Primus Invests in Healthcare Management Systems, Inc.

12/18/2007

NASHVILLE, TN — Primus Capital Funds (“Primus”) led the leveraged recapitalization of Healthcare Management Systems, Inc. (“HMS”). Primus Capital Fund V Limited Partnership and Primus Capital Fund VI Limited Partnership jointly committed equity to the transaction. Founded in 1984 and based in Nashville, Tennessee, HMS is a provider of integrated information technology solutions and business services to community and specialty hospitals across the country. National City Equity Partners and LMS Capital participated in the equity investment with Primus. NewStar Financial, Inc. provided debt capital in support of the transaction.



The new investment in HMS represents an opportunity to continue to expand the company’s current growth and enhance the development of HMS’ technology product offerings.



Phil Molner and Scott Seelbach represent Primus on HMS’ board of directors.



“HMS is a fast-growing company in a fast-changing competitive marketplace. Our success as a company has always been based on delivering quality products, services and support to our customers. This partnership allows us to continue our path of fast growth and increase our product offerings to more aggressively compete and expand our market share,” said Tom Stephenson, president of HMS.



Currently HMS provides integrated hospital IT solutions to over 550 hospitals across 48 states. The company offers clinical solutions, financial solutions, and enabling technologies for hospitals and has had strong growth in the acute care, behavioral and long term acute care marketplaces. In addition, many of their clients include corporate hospital systems that manage multiple hospitals nationwide.



“HMS has a 23 year-plus history of providing essential clinical and business technology solutions and services to healthcare professionals all across the country. We are looking forward to working with the HMS management team to help the company continue to grow,” said Phil Molner, Managing Director of Primus.



Founded in 1983, Primus is a private equity firm that invests in high-growth companies within the healthcare, business services, communications and for-profit education industry sectors. Transaction types include management-led buyouts, control and non-control recapitalizations, and primary infusions of growth capital.