2006 News

September 1, 2006

CLINICAL PATHOLOGY LABORATORIES AQUIRES COGNOSCENTI HEALTH INSTITUTE

AUSTIN, TX and ORLANDO, FL – Clinical Pathology Laboratories, Inc. (CPL) today announced the completion of its acquisition of Cognoscenti Health Institute, LLC. With the transaction, Cognoscenti becomes a wholly owned subsidiary of CPL and the hub of CPL’s Southeast division.

The acquisition of Cognoscenti strategically expands CPL’s service areas beyond its current operations in the Southwestern, Mid-Atlantic and Mid-Western United States   The transaction is in line with the growth strategies laid out by CPL’s parent company, Sonic Healthcare of Australia (Australia Stock Exchange: SHL.AX). Sonic is a global medical diagnostics company with an annual revenue of AU$1.6B (US$1.3B), offering clinical laboratory and radiology services in Australia, New Zealand, Germany, Great Britain, Hong Kong and the United States. Sonic acquired 82% of CPL in October 2005 as part of its off-shore expansion strategies.

The new hub in Orlando will become a regional center for further expansions. According to David Schultz, President of CPL, “CPL is committed to continue to invest in and develop the Orlando-based operations and to increase regional market share through organic growth as well as additional acquisitions. Cognoscenti is well positioned in the market to carry out these plans.”

The transaction also provides an impressive national outlet for Cognoscenti’s award-winning evidence-based laboratory medicine information systems. These systems have proven track records and provide competitive advantage over other national laboratories in the Florida market. In the current clinical laboratory market sector where advanced information management tools are rapidly becoming key competitive factors, these technologies will complement the well known high quality testing and personalized customer service attributes that CPL offers to its clients .

“The bottom line is that the underlying operational philosophies between CPL and Cognoscenti are the same – we provide personal, customized services and local pathologist support to our physicians and patients ”, s aid Schultz. Dr. Philip Chen, MD, PhD, President of Cognoscenti echoed Schultz’s comments: “Like all specialties of medicine, laboratory medicine should be provided in a personalized fashion, where the services are customized to individual patient care needs. ‘One-size-fits-all’ does not work in medicine.”

Separately announced today is a formal agreement between Cognoscenti and University of Florida. University of Florida Department of Pathology will provide medical directorship and anatomic pathology services for Cognoscenti. Dr Chen added: “UF is the premier academic institution in the Southeast. The Department of Pathology has 33 pathologists in 16 Pathology subspecialties. Many of them enjoy internationally renowned status. We are excited that our patients and physicians now have access to the best care in the region.”

The top manager for the new Southeast division will be William Day, as Cognoscenti’s new president. Mr. Day is currently the VP of Sales at CPL’s Southwest Division. Dr. Chen will remain as M edical D irector at Cognoscenti and will also be appointed as the VP and Chief Medical Informatics Officer for the CPL network.

About Cognoscenti Health Institute
Cognoscenti was founded in 2002 with an aim to deliver evidence-based laboratory medicine with advanced diagnostic and information technologies. The company was named the 2004 Outstanding Technology Company by the National Business Incubation Association (NBIA), received the 2003 Healthcare Hero Award in Innovation by Orlando Business Journal and the 2004 Quality Achievement Award from Florida Healthcare Coalition.

About Clinical Pathology Laboratories
CPL was found in 1948 and has been operating as the premier regional laboratory and pathology service in the Southwest for decades. Its key claim is pathologist-driven, personalized customer support for its physician clients. Current CPL revenue has reached over $200 million and continues to grow at double-digit rates.