<HTML>
<HEAD>
<TITLE>FORM S-1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>As filed with the Securities and Exchange Commission on
August&nbsp;2, 2005</B>
</DIV>

<DIV align="right" style="font-size: 10pt;">
<B>Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
</DIV>

<DIV align="center" style="font-size: 6pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 13pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 11pt;">
<B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 17pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Form S-1</B>
</DIV>

<DIV align="center" style="font-size: 11pt;">
<B>REGISTRATION STATEMENT</B>
</DIV>

<DIV align="center" style="font-size: 11pt;">
<B>UNDER</B>
</DIV>

<DIV align="center" style="font-size: 11pt;">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 23pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EMERGENCY MEDICAL SERVICES L.P.*</B>
</DIV>

<DIV align="center" style="font-size: 7pt;">
<I>(Exact Name of Registrant as Specified in its Charter)</I>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>4119, 8011 and 8741</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>20-2076535</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or Other Jurisdiction of<BR>
    Incorporation or Organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
    Classification Code No.)<BR>
     </I><B>6200&nbsp;S.&nbsp;Syracuse Way<BR>
    Greenwood Village, Colorado 80111<BR>
    (303)&nbsp;495-1200</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification No.)</I></TD>
</TR>

<TR>
    <TD colspan="5" align="center" valign="top">
    <I>(Address, including zip code, and telephone number, including
    area code, of registrant&#146;s principal executive offices)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>William A. Sanger</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Chief Executive Officer</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Emergency Medical Services Corporation</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>6200&nbsp;S.&nbsp;Syracuse Way</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>Greenwood Village, Colorado 80111</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>(303)&nbsp;495-1200</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Name, address, including zip code, and telephone number,
including area code, of agent for service)</I>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Copies To:</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 2pt; ">

<TR style="font-size: 1pt;">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Lynn Toby Fisher,&nbsp;Esq.<BR>
    Joel I. Greenberg,&nbsp;Esq.<BR>
    Kaye Scholer LLP<BR>
    425 Park Avenue<BR>
    New York, New York 10022<BR>
    (212)&nbsp;836-8000</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>Todd Zimmerman,&nbsp;Esq.<BR>
    General Counsel<BR>
    Emergency Medical Services Corporation<BR>
    6200&nbsp;S.&nbsp;Syracuse Way<BR>
    Greenwood Village, Colorado 80111<BR>
    (303) 495-1200</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>James J. Clark,&nbsp;Esq.<BR>
    Noah B. Newitz,&nbsp;Esq.<BR>
    Cahill Gordon&nbsp;&#38; Reindel LLP<BR>
    80 Pine Street<BR>
    New York, New York 10005<BR>
    (212) 701-3000</B></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B>Approximate date of commencement of proposed sale to
public:</B>&nbsp;As soon as practicable after this Registration
Statement becomes effective.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to
Rule&nbsp;415 under the Securities Act of 1933, check the
following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If this form is filed to register additional securities for an
offering pursuant to Rule&nbsp;462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If this form is a post-effective amendment filed pursuant to
Rule&nbsp;462(c) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If this form is a post-effective amendment filed pursuant to
Rule&nbsp;462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If delivery of the prospectus is expected to be made pursuant to
Rule&nbsp;434, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Title Of Each Class&nbsp;Of</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount To Be</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Offering Price</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate Offering</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount Of</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Securities To Be Registered</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registered(1)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Per Share(2)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Price(2)</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registration Fee</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;A Common Stock, par value $0.01&nbsp;per share</DIV>
    </TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $172,500,000</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $20,304</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes shares that the underwriters have the option to
    purchase solely to cover over-allotments, if any.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Estimated solely for the purpose of calculating the registration
    fee pursuant to Rule&nbsp;457(o) of the Securities Act of 1933,
    as amended.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    Pursuant to a reorganization effected immediately prior to the
    offering, Emergency Medical Services L.P. will become a
    consolidated subsidiary of a newly-formed holding company to be
    named Emergency Medical Services Corporation, which will become
    the successor registrant.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933 or until this Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section&nbsp;8(a), may determine.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" cellpadding="5" style="border: 3pt double #000000; margin-bottom: 6pt; font-size: 10pt"><TR><TD>
<FONT style="font-size: 9pt" color="#D81E05" face="helvetica,arial">The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not
permitted.</FONT><FONT style="font-size: 9pt" face="helvetica,arial">
<BR>


</FONT>
</TD></TR></TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 1pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<FONT color="#D81E05">SUBJECT TO COMPLETION,
DATED &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005
</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Prospectus
</DIV>


<DIV align="center" style="font-size: 15pt;">
<B><FONT face="helvetica,arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares</FONT></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="y10746y1074600.gif" alt="(EMERGENCT MEDICAL SERVICES CORPORATION)">
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT face="helvetica,arial">Emergency Medical Services
Corporation</FONT></B>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT face="helvetica,arial">Class&nbsp;A Common
Stock</FONT></B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency Medical Services Corporation is
offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock in an underwritten offering. This
is our initial public offering, and no public market currently
exists for our class&nbsp;A common stock.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to apply to have our class&nbsp;A common stock
approved for listing on the New York Stock Exchange under the
symbol &#147;EMS&#148;. We anticipate that the initial public
offering price will be between
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</DIV>


<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in our class&nbsp;A common stock involves a high
degree of risk. See &#147;Risk Factors&#148; beginning on
page&nbsp;10.</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="8" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="8" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="8" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Offering price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Underwriting discounts and commissions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds to Emergency Medical Services Corporation, before
    expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain of our existing stockholders have granted the
underwriters an option to purchase up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares of our class&nbsp;A common stock to cover
over-allotments, if any. We will not receive any proceeds from
the sale of shares of our class&nbsp;A common stock by the
selling stockholders. The underwriters can exercise this right
at any time within 30&nbsp;days from the date of this
prospectus. The underwriters expect to deliver the shares of
class&nbsp;A common stock to our investors on or
about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Joint Book&#151;Running Managers</I>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 14pt;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT face="helvetica,arial">Banc of America Securities LLC</FONT></B></TD>
    <TD align="right"><B><FONT face="helvetica,arial">JPMorgan</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 14pt;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT face="helvetica,arial">CIBC World Markets</FONT></B></TD>
    <TD align="right"><B><FONT face="helvetica,arial">Credit Suisse First Boston</FONT></B></TD>
</TR>

</TABLE>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 14pt;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT face="helvetica,arial">Scotia Capital</FONT></B></TD>
    <TD align="right"><B><FONT face="helvetica,arial">Utendahl</FONT></B></TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 9pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B>You should rely only on the information contained in this
prospectus. We have not, and the underwriters have not,
authorized anyone to provide you with different information. We
are not making an offer to sell these securities in any
jurisdiction where the offer or sale is not permitted. You
should assume that the information in this prospectus is
accurate on the date on the front cover of this prospectus only.
Our business, financial condition, results of operations and
prospects may have changed since that date.</B>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>TABLE OF CONTENTS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>Summary</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>Risk Factors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>Cautionary Statements Regarding
    Forward-Looking Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>Formation of Holding Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>Capitalization</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>Dilution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>Dividend Policy</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>Unaudited Pro Forma Consolidated Financial
    Data</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>Selected Combined and Consolidated
    Financial Information and Other Data</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#111'>Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#112'>Industry</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#113'>Business</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#114'>Management</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>Principal and Selling Stockholders</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#124'>Description of Capital Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#116'>Certain Relationships and Related Party
    Transactions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#117'>Material U.S.&nbsp;Federal Income Tax
    Considerations</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#118'>Shares Eligible for Future Sale</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>129</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#119'>Underwriting</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#120'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#121'>Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#122'>Where You Can Find More Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#123'>Index to Combined and Consolidated
    Financial Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv2w1.txt">STOCK PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv2w2.txt">AMENDMENT TO STOCK PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv2w3.txt">STOCK PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv2w4.txt">AMENDMENT TO STOCK PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv2w5.txt">LETTER</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv3w3.txt">CERTIFICATE OF FORMATION</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv3w4.txt">AGREEMENT OF LIMITED PARTNERSHIP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv4w3.txt">INVESTOR EQUITYHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv4w5.txt">REGISTRATION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv4w6.txt">INDENTURE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv4w7.txt">SUPPLEMENTAL INDENTURE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv4w8.txt">REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w1.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w2.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w3.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w4.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w5.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w6.txt">EQUITY OPTION PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w7.txt">EQUITY PURCHASE PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w8.txt">MANAGEMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w9.txt">PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w10.txt">CREDIT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w11.txt">AMENDMENT #1 TO CREDIT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv10w12.txt">SECURITY AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv21w1.txt">SUBSIDIARIES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y10746exv23w1.txt">CONSENT OF PRICEWATERHOUSECOOPERS LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

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</DIV>

<P align="center" style="font-size: 10pt;">i
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B> ABOUT THIS PROSPECTUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless the context otherwise indicates or requires, as used in
this prospectus, references to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; the
    &#147;company&#148; or &#147;Emergency Medical Services&#148;
    refer to Emergency Medical Services Corporation and its
    subsidiaries, including its predecessors and after giving effect
    to our formation as a holding company, in which Emergency
    Medical Services L.P. will become a consolidated subsidiary of
    Emergency Medical Services Corporation and the general partner
    of Emergency Medical Services L.P. (formerly known as Emergency
    Medical Services Corporation) will become our wholly-owned
    subsidiary,</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;AMR&#148; refers to American Medical Response, Inc. and
    its subsidiaries,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;EmCare&#148; refers to EmCare Holdings Inc. and its
    subsidiaries, and includes its affiliated physician groups and
    managed companies,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;EMS L.P.&#148; refers to Emergency Medical Services L.P.,
    currently the top-tier holding company of AMR and EmCare and
    which, after giving effect to our formation as a holding
    company, will be our consolidated subsidiary,</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;LP exchangeable units&#148; refers to the limited
    partnership units of EMS L.P. which are exchangeable at any
    time, at our option or the option of the holder, on a
    one-for-one basis for our class&nbsp;B common stock,</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;acquisition&#148; refers to our acquisition of AMR and
    EmCare effective as of the close of business on January&nbsp;31,
    2005, and the related financing transactions,</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;net revenue&#148; refers to our revenue net of provisions
    for contractual discounts and estimated uncompensated care, and
    &#147;our net revenue&#148; or &#147;total net revenue&#148;
    refer to our net revenue on a consolidated or combined basis,
    and therefore includes the net revenue of AMR and EmCare for the
    relevant period,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;our physicians&#148; and &#147;our healthcare
    professionals&#148; includes physicians, nurse practitioners and
    physician assistants employed by, or contracted with, our
    affiliated physician groups to provide services under our EmCare
    hospital contracts,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our market share is calculated based on our net revenue, for
    AMR, and the number of our contracts, for EmCare, and is derived
    from third party data, in the case of AMR, and our own market
    surveys, in the case of EmCare,&nbsp;and</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &#147;Onex entities&#148; refers to Onex Partners LP, Onex
    Corporation and their respective partners and affiliates that
    beneficially own our class&nbsp;B common stock, and
    &#147;Onex&#148; refers to Onex Corporation and its affiliates,
    including Onex Partners LP.</TD>
</TR>


