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Catholic Health East Signs Letter of Intent to Become New Sponsor of Archdiocesan Hospitals in Newark, NJ

June 12, 2007

Most Reverend John J. Myers, Archbishop of Newark, Donald M. Daniels, chairman of the board of Cathedral Healthcare System, and Robert V. Stanek, president and chief executive officer of Catholic Health East, announced today that Cathedral Healthcare System and Catholic Health East have entered into a due-diligence period regarding the proposed transfer of sponsorship of Saint Michael's Medical Center and Saint James Hospital.

"I am hopeful that this proposed transfer of sponsorship to Catholic Health East will help secure the future of Catholic health care in Greater Newark," said Archbishop Myers.

"Our mission calls us to continually seek ways to assure access to services to persons most in need," said Stanek. "Cathedral Healthcare System has a long and distinguished history of service to residents of the Greater Newark area and northern New Jersey. We begin the due diligence process to determine how we can best work with Cathedral Healthcare System to benefit the community, the health system, its employees, and our Catholic health ministry."

All parties will be working together throughout the due-diligence process with the goal of reaching a definitive agreement and completing the transfer of sponsorship later this year. They will also be working to secure financial and regulatory aid from the State of New Jersey to support this transfer.

Catholic Health East, a multi-institutional Catholic health system co-sponsored by 12 religious congregations and Hope Ministries, is based in Newtown Square, Pennsylvania. Catholic Health East provides the means to ensure the continuation of the Catholic identity and operational strength of the sponsors' health ministries, which are located in 11 eastern states from Maine to Florida. The system includes 34 acute-care hospitals, four long-term acute-care hospitals, 36 freestanding and hospital-based long-term care facilities, 12 assisted-living facilities, five continuing-care retirement communities, seven behavioral-health and rehabilitation facilities, 25 home health/hospice agencies, and numerous ambulatory and community-based health services. More information is available online at www.che.org

Comprising Saint Michael's Medical Center, Saint James Hospital, and Columbus Hospital in Newark, Cathedral Healthcare System is affiliated with Catholic Health and Human Services Corporation and supports the mission of the Archdiocese of Newark. More information is available online at www.cathedralhealth.org.

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