Lillibridge acquires Mediplex Medical Building Corporation (MMBC)

CHICAGO, Apr-5 2005 — Lillibridge, one of the nation's largest private healthcare real estate firms, announced today that it has acquired the assets of Mediplex Medical Building Corporation (MMBC) of Plano, Texas. Todd W. Lillibridge, chairman and chief executive officer of Lillibridge, and Al Seeley, chairman and chief executive officer of MMBC, made the announcement.

"To meet unprecedented market demand for outpatient healthcare services and new facility construction, MMBC was the right choice to significantly enhance our in-house development resources, said Mr. Lillibridge. We are pleased to provide an even broader range of capabilities to our customers.

"With the addition of MMBC's seasoned professional staff, Lillibridge has greatly increased its capacity to respond to customers' needs for complex development projects — from planning and feasibility to architectural services, leasing, construction management, funding, activation, and ongoing property management," added Mr. Lillibridge.

Complementing Lillibridge's strengths as a national provider of healthcare real estate solutions, MMBC plans and develops outpatient facilities such as primary care centers, ambulatory surgery centers, medical office buildings, medical malls, freestanding diagnostic and treatment facilities, women's / men's health centers, and clinics.

The combined volume of construction projects in various stages of completion exceeds $200 million, with a dedicated development staff of over 40 professionals.

"Together, we have a track record of over 150 successfully completed development projects and a stellar reputation as a trustworthy partner earned over 29 years in the business," said Mr. Seeley. "With Lillibridge, our valued customers will have access to a broader array of healthcare real estate services from advisory services to monetization of existing assets, inpatient program management and onsite property management."

STRONG CULTURAL FIT

"We're excited about the future because of the complementary business fit between our respective product lines and the strong cultural fit between our organizations," added Mr. Lillibridge. "This acquisition represents a continuing commitment to our customers to provide best in class healthcare real estate services nationwide," said Mr. Seeley. "The evolution of our firm has been consistent with the growth of the healthcare industry. And, like Lillibridge, we place great value on customer service and long-term relationships."

BENEFITS FOR HEALTHCARE CUSTOMERS

"At this critical juncture in the evolution of healthcare delivery, our customers need a partner that not only has depth of experience and geographic reach to service their needs, but is connected to the industry — able to anticipate change, provide innovative solutions, and invest capital and resources to capture opportunities for the benefit of hospitals, physicians, and patients. Lillibridge will build smarter buildings, ‘destination' locations, and facilities with inherent modularity and flexibility consistent with the dynamic healthcare market," said Mr. Lillibridge.

"Greater flexibility and a broader range of services will enable Lillibridge to deliver more options to customers more efficiently. And, with the ability to provide more aspects of the development process in-house, total costs are reduced with the savings passed on to the tenants in the form of lower rental rates. As construction costs have continued to escalate, meaningful savings achieved through more efficient processes are imperative," added Mr. Seeley.

CRITICAL JUNCTURE IN THE EVOLUTION OF HEALTHCARE DELIVERY

Fueled by the twin engines of relentless technological innovation and consumer demand for healthcare services, the growth of the outpatient healthcare delivery model has significantly outpaced inpatient healthcare delivery growth for the last decade — and strong performance is projected for the next decade.

Today, hospitals and healthcare systems have an opportunity to capture market share and attract physicians with an outpatient delivery model funded through joint ventures with suppliers, physicians, and real estate developers, thereby preserving the hospitals' balance sheet and cash flow. Transforming the patient experience and taking costs out of the system, the new outpatient delivery model addresses a broad array of disease conditions, provides a mix of services such as labs, imaging, and screening, and is easily accessible and convenient for patients, families and clinicians / physicians.

ABOUT LILLIBRIDGE

Based in Chicago, Lillibridge provides real estate services and capital exclusively to hospitals and healthcare systems. As "The Total Healthcare Real Estate SolutionSM" the company offers a full complement of capabilities — acquiring and developing medical office and outpatient / ambulatory care facilities, providing program management services to build and/or renovate inpatient / acute care hospitals, offering strategic leasing and comprehensive development services, providing asset and property management services, and advising clients on a wide variety of strategic, financial, and operational real estate issues.

Lillibridge's national scope encompasses more than 250 hospitals and healthcare systems as clients, 6,000 physicians and hospital tenants, and 10 million square feet of properties across 15 states. The firm has a growing staff of over 180 professionals. With local offices in 29 markets, Lillibridge will add a third regional office at MMBC's Plano location.