Biotech News - MedServe Receives $70 Million in Equity Funding

MedServe Receives $70 Million in Equity Funding
Avista Capital Partners, combined the investment with an additional
$20 million in existing shareholder commitments and debt conversion

Houston, TX.- MedServe, Inc. has completed another round of
capitalization to fund the company's continued consolidation of
local and regional operators in the medical waste industry
nationwide. With an investment commitment of $50 million from Avista
Capital Partners, combined with an additional $20 million in
existing shareholder commitments and debt conversion, MedServe
management believes it has sufficient equity funding to achieve its
goal of more than $150 million in annual revenues. At least three
transactions are expected to close by year-end 2006 with several
more planned for 2007.

Avista Capital Partners joins Chrysalis Ventures II, L.P., Murphree
Venture Partners VI, L.P., Cogene Biotech Ventures II, L.P. and
Erasmus Louisiana Growth Fund, L.P. in capitalizing MedServe's
aggressive expansion plans.

MedServe's management has completed eight acquisitions over the past
18 months in its quest to become the second largest company in the
medical waste management sector. These acquisitions, combined with
strong organic growth, have tripled MedServe's customer base and
quadrupled revenues in the first nine months of 2006. The company is
led by Roger Ramsey, former founder and chief executive officer of
Allied Waste Industries and co-founder of Browning Ferris Industries
(BFI), and Mike Fields, former president of BFI Medical Waste.

"The medical waste industry is very fragmented with the exception of
one large, single national player. There's a compelling opportunity
for a strong second player to emerge through consolidation," said
MedServe Chairman and CEO Roger Ramsey. "MedServe already has a
proven track record of successful add-on acquisitions since our
formation in 2005. We appreciate the support of our investors to
allow us to forge ahead to build towards a national footprint."

MedServe, based in Houston, Texas, currently has an active public
and private hospital, patient clinic, physician and laboratory
customer base primarily in Texas, Oklahoma, Louisiana, Mississippi,
Missouri, Kansas, Arizona and Southern California. MedServe
President Mike Fields noted, "Current letters of intent should allow
us to expand into at least two additional geographic markets by year
end."

About MedServe
MedServe Inc., with its Med-Shred, Enserv and Envirosolve
subsidiaries, is headquartered in Houston, Texas. We serve hospitals
and smaller-quantity medical waste generators across the Southeast,
Southwest, West and Midwest, providing turnkey medical waste
management solutions. These turnkey services include high quality
mobile medical waste treatment services, waste liability management,
waste minimization programs, sharps tracking and retrieval and
medical and hazardous waste collection, transport, treatment and
disposal.

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