Mr. David Watson reports

MEDICAL FACILITIES CORPORATION ANNOUNCES INCREASED PRICE AND EXTENSION OF ITS PREVIOUSLY ANNOUNCED SUBSTANTIAL ISSUER BID

Medical Facilities Corp. has amended the terms of the corporation's continuing substantial issuer bid, pursuant to which the corporation has offered to purchase from its shareholders, for cancellation, up to $80.75-million of its common shares.

The offer has been amended to increase the price range offered to shareholders who tender their common shares pursuant to the offer to a price of not less than $16.50 per common share and not more than $18 per common share (in increments of 10 cents per common share). The new range varies the original price range of the offer of not less than $15.50 and not more than $17 per common share. The high end of the new range represents a 15.5-per-cent premium to the 20-day VWAP (volume-weighted average price) of the common shares prior to the announcement of the offer and a 22.7-per-cent premium to the 20-day VWAP of the common shares prior to the announcement of the sale of Black Hills Surgical Hospital LLP to Sanford Health on Nov. 15, 2024.

In connection with the variation of the price range of the offer, the expiry date of the offer has been extended to 11:59 p.m. Toronto time on March 11, 2025, unless further extended, varied or withdrawn by the corporation. All other terms of the offer remain unchanged. The corporation anticipates announcing the results of the offer by no later than March 15, 2025, following the close of markets.

The offer is for up to approximately 21.3 per cent of the corporation's total number of issued and outstanding common shares (based on a purchase price equal to the minimum purchase price per common share, and 22,932,462 common shares issued and outstanding as at the close of business on Jan. 17, 2025).

The amended offer represents the corporation's final effort to return capital to shareholders in this manner. The corporation expects that following the expiry date, any cash allocated to the offer but not used to repurchase common shares will be distributed to shareholders by way of a special dividend. Shareholders are advised to consult with their advisers to obtain tax advice in connection therewith.

As a result of the variation of the offer, any shareholders who previously tendered their common shares to the offer prior to the date hereof are advised that such tenders are no longer valid and that the shareholders will be required to properly retender their common shares in the manner described in the notice of variation (as defined below) in order to participate in the offer. For greater certainty, any and all common shares previously tendered will be deemed to be withdrawn and will not be accepted for take-up and payment unless the shareholders take the additional steps described in the notice of variation. If you previously tendered your common shares and you do not properly retender your common shares in accordance with the procedures described in the notice of variation, your common shares will be returned to you by Computershare, the depositary for the offer, promptly after the expiry date.

The information agent for the offer is Shorecrest Group Ltd., telephone at 647-931-7454, toll-free at 1-888-637-5789 and e-mail at contact@shorecrestgroup.com.

About Medical Facilities Corp.

Medical Facilities, in partnership with physicians, owns a portfolio of highly rated, high-quality surgical facilities in the United States. Medical Facilities' ownership includes controlling interests in three specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, and an ambulatory surgery centre (ASC) located in California. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ASC specializes in outpatient surgical procedures, with patient stays of less than 24 hours.

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