Medisys Health Group Income Fund (TSX: MHG.UN) (the "Fund"), one of Canada's leading national providers of healthcare services to corporations and insurance companies, today announced that it has entered into a binding agreement to acquire Capstone Medical Services Inc. ("Capstone"), a leading provider of executive health services in Vancouver, British Columbia.

Capstone generated approximately $1 million in revenue in its most recent financial year. The acquisition is expected to close during the second quarter of 2006 and is expected to be immediately accretive to the Fund's cash available for distributions. Capstone's operations will be combined with Medisys' Vancouver operations in a single location offering increased convenience for clients, and generating substantial administrative and operational efficiencies.

"In this fragmented, growing, industry with few national providers, we believe that there is an opportunity to provide outstanding executive health services to both our local and national clients," said Stuart M. Elman, Chief Financial Officer of Medisys. "The addition of Capstone is consistent with our strategy to consolidate the market and solidifies our position as the leading national executive health services provider."

Founded in 1998 by Dr. Ruth McIlrath, Capstone provides both executive and occupational health services to clients in Vancouver and throughout British Columbia. "My team and I are very excited to be joining Medisys," said Dr. McIlrath. "Over the years, we've grown the company by focusing on providing high-quality executive health services to our clients. One of the most important factors in my decision to sell was the similarity and compatibility of Medisys' operating philosophies with our own."

As a result of this transaction, Dr. Ruth McIlrath will become a senior member of the Medisys team of physicians, which includes, among others, Dr. Tim Lepard, Medisys' Medical Director for Vancouver. "We are delighted to welcome Dr. McIlrath into the Medisys family to support our initiatives in the executive health area," said Dr. Sheldon Elman, President and Chief Executive Officer of Medisys. "Her outstanding reputation and expertise will contribute tremendously to our presence in the Vancouver market and to our objective to continue delivering high quality corporate health services."

Medisys executive health services feature a multidisciplinary team of health professionals, experts in medicine, nutrition, fitness and stress management that strives to increase the overall health of its clients by enhancing and promoting the health, wellness, and quality-of-life of executives. Medisys executive health programs are based on yearly, preventive, comprehensive medical evaluations. Advanced diagnostic tools and a personalized approach to prevention are used to achieve an increase in wellness and a reduction in health risks. The results of Medisys' examinations are confidential, and services are flexible in order to meet the daily challenges and busy schedules of its executive clients.

About Medisys Health Group

Medisys Health Group is a leading Canadian provider of healthcare services to corporations, medical imaging services and health-related underwriting support services to insurance companies. Through its national network of facilities, including offices in Montreal, Toronto, Calgary and Vancouver, Medisys' corporate health services division delivers preventative, diagnostic and consultative healthcare services to approximately 4,000 corporations, including 285 companies of the Financial Post 500. Medisys' medical imaging operations service patient populations in both Ontario and Quebec. Medisys' insurance medical services division supports the underwriting activities of more than 60 Canadian and U.S. life and health insurance companies. Medisys Health Group Income Fund is an unincorporated, open-ended, limited purpose trust established to invest in Medisys Health Group and its subsidiaries.

This media release may contain certain forward-looking statements that reflect the current views and/or expectations of the Fund, Medisys Holding LP, Medisys Health Group Inc., and Medisys Health Group LP with respect to their respective performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary.

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For further information: please contact: Stuart M. Elman, Chief Financial Officer, VP Corporate Development & Strategy, Medisys Health Group, Phone: (514) 499-2778, Email: stuart.elman@medisys.ca

Source: newswire