January 5, 2010

Nashville, TN – Brentwood Capital Advisors LLC, is pleased to announce that it served as the exclusive financial advisor to PathGroup, Inc. in a leveraged recapitalization completed in December. Brentwood, TN-based PathGroup provides sophisticated diagnostic services covering all aspects of clinical and anatomic pathology to physician offices, hospitals, surgery centers and clinics in the Mid South and Southeast.

Cleveland, OH-based Primus Capital Funds led the minority equity investment in PathGroup, Inc., which included co-investment by Brentwood Capital Partners, L.P. The senior debt was provided by a syndicate of lenders led by Bank of America and Fifth Third Bank. Subordinated debt was provided by Maranon Capital, L.P. As part of the transaction, Brentwood Capital Advisors LLC assisted in raising and structuring the senior and subordinated debt. The transaction, which included over $100 million in new capital, provides PathGroup resources to support its growth strategy while enabling its shareholders to maintain majority ownership.

“PathGroup is pleased to complete this minority recapitalization to help launch the next chapter in our company’s growth. We will continue to be a physician-led organization focused on delivering the highest level of services and care to our clients. This investment partnership positions us to accelerate our growth both organically and through select acquisitions,” said Ben Davis, CEO of PathGroup. “We were pleased to work with Brentwood Capital Advisors as our exclusive financial advisor. This was a complex transaction and the team at BCA did a great job achieving all our key objectives.”

“This transaction enabled PathGroup shareholders to achieve significant liquidity while maintaining majority ownership and also providing capital for acquisition opportunities,” said Kevin Murphy, Managing Partner of Brentwood Capital Advisors. “PathGroup is a leader in its industry and we are pleased to have had the opportunity to work with management and the Board.”

About PathGroup, Inc.

Founded in 1997, PathGroup offers the latest in sophisticated diagnostic services covering a full range of clinical laboratory and anatomic pathology testing in Tennessee, Kentucky, Indiana, Illinois, North Carolina and Georgia. The combined test menu offering includes all pathology subspecialties, the latest in automated pap smear screening technology, as well as the latest in esoteric and molecular testing capabilities. The company’s medical diagnostic services combined with its sophisticated web-based PathConnect order/entry system and reporting system provide clients with the highest level of specialty service available. For more information, visit www.pathgroup.com

About Brentwood Capital Advisors LLC

Brentwood Capital Advisors LLC (BCA), founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee, providing mergers and acquisition and capital-raising advisory services to middle-market healthcare and business services companies. Since 2002, BCA has completed 37 financial advisory transactions as exclusive financial advisor with healthcare services transactions representing 28 of its 37 assignments.

About Primus Capital Funds

Founded in 1983, Primus Capital Funds (“Primus”) is a private equity firm that invests in high-growth companies within the healthcare, business services, communications, and for-profit education industry sectors. Transaction types include management-led buyouts, control and non-control recapitalizations, and primary infusions of growth capital. More information about Primus can be found at www.primuscapital.com.

About Brentwood Capital Partners, LP

Formed in June 2009, Brentwood Capital Partners, L.P., is a $15.15 million private equity fund that makes later-stage co-investments with leading private equity firms in control and non-control investment banking transactions in which Brentwood Capital Advisors LLC serves as exclusive financial advisor. The fund’s limited partners are comprised of CEOs and business leaders from across the Southeast.