</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FINANCIAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the acquisition, we changed our fiscal
year-end from August&nbsp;31 to December&nbsp;31. Accordingly,
our current fiscal year will be an 11-month period beginning
February&nbsp;1, 2005, the effective date of our acquisition of
AMR and EmCare. Prior to the acquisition, we reported our
financial information on a fiscal year ending on August&nbsp;31.
In this prospectus, &#147;fiscal year&#148; or
&#147;fiscal&#148; followed by the year 2004 or earlier refers
to the twelve months ending August&nbsp;31 of that year. For
example, the fiscal year ended August&nbsp;31, 2004 is referred
to as &#147;fiscal 2004.&#148; In addition, as a result of the
acquisition, and as described further in our financial
statements and notes thereto included elsewhere in this
prospectus, we include as a reporting period our pre-acquisition
five-month period ended January&nbsp;31, 2005.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDUSTRY AND MARKET DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market data and other statistical information used
throughout this prospectus are based on independent industry
publications, government publications, reports by market
research firms or other published independent sources. Some data
are also based on our good faith estimates, which are derived
from our review of internal surveys, as well as the independent
sources listed above. Although we believe these sources are
reliable, we have not independently verified the information and
cannot guarantee its accuracy and completeness. None of the
independent industry publications used in this prospectus were
prepared on our or our affiliates&#146; behalf and none of the
sources cited in this prospectus consented to the inclusion of
any data from its reports, nor have we sought their consent.
</DIV>


<P align="center" style="font-size: 10pt;">ii
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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "SUMMARY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SUMMARY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>This summary highlights selected information contained
elsewhere in this prospectus and does not contain all of the
information you need to consider in making your investment
decision. This summary is qualified in its entirety by the more
detailed information and the combined and consolidated financial
statements and notes thereto appearing elsewhere in this
prospectus. You should read carefully this entire prospectus and
should consider, among other things, the matters set forth in
the section entitled &#147;Risk Factors&#148; before deciding
whether to invest in our common stock.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency Medical Services Corporation is a leading provider of
emergency medical services in the United States. We operate our
business and market our services under the AMR and EmCare
brands. AMR is the leading provider of ambulance services in the
United States. EmCare is the leading provider of outsourced
emergency department staffing and related management services in
the United States. Approximately 86% of our fiscal 2004&nbsp;net
revenue was generated under exclusive contracts. During fiscal
2004, we provided emergency medical services to approximately
9&nbsp;million patients in more than 2,000 communities
nationwide. For the fiscal year ended August&nbsp;31, 2004, we
generated net revenue of $1.6&nbsp;billion, of which AMR and
EmCare represented approximately 66% and 34%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>AMR.</I> Over its 50&nbsp;years of operating history, AMR has
developed the largest network of ambulance services in the
United States. AMR has an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7&nbsp;million patients in
34&nbsp;states. AMR has approximately 2,550&nbsp;contracts with
communities, government agencies, healthcare providers and
insurers to provide ambulance transport services. AMR&#146;s
broad geographic footprint enables us to contract on a national
and regional basis with managed care and insurance companies.
AMR has made significant investments in technology, customer
service programs, employee training and risk mitigation programs
to deliver a compelling value proposition to our customers. We
believe this has resulted in our improvement in contract
retention, from 81% in fiscal 2001 to what we believe is our
industry-leading contract retention rate of 99% in fiscal 2004.
For fiscal 2004, approximately 57% of AMR&#146;s net revenue was
generated from emergency 911 ambulance services, 32% from
non-emergency ambulance services and the balance generated from
the provision of training, dispatch centers and other services
to communities and public safety agencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmCare.</I> Over its 33&nbsp;years of operating history,
EmCare has become the largest provider of outsourced emergency
department staffing and related management services to
healthcare facilities. EmCare has a 6% share of the total
emergency department services market and a 9% share of the
outsourced emergency department services market. In addition,
EmCare has become one of the leading providers of hospitalist
services, the staffing of physicians that specialize in the care
of acutely ill patients in an inpatient setting. During fiscal
2004, EmCare had approximately 5.3&nbsp;million patient visits
in 38&nbsp;states. EmCare has 329 exclusive contracts with
hospitals and independent physician groups to provide emergency
department, hospitalist and radiology staffing, management and
other administrative services. We believe that EmCare&#146;s
successful physician recruitment and retention, high level of
customer service and advanced risk management programs have
resulted in our improvement in contract retention, from 74% in
fiscal 2001 to what we believe is an industry-leading contract
retention rate of 91% in fiscal 2004.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Industry</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate in the ambulance and emergency department services
markets, two large and growing segments of the emergency medical
services market. Most communities are required by law to provide
emergency ambulance services and most hospitals are required to
provide emergency department services. Given that emergency
medical services are a core component of the patient care
continuum, we believe that expenditures for emergency medical
services will continue to correlate closely with growth in the
U.S.&nbsp;hospital market. We believe that growth in our
emergency medical services markets will also be driven by an
increase in outsourcing for these services and increased federal
funding for disaster preparedness and response.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">1

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Ambulance Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ambulance services encompass both 911 emergency response and
non-emergency transport services. We believe the ambulance
services market represents annual expenditures of approximately
$12&nbsp;billion. The ambulance services market is highly
fragmented, with more than 14,000 private, public and
not-for-profit service providers accounting for an estimated
36&nbsp;million ambulance transports in 2004. There are a
limited number of regional ambulance providers and we are one of
only two national ambulance providers. Given demographic trends,
the total number of ambulance transports is expected to continue
to grow at a steady rate of 1% to 2%&nbsp;per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to increased demand for technology-enhanced and data-driven
providers, cost-effectiveness of services, improved patient
outcomes and emergency preparedness and response, we believe
that the current trend by communities and hospitals to outsource
ambulance services will contribute to growth for private
providers. According to the Journal of Emergency Medical
Services, the percentage of emergency medical transportation
services delivered by private ambulance providers in the
nation&#146;s 200 largest cities increased from 34% in 1999 to
39% in 2003. Furthermore, we expect private providers to benefit
as hospitals continue to outsource more of their ambulance
services due to changes in reimbursement rates and increased use
of outpatient services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Emergency Department Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe the physician reimbursement component of the
emergency department services market represents annual
expenditures of approximately $10&nbsp;billion. There are
approximately 4,700 hospitals in the United States that operate
emergency departments, of which approximately 67% outsource
their physician staffing and management for this department. The
market for outsourced emergency department staffing and related
management services is highly fragmented, with more than
800&nbsp;national, regional and local providers. We believe we
are one of only five national providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Between 1993 and 2003, the total number of patient visits to
hospital emergency departments increased from 90.3&nbsp;million
to 113.9&nbsp;million, an increase of 26%. At the same time, the
number of hospital emergency departments declined 12%. As a
result, the average number of patient visits per hospital
emergency department increased substantially during that period.
We believe these trends are resulting in an increased focus by
hospitals on their emergency departments. As the per hospital
demand for emergency department visits continues to increase, we
believe that more hospitals will turn to well-established
providers, such as EmCare, which have a demonstrated track
record of improving productivity and efficiency while providing
high quality care.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Competitive Strengths</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe the following competitive strengths position our
company to capitalize on the favorable trends occurring within
the healthcare industry and the emergency medical services
markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Leading, Established Provider of Emergency Medical
Services.</I> We are a leading provider of emergency medical
services in the United States. AMR is the leading provider of
ambulance services, with net revenue approximately twice that of
our only national competitor. During fiscal 2004, AMR treated
and transported approximately 3.7&nbsp;million patients in
34&nbsp;states. We believe that EmCare is the leading provider
of outsourced staffing and related management services to
emergency departments, with 32% more emergency department
staffing contracts than our principal national competitor.
EmCare&#146;s 4,500 affiliated physicians provide services to
over 300 client hospitals, including many of the top 100
hospitals in the United States. EmCare is also one of the
leading providers of hospitalist services. We believe our track
record of consistently meeting or exceeding our customers&#146;
service expectations, coupled with our ability to leverage our
infrastructure and technology to drive increased productivity
and efficiency, have contributed to our ability to retain
existing and win new contracts.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">2
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Significant Scale and Geographic Presence.</I> We believe our
significant scale and broad geographic presence provide a
competitive advantage over local and regional providers in most
areas, including our:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Ability to recruit and retain quality personnel.</I> We are
    able to recruit and retain clinical and support employees by
    providing attractive compensation packages, comprehensive
    training programs, risk mitigation strategies, career
    development and greater breadth of job transferability. This
    lowers our costs associated with employee turnover and increases
    customer and patient satisfaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>National contracting and preferred provider
    relationships.</I> We are able to enter into national and
    regional contracts with managed care organizations and insurance
    companies. We have an exclusive provider contract with one of
    the largest managed care organizations, and we have preferred
    provider status with several healthcare systems and
    many&nbsp;managed care organizations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Cost efficiencies and broad program offering.</I> Our
    investments in technology may be too costly for certain
    providers to replicate, and provide us with several competitive
    advantages, including: (i)&nbsp;operating cost efficiencies,
    (ii)&nbsp;scalability and (iii)&nbsp;the capability to provide
    broad, high quality service offerings to our customers at
    competitive rates. In addition, our technology, including
    electronic patient records, and our expertise in providing both
    pre-hospital and hospital-based emergency care uniquely
    positions us to respond to community demand for enhanced
    coordination among their emergency service providers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Long-Term Relationships with Existing Customers.</I> We
believe our long-term, well-established relationships with
communities and healthcare facilities enhance our ability to
retain existing customers and win new contracts. AMR and EmCare
have maintained relationships with their ten largest customers
for an average of 34 and 12&nbsp;years, respectively, and during
that time have continually demonstrated an ability to meet and
exceed contractual commitments. As a result, we believe we are
in an advantageous position at the time of contract renewal when
a community or hospital is faced with a decision whether to
retain its existing provider or explore other alternatives. We
believe our industry-leading contract retention rates reflect
our ability to deliver on our service commitments to our
customers over extended time periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Strong Financial Performance.</I> When we compete for new
business, one of the key factors our potential customers
evaluate is financial stability. As a result, we believe our
track record of strong financial performance provides us with a
competitive advantage over our competitors. We believe our
ability to demonstrate consistently strong financial performance
will continue to differentiate our company and provide a
competitive advantage in winning new contracts and renewing
existing contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Focus on Risk Management.</I> Considered one of the leading
programs of its kind in the emergency department industry,
EmCare&#146;s risk management initiatives are enhanced by the
use of our professional liability claims database. We analyze
this data to demonstrate claim trends on a national, hospital,
physician and procedure level, helping to manage and mitigate
risk exposure. AMR&#146;s risk/ safety program is aimed at
reducing worker injuries through training and improved
equipment, and increasing vehicle safety through the use of
technology. Over the last three years, our workers compensation,
auto, general and professional liability claims per 100,000
ambulance transports decreased 8.4% at AMR and our professional
liability claims per 100,000 emergency department visits
decreased 14.0% at EmCare.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Investment in Core Technologies.</I> We utilize technology as
a means to enhance quality, reduce the cost of our service
offerings, more effectively manage risk and improve our
profitability. For example:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We believe AMR is the largest user of ambulance electronic
    patient care records, or e-PCR. Our proprietary system enables
    us to eliminate the use of manual patient records by replacing
    them with electronic records, which we expect will improve chart
    documentation and reduce costs.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AMR utilizes proprietary software, Millennium, to determine the
    appropriate level of transportation services to be dispatched
    and track response times and other data for hospitals. Our
    initial implementation of these technologies has improved our
    ability to capture revenue, decrease our billing costs and bid
    more effectively for 911&nbsp;contracts.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">3

