MDTH Medcath Corp. (MM)

CHARLOTTE, N.C., Oct. 26 /PRNewswire-FirstCall/ -- MedCath Corporation (NASDAQ:MDTH) announced today the offering of 6,000,000 shares of its common stock. MedCath intends to offer 1,700,000 shares of its common stock and Kohlberg Kravis Roberts and Co. and Welsh, Carson, Anderson & Stowe and their affiliates intend to offer 4,300,000 shares of MedCath's common stock. The net proceeds of the shares sold by MedCath will be used to repurchase a portion of its outstanding 9.875% senior notes due July 15, 2012, including associated premiums and expenses, and for working capital and other corporate purposes. Citigroup Global Markets Inc., Wachovia Capital Markets, LLC, and Deutsche Bank Securities, Inc., are acting as joint book-running managers for the underwritten offering. In addition, Banc of America Securities LLC, Raymond James & Associates, Inc. and Stephens Inc. are acting as co-managers for the offering. This press release is not an offer to sell nor is it a solicitation of an offer to buy any securities. Any offers, or solicitations to buy, will be made solely by means of a prospectus filed with the Securities and Exchange Commission. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. A written prospectus, when available, may be obtained by contacting Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (tel: 718-765-6732); or from Equity Syndicate Department of Wachovia Capital Markets, LLC, 375 Park Avenue, 4th Floor, New York, New York 10152 (Email: ); or from Deutsche Bank Securities Inc. at 60 Wall Street, New York, New York 10005, (tel: 212-250-2500). MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused primarily on the diagnosis and treatment of cardiovascular disease. MedCath focuses on serving the unique needs of patients suffering from cardiovascular disease. MedCath owns interests in and operates eleven hospitals with a total of 667 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition, MedCath manages the cardiovascular program at various hospitals operated by other parties. Further, MedCath provides cardiovascular care services in diagnostic and therapeutic facilities located in various states. Included herein are forward-looking statements, including statements with respect to an anticipated financing. There are many factors that affect management's views about future events and trends of the business and operations of MedCath as described in MedCath's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking information made in this release or any of its public filings. DATASOURCE: MedCath CONTACT: O. Edwin French, President & Chief Executive Officer, +1-704-708-6600, or James E. Harris, Chief Financial Officer, +1-704-708-6600, both of MedCath Web site: http://www.medcath.com/

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