Remuda Ranch Company

July 6, 2006
Contact: Lauren B. Sinai

Prospect Partners Completes Sale of Remuda Ranch Company

Specialty Behavioral Healthcare Provider Generated Significant Returns to Prospect Partners and Management During Five-Year Investment

CHICAGO, ILL.—July 6, 2006: Prospect Partners, LLC, the private equity firm focused on the lower middle market, announced today that it has sold its interest in eating disorder treatment provider Remuda Ranch Company of Wickenburg, Arizona, to Chicago private equity firm Thoma Cressey Equity Partners and management.

Prospect Partners and management acquired Remuda Ranch in 2001 from its publicly traded parent company, Thomas Nelson Inc (NYSE:TNM). "Over the last five years, founder and CEO Ward Keller and his management team have continued to grow Remuda into the leading specialty behavioral treatment center for women suffering from eating disorders and related issues," says Prospect Partners' Principal Richard C. Tuttle. "Remuda's strong national reputation stems from the company's unique faith-based treatment approach and high patient success rate."

For Prospect Partners, Remuda represents the type of growth-ready niche leaders in which the private equity firm seeks to invest. "Back in 2001, we believed Remuda had great potential," Mr. Tuttle says. "But at the time, the firm had passed through multiple corporate parents that weren't focusing on the business segment and management had no ownership stake. When we joined forces with Ward and his team, they became owners alongside Prospect. Through their vision and planning, and with support from Prospect Partners, they built a stronger, more valuable business. The partnership resulted in a terrific investment for all the shareholders."

Mr. Keller is a major investor in the new company and will continue to lead Remuda along with the rest of his senior management team, Mr. Tuttle says.

Prospect Partners continues to seek acquisitions of specialty healthcare services companies that meet its investment criteria.

Harris Williams and Co. served as exclusive financial advisor to Prospect Partners and Remuda Ranch in the transaction.

About Prospect Partners, LLC

Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its founding in 1998, Prospect Partners has focused on management-led leveraged acquisitions of small niche leaders with revenues typically between $10 and $30 million; the firm has invested in nearly 55 leading companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.

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