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TA Associates Completes $175 Million Buyout of ALERE Medical Incorporated


4/3/2007 10:38:37 AM

BOSTON--(BUSINESS WIRE)--TA Associates, a leading buyout and private equity firm, is pleased to announce that it has partnered with management in a $175 million buyout of Alere Medical Incorporated, a leading disease management company.

Alere offers comprehensive disease management services, primarily to group health plans, for chronic, high-cost diseases, including asthma, chronic obstructive pulmonary disorder, coronary artery disease, diabetes and heart failure. The company employs a specialized, focused approach to population management that includes home biometric monitoring, pharmacy benefit management data monitoring, telephonic data collection and coaching, and focused physician communications. Through these programs, Alere reduces unnecessary hospitalizations, lowers healthcare costs and improves treatment compliance and member satisfaction. Alere covers more than 20 million commercially insured and 2 million Medicare insured individuals in 47 states, and has approximately 84,000 active enrollees. Headquartered in Reno, Nevada, Alere utilizes call centers in Reno; Columbus, Ohio; Denver, Colorado; and San Antonio, Texas. The company was founded in 1996.

"As healthcare spending continues to grow, disease management has become an important tool to drive down costs while improving the quality of life for enrollees," said Jennifer McAuliffe Mulloy, a Principal at TA Associates who will join the company's Board of Directors. "By focusing on the chronic diseases that account for a disproportionately high share of healthcare costs, Alere is able to provide customers with true savings and a measurable return on investment. The company has realized impressive growth and we look forward to working closely with Alere's experienced management team to continue that expansion."

"We are very pleased to partner with TA, which has a notable record of successful investments in the healthcare industry," said Ronald D. Geraty, MD, President and CEO of Alere Medical. "TA offers not only the financial structure we need, but also a management-friendly approach, strategic guidance and a significant network of contacts. We will utilize these resources as we seek to expand our product offering and further grow our customer base."

Overall healthcare spending in the U.S. is expected to grow from $1.3 trillion in 2000 to $2.8 trillion by 2011, according to Centers for Medicare and Medicaid Services, while the disease management industry expects an 18% compounded annual growth rate to $1.9 billion of revenue by 2008, according to a Boston Consulting Group report. According to the same report, as of 2005 only 21% of healthcare payers had disease management programs in place for the five most common chronic diseases.

"With healthcare costs rising, the disease management industry growing and the current market under-penetrated, Alere should continue an attractive growth trajectory," said Richard D. Tadler, a Managing Director at TA Associates who will also join the company's Board of Directors. "Opportunities for expansion exist in the employer market and government market through Medicare Advantage and Medicaid, as well as in expanded product offerings targeting other diseases and general wellness."

TA Associates has more than 39 years of investing experience, focusing on profitable growth companies. The firm has extensive expertise in the healthcare sector, including investments in Alma Lasers, American Access Care, CompBenefits Corporation, Coventry Health Care, Gulf South Medical Supply, Invitrogen Corporation, Logistics Health, MQ Associates, One Call Medical, Preferred Payment Systems, Triumph HealthCare and Youth and Family Centered Services.

Alere Medical Incorporated

Alere Medical Incorporated is a leader in specialized disease management services focusing on select high-cost diseases to maximize clients' return on investment. Alere produces unequalled clinical and cost-saving results by precision-targeting patients who will benefit most from specialty interventions. Alere's integrated care monitoring system identifies and monitors all medium- and high-risk patients, and prioritizes those patients to facilitate efficient workflow. With published outcomes that exceed those of any competitor, Alere Medical's disease management programs result in improved clinical outcomes for patients and guaranteed savings for clients.

Alere Medical has received NCQA Patient Oriented Full Accreditation for its heart failure disease management program, as well as for its coronary artery disease (CAD) program. The company has also received Patient and Physician Oriented Full Accreditation for its asthma and chronic obstructive pulmonary disorder (COPD) programs powered by National Jewish Research Center (2004-2007). For more information, visit www.alere.com or call (775) 829-8885.

TA Associates

Founded in 1968, TA Associates is one of the largest and most experienced private equity firms. With offices in Boston, London and Menlo Park, the firm manages $10 billion in capital and has invested in more than 370 companies. TA Associates provides management buyout, leveraged recapitalization and growth equity capital primarily for technology, financial services, business services, healthcare and consumer businesses. More information about TA Associates can be found at www.ta.com.

Safe harbor statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements made in connection with this release which are not historical fact, such as forward-looking statements concerning future financial performance and growth, involve risk and uncertainties. Such statements are subject to various factors that could cause actual results to differ materially from those set forth in the forward-looking statements. Any forward-looking statements represent the best judgment of TA Associates as of the date of this release. TA Associates disclaims any intent or obligation to update any forward-looking statements.

Contact:

TA Associates Marcia O'Carroll, 617-574-6796 mocarroll@ta.com or

Arnold Corporate Communications Philip Nunes, 617-587-8906 pnunes@arn.com

Source: TA Associates

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