1. LifePoint Hospitals Inc. (NASDAQ: LPNT) By: Greg Boehmer Christen Brown Mike Jacobson Bill Schwartz Josh Stanley

2. LifePoint (LPNT): Overview NASDAQ: LPNT Own and operate 51 hospitals in 19 states. –One of the largest hospital groups in US Focus on non-urban healthcare –“… Offers potential for significant operational improvement.” - Website Medical, surgical, and outpatient services.

3. LifePoint (LPNT): Overview

4. LifePoint: History Spun off from HCA,Inc in 1999. Agreed to acquire Providence Healthcare Company in August 2004. –$1.7 billion in cash, stock and debt. Transaction completed in 2005. –26 new hospitals added.

5. William F. Carpenter III President and Chief Executive Officer Joined in 1999. Served as executive vice president, general counsel and secretary, chief development officer and corporate governance officer. Prior member of the Nashville law firm, Waller, Lansden, Dortch & Davis. –Specialized in general corporate and healthcare law. Board of directors –Federation of American Hospitals –Psychiatric Solutions, Inc.

6. Michael J. Culotta Chief Financial Officer Joined in 2001. Previously spent 25 years with Ernst & Young LLP. –Became partner in 1999. Board of Directors - Evolved Digital Systems, Inc. Previous Chairman of the Board of the Tennessee Valley Region of the American Red Cross Blood Services. Previous Treasurer of the Nashville Area Chapter of the American Red Cross Board member for the Nashville Healthcare Counsel and the Nashville Ballet.

7. William M. Gracey Chief Operating Officer Joined in 1999. Served in a number of multi- facility executive and hospital CEO positions with HCA. Fellow - American College of Healthcare Executives. Board Member of the Tennessee Hospital Association, Board Member - Board of Governors of the Federation of American Hospitals. Preceptor of the Year - Virginia Commonwealth University's Healthcare Administration Graduate Program.

8. Board of Directors Owen G. Shell Jr.ChairmanOwen G. Shell Jr. William F. Carpenter III Richard H. Evans DeWitt Ezell Jr. Michael P. Haley Ricki Tigert Helfer William V. Lapham John E. Maupin Jr., D.D.S.

9. Stock Screener (3/20/07) Price/Earnings14.67 Price/Book1.48 Debt to Equity1.152 Return on Equity10.39% Current Ratio2.026

10. Percent Return LPNT, CHY, HMA

11. Competitors LPNTCYHHMA Industry Market Cap:2.11B3.46B2.68B3.24B Employ­ees:14,00021,600N/A4.70K Qtrly Rev Growth (yoy):16.70%20.90%12.00%0.00% Revenue (ttm):2.37B4.19B4.07B Gross Margin (ttm):86.12%86.01%68.57%77.92% EBITDA (ttm):463.20M567.82M728.81M474.03M Oper Margins (ttm):13.72%8.94%12.56%6.76% Net Income (ttm):131.50M168.71M256.31M36.65M EPS (ttm):2.3251.6971.1081.11 P/E (ttm):15.8421.699.9921.97 PEG (5 yr expected):1.231.141.241.26 P/S (ttm):0.870.800.660.85 CYHCYH = Community Health Systems, Inc. HMAHMA = Health Management Associates Inc. IndustryIndustry = Hospitals

12. DCF Results Growth Rate10%12% Perpetuity Rate5%4% Discount Rate10% PV of Projected Cash Flows320.7462.9 PV of Terminal Value CF2049.31804.7 Fair Value2370.12267.6 Shs. Outstanding (millions)57.37 Per Share Fair Value41.5539.53 Share Price (3/20/07)38.00 Margin %9.30%-10.70%

13. Revenues by Payor Mix

14. Key Challenges Increase in provisions for doubtful accounts: Went from 197 to 273 from 05 to 06. Difficulty in recruiting and retaining physicians Substantial indebtedness: 1.6 billion in debt Medicare Changes: changes in regulations and standards by govt. Integrating acquired hospitals Shortage of nursing and technician personnel Changes in company’s Chief Executive Officer and Chairman

15. Future initiatives and competitive advantages. Own 52 hospitals nation wide: Plan to acquire 2 more hospitals in 2006-2007 Will be seeking to add 172 admitting physicians in 2007 Formed Joint venture with physicians in Lake Havasu They are sole provider of medical care in all but 5 of their locations Acquired on April 15, 2005 21 hospitals in non urban communities Run hospitals in primarily non urban communities because of certain specific advantages. –Less competitive than urban markets: smaller populations fewer hospitals –Community Focus –Acquisition Opportunities- –Paying down debt: Interest rate swap effective Nov 30, 06

16. LifePoint: Recommendation Passed initial and secondary screens. Young company but DCF is positive. Recommendation (strong sell to strong buy): BUY