Lillibridge selected to lead expansion efforts at Franklin Square Hospital Center

Construction to Begin Mid-2007

CHICAGO, Jul-12 2006 — MedStar Health, a not-for-profit, community-based healthcare organization that owns and operates seven major hospitals in the Baltimore / Washington area, has selected Lillibridge — one of the nation's largest private healthcare real estate firms — to provide program management services for the development of a new 350,000 square foot patient care tower on the campus of Franklin Square Hospital Center in Baltimore. Lillibridge will lead the expansion effort — from planning, design, and construction through occupancy. CON application is pending, and plans call for site preparation to start this year, with construction slated to begin mid-2007.

Lillibridge's services give Franklin Square Hospital Center the opportunity to fulfill robust community healthcare demand with a facility that offers greater patient privacy. A total of 35 additional and 256 replacement beds, all in single occupancy rooms, will be provided in the new patient tower. The project will also include the relocation and expansion of the emergency department, along with an 1,100-car parking structure.

Over the last six years, emergency room visits at Franklin Square Hospital Center vaulted 72 percent and hospital admissions escalated by 31 percent. Citing a need to accommodate community healthcare needs, Franklin Square Hospital Center President Carl J. Schindelar announced expansion plans in October 2005.

Acting as an extension of both MedStar Health and Franklin Square Hospital Center, Lillibridge has already begun managing a team of multidisciplinary professionals — healthcare providers, architects, engineers, contractors and suppliers — coordinating all efforts that lead to improved hospital facilities.

"Franklin Square Hospital Center is positioning itself to meet the needs of a growing community that is experiencing significant rebirth. We are seeing an influx of younger people as well as an established aging population that typically uses hospital services more," noted Schindelar. "Lillibridge's program management expertise places us in the essential position of allowing expansion while we uphold full operations. We will continue to make patients our top priority and be the hospital of choice for those seeking the highest quality healthcare," he added.

"We are pleased to expand our relationship with MedStar Health and its hospitals," said Todd W. Lillibridge, chairman and chief executive officer of Lillibridge. "Enabling our clients to address the needs of their patients and communities is at the heart of our mission."

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 across 40+ states - 6,000 physicians and hospital tenants - and 10 million square feet of medical property across the country. Headquartered in Chicago, Lillibridge has multiple regional offices and over 200 dedicated employees.

ABOUT MEDSTAR HEALTH, INC

MedStar Health is a not-for-profit, community-based healthcare organization that owns and operates seven major hospitals and other healthcare services in the Baltimore / Washington area. The hospitals, which include both teaching and community facilities, are Franklin Square Hospital Center, Good Samaritan Hospital, Harbor Hospital, and Union Memorial Hospital in Baltimore, Maryland, and Georgetown University Hospital, National Rehabilitation Hospital, and Washington Hospital Center in the District of Columbia.

ABOUT FRANKLIN SQUARE HOSPITAL CENTER

Franklin Square Hospital Center is a 357-bed facility providing a comprehensive array of services. Located in the White Marsh area of eastern Baltimore County, Franklin Square is the third largest hospital in Maryland. The hospital's primary service area includes an estimated population of 530,000 and includes parts of Baltimore City, Baltimore County and Harford County. Employing more than 2,800 employees, Franklin Square is one of the largest employers in Baltimore County.