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Universal Health Services, Inc. Announces Agreement To Purchase Two Boston Behavioral Health Hospitals

11/03/2000

KING OF PRUSSIA, Pa., Nov. 3 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today it has signed a definitive purchase agreement to acquire the assets of Pembroke Hospital and Westwood Lodge Hospital for approximately $6 million. The two hospitals operate 215 beds and an outpatient clinic in greater Boston providing a full range of behavioral health treatment services. The hospitals generate approximately $25 million of annual revenue but have been operating at a loss. Universal Health Services, Inc. currently operates, through subsidiaries, three behavioral health hospitals and fifteen outpatient clinics in Eastern Massachusetts.

Roy Ettlinger, Regional Vice President of Behavioral Healthcare for UHS, said, "We are delighted to have the opportunity to add Westwood and Pembroke to our existing network. Westwood and Pembroke provide critically needed services to the community. Rather than let their financial losses put them at risk for closure, we believe we can keep these needed services available by adding the hospitals to our eastern Massachusetts network. By combining, we expect to improve both the quality of service and the responsiveness of these hospitals to the needs of the community."

Universal Health Services, Inc. is the nation's third largest hospital management company and operates facilities nationwide including medical, surgical, and behavioral health hospitals and ambulatory surgery and radiation therapy centers. UHS acts as advisor to Universal Health Realty Income Trust (NYSE: UHT), a real estate investment trust.

Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.

For additional information on the Company, visit our web site: http//www.uhsinc.com. SOURCE Universal Health Services, Inc.

CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health Services, 610-768-3300/