Consorta Announces Record Net Income And Shareholder Return

SCHAUMBURG, Ill., Dec. 12 /PRNewswire/ -- Consorta Inc., a leading group purchasing and resource management organization in the healthcare industry, today announced revenue of $69.4 million for the year ending June 30, 2005, a 20 percent increase over the prior year. The company reported net income for fiscal year 2005 of $49 million, up 21 percent from fiscal year 2004. This marks the seventh consecutive year that Consorta has delivered double digit income growth and increased profitability. Consorta shareholders received 76.3% back for every revenue dollar received in 2005, paid in cash.

"We closed out a record fiscal year with strong revenue growth driven by healthy new member growth, and a 14 percent increase in purchase volume from existing members," said John Strong, president and chief executive officer of Consorta. "We are extremely pleased with our 2005 results, which reflect increased member participation and contract compliance, as well as increased interest in our overall portfolio of contracts and services.

"Consorta's success in helping manage supply costs for our members, a majority of which are faith-based or non-profit health systems, has resulted in cash returns of more than $400 million during the past seven years," added Strong. "The continued success of our business strategy and our innovative approach to supply chain management continues to drive healthy growth and build shareholder value. These results provide solid momentum heading into fiscal 2006, which is shaping up to be a strong year for growth as well. In fact, first quarter results for fiscal year 2006 reflect growth in income of more than 30 percent over fiscal year 2005."

Operational Highlights -- Total revenue grew to $69.4 million, up from $58.0 million in fiscal year 2004, an increase of 20 percent. -- Consolidated net income for the year was $49.0 million, up from $40.5 million in fiscal year 2004. The 21 percent year-over-year growth is also higher than Consorta's three-year historical average of 16 percent annual net income growth. -- Consorta's rate of return grew to 76.3 percent in fiscal year 2005, up from 75 percent in the prior year. Consorta believes this is the highest rate of return of any major group purchasing organization in the country. About Consorta, Inc.

Consorta, based in Schaumburg, Ill., is a leading healthcare resource management and group purchasing organization whose shareholders are faith- based or non-profit health systems. Consorta's 13 shareholder healthcare systems represent 60 percent of all Catholic hospitals in the United States, and are among the leading integrators of non-profit healthcare in America. Consorta's membership now encompasses more than 2,400 care sites representing 78,000 patient care beds. This includes more than 500 acute and over 300 extended care facilities throughout the country. Consorta, Inc. is located at 1475 E. Woodfield Road, Suite 400, Schaumburg, Illinois 60173. Phone (847) 592-7800, Fax: (847) 592-7801. Web site: http://www.consorta.com .

FACT SHEET

For more information, visit our Web site at http://www.consorta.com or contact Debra Lynn Ross, Director, Corporate Communications, at 847/592-7800.

Consorta, Inc.

Founded in 1998 as a cooperative, Consorta's shareholders and participants share fully in the organization's bottom-line performance and receive significant discounts through scale purchasing economies. Consorta has strong committed member involvement with a focus on providing meaningful benefits through resource management and cash returns. During fiscal year 2005, Consorta members received a total of $104 million in cash returns, an increase of 10% percent over fiscal year 2004. For every revenue dollar, 76 cents was returned directly to health providers. Consorta Shareholders recoup their initial investment in the cooperative many times over.

Consorta offers aggressive management of total supply spend for acute and non-acute care facilities. Procurement analytics and actionable reports are derived through powerful data warehouse and global catalog applications.

Consorta's portfolio of Resource Management tools is extensive, ranging from Strategic Value Management and Technology Assessment to Environmentally Preferred Purchasing and an array of educational tools. These services and programs are developed with clinical leaders from within the Consorta membership and are designed to enable shared accountability for health system cost effectiveness and quality through evidence-based clinical, operational and financial practices.

-- Based in Schaumburg, Illinois. -- Annual purchasing volume exceeded $4.2 billion in Fiscal Year 2005. -- Complete contract portfolio with programs to support alternate care, cardiovascular, med/surg, laboratory, pharmacy, food service, facilities, imaging, dietary and capital equipment. Targeted "group buy initiatives" provide significant savings opportunities for major patient care and diagnostic equipment purchases. -- The core values of Creativity, Respect, Integrity, Excellence and Social Responsibility serve as our guiding principles. Consorta participants comprise: 520+ acute care facilities, representing more than 54,372 acute care beds 300+ extended care facilities, representing 24,320 beds 1,650+ non-acute sites of care Consorta Shareholder organizations are: Ascension Health, St. Louis, MO Caritas Christi Health Care, Boston, MA Catholic Health East, Newtown Square, PA Catholic Health Initiatives, Denver, CO Hospital Sisters Health System, Springfield, IL Ministry Health Care, Milwaukee, WI Provena Health, Frankfort, IL Saint Clare's Health System, Denville, NJ Sisters of St. Francis Health Services, Mishawaka, IN St. John Health System, Tulsa, OK Trinity Health, Novi, MI Via Christi Health System, Wichita, KS Wheaton Franciscan Services, Inc., Wheaton, IL Consorta Direct Affiliates are: Alliance for Children and Families, Milwaukee, WI Ancilla Systems, Hobart, IN Benedictine Health System, Duluth, MN Carmelite System for the Aged and Infirm, Germantown, NY Catholic Community Care, Cleveland, OH Catholic Charities, USA, Alexandria, VA Franciscan Sisters of Chicago Services Corp., Chicago, IL Lutheran Metropolitan Ministry of Cleveland, Cleveland, OH Lutheran Social Services of Illinois, Des Plaines, IL Marshfield Clinic, Marshfield, WI National Human Services Assembly, Washington, D.C. St. Francis Healthcare System of Hawaii, Honolulu, HI Additional Owned, Managed or Sponsored by our Shareholders include: Affinity Health System, Appleton, WI All Saints Health Care System, Racine, WI Borgess Health Alliance, Kalamazoo, MI Caritas Health Services, Louisville, KY Carondelet Health Network, Tucson, AZ Centura Health, Denver, CO Columbia - St. Mary's Health System, Milwaukee, WI Covenant Healthcare System, Milwaukee, WI Covenant Health System, Waterloo, IA Franciscan Health System, Tacoma, WA Howard Young, Woodruff, WI Holy Family Health Services, Manitowoc, WI Marianjoy Rehabilitation Hospital, Wheaton, IL Mercy Health Network, Des Moines, IA Mount Carmel Health System, Columbus, OH Munson Health Care, Traverse, MI Seton Health Partners, Austin, TX St. John Health System, Detroit, MI St. Vincent Health Care, Indianapolis, IN United Hospital System, Kenosha, WI

CONTACT: Debra Lynn Ross, Director, Corporate Communications of Consorta,Inc., +1-847-592-7800, or dross@consorta.com

Web site: http://www.consorta.com/