ONWARD HEALTHCARE ACQUIRES
TWO LEADING REGIONAL NURSE STAFFING COMPANIES

Move Strengthens Presence as the Leading Provider of Travel, Per Diem, and Permanent Staffing Solutions in Northeast and Mid-Atlantic

(Norwalk, CT – January 18, 2005) -- Onward Healthcare, a nationwide provider of travel, per diem, and permanent placement staffing services to hospitals and healthcare facilities, has acquired the assets of two leading per diem staffing companies – Preferred Nurses, Inc. of Crofton, Maryland and Praestar Health, Inc. of Burlington, Massachusetts. These acquisitions expand Onward Healthcare's network of per diem offices in the Boston and Washington D.C. marketplaces and solidify Onward Healthcare's position as the leading provider of healthcare staffing services in the Northeast and Mid-Atlantic regions.

Onward Healthcare is one of the fastest growing healthcare staffing companies in the nation today, and is backed by a management team with over 50 years of experience in the industry. The company is partnered with one of the nation's premier private equity firms, Welsh, Carson, Anderson & Stowe, and in addition to these acquisitions has recently opened two new per diem branch locations in Providence, RI, and Pittsburgh, PA.

“Onward is committed to offering our clients 'one-stop-shop' staffing services, and these acquisitions increase the depth of the offering that we provide to our clients in two of the Northeast's largest metropolitan markets. With our integrated staffing solution, our clients are presented with more highly qualified healthcare professionals, and our healthcare professionals have more opportunities to maximize their career alternatives with leading healthcare systems,” said Kevin Clark, Chairman and CEO of Onward Healthcare.

“A significant number of healthcare professionals have the desire to further their career by working in different clinical environments. We are excited to now offer nationwide travel and permanent placement options for our nurses, therapists, and caregivers so they can select the career option that best aligns with their career goals,” said Amy Lohfeld, President, Preferred Nurses.

OH is rapidly attracting an impressive roster of healthcare institutions and currently has more than 1,000 client health systems, hospitals and facilities in all 50 states. The company is also attracting the top registered nurses and allied health professionals in travel, per diem and permanent nursing, with close to 100,000 qualified professionals in its proprietary database. Onward has developed a sophisticated and industry recognized clinician-based screening methodology to evaluate each employee's professional skills, talents, work experience background and capabilities, and is preparing to be evaluated by the Joint Commission on the Accreditation of Healthcare Organizations (JCAHO) for certification as a Healthcare Staffing Services firm in the first quarter of 2005.

About Onward Healthcare

Onward Healthcare is a leading provider of staffing services to healthcare facilities, specializing in the recruitment and placement of Registered Nurses and Allied Health Professionals throughout the United States and Canada for travel, per diem and permanent work assignments. Onward Healthcare is “Reinventing Healthcare Staffing” through the introduction of innovative career enhancements, industry-leading benefits and technology-driven initiatives. The firm is headquartered in Norwalk, Connecticut, and also maintains offices in California, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, and Rhode Island. For more information about Onward Healthcare, please call 800-278-0332 or visit www.onwardhealthcare.com.