CIT to Acquire Healthcare Business Credit Corporation

NEW YORK – CIT Group Inc., a leading provider of commercial and consumer finance solutions, today announced it has reached a definitive agreement to acquire Healthcare Business Credit Corporation (“HBCC”), a full service healthcare financing company that specializes in asset-based and cash-flow financing to U.S. healthcare providers. The transaction is expected to close by the end of the third quarter of 2005. Terms of the deal were not disclosed.

With approximately $500 million in assets and $1 billion in loan commitments, HBCC has over 120 customers operating in 40 states, ranging from family-owned businesses to publicly traded companies. Headquartered in Mt. Laurel, New Jersey, HBCC has 64 employees and four business development offices located in Atlanta, Dallas, Chicago and Los Angeles. HBCC provides a variety of lending products including lines of credit, term loans, DIP financing, mortgage loans, acquisition financing and bridge loans.

“This is a very strategic acquisition for CIT as it allows us to quickly build critical mass in the healthcare industry, one of our most dynamic and important franchises,” said Rick Wolfert, Vice Chairman, Commercial Finance. “Furthermore, it’s a great example of CIT’s portfolio optimization strategy at work evidenced by the investment of capital into higher return opportunities for our investors.”

Flint Besecker, President, CIT Healthcare noted, “With a strong industry brand, including well-regarded expertise in the home healthcare and skilled nursing segment and a diverse middle-market client base, the addition of HBCC will accelerate the growth of CIT Healthcare and provide a more robust suite of products and advisory services for our clients.”

Bernard Lajeunesse, HBCC’s President said: “This is an exciting opportunity for HBCC to become part of a strong and well-respected organization. CIT offers a renowned reservoir of financing expertise and longstanding client relationships, and we are tremendously excited about working together. We share in CIT’s desire to create the industry leader in healthcare finance.”