Keeping the Momentum Going!

15years ago, Crothall was founded by six guys focused on one service- healthcare housekeeping. With just a handful of clients yielding $15 million in revenue, Crothall set out to take the support services industry by storm with a simple plan: provide the highest quality programs and best customer service.This strategy has transformed Crothall over the years into a national leader, with the industry's highest client retention rate.We now serve over 600 hospitals through four major divisions, and have begun to expand this success into the business and industry sector as well.We've come a long way in 15 short years.

ENVIRONMENTAL SERVICE-
The engine that pulls the train

EVS has always been the heart of Crothall's operations. In 2006, this continued to be the largest division, enjoying growth of more than 20% over last year, surpassing forecasts. Recently, the entire division was reorganized under the leadership of Executive Vice President Tom Racobaldo. This new structure will enable Crothall to deliver better program consistency throughout the country. Over the next five years, EVS has several goals to capitalize on its strengths and address challenges. New business growth and client retention are paramount. Investing in management at all levels will provide growth opportunities for its people and address problems of turnover at the supervisory level.

Most importantly, the highest quality programs must continue to be delivered. With this plan, expectations are to more than double the division in five years, and within 15 years, Crothall will be the largest EVS provider in the industry.

LAUNDRY AND LINEN-
Leveraging our size and reputation

This is a unique time for the laundry industry, and Crothall is well positioned to continue to enjoy strong business growth in this sector.The hard work of all its employees has earned Crothall a much-deserved reputation for high quality. This reputation has opened the door to new market opportunities, as well as increasing customers for its existing laundry facilities. Now processing over 418 million pounds annually, Crothall is one of the largest healthcare laundry processors in North America.

Unprecedented increases in energy costs, lack of available capital, and increased regulation have all added pressure to laundry providers.These challenges and other forces will continue to drive more consolidation in the industry favoring larger players over small, private laundries. Population increases will create large demands for laundry services, pushing hospitals and hotels to outsource this service. Crothall Laundry Services is well situated to continue to lead the way forward.

PATIENT TRANSPORTATION-
Unique focus powers rapid growth

It began in 1998 when Crothall was invited to oversee the patient transportation department at a prestigious children's hospital. Grabbing the opportunity, Crothall's transport division was born. Crothall is the only provider with a dedicated management support structure where transport is not merely an add-on feature; it is a focused and dedicated service. For the past two years, client retention has been an astounding 100%, while the division has grown to more than 50 accounts representing over 4.5 million transports per year.

In the next five years, the division's goal is to more than triple these figures. The program is accomplishing this by leveraging existing Crothall relationships, as well as expanding service offerings.The recent partnernership with Best Upon Request concierge service is key to this strategy. Crothall is determined to secure the marketplace position as the industry's leader in patient transportation services.

FACILITIES MANAGEMENT—
Planting the seeds for future growth

Crothall Facilities Management encompasses several hard services functions, including plant operations, maintenance, biomedical engineering, and asset management. 2006 was a record sales year for the division, and revenue surpassed projected levels.Growth has been achieved in both healthcare,and through the support of Crothall's B&I division, the commercial and education sectors. Crothall Asset Management continues to provide value for existing accounts, and is currently working on an exciting energy conservation project.

The September 2005 acquisition of Kinetic, a respected and leading provider of biomedical engineering, allowed for Crothall to enter into the clinical equipment services market. Over the next five years, we will continue this successful trend.

BUSINESS AND INDUSTRY-
Solid foundation and positioned for success

Previously known as ESS Americas, Crothall Business and Industry has had great success in the two years since its inception. Managed volume is well above expectations, and B&I has added several prestigious names to the roster of clients, including Halliburton, British Petroleum, P&G, Siemens, and BC Hydro. This is Crothall's most dynamic and exciting division because of the sheer variety and scope of services provided.The commercial sector is demanding, and no "cookie-cutter" approach will satisfy this market.

Over the next five years, Crothall's fastest-growing division expects unprecedented growth, and to match the same high retention rates achieved by the healthcare divisions.The strategy is to work closely with clients to reduce operating costs while delivering the highest level of quality services. No matter the size, every customer will receive the same outstanding service. The goal is not to be the largest soft services provider in the industry, but to be the best.