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MedCath Plans 60-bed Expansion at TexSAn Heart Hospital

Tuesday, February 12, 2008 General News J E 4
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CHARLOTTE, N.C., Feb. 11 MedCath Corporation(Nasdaq: MDTH) and its physician partners today announced plans to double thenumber of inpatient beds at TexSAn Heart Hospital, San Antonio, Texas,creating a 120-bed acute care and heart hospital.

The expansion will convert approximately 36,130 square feet of shelledspace into 60 inpatient beds, which will be used to expand the hospital'scardiovascular services and to accommodate other high-acuity services. Projectcost will total approximately $10.75 million. Opening of the new section isscheduled for fall of 2008.

MedCath will make an additional equity investment in TexSAn related to theexpansion, which will increase MedCath's ownership stake from 51.0% to 66.57%.

"The cost effective build-out of shelled space in selected markets is oneof the key elements of our strategic growth plan," said Ed French, MedCath'sPresident and Chief Executive Officer. "This expansion will provide neededcapacity for our growing cardiovascular program as well as provide vitaladditional high-acuity services to the San Antonio area. A part of ourcompany-wide strategy is to diversify services in several markets whilecontinuing to expand our core competencies in heart care, and TexSAn's successand expansion is the best example of our continuing to move decidedly forwardin meeting that goal."

The TexSAn plans follow a similar announcement last year at MedCath'sArkansas Heart Hospital, which converted 18,900 square feet of shelled spaceinto 28 inpatient beds. The additional inpatient beds at Arkansas HeartHospital became operational late January 2008.

"With today's announcement of the expansion of TexSAn Heart Hospital, wehave announced in the last ten months expansion and development projects thatwill increase our consolidated bed count by over 50%," said French. "We areextremely pleased with the progress that we're making in growing our Companyand expanding our services to a larger patient population."

TexSAn, opened in January 2004, is a licensed acute care facility with aprimary focus on providing leading cardiovascular care to the Southwest Texasregion. The hospital features four operating suites, four cardiaccatheterization labs, a 10-bed day-patient area and an emergency department.

MedCath Corporation, headquartered in Charlotte, N.C., is a healthcareprovider focused on high acuity services with the diagnosis and treatment ofcardiovascular disease being a primary service offering. MedCath owns aninterest in and operates ten hospitals with a total of 663 licensed beds,located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, SouthDakota, and Texas. In addition, MedCath and its subsidiary MedCath Partnersprovide services in diagnostic and therapeutic facilities in various states.

Parts of this announcement contain forward-looking statements that involverisks and uncertainties. Although management believes that these forward-looking statements are based on reasonable assumptions, these assumptions areinherently subject to significant economic, regulatory and competitiveuncertainties and contingencies that are difficult or impossible to predictaccurately and are beyond our control. Actual results could differ materiallyfrom those projected in these forward-looking statements. We do not assume anyobligation to update these statements in a news release or otherwise shouldmaterial facts or circumstances change in ways that would affect theiraccuracy.

These various risks and uncertainties are described in detail in "RiskFactors" in MedCath's Form 10-K filed with the Securities and ExchangeCommission on December 14, 2007. A copy of this registration statement,including exhibits, is available on the internet site of the Securities andExchange Commission at http://www.sec.gov.

SOURCE MedCath Corporation
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