CHICAGO, May 26, 2004 - The Corporate Finance unit of GE Healthcare Financial Services strengthened its commitment to the healthcare industry by arranging $203.9 million in financing for healthcare organizations in the first quarter of 2004, more than five times the amount it committed in the first quarter of 2003.

This surge in financing greatly contributed to the company's overall first quarter growth and was in response to the industry's recent reimbursement and economic rebound that has helped a growing number of healthcare companies refinance, add more debt to their balance sheets and extract cash so they can provide a return to their equity investors. Many companies also are increasingly pursuing mergers and acquisitions. In fact, acquisitions accounted for about $150 million of GE Healthcare Financial Service's first-quarter transactions.

"When a lot of other lenders were sitting on the sidelines during the past few years of this difficult market, GE Healthcare Financial Services continued to seek out financing opportunities," said Robert McCarrick, senior vice-president of corporate finance for GE Healthcare Financial Services. "Our commitment and experience in this industry has positioned us to benefit from what is likely to be a long-term upswing in demand for healthcare lending."

In one recent transaction, GE Healthcare Financial Services provided a $54 million credit facility to finance the ongoing operations of Sterling Healthcare, formerly PhyAmerica Physician Group, which Resurgence Asset Management LLC and Dr. Stephen Dresnick, MD, FACEP, bought out of bankruptcy.

"GE Healthcare Financial Services responded rapidly to our changing financing needs as we negotiated for the purchase of PhyAmerica," said Byron Haney, managing director of Resurgence Asset Management. "Their speed and efficiency made the financing process virtually seamless."

In another recent transaction, GE Healthcare Financial Services provided a $20 million senior secured credit agreement to Pediatric Services of America Inc. The financing consists of a $10 million revolving credit facility and a $10 million acquisition credit facility. The company also has participated in financing arrangements for such companies as VWR International, a distributor of research laboratory supplies; Radiation Therapy, which runs outpatient radiation therapy treatment centers; Multiplan, a PPO provider; and Express Scripts, a pharmacy benefits manager.

GE Healthcare Financial Services, a unit of GE Commercial Finance, is a provider of capital, financial solutions, and related services for the global healthcare market. With over $13 billion of capital committed to the healthcare industry, GE Healthcare Financial Services offers a full range of capabilities from equipment financing and real estate financing to working capital lending, vendor programs, and practice acquisition financing. With its knowledge of all aspects of healthcare from hospitals and long-term care facilities to physicians' practices and life sciences, GE Healthcare Financial Services works with customers to create tailored financial solutions that help them improve their productivity and profitability. For more information, visit .

Media Contacts

Deia Campanelli
GE Healthcare Financial Services
312-441-6169