NovaMed To Retain Ambulatory Surgery Center in Kansas

    Business Editors/Health/Medical Writers

    CHICAGO--(BUSINESS WIRE)--March 28, 2005--NovaMed, Inc. (Nasdaq: NOVA) today announced that it has successfully completed the buy-out of an option to purchase its 51% interest in the Overland Park Eye Surgery Center located in Overland Park, Kansas from its two physician-partners in this center.
    As previously disclosed, Dr. John Hunkeler and Dr. Cliff Cokingtin, who together own 49% of the Overland Park Eye Surgery Center, had an option to purchase NovaMed's 51% interest on April 15, 2005. NovaMed has purchased this option from its partners which resulted in the termination of the option and NovaMed continuing to own a 51% interest in the surgery center. With the termination of this option, NovaMed has no remaining option agreements with physician-partners that provide them with the right to purchase NovaMed's majority interest in any of its surgery centers.
    "We are delighted to retain the Overland Park Eye Surgery Center in our portfolio," said NovaMed Chairman, President and Chief Executive Officer Stephen J. Winjum. "In 2004, over 4,400 ophthalmic surgical procedures were performed at this surgery center contributing over $4.5 million in net revenue. I am very pleased that we will remain partners with Dr. Hunkeler and Dr. Cokingtin, who each have outstanding reputations. I look forward to the continued growth of this center," said Winjum.
    "I have had a successful and mutually rewarding relationship with NovaMed for more than eight years," said John Hunkeler, M.D. "I look forward to continuing this relationship and consider NovaMed a valuable partner in the operation and growth of our surgery center."
    "NovaMed has proven to be a valuable partner in the success of our surgery center so we decided to continue our relationship," explained Cliff Cokingtin, M.D. "I believe our surgery center has significant growth potential and our partnership with NovaMed puts us in a good position to realize our full potential."
    NovaMed acquires, develops and operates ambulatory surgery centers in partnership with physicians. NovaMed has ownership interests in 26 surgery centers located in 14 states. NovaMed's executive offices are located in Chicago, Illinois.

    This press release contains forward-looking statements that relate to possible future events. These statements are based on management's current expectations and are subject to risks and uncertainties, which could cause our actual results to differ materially from those expressed or implied in this press release. These risks and uncertainties relate to our business, our industry and our common stock and include: our ability to acquire, develop or manage a sufficient number of profitable surgical facilities, including facilities that are not exclusively dedicated to eye-related procedures; reduced prices and reimbursement rates for surgical procedures; our ability to maintain successful relationships with the physicians who use our surgical facilities; our future profitability could decrease because of existing agreements with physicians that may require us to sell additional equity interests in our ASCs at varying future intervals; the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit our business operations, require us to incur significant expenditures or limit our ability to relocate our facilities if necessary; the continued acceptance of laser vision correction and other refractive surgical procedures; and demand for elective surgical procedures generally. Readers are encouraged to review a more complete discussion of the factors affecting NovaMed's business and prospects in its filings with the Securities and Exchange Commission, including the company's 2003 Form 10-K filed on March 29, 2004. Readers should not place undue reliance on any forward-looking statements. Except as required by the federal securities laws, NovaMed undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

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CONTACT: NovaMed, Inc. Scott T. Macomber, 312-664-4100 smacomber@novamed.com

KEYWORD: KANSAS ILLINOIS INDUSTRY KEYWORD: PHARMACEUTICAL MEDICAL REAL ESTATE BUILDING/CONSTRUCTION SOURCE: NovaMed, Inc.

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