LPHC to acquire Santos Administraçāo e Participações regional healthcare system in Brazil

Jan 20 2010

LONDON PACIFIC & PARTNERS, INC. (PINK SHEETS:LDPP) (FRANKFURT:EGU) (“London Pacific” or the “Company”), the international advisory and investment firm, today announced that LP Healthcare Group, LLC (“LPHC”), a joint venture between London Pacific and Incite Financial, LLC, has signed an agreement to acquire Santos Administraçāo e Participações S.A. (“Santos”) — a regional healthcare system including a 125,000-member health maintenance organization (HMO) , three hospitals with a total of 290-beds, three full-service primary care centers and other related interests in the state of Sao Paulo, Brazil. The three hospitals include a 250-bed comprehensive regional hospital and two local hospitals.

LPHC has agreed to acquire a 100% controlling interest in Santos which owns 100% of the HMO and a 57.4% controlling interest in the hospitals and primary care centers and other related interests for $50 million in cash.

London Pacific presently owns 30% of LPHC with an option to acquire an additional 20% ownership and will manage the healthcare system via a long-term contract.

Santos, a 53 year old healthcare system headquartered in a rapidly growing coastal region of the state of Sao Paulo in southeastern Brazil, generated approximately $173 million in revenues and $23 million in EBITDAR (earnings before interest, taxes, depreciation and rentals) for the year ended December 31, 2009. The system is currently undergoing an aggressive expansion and modernization program.

In addition to providing advisory and management services, London Pacific also participates as a principal in acquisitive transactions such as the purchase of Santos. The Company utilizes its own cash and securities to facilitate such transactions or secures investment capital from strategic partners or financial institutions. LPHC was organized by London Pacific as a special-purpose acquisition vehicle to acquire Santos.

Closing of the acquisition is expected in the first quarter of 2010. The Company intends to maintain Santos’ current operational management team.

Stuart Bruck, Executive Chairman of the Company, stated: “The acquisition of Santos will represent a watershed in the development of London Pacific. Our experience in healthcare services, development and management should help Santos achieve greater long term growth and profitability. In addition, we intend to leverage our presence in Brazil to acquire additional healthcare properties in the region, as well as look for strategic opportunities for hospitality and natural resources investments and projects which fit our Company profile.”