UHS announces acquisition of Emergent Group and PRI Medical

Universal Hospital Services, Inc. ("UHS"), a leading provider of medical equipment management and service solutions, today announced the signing of a definitive agreement whereby UHS will acquire Emergent Group Inc. ("Emergent Group") (NYSE Amex Equities: LZR) and its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical"), a leading provider of mobile medical lasers and surgical equipment, for $8.46 per Emergent Group share in an all-cash transaction. Total enterprise value of the transaction including debt assumption is approximately $70 million. The transaction has been unanimously approved by the Boards of Directors of both companies.

“It will enhance and expand our ability to meet our commitment to our customers to bring comprehensive solutions that reduce costs, increase efficiencies and drive better health care outcomes.”

PRI Medical currently operates in 16 states and provides surgical equipment and laser technology to hospitals, outpatient surgery centers and physicians' offices. The equipment is supplied with specialized technicians who support its proper operation and maintenance.

"PRI Medical will allow us to expand our offerings into state-of-the-art surgical equipment and services for our hospital and surgery center customers," said Gary Blackford, Chairman and CEO of UHS. "It will enhance and expand our ability to meet our commitment to our customers to bring comprehensive solutions that reduce costs, increase efficiencies and drive better health care outcomes."

"UHS will make a great partner for PRI Medical. Their presence in hospitals across the U.S. gives us a great opportunity to rapidly increase our service opportunities in existing and new geographical markets," said Bruce J. Haber, Chairman and CEO of PRI Medical. "By expanding our services nationwide, we'll be better positioned to create more solutions for our customers and opportunities for our employees."

The transaction is structured as a cash tender offer to be followed as soon as possible by a merger. The tender offer is expected to commence in early March, 2011, following a 21-day "go-shop" period, and is subject to customary terms and conditions and the tender of at least 65% of Emergent Group's shares on a fully diluted basis. The transaction is not subject to a financing condition and will be funded by drawings under UHS' existing $195 million credit facility. UHS expects its debt to adjusted EBITDA leverage ratio to remain in the mid 4's upon completion of the transaction. UHS expects closing to occur within 45 to 90 days.