Correction: Fitch Affirms National Jewish --CO-- Outs $35MM Revs 'BBB'.

Business Editors

WASHINGTON--(BUSINESS WIRE)--Feb. 7, 2003

(This is an amended version of a press release issued yesterday, containing revised bond insurance information in the first paragraph.)

Fitch Ratings has affirmed the 'BBB' rating on approximately $35 million outstanding Colorado Health Facilities Authority revenue bonds (National Jewish Medical Center and Research Center Project), series 1998 and 1998B. Certain bond maturities are insured by American Capital Access (etc.), whose financial insurer strength is rated 'A' by Fitch. For these maturities, the rating action described pertains to the unenhanced long term rating. The Rating Outlook is Stable.

National Jewish remains a world renowned and national leader in pulmonary disease research and treatment. Sizeable bequest revenue and other non-operating income have boosted financial performance in certain years, yielding more than 10% excess margins between fiscal 1998-2000. The reduction in profitability in fiscal 2002 was largely due to increased spending and reduced bequest income, which reflects the volatility in National Jewish's credit profile given its reliance on charitable giving. Debt service coverage from EBITDA declined from 5.2 times (x) in fiscal 2001 to a still adequate 3.0x in fiscal 2002. Unrestricted cash at the end of fiscal 2002 (June 30) equaled 158 days operating expenses and 106% of outstanding debt. The number of licensed beds has decreased from 70 in 1998 to 46 currently, drastically reducing annual admissions and further emphasizing the organization's focus on outpatient services as well as research. Fitch views the inpatient reductions favorably since reimbursement had been inadequate. While inpatient admissions have declined, National Jewish has experienced double-digit growth in the number of outpatient visits due to program expansions, less managed care restrictions, and increased faculty.

Main credit risks include National Jewish's reliance on charitable contributions and other non-operating revenue, as well as susceptibility to federal cutbacks due to its narrow program breadth largely focused on pulmonary diseases. Grants, largely from NIH and charitable funding represent more than 50% of total operating revenue. While NIH funding during the last several years has been very favorable, including double digit increases in recent years, Fitch expects future increases from NIH to be more moderate given federal budgetary pressure. Through the first six months of fiscal 2003 ended Dec. 31, 2002, patient revenue increases due in part to a new sleep center program and stable grant revenue were offsetting reductions in charitable giving. Management estimates that charitable revenue was 6% below budget through Dec. 31, but that no more than a 10% decline over the prior year is anticipated for fiscal 2003.

The 'BBB' rating incorporates the inherent volatility associated with National Jewish's narrow focus and dependence on contribution revenue, which is highly correlated to the national economic climate and has fluctuated financial performance in the past.

National Jewish Medical and Research Center is a nationally recognized research institute located in Denver, CO specializing in pulmonary disease. Total revenue in fiscal 2002 totaled $88 million. Disclosure to Fitch has been excellent with quarterly financial and operating data received on a timely basis.