Montgomeryville, PA, Aug. 5, 2008 — Fairmount Partners is pleased to announce the acquisition of the Surgical Services division of PhotoMedex, Inc. (“PHMD”), by PRI Medical Technologies, Inc. (“PRI”), a subsidiary of Emergent Group Inc. (AMEX: LZR), a leading provider of mobile medical lasers and surgical equipment. The PHMD Surgical Services division provides mobile laser services in 11 Northeast, Mid-Atlantic and Southeast states, serving 18 individual local markets, thus expanding PRI’s geographic coverage to a total of 16 states. It is a fee-based procedures business using mobile surgical laser equipment operated by Company technicians at hospitals and surgery centers in the United States.
“The proceeds from the sale of the Surgical Services business, once completed will give us additional capital to seek faster-growing, higher-margin dermatology opportunities. We appreciate the loyal service and dedication of the 50 employees who built a reputation in this area that was unsurpassed. Market conditions, however, eroded margins and masked the performance of our other higher-margin, faster-growing businesses. We believed that economies of scale to make this business more profitable could not be achieved with the current level of resources dedicated to this effort. Hence, we have agreed to sell the business unit to a company with a much larger presence in that business,” said Mr. O’Donnell.
PRI intends to expand the PHMD division’s products available for sale by making PRI’s full product line available to the division’s salespeople and customers.
The transaction was initiated by Fairmount Partners, a specialty healthcare investment banking firm based in Philadelphia, PA, who acted as exclusive financial advisor to the management of PhotoMedex, Inc. Fairmount was pleased to have an opportunity to work with PhotoMedex and the management of the Surgical Services division again, having previously represented the Surgical Services division predecessor, Surgical Laser Technologies, Inc. (Nasdaq: SLTI), in its sale to Photomedex.
PhotoMedex offers a wide range of products and services across multiple specialty areas, including dermatology, urology, gynecology, orthopedics and other surgical specialties. The Company is a leader in the development, manufacturing and marketing of medical laser products and services. PhotoMedex also develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. The Company sells directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners into the consumer market, including a long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and AquaSante(R).
ABOUT EMERGENT GROUP INC.
Emergent Group Inc. through its wholly owned subsidiary, PRI Medical Technologies, Inc. (“PRI Medical”) provides mobile laser and surgical equipment on a per procedure basis to hospitals, out-patient surgery centers, and physicians’ offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in California, Nevada, Colorado, Utah, Arizona. For product and other information, visit PRI Medical’s website, http://www.primedical.net.
Principals of Fairmount Partners acted as advisors to PhotoMedex, Inc. and its shareholders.
Contact: Neal McCarthy, Managing Director