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    EmCare has developed proprietary physician recruitment software
    that has enhanced our recruitment efficiency and improved our
    physician retention rate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At EmCare, we track risk exposure trends through what we believe
    is one of the largest emergency department risk databases,
    allowing us to assess, develop and implement targeted risk
    intervention programs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Proven and Committed Management Team.</I> We are led by an
experienced senior management team with an average of
21&nbsp;years of experience in the healthcare industry. Our
Chairman and Chief Executive Officer, William Sanger, has over
30&nbsp;years of experience within the healthcare services
industry, with leadership roles in multi-system hospitals,
ambulatory care facilities, post-acute service facilities,
physician management companies and insurance entities. Since
Mr.&nbsp;Sanger joined us in 2001, our senior management team
has been successful in growing the market share of our
businesses, managing changes in reimbursement policy, reducing
professional liability risk and improving the profitability of
our operations.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Business Strategy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to leverage Emergency Medical Services&#146;
competitive strengths to pursue our business strategy:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Increase Revenue from Existing Customers.</I> We believe our
long track record of delivering excellent service and quality
patient care, as well as the breadth of our services, creates
opportunities for us to increase revenue from our existing
customer base. We continue to implement innovative programs that
increase facility capacity and patient throughput, establish
site specific service level commitments and transport
coordination to increase non-emergency transports, and broaden
product and service offerings to our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Grow Our Customer Base.</I> We believe we have a unique
competency in the treatment, management and billing of episodic
care. We believe our long operating history, significant scope
and scale, strong brand recognition and leading market position
provide us with new and expanded opportunities to grow our
customer base. We continue to generate new revenue and client
growth through targeted geographic sales and marketing programs,
pursuing new outsourcing opportunities for emergency department,
hospitalist, radiology and ambulance services and expanding our
public/private ambulance partnerships with local fire
departments. We are also evaluating opportunities that leverage
our core businesses, such as managing health-related
transportation logistics.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Pursue Select Acquisition Opportunities.</I> The emergency
medical services industry is highly fragmented, with only a few
large national providers, and presents opportunities for
consolidation. We plan to pursue select acquisitions in our core
businesses, including acquisitions to enhance our presence in
existing markets and our entry into new geographic markets. We
will also explore the acquisition of complementary businesses,
such as radiology, hospitalist and managed health-related
transportation services and seek opportunities to expand the
scope of services in which we can leverage our core competencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Utilize Technology to Differentiate Our Services and Improve
Operating Efficiencies.</I> We intend to continue to invest in
technologies that broaden our services in the marketplace,
improve patient care, enhance our billing efficiencies and
increase our profitability. We believe that the complexities of
the healthcare industry and customer demand for broader, more
cost-effective service offerings will continue to benefit those
providers that remain at the forefront of technological
innovation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Continued Focus on Risk Management.</I> Through our risk
management and quality assurance staffs, technology platform and
well-trained medical personnel, we will continue to conduct
aggressive risk management programs for loss prevention and
early intervention. We will continue to develop and utilize
clinical &#147;fail safes&#148; and use technology in our
ambulances to reduce vehicular incidents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Implement Cost Rationalization Initiatives.</I> We will
continue to rationalize our cost structure by aligning
compensation with productivity, developing risk management
initiatives that are focused on mitigating risk exposures, and
eliminating costs in our national and regional corporate support
structure. Since the acquisition, we have completed our
preliminary analysis of certain of our support areas, including
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">4

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<DIV align="left" style="font-size: 10pt;">
accounting, legal, information services and human resources, and
have begun to implement initiatives to increase productivity and
achieve further economies of scale across the company.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company History</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR and EmCare have more than 50&nbsp;years and 33&nbsp;years,
respectively, of operating history. From 1997, they were
wholly-owned subsidiaries of Laidlaw International, Inc. In
February 2005, AMR and EmCare were purchased from Laidlaw by an
investor group led by Onex Partners LP and Onex Corporation and
including members of our management.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Our Equity Investor</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Onex Partners LP is a $1.7&nbsp;billion private equity fund
established in 2003 by Onex Corporation. Onex Partners provides
committed capital for Onex-sponsored acquisitions. Onex
Corporation is a diversified company with annual consolidated
revenues of approximately $14&nbsp;billion and 110,000
employees. Onex&#146; subordinate voting shares are listed and
traded on the Toronto Stock Exchange under the symbol
&#147;OCX.SV&#148;. Onex is one of Canada&#146;s largest
companies with global operations in service, manufacturing and
technology industries. Onex&#146; healthcare investments include
Magellan Health Services, Inc., Res-Care Inc. and Center for
Diagnostic Imaging, Inc. Other Onex operating companies include
Celestica Inc., ClientLogic Corporation, Spirit AeroSystems,
Inc., Cineplex Galaxy LP, J.L.&nbsp;French Automotive Castings,
Inc., Cosmetic Essence, Inc., Performance Logistics Group, Inc.
and Radian Communication Services Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the completion of this offering, Onex owns beneficially
an aggregate of approximately 97% of our common stock. See
&#147;Principal and Selling Stockholders.&#148;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investing in our class&nbsp;A common stock involves risks. You
should refer to the section entitled &#147;Risk Factors&#148;
for a discussion of certain risks you should consider before
deciding whether to invest in our class&nbsp;A common stock.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Offices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal executive offices are located at
6200&nbsp;S.&nbsp;Syracuse Way, Suite&nbsp;200, Greenwood
Village, Colorado 80111 and our telephone number at that address
is (303)&nbsp;495-1200. Our website address is
<I>www.emsc.net</I>. The website addresses for our business
segments are <I>www.amr.net </I>and <I>www.emcare.com.</I>
<B>Information contained on these websites is not part of this
prospectus and is not incorporated in this prospectus by
reference.</B>
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">5

