TORONTO, Sept. 1 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare company, today announced that it has acquired the business of Community Advantage Rehabilitation Inc. ("CAR"). CAR is a privately held Home Care company specializing in the delivery of occupational therapy, physiotherapy, social work and dietitian services to adults and children in their homes and schools.

The total consideration to be paid for the acquisition will be approximately $2.0 million, consisting of $500,000 of cash and the balance to be settled by way of approximately 2.1 million shares in Centric Health, issued in equal tranches, subject to the business attaining $1.5 million of EBITDA(1) over a three year period. The transaction is expected to be accretive to Centric Health's earnings per share in 2011. Centric has also issued warrants to the vendors which are exercisable at the end of three years, for up to one million shares of Centric Health, depending upon how the business outperforms on the EBITDA target.

"The acquisition of CAR represents a valuable strategic investment for Centric Health," said Dr. Jack Shevel, Chairman and Interim President and Chief Executive Officer of Centric Health Corporation. "It is the first major step in developing the Company's Homecare platform and adds valuable expertise that will allow us to grow this division organically, as well as through other mergers and acquisitions".

The acquisition of CAR compliments Centric Health's Active Health Services business and pre qualifies Centric Health to offer an extended range of homecare services such as occupational therapy, physiotherapy, social work, dietitian, nursing and personal support services to Community Care Access Centres in Ontario.

Centric currently holds the largest market share for the provision of rehabilitation services in Long Term Care and Retirement Homes in Ontario. Importantly, this Homecare platform is a key development towards expanding our service offering, and addressing governmental efforts to facilitate seniors aging in the home.

This transaction has received all necessary governmental approvals and conditional approval from the TSX.

About Centric Health

Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered around patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and hospital services and wellness and prevention. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca. Centric Health's strategic advisor is Global Healthcare Investments & Solutions, Inc. (www.ghis.us).

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there from.

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    (1) The Company defines EBITDA as earnings before interest expense,
        income taxes, and amortization and excludes stock-based compensation
        expense. EBITDA is not a recognized measure under GAAP. Management
        believes that EBITDA is a useful financial metric as it assists in
        determining the ability to generate cash from operations. Investors
        should be cautioned that EBITDA should not be construed as an
        alternative to net income as determined in accordance with GAAP.
    >>

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