CCS Medical to Acquire Division of Matria Healthcare; Combination Creates One of the Largest Privately-Held Businesses Providing Home-Delivery of Medical Supplies.

CLEARWATER, Fla. -- CCS Medical, a leading direct-to-consumer provider of medical supplies, has reached an agreement to acquire Matria Pharmacy Lab and Supplies (MPLS), a division of Matria Healthcare. The acquisition improves CCS Medical's market position and places the company in the top two or three home-delivery companies in the nation, by approximately doubling its customer base and revenue.

CCS Medical, a KRG Capital Partners portfolio company, and its management remain committed to healthcare services and home delivery as an integral component of the healthcare continuum. This acquisition moves CCS Medical closer to its goal of being the premier home-delivery company servicing patients with one or more chronic conditions.

"The leadership team at CCS Medical is extremely excited about the synergistic combination of two of the leading companies in our market. The combination of Matria's market presence and CCS Medical's operational expertise built around world-class customer service will provide a powerful platform for future growth," said Joseph H. Capper, CEO of CCS Medical. "We are also enthusiastic to begin what we expect to be a long-term partnership with Matria Healthcare's disease management business."

About Matria Pharmacy Lab and Supplies -- MPLS, a division of Matria Healthcare, provides a convenient and economic source of diabetes self-management supplies and medications, and respiratory inhalation medications. Matria Healthcare is the leading provider of comprehensive disease management programs to health plans and employers. Matria Healthcare manages the chronic disease and episodic conditions representing the greatest cost to the healthcare system -- diabetes, cardiovascular diseases, respiratory disorders, high-risk pregnancy, cancer, chronic pain and depression. With headquarters in Marietta, Ga., Matria Healthcare has more than 40 offices in the United States and internationally. More information about Matria Healthcare can be found online at www.matria.com.

About KRG Capital Partners -- Founded in 1996, KRG is a Denver-based private-equity buyout firm that currently manages over $860 million of committed equity capital and equity co-investments. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complimentary add-on acquisitions. Since inception, KRG has invested in 17 "platform companies" and has completed 50 add-on acquisitions for those platforms. For more information on KRG Capital Partners, please visit www.krgcapital.com.

About CCS Medical -- Founded in 1994, CCS Medical has become a leading direct-to-consumer provider of medical supplies to patients suffering from chronic conditions such as diabetes and COPD. Dedication to providing patients the best medical supplies available and unmatched customer service have earned CCS Medical a reputation of quality with healthcare professionals and patients. CCS Medical has developed strong relationships and select co-marketing agreements with many of the world's leading medical products manufacturers. For more information on CCS Medical, please visit www.ccsmed.com.