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Offering</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    Class&nbsp;A common stock offered by us</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Over-allotment shares of class&nbsp;A common stock offered by
    the selling stockholders</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Common stock outstanding after this offering</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;A common stock <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;B common stock</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="top">
    We intend to use approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    of the net proceeds from this offering to repay debt under our
    senior secured credit facility, and the balance for general
    corporate purposes. See &#147;Use of Proceeds.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Proposed NYSE symbol</TD>
    <TD></TD>
    <TD valign="top">
    &#147;EMS&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The number of shares of our common stock outstanding after this
    offering is based on
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units
    of EMS L.P. outstanding as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2005, and gives effect to the exchange of all LP exchangeable
    units for our class&nbsp;B common stock. See &#147;Formation of
    Holding Company.&#148; We will also have outstanding
    one&nbsp;share of class&nbsp;B special voting stock through
    which the holders of LP&nbsp;exchangeable units may exercise
    voting rights with respect to Emergency Medical Services as
    though they held the same number of shares of our class&nbsp;B
    common stock. See &#147;Description of Capital Stock&nbsp;&#151;
    LP Exchangeable Units and Class&nbsp;B Special Voting
    Stock.&#148; The number of shares of our common stock to be
    outstanding after this offering
    excludes &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;A common stock issuable upon the exercise of
    options. See &#147;Management&nbsp;&#151; Equity
    Plans&nbsp;&#151; Equity Option Plan.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Except as otherwise indicated, all of the information presented
    in this prospectus assumes the following:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our formation as a holding company named Emergency Medical
    Services Corporation, the contribution to us of the general
    partner interest in EMS L.P., and the contribution to us of
    certain partnership units of EMS L.P. in exchange for shares of
    our class&nbsp;A common stock, as described under
    &#147;Formation of Holding Company&#148;,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the
    anticipated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
    split based upon an assumed initial public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, which is the mid-point of the range set forth in the
    cover page of this prospectus,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the exchange of all LP exchangeable units for shares of our
    class&nbsp;B common stock, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    no exercise of the underwriters&#146; over-allotment option.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">6
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary of Historical Combined, Consolidated and Pro Forma
Consolidated Financial Information and Other Data</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The summary combined financial data of AMR and EmCare for the
year ended August&nbsp;31, 2002 (Predecessor&nbsp;&#151;
Pre-Laidlaw Bankruptcy), the nine months ended May&nbsp;31, 2003
(Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy), and as of and
for the three months ended August&nbsp;31, 2003
(Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy), the year
ended August&nbsp;31, 2004 (Predecessor&nbsp;&#151; Post-Laidlaw
Bankruptcy) and the five months ended January&nbsp;31, 2005
(Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy) are derived
from our audited combined historical financial statements
included in this prospectus. As a result of a correction to
AMR&#146;s method of calculating its accounts receivable
allowances, we determined that the allowances were understated
at various balance sheet dates. The audited combined financial
statements included in this prospectus are restated to correct
this error. There were no adjustments necessary to income
subsequent to May&nbsp;31, 2003.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The summary combined historical financial data for the five
months ended January&nbsp;31, 2004 (Predecessor&nbsp;&#151;
Post-Laidlaw Bankruptcy) and the three months and five months
ended June&nbsp;30, 2004 (Predecessor&nbsp;&#151; Post-Laidlaw
Bankruptcy) are derived from the unaudited combined historical
financial statements included in this prospectus. The summary
consolidated financial data for the three months and five months
ended June&nbsp;30, 2005 (Successor) are derived from the
unaudited consolidated historical financial statements included
elsewhere in this prospectus. The interim financial statements
include, in the opinion of management, all adjustments,
consisting of normal accruals, necessary for a fair presentation
of the information for those periods. The results of operations
for the interim periods may not be indicative of results that
may be expected for the full fiscal year.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The summary pro forma consolidated financial information and
other data for the year ended August&nbsp;31, 2004, the five
months ended January&nbsp;31, 2005 and the five months ended
June&nbsp;30, 2005 reflect the acquisition of AMR and EmCare by
Emergency Medical Services and the completion of this offering,
and should be read in conjunction with our unaudited pro forma
consolidated financial statements included elsewhere in this
prospectus which, with respect to statement of operations data,
give effect to the acquisition and this offering as if they
occurred as of September&nbsp;1, 2003, September&nbsp;1, 2004
and February&nbsp;1, 2005, respectively, and with respect to
balance sheet data, give effect to this offering as if it
occurred as of June&nbsp;30, 2005. The unaudited pro forma
consolidated financial information is presented for
informational purposes only and does not purport to represent
what our results of operations would have been if the
acquisition and this offering had occurred as of the dates
indicated or what such results will be for future periods.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the summary information in conjunction with
&#147;Selected Combined and Consolidated Financial Information
and Other Data,&#148; &#147;Unaudited Pro Forma Consolidated
Financial Data,&#148; &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;
and the combined and consolidated financial statements and
related notes included in this prospectus.
</DIV>

</DIV>

<P align="center" style="font-size: 10pt;">7
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<DIV align="left" style="font-size: 10pt;">
<!-- Landscape -->
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</DIV>

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</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="31" align="center" nowrap><B>Predecessor (Pre-Acquisition)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(Pre-Laidlaw</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Successor (Post-</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(Post-Laidlaw Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Acquisition)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Unaudited Pro Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Statement of Operations Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,103,335</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>384,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>667,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>399,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>663,880</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>445,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>960,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>757,183</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>264,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>461,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,610</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,447</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,661</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,576</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,865</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,867</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,269</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,144</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,381</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(239,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,130</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,700</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,418</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(908</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,073</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,646</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes and cumulative change in
    accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(246,009</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,159</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,155</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(829</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,633</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,558</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before cumulative effect of a change in accounting
    principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,330</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="31" align="center" nowrap><B>Predecessor (Pre-Acquisition)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(Pre-Laidlaw</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Successor</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Post-</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(Post-Laidlaw Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Acquisition)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other Financial Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash flow provided by (used in):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>156,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>58,769</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>127,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>81,269</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>94,703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(57,347</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,835</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,136</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,516</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,767</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,667</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,121</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(875,235</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,060</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,222</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,328</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,501</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,043</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>797,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,438</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,768</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,387</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EBITDA(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>66,274</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>122,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>45,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>43,658</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>63,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="23" align="left" valign="top">
    EBITDA, as adjusted(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>59,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>51,475</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>63,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As of June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Balance Sheet Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt and capital lease obligations, including current
    maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>605,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partners&#146;/ Stockholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>230,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    See note&nbsp;1 to our combined financial statements with
    respect to our fresh-start financial reporting.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Reflects an impairment of goodwill recorded in connection with
    the adoption of SFAS&nbsp;No.&nbsp;142.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    Includes $26.3&nbsp;million financed through capital leases.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    EBITDA represents net income (loss) before interest expense,
    net, income tax expense, depreciation and amortization expense,
    fresh-start accounting adjustments, cumulative effect of a
    change in accounting principle, impairment losses and realized
    (gain)&nbsp;loss on investments. Adjusted EBITDA represents
    EBITDA adjusted to remove the effect of the Laidlaw allocations
    of management fees and compensation charges, insurance expenses
    and rebates and reorganization costs. Management routinely
    calculates and communicates EBITDA and adjusted EBITDA and
    believes that they are useful to investors because they are
    commonly used as analytical indicators within the healthcare
    industry to evaluate operational performance, allocate resources
    and measure leverage capacity and ability to service debt. In
    addition, adjusted EBITDA is used as a measure for various
    financial covenants in our senior secured credit facility, and
    we use adjusted EBITDA as a measure for incentive</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">8
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <!-- Landscape --></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="3%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">compensation purposes. EBITDA and
    adjusted EBITDA should not be considered as a measure of
    financial performance under generally accepted accounting
    principles, or GAAP, and the items excluded from EBITDA and
    adjusted EBITDA are significant components in understanding and
    assessing financial performance. EBITDA and adjusted EBITDA
    should not be considered in isolation or as an alternative to
    net income, cash flows generated by operating, investing or
    financing activities or other financial statement data presented
    in the combined and consolidated financial statements as an
    indicator of financial performance or liquidity. EBITDA and
    adjusted EBITDA, as presented, may not be comparable to
    similarly titled measures of other companies.
    </FONT></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The following table reconciles net income (loss) to EBITDA:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="31" align="center" nowrap><B>Predecessor (Pre-Acquisition)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(Pre-Laidlaw</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Successor</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(Post-Laidlaw Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(Post-Acquisition)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Unaudited Pro Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Combined/ Consolidated Results:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Add:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>223,721</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,558</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,831</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(46,416</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,387</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,493</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized (gain) loss on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(90</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,144</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EBITDA(a)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>66,274</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>122,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>45,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>43,658</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>63,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    EBITDA for periods presented includes Laidlaw&#146;s allocation
    to us of fees and compensation charges, insurance expenses and
    rebates and reorganization costs. Laidlaw&#146;s allocations to
    us of fees and compensation charges and of reorganization costs
    are based on allocations among all of Laidlaw&#146;s business
    units based on revenues, plus an additional amount allocated to
    us in respect of a one-time compensation expense related to the
    changes in the enterprise values of AMR and EmCare.
    Laidlaw&#146;s allocation to us of insurance expense and rebates
    is based on an allocation of investment income of Laidlaw&#146;s
    captive insurance subsidiary among all of Laidlaw&#146;s
    business units based on revenues, and an allocation of claims
    among Laidlaw&#146;s business units based on each business
    unit&#146;s claims experience. We do not believe that
    Laidlaw&#146;s allocation of these expenses and rebates are
    predictive of expenses and rebates we expect to incur as a
    stand-alone company in respect of management services or for
    comparable stand-alone insurance costs. Laidlaw&#146;s
    allocation of these expenses and rebates for the historical
    periods presented were as follows:</TD>
</TR>

</TABLE>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="31" align="center" nowrap><B>Predecessor (Pre-Acquisition)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(Pre-Laidlaw</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Bankruptcy)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(Post-Laidlaw Bankruptcy)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="31" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw insurance expense (rebate)(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,094</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,058</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,505</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Laidlaw allocated expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,758</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="width: 21%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)</TD>
    <TD align="left">
    Included in &#147;Insurance expense&#148; in our combined
    statements of operations.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD align="left">
    Includes compensation charges of $4.1&nbsp;million.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    We estimate that the costs we will incur in respect of
    management services and other costs as a stand-alone company
    will total approximately $4.0&nbsp;million a year. See note
    (1)&nbsp;to the unaudited pro forma consolidated statement of
    operations for the five&nbsp;months ended January&nbsp;31, 2005
    and the year ended August&nbsp;31, 2004 in &#147;Unaudited Pro
    Forma Consolidated Financial Data.&#148;</TD>
</TR>

</TABLE>


<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Includes compensation charges of $15.4&nbsp;million.</TD>
</TR>

