New American Healthcare to Sell Davenport MedicalCenter.

NASHVILLE, Tenn.--(BW HealthWire)--July 1, 1999--

New American Healthcare Corporation (NYSE:NAH) and Illinois Quad Cities-based Trinity Regional Health System today jointly announced that they have entered into a definitive purchase agreement under which Trinity will purchase Davenport

Medical Center, Davenport, Iowa. New American Healthcare had previously announced its intent to sell up to three of its facilities. The sale is expected to be effective August 1, 1999. Terms of the proposed transaction were not disclosed.

In commenting on the proposed transaction, Thomas W. Singleton, president and chief executive officer of New American Healthcare, said, "We are pleased that Trinity will continue Davenport Medical Center's legacy of superior healthcare service. Trinity has proven themselves to be compassionate healthcare providers and excellent stewards of their healthcare mission."

Eric Crowell, president and chief executive officer of Trinity, said, "Trinity's interest in Davenport Medical Center is part of our strategic initiative for growth and expansion in the Iowa Quad Cities. We are aggressively pursing an Iowa hospital presence that will offer quality patient care and choice in keeping with the mission and values of Trinity."

New American Healthcare Corporation was formed to capitalize on opportunities to be the principal provider of quality, cost-effective healthcare services in the non-urban communities which it targets. Since acquiring its first hospital in August 1996, the Company has acquired ten additional hospitals. These eleven acute care hospitals are located in nine states with 1,347 licensed beds. For additional information about the Company, visit New American Healthcare's web site: http://www.nahc.net.

In Illinois, Trinity Regional Health System operates Trinity Medical Center, West Campus, in Rock Island, and 7th Street Campus in Moline. Both campuses feature a residential environment to meet the emotional, physical and spiritual needs of patients and their families. Trinity is licensed for 344 beds on the West Campus and 20 post-surgical recovery care beds on the 7th Street Campus. Other TRHS subsidiaries include Robert Young Center for Community Mental Health, Trinity Health Enterprises, Inc., Trinity Visiting Nurse and Homemakers Association, and Trinity Health Foundation. In Iowa, Trinity currently operates Women's Health Centers in Davenport and Bettendorf, Trinity Home Care in Davenport; and is part owner of Work Fitness Center and Mississippi Medical Plaza. For additional information, visit Trinity Regional Health System's web site: http://www.trinityqc.com.