Crescent Capital Arranges $117 Million Corporate Acquisition.

Business Editors

ATLANTA & NASHVILLE, Tenn.--(BUSINESS WIRE)--June 28, 2001

Crescent Capital Investments, Inc., has arranged the acquisition of The Potomac Group, Inc., by a group of international investors in a transaction valued at $117 million.

The Potomac Group, Inc. is a leading U.S. provider of health care information services headquartered in Nashville, Tennessee. In connection with the transaction, which closed June 28, 2001, Potomac's name has been changed to "MediFAX-EDI, Inc." A portion of the financing for the transaction was provided by Bank of America, N.A. and BankOne Kentucky, N.A.

Founded in 1997, Crescent Capital is the U.S. private equity arm of First Islamic Investment Bank, E.C., based in Bahrain. Crescent Capital and First Islamic seek $30 million to $150 million equity investment opportunities in profitable, high-growth companies. Since 1998, Crescent Capital has completed seven transactions valued at more than $500 million.

"After reviewing offers from several interested parties, we are delighted to be teaming up with an equity investment firm of the high quality and outstanding reputation of Crescent Capital," said Robert O. Rolfe, Potomac's chairman, who will continue to serve as a director of and consultant to MediFAX-EDI. David F. Bacon, Jr., Potomac's president and chief operating officer, has been named chief executive officer and a director of MediFAX-EDI. "We are very excited by the opportunities presented by this acquisition. With Crescent Capital's backing, we can further tap into our core customer base by enhancing and expanding upon our service offerings."

Crescent Executive Director Charles H. Ogburn commented, "Potomac is one of the industry's most respected providers of health care information services. Its impressive financial results made Potomac extremely attractive to our investors. We are confident that Potomac's talented management team will continue the company's strong growth in the future."

Founded 16 years ago, The Potomac Group (www.medifax.com) is a leading provider of health care information services related to the provision of payment for health care. Potomac currently processes more than 150 million transactions each year for more than 120,000 customers. The customers include approximately 100,000 physician practices and clinics, 1,800 hospitals, 20,000 retail pharmacies, 900 medical and pharmacy payers, and 700 long-term care facilities. Potomac has 375 employees in Nashville and Franklin, Tennessee and Los Angeles.

Other Crescent Capital transactions include: Caribou Coffee Company, Inc., the second leading non-franchised coffeehouse in the United States; Lee Industries, the number-one manufacturer of commercial paving equipment; DVT Corporation, a provider of technology-based machine vision systems; and WaterMark Paddlesports, Inc., maker of the top two kayak brands.