(Excerpt pg. 3 from 1.28.04 News Release Tenet Announces Major Restructuring of Operations)

CALIFORNIA DIVESTITURES

Stephen L. Newman, M.D., chief executive officer of Tenet California, said, “California will remain our largest market with approximately $2.5 billion in annual revenue and

17,000 employees.  We’ve operated in the state for more than 30 years, we know the healthcare business in the state, and we believe that the 17 hospitals we are retaining in California have served their communities well and will continue to do so.  Despite the many challenges of operating here, we believe this restructuring is an opportunity for us to invest in our core facilities and help meet California’s growing need for health care.”

            Newman added, “We recognize the important of the 19 hospitals being divested to the communities they serve.  In the years we have operated them, we have invested many tens of millions of dollars to enhance and explained their services.  We intend to work sensitively and cooperatively with medical professionals and leaders in the communities affected by the divestitures to minimize any potential disruptions in patient care.”

(Excerpt pg. 4 from 1.28.04 News Release Tenet Announces Major Restructuring of Operations)

As a group, the 19 California hospitals to be divested had 2003 net operating revenues of approximately $1.8 billion and had an aggregate operating margin of approximately negative two percent.

1. Brotman Medical Center, Culver City. 420 beds
2. Centinela Hospital Medical Center, Inglewood. 370 beds.
3. Chapman Medical Center, Orange. 114 beds.*
4. Coastal Communities Hospital, Santa Ana. 178 beds.*
5. Community Hospital of Huntington Park. 81 beds.
6. Daniel Freeman Marina Hospital, Marina del Rey. 166 beds
7. Daniel Freeman Memorial Hospital, Inglewood 358 beds.
8. Doctors medical Center, San Pablo. 232 beds
9. Encino-Tarzana Regional Medical Center. Encino campus. 151 beds.
10. Encino-Tarzana Regional medical Center, Tarzana campus. 236 beds.
11. Garfield Medical Center. Monterey park. 210 beds
12. Greater El Monte Community Hospital. South El Monte. 117 beds.
13. Midway Hospital Medical Center. Los Angeles. 225 beds.
14. Mission Hospital of Huntington Park. 109 beds.
15. Monterey Park Hospital. 101 beds.
16. Queen of Angeles/Hollywood Presbyterian Medical Center. 434 beds.
17. Western Medical Center – Anaheim. 188 beds.*
18. Western medical Center – Santa Ana. 280 beds.*
19. Whittier Medical Center. 181 Beds.

Julie’s addition.

*4 are in Orange County and remaining 15 are in Los Angeles County.

Tenet intends to notify the West Contra Costa Health Care District that it terminating its lease to operate Doctors Medical Center – San Pablo and will return the facility to the district on July 31, 2004, in accordance with the six-month notification provision in its lease.  Also, Tenet intends to divest its 75 percent interest in the joint venture with HCA that owns the two-campus Encino[Tarzana Regional Medical Center or seek to sell those two hospitals.)