</TABLE>

</DIV>

<P align="center" style="font-size: 10pt;">9
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 8pt;">
 <A name='102'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An investment in our class&nbsp;A common stock involves a high
degree of risk. You should carefully consider the factors
described below in addition to the other information set forth
in this prospectus before deciding whether to make an investment
in our class&nbsp;A common stock. The risk and uncertainties
described below are not the only ones we face. Additional risks
and uncertainties not presently known to us or that we currently
believe to be immaterial may also materially and adversely
affect our business operations. Any of the following risks could
materially adversely affect our business, financial condition or
results of operations. In such case, you may lose all or part of
your original investment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors Related to Our Business</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We could be subject to lawsuits for which we are not fully
    insured or reserved, and our insurance reserves are subject to
    inherent uncertainties.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In recent years, physicians, hospitals and other participants in
the healthcare industry have become subject to an increasing
number of lawsuits alleging medical malpractice and related
legal theories such as negligent hiring, supervision and
credentialing. Similarly, ambulance transport services may
result in lawsuits concerning vehicle collisions and personal
injuries, patient care incidents and employee job-related
injuries. Some of these lawsuits may involve large claim amounts
and substantial defense costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare procures professional liability insurance coverage for
most of its affiliated medical professionals and professional
and corporate entities. Beginning January&nbsp;1, 2002, this
insurance coverage has been provided by affiliates of CNA
Insurance Company, which then reinsure the entire program,
primarily through EmCare&#146;s wholly-owned subsidiary, EMCA
Insurance Company, Ltd., or EMCA. Workers compensation coverage
for EmCare&#146;s employees and applicable affiliated medical
professionals is provided under a similar structure for the
period. From September&nbsp;1, 2004 to the closing date of the
acquisition, AMR obtained insurance coverage for losses with
respect to workers compensation, auto and general liability
claims through Laidlaw&#146;s captive insurance company. AMR
currently has a self-insurance program fronted by an unrelated
third party. AMR retains the risk of loss under this coverage.
Under these insurance programs, we establish reserves, using
actuarial estimates, for all losses covered under the policies.
Our liability to pay for EmCare&#146;s insurance program losses
is collateralized by funds held through EMCA and, to the extent
these losses exceed the collateral and assets of EMCA or the
limits of our insurance policies, will have to be funded by us.
Should our AMR losses with respect to such claims exceed the
collateral held by Laidlaw in connection with our self-insurance
program or the limits of our insurance policies, we will have to
fund such amounts. See &#147;Business&nbsp;&#151; American
Medical Response&nbsp;&#151; Insurance&#148; and
&#147;&#151;&nbsp;EmCare&nbsp;&#151; Insurance.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our reserves for losses and related expenses represent estimates
involving actuarial and statistical projections, at a given
point in time, of our expectations of the ultimate resolution
and administration costs of losses we have incurred in respect
of our liability risks. Insurance reserves inherently are
subject to uncertainty. Our reserves are based on historical
claims, demographic factors, industry trends, severity and
exposure factors and other actuarial assumptions calculated by
an independent actuary firm. The independent actuary firm
performs studies of projected ultimate losses on an annual basis
and provides quarterly updates to those projections. We use
these actuarial estimates to determine appropriate reserves. Our
reserves could be significantly affected if current and future
occurrences differ from historical claim trends and
expectations. While we monitor claims closely when we estimate
reserves, the complexity of the claims and the wide range of
potential outcomes may hamper timely adjustments to the
assumptions we use in these estimates. Actual losses and related
expenses may deviate, individually and in the aggregate, from
the reserve estimates reflected in our financial statements. If
we determine that our estimated reserves are inadequate, we will
be required to increase reserves at the time of the
determination, which would result in a reduction in our net
income in the period in which the deficiency is determined. See
&#147;&#151;&nbsp;We may become involved in litigation which
could harm the value of our business,&#148;
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&#151; Critical
Accounting Policies&nbsp;&#151; Claims Liability and
Professional Liability Reserves&#148; and note&nbsp;12 of the
notes to our combined financial statements included elsewhere in
this prospectus.
</DIV>


<P align="center" style="font-size: 10pt;">10
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of our insurance coverage, for periods prior to the
initiation of our self-insurance programs as well as portions of
our current insurance coverage, is through various third party
insurers. To the extent we hold policies to cover certain groups
of claims, but either did not buy an extended reporting period
policy, where applicable, or the issuing insurance company is no
longer viable, we may be responsible for losses attributable to
such claims. Furthermore, for our losses that are insured or
reinsured through commercial insurance companies, we are subject
to the &#147;credit risk&#148; of those insurance companies.
While we believe our commercial insurance company providers
currently are creditworthy, there can be no assurance that such
insurance companies will remain so in the future.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We are subject to the financial risks associated with our
    fee-for-service contracts which could decrease our revenue,
    including changes in transport and patient volume, mix of
    insured and uninsured patients and patients covered by
    government-sponsored healthcare programs and third party
    reimbursement rates.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive our revenue through three primary types of
arrangements&nbsp;&#151; flat fee or standby arrangements,
fee-for-service arrangements, and fee-for-service arrangements
combined with a subsidy or administrative fee. Both AMR and
EmCare have flat fee contracts with customers, including
government agencies, managed care companies and hospitals, in
which we bill the customer for services provided, we are paid a
negotiated amount, and the customer is responsible for seeking
reimbursement from third party payors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our fee-for-service arrangements, we, or our affiliated
physicians, collect the fees for transports and physician
services. Our fee-for-service revenue may be supplemented by our
customers in the form of a subsidy or administrative fee. Under
these arrangements, we assume the financial risks related to
changes in the mix of insured and uninsured patients and
patients covered by government-sponsored healthcare programs,
third party reimbursement rates and changes in transports and
patient volume. We are subject to these risks because, under our
fee-for-service arrangements, our revenue decreases if a smaller
number of patients require transport or receive physician
services or we are not fully reimbursed for services rendered.
See &#147;&#151;&nbsp;Risk Factors Related to Healthcare
Regulation&nbsp;&#151; Changes in the rates or methods of third
party reimbursements may adversely affect our operations.&#148;
In addition, fee-for-service contracts have less favorable cash
flow characteristics in the start-up phase than traditional
flat-rate contracts due to longer collection periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our fee-for-service contractual arrangements also involve a
credit risk related to services provided to uninsured
individuals. This risk is exacerbated in 911 emergency response
transport and hospital emergency department physician staffing
because the law requires communities to provide 911 emergency
response services and hospital emergency departments to treat
all patients presenting to the emergency department seeking care
for an emergency medical condition regardless of their ability
to pay. We believe uninsured patients are more likely to seek
care at hospital emergency departments because they frequently
do not have a primary care physician with whom to consult. We
collect a smaller portion of our fees for services rendered to
uninsured patients than for services rendered to insured
patients.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>We may not be able to successfully recruit and retain
    physicians and other healthcare professionals with the
    qualifications and attributes desired by us and our customers,
    and our non-compete agreements and other restrictive covenants
    involving physicians may not be enforceable.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to recruit and retain affiliated physicians and
other healthcare professionals significantly affects our
performance under our contracts. In the recent past, our
customer hospitals have increasingly demanded a greater degree
of specialized skills, training and experience in the healthcare
professionals providing services under their contracts with us.
This decreases the number of healthcare professionals who may be
permitted to staff our contracts. Moreover, because of the scope
of the geographic and demographic diversity of the hospitals and
other facilities with which we contract, we must recruit
healthcare professionals, and particularly physicians, to staff
a broad spectrum of contracts. We have had difficulty in the
past recruiting physicians to staff contracts in some regions of
the country and at some less economically advantaged hospitals.
Moreover, we compete with other entities to recruit and retain
qualified physicians and other healthcare professionals to
deliver clinical services. Our future success depends on our
ability to recruit and retain healthcare professionals to
maintain and expand our operations.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have contracts with physicians and professional corporations
in many states. Some of these contracts, as well as our
contracts with hospitals, include provisions preventing these
physicians and professional corporations from competing with us
both during and after the term of our relationship with them.
The law governing non-compete agreements and other forms of
restrictive covenants varies from state to state. Some states
are reluctant to strictly enforce non-compete agreements and
restrictive covenants applicable to physicians. There can be no
assurance that our non-compete agreements related to affiliated
physicians and professional corporations will not be
successfully challenged as unenforceable in certain states. In
such event, we would be unable to prevent former affiliated
physicians and professional corporations from competing with us,
potentially resulting in the loss of some of our hospital
contracts.
</DIV>

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    <TD>
    <B><I>We are required to make significant capital expenditures
    for our ambulance services business in order to remain
    competitive.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our capital expenditure requirements primarily relate to
maintaining and upgrading our vehicle fleet and medical
equipment to serve our customers and remain competitive. The
aging of our vehicle fleet requires us to make regular capital
expenditures to maintain our current level of service. In
addition, changing competitive conditions or the emergence of
any significant advances in medical technology could require us
to invest significant capital in additional equipment or
capacity in order to remain competitive. If we are unable to
fund any such investment or otherwise fail to invest in new
vehicles or medical equipment, our business, financial condition
or results of operations could be materially and adversely
affected.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>We depend on our senior management and may not be able to
    retain those employees or recruit additional qualified
    personnel.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We depend on our senior management. The loss of services of any
of the members of our senior management could adversely affect
our business until a suitable replacement can be found. There
may be a limited number of persons with the requisite skills to
serve in these positions, and we cannot assure you that we would
be able to identify or employ such qualified personnel on
acceptable terms.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>We must perform on our own services that Laidlaw
    previously performed for us, and we are subject to financial
    reporting and other requirements for which our accounting and
    other management systems and resources may not be
    adequate.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laidlaw historically has provided various services to AMR and
EmCare, including income tax accounting, preparation of tax
returns, certain risk management, compliance and insurance
coverage services, cash management, certain benefit plan
administration and internal audit. Moreover, as subsidiaries of
a public company, AMR and EmCare have not themselves been
subject to the reporting and other requirements of the
Securities Exchange Act of 1934, or the Exchange Act. In
connection with this offering, we will become subject to
reporting and other obligations under the Exchange Act. We are
working with our independent legal, accounting and financial
advisors to identify those areas in which changes should be made
to our financial and management control systems to manage our
growth and our obligations as a public company. These areas
include corporate governance, corporate control, internal audit,
disclosure controls and procedures and financial reporting and
accounting systems. These reporting and other obligations will,
together with the impact of performing services previously
provided to us by Laidlaw, place significant demands on our
management, administrative and operational resources, including
accounting resources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We anticipate that we will need to hire additional tax,
accounting and finance staff. We are reviewing the adequacy of
our systems, financial and management controls, and reporting
systems and procedures, and we intend to make any necessary
changes. We believe these replacement services will result in
total annual stand-alone selling, general and administrative,
compensation and benefits and insurance expense of approximately
$4.0&nbsp;million in fiscal 2005, including a management fee we
will pay to Onex. We believe this represents our full
incremental stand-alone expense, and compares to the
pre-acquisition fees and compensation charges of
$15.4&nbsp;million we paid Laidlaw in fiscal 2004 and
$19.9&nbsp;million for the five months ended January&nbsp;31,
2005. We cannot assure you that our estimate is accurate or that
our separation from Laidlaw will progress smoothly, either of
which could adversely impact our results. Moreover, our
stand-alone expenses may
</DIV>

