March 8, 2007

SAINT CLARE’S HEALTH SYSTEM JOINS CATHOLIC HEALTH INITIATIVES (CHI)

Saint Clare’s to Partner with National Catholic Healthcare Company
to Ensure Future Growth and Success

MORRIS & SUSSEX COUNTY, NJ — March 8, 2007 — Saint Clare’s Health System, northwest New Jersey’s largest community health system, announced today that it has entered into an agreement to become a member organization of Denver-based Catholic Health Initiatives (CHI), one of the nation’s leading faith-based healthcare ministries with member health organizations in 19 states. Subject to the board approval of CHI and of Marian Health System, Saint Clare’s current corporate parent, along with completion of due diligence and regulatory approval, the effective date of the partnership will be June 2007.

Saint Clare’s worked alongside Chicago-based Juniper Advisory, one of the leading healthcare strategic consultants, to structure the best possible solution to meet the goals of the strategic initiatives announced this past summer.  “After intensive discussions with a number of leading national organizations, we are honored to partner with Catholic Health Initiatives and pleased to work with them in furthering the mission of Catholic-based healthcare here in New Jersey,” said Gary J. Blan, President and CEO of Saint Clare’s Health System. “Both CHI and Saint Clare’s share a common mission to serve the sick and vulnerable, making this ‘marriage’ a natural fit for our organizations. We are confident that this new relationship will be beneficial for our employees, patients and our community, and provide us the ability to continue to meet the demands of our neighbors both now and in the future. CHI recognized the highly regulated and dynamic business environment facing hospitals in New Jersey, but saw the long-term potential of partnering with us to serve the community with the care and compassion inherent in quality, faith-based healthcare.”

Catholic Health Initiatives’ goal is to nurture the healing ministry of the Catholic Church by bringing it new life, energy and viability, and to create a national Catholic ministry that will transform healthcare delivery. CHI’s efforts reach beyond the walls of its member facilities through efforts to build healthier communities. In collaboration with members of the community and other healthcare providers, CHI strives to create values-based, forward-looking models of community health.

“Catholic Health Initiatives thrives as a vibrant ministry ready to provide compassionate care to the minds, bodies and spirits of the thousands of patients who seek care at our member organizations each year. We are pleased to welcome Saint Clare’s Health System into CHI as they help us to extend the reach of our ministry,” says Kevin E. Lofton, President and Chief Executive Officer of CHI. “The extensive synergies between our organizations, in mission, vision and values, is amazing and this partnership promises to further the healing missions of both organizations.”

Saint Clare’s will become CHI’s first New Jersey-based regional health system. In 19 states, CHI’s healthcare ministry is comprised of 71 hospitals, including 20 with the critical access designation; 42 long-term care facilities, assisted-living facilities and residential units; and 2 community-based health organizations. CHI member organizations currently operate in Arkansas, Colorado, Idaho, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Washington and Wisconsin. CHI represents approximately 65,000 employees and total revenues of $7.6 billion. Headquartered in Denver, Colorado, it is the second largest Catholic health system in the United States, and is operated as an equal religious/lay partnership.

Saint Clare’s Health System, a ministry of the Sisters of the Sorrowful Mother, has served the healthcare needs of northwestern New Jersey residents since 1895 and is the region’s premier provider of community-based healthcare and behavioral health services. It operates four hospital campuses in Boonton Township, Denville, Dover and Sussex and a host of other facilities throughout the region. With 3,500 employees, over 700 volunteers and a medical staff of over 700, Saint Clare’s is one of its region’s largest employers and its largest provider of comprehensive healthcare services. Saint Clare’s offers a full range of comprehensive medical services, including maternal/child health, cancer care, cardiovascular care, emergency services, pediatrics, behavioral health, general and robotic surgery, joint replacement, and physical rehabilitation.

For more information on Saint Clare’s Health System, its programs or services, call-1-866-STCLARE (866-782-5273). Additional information about Catholic Health Initiatives is available at www.catholichealthinitiatives.org.

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