Goldman Sachs Urban Investment Group and National Healthcare Staffing

Goldman Sachs Urban Investment Group and National Healthcare Staffing Acquire TVL Healthcare

    Business Editors/Real Estate Writers/Healthcare Writers

    NEW YORK & MIAMI & ATLANTA--(BUSINESS WIRE)--May 10, 2005--

Seasoned Hispanic Management Team Partners with Goldman Sachs to Create Leading Healthcare Staffing Acquisition Platform
    National Healthcare Staffing, LLC ("National"), a leading healthcare staffing provider focused on the growing travel nurse segment, announced today that it has partnered with The Goldman Sachs Urban Investment Group ("UIG") to acquire TVL Healthcare, an Atlanta-based division of United Emergency Services, Inc. ("UES"). The transaction was completed with equity financing from UIG following an initial investment in National by UIG in April of 2005. The acquisition of TVL establishes National as a leading consolidator in the large, fragmented and rapidly growing healthcare staffing industry.
    "The healthcare temporary staffing industry is projected to expand significantly over the next 10 years due to changing demographic dynamics and industry trends. In addition to the long-term trend of hospitals outsourcing to meet staffing requirements, there is a growing shortage and aging of registered nurses, an aging U.S. population, and new state and federal legislation regarding minimum nurse staffing levels and overtime," said Peter Kilissanly, Chief Executive Officer of National. "Through our partnership with Goldman Sachs and with this acquisition, we are well positioned to grow organically and continue our consolidation strategy to become a leading healthcare staffing provider in this large and fragmented industry."
    In addition to Kilissanly, the senior management team and co-founders of National include Jose Menendez, Robert Santana, Aldo Rodriguez and Odalys Font. Collectively, the National team has over 100 years of industry experience and has worked together for over 15 years in a variety of sectors within the healthcare industry.
    "The acquisition of TVL provides us with a strategic foothold in operating rooms and expands our geographic presence. The TVL team is highly regarded in the operating room staffing arena and maintains the highest quality of nurses within its niche and we welcome them to the National family," said Jose Menendez, EVP of Business Development and General Counsel of National.
    The combined companies will serve over 1,000 hospitals across the nation and employ several hundred nurses. National is focused on addressing the nation's acute shortage of healthcare professionals. The healthcare industry faces critical shortages of nurses as the U.S. population ages and fewer nurses enter the workforce. Hospitals increasingly rely on temporary outsourcing solutions to accommodate the increasing costs and staffing shortages in primary nursing care.
    Goldman Sachs was attracted to the investment opportunity driven by the strong industry fundamentals and the outstanding management team assembled to pursue the consolidation of this sector. "The National team is a great example of the type of investment opportunities UIG is focused on - a seasoned minority management team pursuing attractive investment opportunities in a growing industry," said Martin Chavez of The Goldman Sachs Urban Investment Group, and a Board member of National. "Goldman Sachs is focused on identifying these talented management teams and providing them with financial and strategic backing," Chavez added.

    About National Healthcare Staffing:

    National Healthcare Staffing, LLC provides temporary healthcare professionals (primarily nurses) on contract assignments in acute-care hospitals. Through its nationwide hospital contracts, the Company provides assignments to its candidates in all 50 states. National recruits candidates throughout the United States and abroad, offering free furnished housing, travel reimbursement and attractive compensation and benefit packages. http://www.nhsus.com

    About The Goldman Sachs Urban Investment Group:

    The Goldman Sachs Urban Investment Group is a private equity initiative within The Goldman Sachs Group, Inc. (NYSE: GS), that invests capital in ethnic minority-owned or targeted businesses and urban real estate. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. Goldman Sachs also has offices in Atlanta, Georgia and Miami, Florida. To learn more about the Goldman Sachs Urban Investment Group, please visit www.gs.com/uig.

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CONTACT: National Healthcare Staffing, LLC Jose Menendez, 305-420-4100 or The Goldman Sachs Group, Inc. Gia Moron, 212-902-5400 or Andrea Raphael, 212-357-0025

KEYWORD: GEORGIA FLORIDA NEW YORK INDUSTRY KEYWORD: MEDICAL HUMAN RESOURCES BANKING REAL ESTATE BUILDING/CONSTRUCTION MERGERS/ACQ SOURCE: Goldman Sachs Group, Inc./National Healthcare Staffing, LLC

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