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<DIV align="left" style="font-size: 10pt;">
increase. If we are unable to upgrade our financial and
management controls, reporting systems and procedures in a
timely and effective fashion, we may not be able to satisfy our
obligations as a public company on a timely basis.
</DIV>

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    <TD>
    <B><I>Our revenue would be adversely affected if we lose
    existing contracts.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A significant portion of our growth historically has resulted
from increases in the number of emergency and non-emergency
transports, and the number of patient visits and fees for
services, we provide under existing contracts and the addition
of new contracts. Substantially all of our fiscal 2004&nbsp;net
revenue was generated under contracts, including exclusive
contracts that accounted for approximately 86% of our fiscal
2004&nbsp;net revenue. Our contracts with hospitals generally
have terms of three years and the term of our contracts with
communities to provide 911 services generally ranges from three
to five years. Most of our contracts are terminable by either of
the parties upon notice of as little as 30&nbsp;days. Any of our
contracts may not be renewed or, if renewed, may contain terms
that are not as favorable to us as our current contracts. We
cannot assure you that we will be successful in retaining our
existing contracts or that any loss of contracts would not have
a material adverse effect on our business, financial condition
and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the contract period, we may determine that a contract is
no longer favorable and may pursue options to modify or
terminate the contract. Factors contributing to such a
determination could include weaker than expected transport or
patient visit volume, geographical issues adversely affecting
ambulance response times, and delays in implementing technology
upgrades. We face certain risks in attempting to terminate
unfavorable contacts prior to their expiration due to the risk
of forfeiting performance bonds and the potential adverse
political and public relations consequences. If we are unable to
terminate or amend unfavorable contracts, we could experience a
material adverse effect on our business, financial condition and
results of operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD></TD>
    <TD>
    <B><I>We may not accurately assess the costs we will incur under
    new contracts.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our new contracts increasingly involve a competitive bidding
process. When we obtain new contracts, we must accurately assess
the costs we will incur in providing services in order to
realize adequate profit margins and otherwise meet our financial
and strategic objectives. Increasing pressures from healthcare
payors to restrict or reduce reimbursement rates at a time when
the costs of providing medical services continue to increase
make assessing the costs associated with the pricing of new
contracts, as well as maintenance of existing contracts, more
difficult. In addition, integrating new contracts, particularly
those in new geographic locations, could prove more costly, and
could require more management time, than we anticipate. Our
failure to accurately predict costs or to negotiate an adequate
profit margin could have a material adverse effect on our
business, financial condition and results of operations.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>The high level of competition in our segments of the
    market for emergency medical services could adversely affect our
    contract and revenue base.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>AMR.</I> The market for providing ambulance transport
services to municipalities, other healthcare providers and third
party payors is highly competitive. Competition is based
primarily on:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pricing,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to improve customer service, such as on-time
    performance and efficient call intake,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to recruit, train and motivate employees,
    particularly ambulance crews who have direct contact with
    patients and healthcare personnel,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    billing and reimbursement expertise.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In providing ambulance transport services, we compete with
governmental entities (including cities and fire districts),
hospitals, local and volunteer private providers, and with
several large national and regional providers, such as Rural/
Metro Corporation, Southwest Ambulance and Acadian Ambulance. In
many communities, our most important competitors are the local
fire departments, which in many cases have acted
</DIV>

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<DIV align="left" style="font-size: 10pt;">
traditionally as the first response providers during
emergencies, and have been able to expand their scope of
services to include emergency ambulance transport and do not
wish to give up their franchises to a private competitor.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmCare.</I> The market for providing outsourced physician
staffing and related management services to hospitals and
clinics is highly competitive. Competition for outsourced
physician and other healthcare staffing and management service
contracts is based primarily on:
</DIV>


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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to recruit and retain qualified physicians,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to improve department productivity and patient
    satisfaction while reducing overall costs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability to integrate the emergency department with other
    hospital departments and to provide value added services,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    billing and reimbursement expertise,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a reputation for compliance with state and federal regulations,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the breadth of staffing and management services offered,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    financial stability, demonstrating an ability to pay providers
    in a timely manner and provide professional liability insurance.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Such competition could adversely affect our ability to obtain
new contracts, retain existing contracts and increase or
maintain profit margins. We compete with both national and
regional enterprises such as Team Health, Sterling Healthcare,
The Schumacher Group and National Emergency Services Healthcare
Group, some of which may have greater financial and other
resources available to them, greater access to physicians and/or
greater access to potential customers. We also compete against
local physician groups and self-operated hospital emergency
departments for satisfying staffing and scheduling needs.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>Our business depends on numerous complex information
    systems, and any failure to successfully maintain these systems
    or implement new systems could materially harm our
    operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our businesses depend on complex, integrated information systems
and standardized procedures for operational and financial
information and our billing operations. We may not be able to
enhance existing information systems or implement new
information systems where necessary. Furthermore, we may
experience unanticipated delays, complications and expenses in
implementing, integrating and operating our systems. In
addition, our information systems may require modifications,
improvements or replacements that may require substantial
expenditures and may require interruptions in operations during
periods of implementation. Implementation of these systems is
further subject to the availability of information technology
and skilled personnel to assist us in creating and implementing
the systems. We also use the development and implementation of
sophisticated and specialized technology to differentiate our
services from our competitors and improve our profitability. The
failure to successfully implement and maintain operational,
financial and billing information systems could have a material
adverse effect on our business, financial condition and results
of operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="1%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>If we fail to implement our business strategy, our
    business, financial condition and results of operations could be
    materially and adversely affected.</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our future financial performance and success are dependent in
large part upon our ability to implement our business strategy
successfully. Our business strategy envisions several
initiatives, including increasing revenue from existing
customers, growing our customer base, pursuing select
acquisitions, implementing cost rationalization initiatives,
focusing on risk mitigation and utilizing technology to
differentiate our services and improve profitability. We may not
be able to implement our business strategy successfully or
achieve the anticipated benefits of our business plan. If we are
unable to do so, our long-term growth and profitability may be
adversely affected. Even if we are able to implement some or all
of the initiatives of our business plan successfully, our
operating results may not improve to the extent we anticipate,
or at all.
</DIV>


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Implementation of our business strategy could also be affected
by a number of factors beyond our control, such as increased
competition, legal developments, government regulation, general
economic conditions or increased operating costs or expenses. In
addition, to the extent we have misjudged the nature and extent
of industry trends or our competition, we may have difficulty in
achieving our strategic objectives. Any failure to implement our
business strategy successfully may adversely affect our
business, financial condition and results of operations and thus
our ability to service our debt. In addition, we may decide to
alter or discontinue certain aspects of our business strategy at
any time.
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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</TR>

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    <TD></TD>
    <TD>
    <B><I>Our ability to obtain adequate bonding coverage could be
    adversely affected by our high leverage.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our emergency ambulance transport service business is highly
dependent on our ability to obtain performance bond coverage
sufficient to meet bid requirements imposed by existing and
potential customers. In connection with the acquisition, Laidlaw
has agreed to provide to us any cash collateral required to
support the performance bonds in effect at the closing, and for
a three-year period to pay any bond premiums in excess of rates
in effect at the time of closing. We cannot assure you that we
will have access to adequate bonding capacity to meet new
contract requirements, or to obtain substitute performance bonds
for existing bonds at the end of the 3-year period, or that such
bonding will be available on terms acceptable to us. If adequate
bonding is not available, or if the terms of the bonding are too
onerous, there would be a material adverse effect on our
business, financial condition and results of operations.
</DIV>

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<TR>
    <TD width="1%"></TD>
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</TR>

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    <TD></TD>
    <TD>
    <B><I>A successful challenge by tax authorities to our treatment
    of certain physicians as independent contractors could require
    us to pay past taxes and penalties.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, we contracted with approximately
1,115&nbsp;physicians as independent contractors to fulfill our
contractual obligations to customers. Because we treat them as
independent contractors rather than as employees, we do not
(i)&nbsp;withhold federal or state income or other employment
related taxes from the compensation that we pay to them,
(ii)&nbsp;make federal or state unemployment tax or Federal
Insurance Contributions Act payments (except as described
below), (iii)&nbsp;provide workers compensation insurance with
respect to such affiliated physicians (except in states that
require us to do so even for independent contractors), or
(iv)&nbsp;allow them to participate in benefits and retirement
programs available to employed physicians. Our contracts with
our independent contractor physicians obligate these physicians
to pay these taxes and other costs. Whether these physicians are
properly classified as independent contractors depends upon the
facts and circumstances of our relationship with them. It is
possible that the nature of our relationship with these
physicians would support a challenge to our classification of
them. If such a challenge by federal or state taxing authorities
were successful, and the physicians at issue were instead
treated as employees, we could be adversely affected and liable
for past taxes and penalties to the extent that the physicians
did not fulfill their contractual obligations to pay those
taxes. Under current federal tax law, however, even if our
treatment were successfully challenged, if our current treatment
were found to be consistent with a long-standing practice of a
significant segment of our industry and we meet certain other
requirements, it is possible (but not certain) that our
treatment of the physicians would qualify under a &#147;safe
harbor&#148; and, consequently, we would be protected from the
imposition of past taxes and penalties. In the recent past,
however, there have been proposals to eliminate the safe harbor
and similar proposals could be made in the future.
</DIV>

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    <TD>
    <B><I>We may become involved in litigation which could harm the
    value of our business.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the normal course of our business, we are involved in
lawsuits, claims, audits and investigations, including those
arising out of services provided, personal injury claims,
professional liability claims, our billing and marketing
practices, employment disputes and contractual claims. The
outcome of these matters could have a material adverse effect on
our financial position or results of operations. We do not
believe that any such claims that have been asserted are likely
to have such an effect. However, we may become subject to future
lawsuits, claims, audits and investigations that could result in
substantial costs and divert our attention and resources. In
addition, since our current growth strategy includes
acquisitions, among other things, we may become exposed to legal
claims for the activities of an acquired business prior to the
acquisition.
</DIV>

