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FOR IMMEDIATE RELEASE:

DSI Holding Company, Inc. Completes Acquisition of Over 100 Dialysis Centers from Fresenius Medical Care for
Approximately $511 Million:

Private Equity Firm’s Healthcare Platform Acquires Clinics from World’s Largest Provider of Dialysis Products and Services.
 

NEW YORK, NY - April 10, 2006

DSI Holding Company, Inc. (DSI) today announced that, through a wholly owned subsidiary, it has completed the acquisition of 105 freestanding kidney dialysis clinics, 3 home dialysis programs and one standalone renal acute program in the U.S. from Fresenius Medical Care Holdings Inc. and Renal Care Group. DSI is backed by Centre Partners, a leading middle market private equity firm.

The purchase of the clinics immediately provides DSI with substantial scale, a strong presence in several key geographic markets across the country and multiple growth opportunities through de novo and satellite development, joint ventures and acquisitions. Pro forma for the acquisition, DSI is now the third largest for-profit provider of outpatient kidney dialysis services in the United States, as measured by the number of clinics.

Based in Nashville, Tennessee, DSI is involved in the acquisition, development and operation of kidney dialysis clinics, hospitals, and acute care centers. DSI is led by its Chairman, President, and CEO, Jerome Tannenbaum, M.D., Ph.D., FACP.

Dr. Tannenbaum was a practicing nephrologist when he founded REN Corporation-USA in 1986, which he grew to become the fourth largest dialysis company in the United States before it was sold to global medical technology company Gambro Group in 1995. Dr. Tannenbaum later founded National Nephrology Associates, a privately held dialysis company that provided services to 5,800 patients in 89 clinics before it was acquired by Renal Care Group in 2004.

“DSI is excited to complete the acquisition of a strong mix of dialysis clinics throughout the U.S.,” said Dr. Tannenbaum. “The addition of these facilities will be key to the execution of our vision of building a nationwide healthcare services company that works with physicians to bring them the best facilities, equipment, technology and administrative services in order to provide the best patient care possible. We are thrilled to be involved with such outstanding physicians and nurses and look forward to our new relationship together.”

Centre Partners’ Managing Partner Bruce Pollack concluded, “We are extremely pleased to have partnered with an experienced management team and to acquire a significant national base of dialysis clinics. This transaction provides us with a platform to continue building DSI’s business through additional acquisitions, de novo development and joint venture arrangements.”

The transaction was financed with a $300 million senior credit facility, $125 million of senior subordinated notes and $40 million of preferred stock. RBC Capital Markets, The Royal Bank of Scotland and Ares Capital Corporation were joint book-runners on the senior debt. Ares Capital Corporation and Dune Capital were co-lead arrangers of the subordinated notes. Apollo Investment Corporation led the issuance of $40 million of preferred stock. The Northwestern Mutual Life Company also invested in common equity, preferred stock and subordinated notes. Other investors included PPM America, AXA and National City. Centre and DSI’s legal advisors were Weil Gotshal & Manges LLP, McGuireWoods LLP, and Latham and Watkins LLP.

About DSI Holding Company, Inc.
DSI Holding Company, Inc., is involved in the acquisition, development and operation of kidney dialysis clinics, hospitals, and acute care centers. DSI is a nationwide healthcare services company that works with physicians to bring them the best facilities, equipment, technology and administrative services in an effort to provide the best patient care possible. DSI is supported by Centre Partners, a leading middle market private equity firm with offices in Los Angeles and New York. Additional information about DSI is available at www.dsi-corp.com.

About Centre Partners
Centre Partners, founded in 1986, is a leading private equity firm with a middle market focus that seeks to make acquisitions and equity investments alongside management teams who have or desire a meaningful economic stake in the future success of their businesses. Centre Partners’ managing directors have invested over $3 billion in more than 80 companies, partnering with management teams across a broad spectrum of industries. Centre Partners provides those teams with access to its unique resources, which include an extended network of experienced and proven operating executives. Centre Partners has offices in New York City and Los Angeles and is currently investing through its fourth fund, which has approximately $780 million of committed capital. In addition to its recent entry into health care, Centre has deep investment expertise covering consumer, industrial products and services, media, retail, and aviation services. Additional information about Centre Partners is available at www.centrepartners.com.

Media contact: Della Sweetman, Fleishman-Hillard, phone: 619-237-7721.

Additional information about Centre Partners is available at: <http://www.centrepartners.com>