Medisys Health Group Income Fund (TSX: MHG.UN) (the "Fund"), one of Canada's leading national providers of healthcare services to corporations, individuals and insurance companies, today reported its financial results for the first quarter of 2006. Medisys reported another consistent and strong quarter with significant year-over-year increases in revenue and EBITDA.

Q1 2006 Highlights

- Q1 2006 Revenue was $21.8 million, compared to $18.4 million in

Q1 2005, an increase of 19%;

- EBITDA increased 10% to $2.2 million for Q1 2006, compared with

$2.0 million in 2005;

- Completed two medical imaging acquisitions during Q1 2006; and

- Distributable Cash generated on a trailing twelve months basis at

Q1 2006 was $6.8 million or $0.99 per Unit - a payout ratio of 88%.

"Strong Q1 2006 revenue and EBITDA demonstrate the continued momentum and growth in our core operating segments, Corporate Health Services and Medical Imaging," said Dr. Sheldon Elman, President and CEO of Medisys Health Group. "Our improved operating results demonstrate the value-creation potential achieved through investing in our infrastructure. We are now focused on leveraging this structure to add incremental revenues without incurring significant overhead costs."

Financial Results

For the three months ended March 31, 2006, consolidated revenues increased to $21.8 million as compared to $18.4 million for the three months ended March 31, 2005, an increase of 19% or $3.4 million. The increase in our total revenues is primarily attributable to the impact of the most recent acquisitions and organic growth in both the Medical Imaging and Corporate Health Services segments.

Medisys' Q1 2006 operating income before interest expense, income taxes, amortization, non-controlling interest, exchangeable units interest, foreign exchange losses, security-based compensation expense, and dilution gain ("EBITDA") totaled $2.2 million, up 10% from $2.0 million during the same period a year ago.

For the twelve months ended March 31, 2006, the Fund generated Distributable Cash of $6.8 million, or $0.99 per Unit, implying a payout ratio of 88%. On a pro-forma basis, annualizing the impact of acquisitions, the Fund generated Distributable Cash of $8.2 million, or $1.19 per Unit, implying a payout ratio of 81%.

For the three months ended March 31, 2006, Corporate Health Services generated $11.6 million in revenue and $1.9 million in operating income, a 21% increase in revenue and a 15% increase in operating income relative to Q1 2005. Medical Imaging generated revenues of $5.7 million and operating income of $1.4 million for the three months ended March 31, 2006, a 27% increase in revenue and a 31% increase in operating income relative to Q1 2005.

Insurance Medical Services generated $3.1 million in revenue and $0.4 million in operating income in Q1 2006, a 0% change in revenue and a 7% decrease in operating income relative to Q1 2005. Medgate generated $1.4 million in revenue and $0.2 million in operating income during Q1 2006, a 13% increase in revenue and a 13% decrease in operating income relative to Q1 2005.

Corporate Developments

The following key developments occurred during 2006 (year to date):

Acquisition of Niagara Diagnostic Imaging Centre and Clinique Imatech

On January 31, 2006, the Fund announced that it had entered into a binding agreement to acquire two medical imaging clinics. The Niagara Diagnostic Imaging Centre Inc. ("Niagara") has been a leading provider of general radiology and nuclear medicine services in St. Catharines, Ontario, for the past 19 years. The second acquisition, Clinique Imatech Inc. ("Imatech") has been a leader in providing nuclear medicine services in Montreal, Quebec for the past 6 years. Both acquisitions closed effective March 1, 2006.

Acquisition of Capstone Medical Services

On February 27, 2006, the Fund announced that it had entered into a binding agreement to acquire Capstone Medical Services Inc. ("Capstone"), a leading provider of executive health services in Vancouver, British Columbia. The acquisition closed effective April 1, 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, thereby generating administrative and operational efficiencies.

$10.2 Million Bought Deal Public Offering

On March 1, 2006, the Fund announced that it had entered into an agreement for the public offering of 750,000 Fund Units (the "Offering"). The transaction, underwritten by a syndicate led by Clarus Securities Inc. on a "bought deal" basis, and offered by way of short form prospectus, included 750,000 Fund Units issued from treasury at $13.60 per unit, for gross proceeds of $10,200. The net proceeds of the Offering received by the Fund were used to fund the Niagara, Imatech and Capstone acquisitions, the partial repayment of credit facilities, and for working capital and general corporate purposes. The Offering closed on March 22, 2006.

$2 Million Subscription by Significant Shareholder

On April 7, 2006, the Fund announced that companies controlled by Dr. Sheldon Elman, the CEO and controlling securityholder of Medisys Health Group, and Stuart M. Elman, the CFO of the group, have exercised their pre- emptive right to maintain their indirect equity interest in the Fund (the "Subscription"). Pursuant to the terms of the Holding LP securityholders' agreement, companies controlled by Dr. Sheldon Elman (the "Significant Holder") can exercise their pre-emptive right to maintain their equity interest in Holding LP whenever the Holding LP issues new units, as was the case in the Fund's most recent equity offering. The Significant Holder subscribed for 154,302 Class B Holding LP units at a price of $12.92 per unit, for net proceeds of $1,993. Proceeds of the treasury offering received by Holding LP will be used for general corporate purposes. The Subscription closed effective March 31, 2006.