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    <TD>
    <B><I>We may make acquisitions which could divert the attention
    of management and which may not be integrated successfully into
    our existing business.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may pursue acquisitions to increase our market penetration,
enter new geographic markets and expand the scope of services we
provide. We cannot assure you that we will identify suitable
acquisition candidates, that acquisitions will be completed on
acceptable terms or that we will be able to integrate
successfully the operations of any acquired business into our
existing business. The acquisitions could be of significant size
and involve operations in multiple jurisdictions. The
acquisition and integration of another business would divert
management attention from other business activities. This
diversion, together with other difficulties we may encounter in
integrating an acquired business, could have a material adverse
effect on our business, financial condition and results of
operations. In addition, we may borrow money or issue capital
stock to finance acquisitions. Such borrowings might not be
available on terms as favorable to us as our current borrowing
terms and may increase our leverage, and the issuance of capital
stock could dilute the interests of our stockholders.
</DIV>

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    <TD>
    <B><I>If Laidlaw is unwilling or unable to satisfy any
    indemnification claims made by us pursuant to the purchase
    agreements relating to the acquisition of AMR and EmCare, we
    will be forced to satisfy such claims ourselves.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laidlaw has agreed to indemnify us for certain claims or legal
actions brought against us arising out of the operations of AMR
and EmCare prior to the closing date of the acquisition. If we
make a claim against Laidlaw, and Laidlaw is unwilling or unable
to satisfy such claim, we would be required to satisfy the claim
ourselves and, as a result, our financial condition may be
adversely affected.
</DIV>

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    <TD>
    <B><I>Many of our employees are represented by labor unions and
    any work stoppage could adversely affect our business.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately 48% of AMR&#146;s employees are represented by 41
collective bargaining agreements with 40 different union locals.
Twelve of these collective bargaining agreements, representing
approximately 1,850 employees, are subject to renegotiation in
2005 and 14 agreements, representing approximately 4,000
employees, are subject to renegotiation in 2006. Although we
believe our relations with our employees are good, we cannot
assure you that we will be able to negotiate a satisfactory
renewal of these collective bargaining agreements or that our
employee relations will remain stable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors Related to Healthcare Regulation</B>
</DIV>

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    <TD>
    <B><I>We conduct business in a heavily regulated industry and if
    we fail to comply with these laws and government regulations, we
    could incur penalties or be required to make significant changes
    to our operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to extensive regulation at both the federal and
state levels for those states in which we conduct our business.
The laws that directly or indirectly affect our ability to
operate our business include the following:
</DIV>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal laws (including the federal False Claims Act) that
    prohibit entities and individuals from knowingly or recklessly
    making claims to Medicare, Medicaid and other government
    programs, as well as third party payors, that contain false or
    fraudulent information,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a provision of the Social Security Act, commonly referred to as
    the &#147;Anti-Kickback Statute,&#148; that prohibits the
    knowing and willful offering, payment, solicitation or receipt
    of any bribe, kickback, rebate or other remuneration, in cash or
    in kind, in return for the referral or recommendation of
    patients for items and services covered, in whole or in part, by
    federal healthcare programs, such as Medicare and Medicaid,</TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a provision of the Omnibus Budget Reconciliation Act of 1993,
    commonly referred to as the Stark Law, that, subject to limited
    exceptions, prohibits physicians from referring Medicare or
    Medicaid patients to an entity for the provision of certain
    &#147;designated health services&#148; if the physician or a
    member of such physician&#146;s immediate family has a direct or
    indirect financial relationship (including a compensation
    arrangement) with the entity,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a provision of the Social Security Act that imposes criminal
    penalties on healthcare providers who fail to disclose or refund
    known overpayments,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    similar state law provisions pertaining to anti-kickback,
    self-referral and false claims issues which typically are not
    limited to relationships with federal payors,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    provisions of the Health Insurance Portability and
    Accountability Act of 1996 that prohibit knowingly and willfully
    executing a scheme or artifice to defraud any healthcare benefit
    program or falsifying, concealing or covering up a material fact
    or making any material false, fictitious or fraudulent statement
    in connection with the delivery of or payment for healthcare
    benefits, items or services,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    state laws that prohibit general business corporations from
    practicing medicine, controlling physicians&#146; medical
    decisions or engaging in some practices such as splitting fees
    with physicians,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws that prohibit providers from billing and
    receiving payment from Medicare and Medicaid for services unless
    the services are medically necessary, adequately and accurately
    documented, and billed using codes that accurately reflect the
    type and level of services rendered,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws that require ambulance companies to bill
    health facilities, rather than the Medicare or Medicaid program,
    for certain services rendered to the health facilities&#146;
    Medicare and Medicaid patients,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws that require ambulance companies to
    obtain certification of medical necessity from the ordering
    physician, or to meet certain alternative requirements, as a
    condition of payment for certain non-emergency transports,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws and policies that require healthcare
    providers to enroll in the Medicare and Medicaid programs, to
    report certain changes in their operations to the agencies that
    administer these programs and, in some cases, to reenroll in
    these programs when changes in direct or indirect ownership
    occur,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws pertaining to the provision of services
    by nurse practitioners and physician assistants in the emergency
    department and urgent care settings, physician supervision of
    those services, and reimbursement requirements that may be
    dependent on the manner in which the services are provided and
    documented,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal laws that impose civil administrative sanctions for,
    among other violations, inappropriate billing of services to
    federally funded healthcare programs, inappropriately reducing
    hospital care lengths of stay for such patients, and employing
    individuals who are excluded from participation in federally
    funded healthcare programs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    reassignment of payment rules that prohibit certain types of
    billing and collection practices in connection with claims
    payable by the Medicare programs and some other payors,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal laws, such as the Emergency Medical Treatment and Active
    Labor Act of 1986, that require the hospital and emergency
    department or urgent care center physicians to provide screening
    and stabilization to any patient presenting to the emergency
    department or urgent care center seeking care for an emergency
    medical condition regardless of the patient&#146;s ability to
    pay, and similar state laws,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    provisions of the federal Health Insurance Portability and
    Accountability Act of 1996 limiting how healthcare providers may
    use and disclose individually identifiable health information
    and the security measures taken in connection with that
    information and related systems, as well as similar state laws,
    and</TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    federal and state laws governing ambulance transport services,
    including the licensing or certification of ambulance service
    providers, training and certification of medical personnel, the
    scope of services that may be provided by medical personnel, the
    geographic boundaries within which services may be provided,
    staffing requirements, medical control, medical procedures,
    communications systems, vehicles and equipment.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If our operations are found to be in violation of any of the
laws and regulations described in this risk factor or the other
governmental regulations which govern our activities, we may be
subject to the applicable penalty associated with the violation,
including civil and criminal penalties, exclusion from federal
healthcare programs, damages, fines and the curtailment of our
operations. Any material penalties, damages, fines or
curtailment of our operations, individually or in the aggregate,
would adversely affect our ability to operate our business and
our financial results. The risk of our being found in violation
of these laws and regulations is increased by the fact that many
of them have not been fully interpreted by the regulatory
authorities or the courts, and their provisions are sometimes
open to a variety of interpretations. Any action against us for
violation of these laws or regulations, even if we successfully
defend against it, could cause us to incur significant legal
expenses and divert our management&#146;s attention from the
operation of our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, laws and regulations governing the provision of
healthcare services may change significantly in the future. We
monitor these developments and modify our operations from time
to time where we perceive a need to do so in response to
regulatory changes. However, we cannot assure you that any new
healthcare laws or regulations will not materially adversely
affect our business. We cannot assure you that a review of our
business by judicial, law enforcement, or regulatory authorities
will not result in a determination that could adversely affect
our operations or that healthcare regulation will not change in
a way that may have a material adverse effect on our business,
financial condition or results of operations.
</DIV>

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    <TD>
    <B><I>Changes in the rates or methods of third party
    reimbursements may adversely affect our operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive a majority of our revenue from direct billings to
patients and third party payors such as Medicare, Medicaid and
private health insurance companies. As a result, any changes in
the rates or methods of reimbursement for the services we
provide could have a significant adverse impact on our revenue
and financial results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Government funding for healthcare programs is subject to
statutory and regulatory changes, administrative rulings,
interpretations of policy and determinations by intermediaries
and governmental funding restrictions, all of which could
materially impact program coverage and reimbursements for both
ambulance and physician services. In recent years, Congress
consistently has attempted to curb federal spending on such
programs. For example, with respect to our ambulance services,
in 1997, as part of the Balanced Budget Act of 1997, or BBA,
Congress provided that the Centers for Medicare and Medicaid
Services, or CMS, was to establish a national fee schedule for
payment of ambulance services that would, among other things,
control increases in expenditures under Part&nbsp;B of the
Medicare program, establish definitions for ambulance services
that link payments to the type of services furnished, consider
appropriate regional and operational differences and consider
adjustments to account for inflation, among other provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;1, 2002, the Medicare Ambulance Fee
Schedule&nbsp;Final Rule became effective. The Final Rule
categorizes seven levels of ground ambulance services, ranging
from basic life support to specialty care transport, and two
categories of air ambulance services, and called for a five-year
phase-in period to allow time for providers to adjust to the new
payment rates. The national fee schedule was to be phased in at
20-percent increments each year, with payments being made at
100&nbsp;percent of the national fee schedule in 2006 and
thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, with the passage of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003, or the Medicare
Modernization Act, modifications were made to amounts payable to
providers under the ambulance fee schedule. Effective
July&nbsp;1, 2004 until January&nbsp;1, 2010, a regional fee
schedule component of reimbursement is being blended with the
national fee schedule. In addition, the new legislation provides
other temporary payment increases to ambulance providers. It is
possible that the implementing agency may
</DIV>

