Texas

Triumph HealthCare is a privately owned hospital company, based in Houston, Texas, formed to develop and operate acute long-term care hospitals. Triumph hospitals specialize in providing services to medically complex patients for whom the short-term care hospital is no longer the most appropriate or cost-effective setting for necessary continued care.

Triumph’s hospitals focus on the medically complex patient. The staffing and technology have been designed to meet the unique needs of those who are catastrophically injured or chronically ill. Triumph HealthCare’s focus on the delivery of quality, comprehensive and cost-effective acute care services appeals to physicians, hospitals and insurance carriers. All Triumph Hospitals are fully accredited by the Joint Commission on Accreditation of Health Care Organizations.