Conference Call Notice

Medisys will host a conference call to discuss its Q1 2006 financial results on May 15, 2006, at 11:30 am (EST). The dial-in number for the conference call is (416) 644-3422 or 1-800-814-4862 (reference No. 21188110). The call will be audiocast live and archived for 90 days at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1470920 and www.medisys.ca.

About Medisys Health Group

Medisys Health Group is a leading Canadian provider of healthcare and medical imaging services to corporations and individuals 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 preventive, diagnostic and consultative healthcare services to approximately 4,000 corporations, including 320 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 national 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 Medisys Health Group Income 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.

UNAUDITED CONSOLIDATED BALANCE SHEETS

AS AT MARCH 31

(IN THOUSANDS OF DOLLARS)

As at

-----------------------------------------

March 31, March 31, December 31,

2006 2005 2005

(Unaudited) (Unaudited) (Audited)

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ASSETS

Current

Accounts receivable $ 12,238 $ 9,731 $ 12,988

Supplies inventory 261 136 247

Income taxes recoverable 47 9 -

Prepaid expenses 1,002 753 580

Employee loans receivable 38 432 38

Future income taxes 730 518 690

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14,316 11,579 14,543

Employee Loans Receivable 135 - 150

Premises and Equipment 15,845 11,775 14,186

Other Assets 2,687 782 2,761

Future Income Taxes 708 529 448

Licenses 15,345 8,847 13,562

Goodwill 12,758 8,946 10,852

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Total Assets $ 61,794 $ 42,458 $ 56,502

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LIABILITIES

Current

Accounts payable and

accrued liabilities $ 8,836 $ 7,599 $ 8,264

Distributions payable 599 399 525

Income taxes payable - 91 71

Current portion of

deferred revenue 2,298 1,505 1,760

Current maturity of balances

of purchase price 1,040 463 1,470

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12,773 10,057 12,090

Term Debt 2,381 9,770 12,047

Deferred Revenue - 98 -

Obligations Under Capital Leases 4,316 4,510 4,248

Balance of Purchase Price 3,028 463 2,139

Deferred Lease Inducements 634 683 657

Future Income Taxes 782 299 630

Non-Controlling Interest 673 1,099 673

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24,587 26,979 32,484

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Exchangeable Units Interest 9,936 6,304 7,267

Unitholders' Equity 27,271 9,175 16,751

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Total Liabilities &

Unitholders' Equity $ 61,794 $ 42,458 $ 56,502

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See accompanying notes

UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED MARCH 31

(IN THOUSANDS OF DOLLARS, EXCEPT PER UNIT AMOUNTS)

2006 2005

-------------------------------------------------------------------------

Revenues $ 21,828 $ 18,420

Direct Costs, Selling and

Administrative Expenses 19,621 16,391

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Operating Income before the Undernoted Items 2,207 2,029

Amortization of premises and equipment 773 502

Amortization of intangibles 104 12

Amortization of fair value adjustment 53 -

Loss (Gain) on foreign exchange - (13)

Security-based compensation expense 971 12

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Income from Operations before Interest

and Income Taxes 306 1,516

Interest on capital lease obligations 77 95

Interest on term debt 215 74

Other interest 70 100

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Income (Loss) from Operations before

Income Taxes (56) 1,247

Income taxes 7 194

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Income (Loss) from Operations $ (63) $ 1,053

Exchangeable units interest (20) 388

Dilution gain (1,006) -

Non-controlling interest - 102

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Net Income $ 963 $ 563

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Basic Earnings Per Unit $ 0.21 $ 0.16

Diluted Earnings Per Unit $ 0.14 $ 0.16

See accompanying notes

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31

(IN THOUSANDS OF DOLLARS)

2006 2005

-------------------------------------------------------------------------

Funds Provided (Used) -

Operating Activities

Net income $ 963 $ 563

Items Not Affecting Cash:

Amortization of premises and equipment 773 502

Amortization of intangibles 104 12

Amortization of deferred lease inducements (23) (33)

Amortization of fair value adjustment 53

Future income taxes (148) 151

Deferred revenue 538 (158)

Security-based compensation expense 971 12

Exchangeable units interest (20) 388

Dilution gain (1,006)

Non-controlling interest - 102

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2,205 1,539

Changes in non-cash operating elements

of working capital 461 (1,535)

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2,666 4

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Financing Activities

Term debt (9,666) 2,141

Distributions to unitholders (1,053) (464)

Distributions to exchangeable unitholders (523) (326)

Repayment of obligations under capital leases (382) (397)

Repayment of employee loans receivable - 21

Issue of exchangeable units 2,324

Issue of units (net of issuance costs) 9,665 270

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365 1,245

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Investing Activities

Payment of balance of purchase price payable (463) (500)

Acquisitions (1,491) -

Additions to premises and equipment (1,062) (364)

Additions to other assets (15) (385)

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(3,031) (1,249)

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Increase in Cash $ - $ -

Cash

Beginning of Period - -

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End of Period $ - $ -

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See accompanying notes

%SEDAR: 00022283EF

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

Source: newswire