SurgiCare and Cirrus Health Services Sign a Letter of Intent to Develop and Operate New Surgical Centers

Houston, Texas, UNITED STATES

HOUSTON, June 13, 2001 (PRIMEZONE) -- SurgiCare, Inc. (OTCBB:SXCR), a Houston-based Ambulatory Surgical Center (ASC) provider, announced today that it has signed a letter of intent with Cirrus Health Services, LLC, a builder of medical office buildings. The agreement calls for SurgiCare to develop and manage Ambulatory Surgical Centers (ASCs) within Cirrus' medical buildings. The new partnership affords SurgiCare co-ownership in one ASC scheduled to open in July of this year, and several more that are currently in various stages of development.

"Cirrus has developed a phenomenal model for analyzing demographics and patient flow. Their process allows them to pinpoint the best location to build their medical office buildings so they are convenient to the doctors as well as their patient population," said Charles Cohen, Chief Operating Officer, SurgiCare, Inc. "And then they take it one step further by involving ancillary medical services within the same MOB -- services like our ASC," added Cohen.

The partnership with Cirrus Health Services has expanded SurgiCare's business model beyond traditional mergers and acquisitions, providing the company with a lucrative new avenue for generating increasing revenues through its management expertise. SurgiCare has assembled a team of highly qualified industry professionals that is equipped to effectively manage multiple ASCs, essentially cutting operational costs and increasing profit margins. As Cirrus Health Services continues building new medical facilities, SurgiCare's development and management teams will be responsible for the ASCs within the facilities.

"We believe this joint venture model will be extremely beneficial for everyone involved," said Dr. David Blumfield, Chief Executive Officer of SurgiCare. "We have already proven that our plan to consolidate the highly fragmented ambulatory surgery center market works. Partnerships like this one with Cirrus will allow us to bring even more ASCs under our management's control in a shorter period of time."

Cirrus has two medical office buildings completed in the Houston area, and one ASC completed, which should be operational within the next 30 to 60 days. The company also has two more in the planning stages. Cirrus recruits physicians and surgeons to set up practices in its buildings. These doctors become part owners of the building and perform procedures in its ASCs.

"SurgiCare's goal is to expand through same-center growth and through mergers, acquisitions and turnkey management contracts. These plans include physician-involved supervision and the potential for equity participation within a public company model. We consider our business model to be superior to the traditional model that has been used throughout the industry for years. I believe that our longtime shareholders will continue to be impressed with how quickly we are able to execute our plans and make the kinds of deals that keep pushing this company to higher levels," added Cohen.

About SurgiCare, Inc.

SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures that do not require overnight hospitalization after the surgery. The ASCs are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions, and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. For more information on SurgiCare, please visit the company's Website at

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