News

Charterhouse Group Announces Sale of MP Totalcare
to Warburg Pincus

Warburg Pincus Also Purchasing CCS Medical to Form Leading Provider of
Direct-to-Consumer Medical Products and Services

New York, NY, October 3, 2005

Charterhouse Group, Inc. ("Charterhouse") today announced the sale of its portfolio company MP TotalCare Inc. ("MP TotalCare") to Warburg Pincus in a transaction valued at approximately $270 million, subject to certain adjustments. Warburg Pincus simultaneously purchased CCS Medical, Inc. for approximately $360 million, forming one of the nation's leading suppliers of direct-to-consumer medical products and services to help meet the needs and improve the quality of life for its customers.

Under Charterhouse's ownership, MP TotalCare had grown to be one of the nation's leading chronic care specialty healthcare suppliers serving the senior population. The Company provides diabetes testing supplies, wound care supplies, urological products, incontinence supplies and respiratory medications directly to its customers through the mail. MP TotalCare's mission has been to improve patient outcomes and quality of life through a comprehensive range of value-added services including: delivery of product to customers' homes; disease state education and counseling; a prescription regimen compliance program; and acceptance of Medicare and other governmental and third party payor assignment of benefits. MPTC also manages, on an outsourced basis, the pharmacy operations for third parties including national retail pharmacies, insurance companies and healthcare service providers.

The sale of MP TotalCare brings to a close a successful portfolio company build-up for Charterhouse Group. In 1999, Entrepreneur Howard Deutsch approached Charterhouse with the idea of purchasing MP TotalCare, then a $19 million revenue company focused almost exclusively on respiratory medications. Mr. Deutsch became familiar with the Company during his tenure with Lincare Holdings Inc., his former employer. Mr. Deutsch viewed the business as an ideal platform for consolidation in the specialty pharmaceutical and medical supplies distribution arena. Under his leadership and with Charterhouse's financial and strategic support, MP TotalCare subsequently completed eleven acquisitions between 2001 and 2004, diversifying its revenue base to include products and services for health conditions relating to incontinence, diabetes, urologicals, ostomy and wound care. Since 1999, MP TotalCare has grown tenfold and today it generates approximately $200 million in revenues. MP TotalCare's customer base has grown from approximately 5,000 customers when it was acquired to over 135,000 today. The leading companies that were part of MP TotalCare's consolidation included Express-Med, Inc., Medical Holdings, Inc. (DS Medical Inc.) and Gericare Providers, Inc.

The MP TotalCare strategy was consistent with Charterhouse's focus on sourcing investment ideas and opportunities through its entrepreneur relationships (developed through the Charterhouse Entrepreneur Program) and creating value through buy-and-build strategies. It is also representative of Charterhouse's focus on making investments in the Healthcare Services, Business Services and Consumer Products & Services sectors that may be oriented towards healthy living and wellness.

Jay Gates, Partner at Charterhouse, said, "Charterhouse's original vision was to use MP TotalCare as a platform to build a diversified health care provider to patients with chronic medical needs. Howard and his team have successfully weathered the challenges of integrating diverse entities and a dynamic regulatory reimbursement environment. The MP TotalCare team has brought our collective strategy to a very successful conclusion for both management and Charterhouse Group." Mr. Gates added, "We wish Howard and his entire team continued success and we extend our great appreciation for their terrific efforts over the last six years."

Proskauer Rose LLP served as legal advisor to Charterhouse and MP TotalCare in connection with the transaction.

Charterhouse Group, Inc. is a private equity firm with three decades of experience in building leading middle-market companies. Established in 1973, Charterhouse currently manages in excess of $1.7 billion in equity through several limited partnerships. Since its inception, Charterhouse has completed investments in over 90 platform companies with a focus in the Business Services, Healthcare Services and Consumer Products & Services sectors. For more information, please visit www.charterhousegroup.com.

Contacts:

Charterhouse Group, Inc.
Jay Gates, Partner - (212) 584-3223
William Landuyt, Senior Partner - (212) 584-3216

Charterhouse Group, Inc.
535 Madison Avenue (at 54th St.)
28th Floor
New York, NY 10022-4299
T: (212) 584-3200
F: (212) 750-9704
www.charterhousegroup.com