MDTH Medcath Corp. (MM)

CHARLOTTE, N.C., Dec. 22 /PRNewswire-FirstCall/ -- MedCath Corporation (NASDAQ:MDTH) today announced that its wholly-owned subsidiary, MedCath Holdings Corp. ("MedCath Holdings"), has commenced an offer to purchase at par up to $30,330,000 in aggregate principal amount of 9 7/8% senior notes due 2012 issued by MedCath Holdings (the "Notes") under the terms of the indenture governing the Notes (the "Indenture"). MedCath Holdings expects to pay for Notes validly tendered (and not withdrawn) with the net proceeds from asset sales that have occurred over the past 12 months. Holders that validly tender (and do not withdraw) their Notes prior to the expiration of the offer will receive 100% of the principal amount of the Notes plus accrued and unpaid interest, if any, thereon up to and including the date of payment, subject to the terms and conditions of the offer. The offer will expire at 5:00 p.m., New York City Time, on January 23, 2006, unless extended. Questions regarding the Offer and requests for documents may be directed to U.S. Bank National Association (800)934-6802, the depositary for the offer. This announcement is not an offer to purchase or a solicitation of an offer to sell the Notes or any other security. The tender offer is being made solely by means of the Offer to Purchase and related letter of transmittal which MedCath Holdings has prepared in connection with the offer. MedCath Corporation, headquartered in Charlotte, N.C., develops, owns and operates hospitals in partnership with physicians, most of whom are cardiologists and cardiovascular surgeons. While each of its hospitals is licensed as a general acute care hospital, MedCath focuses on serving the unique needs of patients suffering from cardiovascular disease. Together with its physician partners who own equity interests in them, MedCath owns and operates 12 hospitals with a total of 727 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota and Texas. In addition to its hospitals, MedCath provides cardiovascular care services in diagnostic and therapeutic facilities located in various states and through mobile cardiac catheterization laboratories. DATASOURCE: MedCath Corporation CONTACT: John T. Casey, Chairman and Chief Executive Officer, or James E. Harris, Chief Financial Officer, both of MedCath Corporation, +1-704-708- 6600 Web site: http://www.medcath.com/

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