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MedAssets Makes Deferred Payment Related to Broadlane Acquisition

MedAssets Makes Deferred Payment Related to Broadlane Acquisition

Company to Present at J.P. Morgan Healthcare Conference on January 11

MedAssets, Inc. (NASDAQ: MDAS) today announced that it paid the $120.1 million deferred purchase consideration due on January 4, 2012 to the former owners of The Broadlane Group as part of the acquisition completed in November 2010.

"We continue to be very pleased with the client response and market reception, as well as the integration and performance of the transaction," commented John Bardis, chairman, president and CEO, MedAssets.

MedAssets funded the deferred payment with cash, which included a $55.0 million draw on its $150.0 million revolving credit facility. The Company estimates that its total bank and bond debt as of January 5, 2012 is approximately $960.0 million, after giving effect to the draw on the revolving credit facility.

MedAssets expects that it will use available free cash flow primarily to prepay its bank debt in 2012. For the nine months ended September 30, 2011, the Company's non-GAAP free cash flow a was $49.25 million. Full-year 2011 included approximately $22.0-$23.0 million of cash costs related to the integration of the Broadlane acquisition, which is not expected to recur in 2012. Non-GAAP free cash flow for the nine-month period is defined as cash provided by operating activities ($75.69 million) less capital expenditures, which includes purchases of property, equipment and software ($7.59 million) as well as capitalized software development costs ($18.85 million).

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