First Islamic announces partial sale of Medifax to WebMD for USD280 million

WebMD signed a definitive agreement on 21 October 2003 to acquire the Medical Services Division (MSD) of Medifax for a total transaction value of $280 million, including assumed liabilities. Prior to the closing of the transaction, Medifax will distribute its remaining business unit - the Pharmacy Services Division (PSD) - to an affiliate of First Islamic. A separate sale process is underway for PSD.

The above two transactions are estimated to value Medifax at over $325 million. First Islamic and its co-investors acquired Medifax in 2001 for a transaction value of approximately $123.1 million, and three subsequent acquisitions were completed by Medifax for a total value of approximately $45 million.

Abdulaziz H. Aljomaih, First Islamic's Vice Chairman, said "We are delighted to announce the sale of Medifax after a two year holding period. Our long-term success depends on our ability to close the investment cycle by exiting from our portfolio companies and generating superior risk adjusted returns for our investors."

Atif A. Abdulmalik, First Islamic's Chief Executive Officer, said "The last three years have been challenging for the private equity industry. Achieving the profitable Medifax exit in the current business climate is a testament to the strength and sustainability of our business model."

Charles H. Ogburn, Executive Director, Direct Investment, commenting for First Islamic, said "We worked closely with management to grow Medifax's core business and to make a number of add-on acquisitions during the last two years. The successful completion of this sizeable transaction with WebMD will solidify our position as one of the leading private equity players in the southeastern United States."