Prospect Medical Holdings completes registered exchange offer

Prospect Medical Holdings, Inc. (NASDAQ: PZZ), today announced the completion of its exchange offer (the "Exchange Offer") for any and all of its outstanding 123/4% Senior Secured Notes, Series A, due 2014, which are not registered under the Securities Act of 1933 (the "Private Notes"), for an equal principal amount of its 123/4% Senior Secured Notes, Series B, due 2014, which have been registered under the Securities Act of 1933.

The Exchange Offer was originally announced on October 26, 2009 and was extended on November 25, 2009. Pursuant to the extension, the Exchange Offer expired at 5:00 p.m., New York City time, on December 3, 2009 (the "Expiration Date"), at which time $159 million of the $160 million aggregate principal amount of Private Notes had been tendered and accepted for exchange.

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