Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES SALE OF OKLAHOMA SPINE HOSPITAL, LLC AND THE SURGERY CENTER OF NEWPORT COAST, LLC

Medical Facilities Corp.'s wholly owned subsidiary, Medical Facilities (USA) Holdings Inc. (MFH), has completed the sale of its 63.95555-per-cent interest in Oklahoma Spine Hospital LLP (OSH), located in Oklahoma City, Okla., to SSM Health Care of Oklahoma Inc. (SSM) and an entity owned by OSH's physician partners. SSM and the physician partners acquired 55.50032 per cent and 8.45523 per cent, respectively, of the equity securities of OSH, for a total purchase price of $46.0-million, subject to customary purchase price adjustments. All amounts are expressed in United States dollars.

"We sincerely thank our partners at SSM and the OSH physicians for their collaboration on this transaction," said Jason Redman, president and chief executive officer of Medical Facilities. "We are pleased to have worked alongside such a talented group to achieve our shared goals and remain confident that OSH is well positioned for future success under SSM's leadership."

Adina Storch, chair of the board of directors of Medical Facilities, noted: "This transaction aligns with MFC's strategic direction, allowing us to maximize the return of capital to our shareholders and to focus on our core assets. This divestiture enables us to continue delivering high-quality health care services in our key markets while creating value for our shareholders."

For the fiscal year ended Dec. 31, 2024, excluding government stimulus income, OSH generated facility service revenue of $76.4-million and income from operations of $6.7-million, representing 23.0 per cent and 13.6 per cent of Medical Facilities' consolidated facility service revenue and income from operations, respectively.

The corporation also completed the sale of its ambulatory surgery centre, The Surgery Center of Newport Coast LLC doing business as Newport Center Surgical, located in Newport Beach, Calif., to Newport Center GK LLC for $1.5-million on Dec. 31, 2025.

The corporation is currently evaluating various alternatives for the majority of the anticipated net proceeds, including repurchasing shares under the corporation's normal course issuer bid, making a substantial issuer bid and/or making distributions to shareholders.

About Medical Facilities Corp.

Medical Facilities, in partnership with physicians, owns two highly rated, high-quality surgical facilities in the United States. Medical Facilities's ownership includes controlling interests in two specialty surgical hospitals located in Arkansas and South Dakota. The specialty surgical hospitals perform schedulled 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.

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