News Releases

Renal Advantage to Acquire Seven Dialysis Centers in Virginia

Brentwood, Tennessee (June 1, 2006)

Renal Advantage Inc., the fourth largest provider of dialysis services in the United States, today announced that it has entered into a definitive agreement to acquire the assets of seven dialysis centers currently owned by Riverside Hospital, Inc., a subsidiary of Riverside Health System. The seven facilities are located in Newport News, Williamsburg, Gloucester and Smithfield, Virginia.

Under the terms of the agreement, Renal Advantage Inc. will enter into a 10-year relationship with Riverside that is intended to maintain access to renal care services in the current markets served by Riverside Health System. The transaction is expected to close by the end of June 2006. Other terms of the transaction were not disclosed.

"Our approach to meeting the needs of our patients is consistent with Riverside's philosophy of providing optimal care through continual quality improvement, staff, patient and family education and state-of-the art technology," said Michael D. Klein, Chief Executive Officer of Renal Advantage. "Clearly, we are pleased to have this opportunity to increase our footprint in Virginia to 13 facilities through the addition of these seven centers."

Grady W. (Skip) Philips, III, Senior Vice President of Riverside Health Systems, added, "We are confident that Renal Advantage will continue the tradition established at these centers for providing quality healthcare while providing Riverside with access to needed renal care services in its current markets. We believe that our partnership with RAI helps to support the healthcare needs of our community through a national provider that aligns the needs of our patients, staff and physicians."

About Riverside Health System

Based in Newport News, Virginia, Riverside Health System's original charter dates back to December 15, 1915. The company began as one hospital, founded by the community and built on a site at Huntington Avenue and 50th Street in Newport News, Virginia. In 1962, the hospital was relocated to the present site of Riverside Regional Medical Center in central Newport News. Since then, Riverside has evolved into a flagship regional medical center with affiliates throughout the region in every aspect of healthcare. Riverside is a 501c(3) tax exempt, non-profit organization dedicated to improving health and saving lives. Riverside Health System is governed by a voluntary Board of Directors, as is each of the Riverside affiliates throughout the region. Located throughout eastern Virginia, Riverside facilities include hospitals, physician offices, outpatient centers, long term care facilities, retirement communities and other services. For more information, visit Riverside on the web at www.riversideonline.com.

About Renal Advantage

Based in Brentwood, Tennessee, Renal Advantage Inc. provides dialysis services to patients with chronic kidney failure, also known as end-stage renal disease (ESRD). Including the transaction announced today, Renal Advantage provides services to approximately 7,400 patients in 80 dialysis facilities in ten states. In addition, Renal Advantage currently manages RenaLab, an independent clinical laboratory located in Jackson, Mississippi, with administrative offices in Nashville, and expects to close on its previously announced acquisition of the laboratory by year-end. Founded by veteran healthcare executives, the Company's growth plan began with its acquisition of 73 dialysis centers in October 2005, which was financed in partnership with Welsh, Carson, Anderson & Stowe. For more information, visit the Company's website at www.renaladvantage.com.

Contact

For Renal Advantage Inc.
(615) 661-1100
Michael D. Klein
Chief Executive Officer
or John K. Crawford
Chief Financial Officer

For Riverside Health System
(757) 534-7095
Bud Ramey
Vice President, Corporate Communications
or Grady W. (Skip) Philips, III
Senior Vice President
(757) 534-7033