Prospect Medical Holdings extends exchange offer of its Series B 12¾% Senior Secured Notes, due 2014

Prospect Medical Holdings, Inc. (NASDAQ: PZZ) (“Prospect”), announced today that it has extended until 5:00 p.m. New York City time, on December 3, 2009, its pending offer to exchange (the "Exchange Offer") up to $160,000,000 of its 123/4% Senior Secured Notes, Series B, due 2014 (the "Exchange Notes"), which have been registered under the Securities Act of 1933, as amended, for an equal amount of its privately placed 123/4% Senior Secured Notes, Series A, due 2014 (the "Private Notes"). The Exchange Offer was originally scheduled to expire at 5:00 p.m., New York City time, on November 24, 2009.

The Exchange Notes are substantially identical to the Private Notes, except that the offer and sale of the Exchange Notes have been registered under the Securities Act of 1933, as amended, and the Exchange Notes will not bear any legend restricting their transfer.

Tenders with respect to $146,100,000 aggregate principal amount of the Private Notes, out of a total of $160,000,000 aggregate principal amount eligible to participate in the Exchange Offer, have been received to date.

This announcement is not an offer to exchange, or a solicitation of an offer to exchange, with respect to the Private Notes. The Exchange Offer was made solely by the prospectus dated October 23, 2009, and the Exchange Offer, as extended hereby, remains subject to the terms and conditions stated therein.

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