Pathology Partners Completes Recapitalization With Caris, Ltd.

IRVING, Texas, May 26 /PRNewswire/ -- Pathology Partners Inc., the industry leader in comprehensive gastrointestinal (GI) diagnostic services and technology support systems, and Caris, Ltd., an investment partnership founded by David D. Halbert, founder and former Chairman and CEO of AdvancePCS, today announced that Caris has completed a $120 million recapitalization of Pathology Partners and has become a majority shareholder in the company. The cash proceeds of this transaction, net of transaction expenses, have been used to redeem the equity securities held by Pathology Partners' early investors, including Sprout Group, Salix Ventures and Alliance Technology Ventures. Current management is retaining a minority interest in the company.

"On behalf of Pathology Partners and the entire team of employees, we are extremely pleased to welcome Caris into our company," said Stephen L. Spotts, President and CEO of Pathology Partners. "David and his team have a strong track record of growing successful companies and also bring extensive experience in the health care industry. We share a common vision for improving the health care system through the delivery of higher quality services that provide the most efficient allocations of limited health care expenditures."

Pathology Partners was formed in 1996 with the express purpose of delivering superior pathology diagnostic services with a GI emphasis to physicians and patients. Pathology Partners physicians and the team work together to improve patient diagnoses and care for its clients, the over 1,200 GI physicians and their staff who utilize the company's services. The programs uniquely integrate pathology diagnostic services with state-of-the- art technology and business solutions, including its proprietary IntelliPATH and PathConnect! solutions.

"We see Pathology Partners as the premier platform on which to build the next true health improvement company. With the impending advent of personalized medicine which will be based upon the diagnostic results generated by companies like Pathology Partners, we see great potential to truly improve the quality of health care delivered in this country, resulting in higher-quality of life and life extension," commented David D. Halbert, now Chairman of the Board of Pathology Partners. "The company's exceedingly high level of service quality, remarkable growth rates, and truly dedicated and energized group of employees formed a very compelling partnership proposition for us. From the moment we met Pathology Partners, we were extremely impressed by the alignment of philosophies that we shared with their team."

Pathology Partners is led by an experienced management group that includes Stephen L. Spotts, Everett K. Truitt and Daniel A. Irons, MD. Mr. Spotts will continue in his role as President and CEO, while Mr. Truitt will continue in his role as Senior Vice President of Finance and Chief Financial Officer. The company's clinical focus is led by Dr. Irons, Medical Director, who directs the thirteen full-time pathologists who comprise the largest group of specialty-trained GI pathologists practicing as a group in the U.S.

About Pathology Partners Inc.

Pathology Partners provides superior GI diagnostic services to physicians who treat patients in an ambulatory setting. The company leads the industry in the number of sub-specialty fellowship and expert trained pathologists in gastrointestinal and liver pathology. Additionally, Pathology Partners provides constant, dependable specimen processing and reporting within 48 hours. Each report includes detailed diagnostic descriptions and color images in an easy-to-read, concise and complete format. More than 1,200 GI physicians nationally use Pathology Partners. Formed in 1996, Pathology Partners is headquartered in Irving, Texas. Additional information is available at , or by calling 214-277-8700.

About Caris, Ltd.

Caris, Ltd. is a privately held investment partnership, with approximately $350 million of assets under management. Caris makes long-term, strategic investments principally in the private marketplace. Targeted sectors for Caris include health care, energy and financial services. Caris brings a successful track record of building sustainable business enterprises and partnering with management teams. Further information on the company is available at , or by calling 972-590-2100.

Amanda Borichevsky Vollmer Public Relations 972-488-4790

Pathology Partners Inc.

CONTACT: Amanda Borichevsky of Vollmer Public Relations,+1-972-488-4790, or , for Pathology Partners Inc.

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