Sentinel acquires Interim Healthcare in management buyout

Interim Healthcare represents Sentinel's third investment in the healthcare sector and sixth investment in the franchising industry

NEW YORK, May 24, 2006 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle-market companies, has acquired Interim Healthcare Inc., the nation's largest provider of home healthcare and supplemental health care staffing services. Based in Sunrise, Florida, Interim is the nation's oldest and best established healthcare franchise organization with an average owner tenure in excess of 23 years, more than 300 service locations in 39 states and Puerto Rico, more than $620 million in systemwide sales, and a committed workforce of 75,000 employees. The transaction closed on May 19, 2006.

"We seek to partner with talented managers of strong companies - in industries in which we have considerable experience – and to help them grow their businesses," said Paul Murphy, partner at Sentinel. "Interim is a market leader with a well-established and respected brand and a diversified mix of business and payors, and we are excited to be working with this outstanding management team to grow the company."

Allan Sorensen, Interim's Chief Executive Officer, said "With proven experience in the healthcare sector and with franchise organizations, both as franchisee and as franchisor, Sentinel understands our business well. With their strategic and financial support I am confident that our seasoned management team will take Interim to the next level."

"Key demographic trends are fueling growth in the home healthcare sector, and industry experts expect home healthcare to grow more than 40% in the next five years," said Jim Coady, partner at Sentinel. Added Coady, "With its solid business model, excellent management team and devoted franchisees and employees, few companies are better positioned than Interim to capitalize on this trend."

Sentinel has completed several transactions in both the franchising and healthcare sectors during the last two years. In May 2005, Sentinel and management acquired Metro Dentalcare, a leading regional dental clinic operator in the Minneapolis/St. Paul Twin Cities area. Also in May 2005, Sentinel sold Falcon Holdings, one of the largest franchisees in the worldwide chain of Church's Chicken restaurants, to its management team. And in June 2004, Sentinel sold Castle Dental Centers, a leading national dental clinic operator, to BrightNow! Dental.