MedCath Plans 60-bed Expansion at TexSAn Hear...( Conversion of Shelled Space an Int...),Health

Conversion of Shelled Space an Integral Part of MedCath's Growth Plans

CHARLOTTE, N.C., Feb. 11 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH) and its physician partners today announced plans to double the number 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 shelled space into 60 inpatient beds, which will be used to expand the hospital's cardiovascular services and to accommodate other high-acuity services. Project cost will total approximately $10.75 million. Opening of the new section is scheduled for fall of 2008.

MedCath will make an additional equity investment in TexSAn related to the expansion, 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 one of the key elements of our strategic growth plan," said Ed French, MedCath's President and Chief Executive Officer. "This expansion will provide needed capacity for our growing cardiovascular program as well as provide vital additional high-acuity services to the San Antonio area. A part of our company-wide strategy is to diversify services in several markets while continuing to expand our core competencies in heart care, and TexSAn's success and expansion is the best example of our continuing to move decidedly forward in meeting that goal."

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

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