Lillibridge purchases 327,400 sf medical office building portfolio in Kalamazoo, Michigan

CHICAGO, Mar-16 2005 — Lillibridge, one of the nation's largest private healthcare real estate firms, has acquired a medical office building portfolio from Borgess Health Alliance in Southwest Michigan.

Borgess Health Alliance, with acute care hospitals serving southwest Michigan, is a member of St. Louis-based Ascension Health, the largest non-profit healthcare system in the country with 67 hospitals in 20 states and the District of Columbia, over 100,000 associates and assets of $11 billion.

"We're excited to work with Borgess Health Alliance in Kalamazoo and to enter the southwestern Michigan market," said Todd W. Lillibridge, chairman and chief executive officer of Lillibridge.

FIRST-CLASS ASSETS IN A GROWING MARKET

These "Class A" assets are on and off the campus of the Borgess Medical Center in Kalamazoo. The acquisition includes four on-campus buildings and three off-campus buildings, including a health and fitness center. All Borgess services and programs currently provided at the sites will continue without interruption.

Borgess Health Alliance, founded in 1889, was the first hospital established in Kalamazoo. The city itself is located halfway between Detroit and Chicago with an approximate population in the metropolitan area of 202,000. "Proceeds from the buildings will be used to invest in technology, equipment, programs and services to support community healthcare needs," said Pat Dyson, interim president and chief executive officer of Borgess Health Alliance.

EXPANDING NATIONAL PRESENCE

This acquisition is Lillibridge's first foray into the Kalamazoo market, further expanding its Midwest holdings and national presence. Lillibridge recently acquired building portfolios from other Ascension Health Ministries: SETON Healthcare Network in Austin, Carondelet Health in Kansas City, and St.Vincent Health in Indianapolis. Lillibridge is currently developing new medical office buildings to enhance its market share.

ABOUT LILLIBRIDGE

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 — buys and develops medical office and outpatient / ambulatory care facilities; provides program management services to build and/or renovate inpatient / acute care hospitals; offers strategic leasing and comprehensive development services; provides asset and property management services; and advises 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; 6,000 physicians and hospital tenants; and 10 million square feet of properties across 40+ states. Headquartered in Chicago, Lillibridge has three regional offices and local offices in 25 markets.

ABOUT BORGESS HEALTH ALLIANCE

Borgess Health Alliance is a member of Ascension Health, which is headquartered in St. Louis, Missouri. Borgess Health Alliance is a comprehensive healthcare network that offers a complete continuum of services including nationally recognized programs in cardiovascular services, neurosciences and orthopedics, and has a history of innovation within the surgical community. Borgess Health Alliance has facilities in 15 communities throughout southwestern Michigan with 140 sites of care and 67 satellite clinics.

Divisions of Borgess Health Alliance include the 424-bed Borgess Medical Center in Kalamazoo — a regional tertiary hospital; Borgess-Lee Memorial Hospital in Dowagiac — a critical access hospital; Borgess-Pipp Hospital in Plainwell — that includes a 24-hour emergency department, birthing suites, outpatient surgery, and long-term acute care beds; Borgess Research Institute — nationally recognized and the only comprehensive and centralized clinical research program in southwest Michigan; Borgess at Woodbridge Hills, Borgess Nursing Home, Borgess — Visiting Nurse and Hospice, Borgess — VHA Home Care, Borgess Foundation, ProMed Healthcare, and several other medical facilities.