Sovereign Investment Company Completes $9 Million Acquisition of Six Preferred Medical Group Properties

Business Wire, May 7, 2007

PRINCETON, N.J. -- Sovereign Investment Company, one of the largest and fastest growing private equity investors providing sale-leaseback capital, announced that it has acquired six properties worth $9 million from Preferred Medical Group, a developer of medical office centers in Georgia and Florida.

All of the acquired units are located in Atlanta. Five of the properties are leased to subsidiaries of Fresenius Medical Care Holdings, Inc ("FMC"). The sixth property is operated by Diversified Specialty Institutes ("DSI"). Both FMC and DSI are leaders in the dialysis industry. The leases have a primary term of 10 years and are guaranteed by FMC.

"We and our client were very pleased to work with the Sovereign team on this acquisition," said Richard L. Thompson of Sage Partners, LLC, the broker representing Preferred Medical Group. "Preferred Medical Group wanted to sell these assets as a portfolio to a firm that offered certainty of close and aggressive pricing. Sovereign satisfied the criteria and approached the deal as a partner to expedite completion of the sale."

"The transaction with Preferred Medical Group represents our desire and ability to acquire net-leased properties across the spectrum of industries," said Gin Chao, vice president of acquisitions for Sovereign Investment Company. "Sovereign worked expediently to underwrite the complex guarantee structure of FMC and ultimately closed the sale-leaseback transaction in the timeframe desired by our deal partner."

About Sovereign Investment Company

Sovereign Investment Company is one of the largest and fastest growing private equity investors providing sale/leaseback capital to owners, operators and developers of single-tenant, net-leased real estate. Well-capitalized and positioned for growth, Sovereign is actively pursuing restaurant, retail, office and industrial investment opportunities. Since 2004, Sovereign has invested more than $650 million in long-term, net-leased properties nationwide.