Parent Company of Renal Advantage Inc. Signs Definitive Agreement with National Renal Alliance

Combined Company Will Own and Operate 136 Dialysis Facilities in 18 States and Serve 10,500 Patients Annually

BRENTWOOD, Tenn.--(BUSINESS WIRE)--RA Group Holdings, Inc. (RAGH), the parent company of Renal Advantage Inc. (RAI), the third largest for-profit provider of dialysis services in the United States, today announced that RAGH has signed a definitive agreement to acquire Franklin, Tennessee-based National Renal Alliance, LLC (NRA). The transaction is expected to close by year-end. Terms of the transaction were not announced.

Founded in 2002, NRA owns and operates 45 dialysis facilities in 10 states, primarily in the Midwest and Southeast United States, and serves over 2,200 patients. NRA has annualized revenues of approximately $100 million. Upon completion of the transaction, RAGH, through its operating companies, will serve approximately 10,500 patients in 136 dialysis centers in 18 states. Laboratory services to its dialysis centers as well as to the renal dialysis industry are also provided through its wholly owned laboratory, RenaLab, located in Jackson, Mississippi.

Michael D. Klein, Chief Executive Officer of Renal Advantage, said, “We are very excited about this opportunity as it brings together two highly compatible organizations that share similar cultures, philosophies and standards of excellence. We look forward to working with National Renal Alliance to achieve a seamless integration so that patients and their caregivers can continue to receive the best experience possible.”

Joseph A. Cashia, founder and Chief Executive Officer of National Renal Alliance, added, “We believe this transaction is in the best interests of our patients and associates. It provides an opportunity to realize the value of our assets and leaves our associates in the hands of a trusted employer and proven provider. I have great respect for RAI’s management team, and I trust them to continue to carry out our stated mission, which emphasizes strong loyalty to local autonomy, physician leadership, hospital alliances and clinical excellence.”

Advisors:

Raymond James & Associates served as financial advisor to RAGH with respect to the transaction, and Ropes & Gray LLP acted as RAGH’s legal advisor. Bass, Berry & Sims PLC acted as NRA’s legal advisor with respect to the transaction.

About Renal Advantage Inc.:

Based in Brentwood, Tennessee, RA Group Holdings, Inc., through its wholly owned entity, Renal Advantage Inc., provides dialysis services to patients with chronic kidney failure, also known as end-stage renal disease (ESRD). Renal Advantage provides services to over 8,200 patients in 91 dialysis centers in California, Florida, Georgia, Illinois, Maryland, Michigan, Nebraska, North Carolina, South Carolina and Virginia. RAI also delivers laboratory services through RenaLab, a state-of-the-art independent clinical laboratory located in Jackson, Mississippi. Founded by veteran healthcare executives, RAI’s growth plan began with its acquisition of 73 dialysis centers in October 2005, which was financed in partnership with Welsh, Carson, Anderson & Stowe. For more information, visit RAI’s website at www.renaladvantage.com.