Charlesbank Capital Partners, LLC Finances Tucson Spa Resort and Treatment Center

Business Wire, April 30, 2002

Business Editors

BOSTON--(BUSINESS WIRE)--April 30, 2001

Charlesbank Capital Partners, LLC announced that it has provided $16 million in mezzanine financing for the recapitalization and privatization of NextHealth Inc., an operator of wellness and preventive health-care facilities and services. Based in Tucson, the company owns two properties: Miraval, a 106-room luxury spa resort; and Sierra Tucson, a 79-bed treatment center for substance abuse and mental disorders.

Miraval offers guests a life-balancing vacation experience combining stress management, spa treatments and recreational activities in a luxury resort environment. It has received several honors in recent years, including its recent listing as the #2 "Top Destination Spa in North America and the Carribbean" by the readers of Conde Nast Traveler Magazine. Sierra Tucson provides intensive inpatient treatment for substance abuse and behavioral and emotional disorders. It is the market leader in the inpatient addiction recovery field, widely recognized for its high-quality treatment, diversity of programs and desirable location.

"We are very pleased to be working with the talented and experienced team at NextHealth, including founder William O'Donnell and co-investor George Ruff," says Chip Douglas, Managing Director, Charlesbank Capital Partners. "We look forward to helping them build on the excellent reputations of Sierra Tucson and Miraval and are confident that these will be well-performing assets for Charlesbank."

NextHealth, Inc. was established in 1983 with the Sierra Tucson facility and expanded with the establishment of Miraval in 1995. NextHealth emphasizes a "life in balance" philosophy, which works to improve the quality of life for guests and patients on a physical, mental and emotional level. The company employs more than 330 people in a variety of disciplines, including healthcare, nutrition, psychology, fitness, recreation, counseling and operations.

Charlesbank Capital Partners, LLC, is a private investment firm with more than $2 billion of capital committed to acquisition and expansion financing for growing companies and developing real estate assets. Charlesbank Realty Fund V is a $495 million fund focusing on strategic and opportunistic investments in US real estate, typically investing $15 million to $50 million per transaction. The firm generally invests in equity or mezzanine debt structures, often with a strategic operator or developer who brings complementary expertise and local market knowledge. Charlesbank has offices in Boston and New York.