Philadelphia, PA, January 10, 2006– The Board of Trustees of Albert Einstein Healthcare Network (AEHN) and the Boards of Montgomery Health System (Montgomery Hospital, Montgomery Hospital Foundation, Fornance Physicians Services, and CMMC) have respectively approved an agreement to enhance the scope of clinical care available to their patients and communities, and to reduce patients’ travel time for obtaining high-level clinical services. The centerpiece of the agreement is the development of a new, technologically advanced medical center, the location of which has not yet been finalized; the preferred site under consideration is within five miles of Montgomery Hospital’s current location.

“We are tremendously excited that our partnership with AEHN will afford us an unparalleled opportunity to build a modern healthcare facility and to offer to our community an array of highly sophisticated clinical services,” says Timothy M. Casey, President and CEO of Montgomery Hospital Medical Center.

While Einstein and Montgomery Hospital will each continue to be governed independently, a new, non-profit health care corporation will be formed to oversee this exciting new initiative. The Board of Directors of this corporation will consist of representatives from the existing boards of both Einstein and Montgomery, who will continue to work collaboratively with community and political leaders during the transition to the new medical center to assess and plan for patient care needs.

“This partnership is an important step toward realizing our shared vision to provide comprehensive advanced medical services to residents of Montgomery County,” stated Barry R. Freedman, President and CEO of Albert Einstein Healthcare Network. “This partnership, and the construction of the new facility, will not only increase the quality of health of our primary and surrounding communities, but facilitate financial vitality. Both organizations remain committed, as both providers and employers, to the communities we serve in Philadelphia, Norristown and Montgomery County.”

Montgomery Hospital Medical Center (MHMC) in Norristown is the oldest suburban hospital in Southeastern Pennsylvania, founded in 1889. MHMC is staffed by more than 1,000 health care professionals who meet the needs of approximately 8,500 inpatients and more than 100,000 outpatients each year. MHMC also provides health care services at the 12 physician practice locations of its affiliate, Fornance Physician Services, located throughout Montgomery County.

Albert Einstein Healthcare Network provides healthcare services through Albert Einstein Medical Center, Germantown Community Health Services, Willow Terrace (a nursing home), Einstein at Elkins Park, MossRehab, Willowcrest (a center for subacute care), Belmont Behavioral Health and a number of outpatient and satellite locations. Einstein also operates a primary care network, Einstein Neighborhood Healthcare.