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<DIV align="left" style="font-size: 10pt;">
interpret this provision differently than expected. We estimate
that the impact of the BBA ambulance service rate decreases, as
modified by the provisions of the Medicare Modernization Act
resulted in a decrease in AMR&#146;s net revenue for fiscal 2003
and fiscal 2004 of approximately $20&nbsp;million and
$11&nbsp;million, respectively, will result in an increase in
AMR&#146;s net revenue of approximately $13&nbsp;million in
calendar 2005, and will result in a decrease in AMR&#146;s net
revenue of approximately $17&nbsp;million in 2006 and in
continuing decreases thereafter to 2010. Although we have been
able to substantially mitigate the phased-in reductions of the
BBA through additional fee and subsidy increases, we cannot
assure you that we will be able to continue to do so, and the
rate decreases could have a material adverse effect on our
results of operations. We cannot predict whether Congress may
make further refinements and technical corrections to the law or
pass a new cost containment statute in a manner and in a form
that could adversely impact our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
One of the changes made by Final Rule was to require ambulance
providers to &#147;accept assignment&#148; from Medicare and
Medicare HMOs. Medicare HMOs are private insurance companies
which operate managed care plans that enroll Medicare
beneficiaries who elect to enroll in a plan in lieu of regular
Medicare coverage. When a provider accepts assignment, it agrees
to accept the rate established by Medicare as payment in full
for services covered by Medicare or the Medicare HMO and to
write off the balance of its charges. Prior to the
implementation of the Final Rule, ambulance providers were not
required to accept assignment and could obtain payment from
Medicare patients or Medicare HMOs for the provider&#146;s full
charges, which typically are higher than the Medicare rate. When
the requirement to accept assignment became effective on
April&nbsp;1, 2002, many Medicare HMOs continued to pay
ambulance providers their full charges, even though they could
have paid them the Medicare rate. Many Medicare HMOs
subsequently have taken the position that the amount paid to
such providers in excess of the Medicare rate constituted an
overpayment that must be refunded by the provider. We have
received such refund demands from some Medicare HMOs and, in
order to minimize litigation costs, have agreed to partial
repayment of amounts received from the plans in excess of the
Medicare rate. We have no reason to believe that additional HMOs
will make such demands, but we cannot assure you that there will
be no further demands.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, state and local government regulations or
administrative policies regulate rate structures in some states
in which we conduct ambulance transport services. In certain
service areas in which we are the exclusive provider of
services, the community sets the rates for emergency ambulance
services pursuant to a master contract and establishes the rates
for general ambulance services that we are permitted to charge.
We may be unable to receive ambulance service rate increases on
a timely basis where rates are regulated, or to establish or
maintain satisfactory rate structures where rates are not
regulated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Medicare pays for all physician services based upon a national
fee schedule. The rate formula may result in significant yearly
fluctuations in fee schedule updates, which may be unrelated to
changes in the actual cost of providing physician services.
Unless Congress takes additional action in the future to modify
or reform the mechanism by which the physician fee schedule
conversion factor update is undertaken in the future,
significant reductions in Medicare reimbursement could occur,
and these reductions could have a material adverse effect on our
business, financial condition or results of operations. We
currently expect that the fee schedule update will provide for a
4.5% decrease to physician rates effective January&nbsp;1, 2006,
which would result in a decrease in EmCare&#146;s 2006 net
revenue of approximately $5.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that regulatory trends in cost containment will
continue. We cannot assure you that we will be able to offset
reduced operating margins through cost reductions, increased
volume, the introduction of additional procedures or otherwise.
In addition, we cannot assure you that the federal government
will not impose reductions in the Medicare ambulance fee
schedule or physician fee schedules in the future. Any such
reductions could have a material adverse effect on our business,
financial condition or results of operations.
</DIV>

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    <B><I>If current or future regulation forces us to restructure
    our operations, including our arrangements with physicians,
    professional corporations and hospitals, we may incur additional
    costs, lose contracts and suffer a reduction in net revenue
    under existing contracts, and we may need to refinance our debt
    or obtain debt holder consent.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Legislators have introduced and may introduce in the future
numerous proposals into the Congress and state legislatures
relating to healthcare reform in response to various healthcare
issues. We cannot assure you as to the ultimate content, timing
or effect of any healthcare reform legislation, nor is it
possible at this time to estimate the impact of potential
legislation. Further, although we attempt to exercise care in
structuring our arrangements with physicians, professional
corporations and hospitals in order to comply in all material
respects with applicable law, we cannot assure you that:
(1)&nbsp;government officials charged with responsibility for
enforcing those laws will not assert that we, or transactions
into which we have entered, violate those laws or
(2)&nbsp;government entities or courts will ultimately interpret
those laws in a manner consistent with our interpretation.
</DIV>

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There is a risk that state authorities may find that our
relationships with physicians violate corporate practice of
medicine and fee-splitting prohibitions. These laws prohibit the
practice of medicine by corporations and are intended to prevent
unlicensed persons from interfering with or inappropriately
influencing the physician&#146;s professional judgment and the
sharing of professional services income with non-professional or
business interests. Activities other than those directly related
to the delivery of health care may be considered an element of
the practice of medicine in many states. Under the corporate
practice of medicine restrictions of certain states, decisions
and activities such as scheduling, contracting, setting fee
levels and the hiring and management of non-clinical personnel
may implicate the corporate practice of medicine restrictions.
While we believe that a physician may consult with unlicensed
persons in making these business or management decisions, in
states that have corporate practice prohibitions, the physician
must retain the ultimate responsibility for, or approval of,
those decisions. In some states, management contracts with
physicians or professional corporations under which the
management company is compensated based on the net or gross
income of the physicians or professional corporations may
implicate state fee-splitting prohibitions. From time to time,
including recently, we have been involved in litigation in which
private litigants have raised these issues. Although we have
structured our relationships with physicians and hospitals in an
effort to comply with the various state corporate practice of
medicine doctrines and fee-splitting rules, these relationships
may be subject to adverse judicial or administrative
interpretations.
</DIV>

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In addition to the regulations referred to above, aspects of our
operations are also subject to state and federal statutes and
regulations governing workplace health and safety and, to a
small extent, the disposal of medical waste by AMR. Changes in
these laws may have a material adverse effect on our operations.
</DIV>

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Medicare statutes and regulations govern the manner in which we
deliver services which are eligible for payment and the manner
in which we bill for such services. These laws are subject to
constant change, and such changes can, and often do, have a
material adverse effect on our costs of providing services or
the revenue we derive from performing such services.
</DIV>

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Although they may not have the force of law, we, our
practitioners and our customers are subject to ethical
guidelines and operating standards of professional and trade
associations and private accreditation commissions such as the
American Medical Association, the Joint Commission on
Accreditation of Healthcare Organizations and the Commission on
Accreditation of Ambulance Services. Compliance with these
guidelines and standards is often required by our contracts with
our customers or to maintain our reputation. These standards and
guidelines are subject to change from time to time and any such
changes may require us to restructure our operations or incur
additional expense.
</DIV>

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Accordingly, changes in existing laws and regulations, adverse
judicial or administrative interpretations of these laws and
regulations or enactment of new legislation or regulations could
force us to restructure our relationships with physicians,
professional corporations and hospitals, or to restructure our
operations. This could cause our operating costs to increase
significantly. A restructuring could also result in a loss of
contracts or a reduction in revenue under existing contracts.
Moreover, if we are required to modify our structure and
organization to comply with these laws, our financing agreements
may prohibit such modifications and require us to obtain the
consent of the holders of such debt or require the refinancing
of such debt.
</DIV>

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    <B><I>We depend heavily on reimbursement by third party payors,
    and delays and uncertainties in the reimbursement process could
    have a negative impact on our net revenue and cash flow.</I></B></TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For fiscal 2004, we received approximately 96.0% of our net
revenue from third party payors such as Medicare, Medicaid,
private insurers, managed care organizations and hospitals,
including approximately 27.3% from Medicare and 5.2% from
Medicaid.
</DIV>

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Third party payors continue their efforts to control
expenditures for healthcare, including proposals to revise
coverage and reimbursement policies. Due to the nature of our
business and our participation in the Medicare, Medicaid and
private reimbursement programs, we are involved from time to
time in regulatory reviews, audits or investigations by
governmental agencies and private payors of our business
practices, including assessments of our compliance with billing,
coding and documentation requirements. We may be required to
repay these agencies or private payors if a finding is made that
we were incorrectly reimbursed, or we may be subjected to
pre-payment reviews, which can be time-consuming and result in
non-payment or delayed payment for the services we provide. We
have been subject to a number of such reviews and audits that
have related to a variety of billing, coding and documentation
issues. We cannot assure you that there is not potential
exposure with respect to these issues. Any delays and
uncertainties in the reimbursement process could adversely
affect our level of accounts receivable, increase the overall
cost of collection, and result in recoupments or refund demands.
This would affect revenue we already received, and could
adversely affect our working capital and cause us to incur
additional borrowing costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additional factors that could complicate our billing and
collections from third party payors include:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    disputes between payors as to which party is responsible for
    payment,</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    variation in coverage for similar services among various payors,</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the difficulty of adhering to specific compliance requirements,
    diagnosis coding and various other procedures mandated by
    responsible parties, and</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    failure to obtain proper physician credentialing and
    documentation in order to bill various commercial and
    governmental payors.</TD>
</TR>

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<B><I>We are subject to comprehensive and complex rules and
regulations that govern our licensing and certification, and the
manner in which we bill and are paid for our services, and the
failure to comply with these rules, or allegations that we have
failed to do so, can result in civil or criminal sanctions,
including exclusion from federal and state healthcare
programs.</I></B>
</DIV>

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We and our affiliated physicians are subject to various federal,
state and local licensing and certification laws and regulations
and accreditation standards and other laws, relating to, among
other things, the adequacy of medical care, equipment, personnel
and operating policies and procedures. We are also subject to
periodic inspection by governmental and other authorities to
assure continued compliance with the various standards necessary
for licensing and accreditations.
</DIV>

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In certain jurisdictions, changes in our ownership structure
require pre-or post-notification to governmental licensing and
certification agencies. Relevant laws and regulations may also
require re-application and approval to maintain or renew our
operating authorities or require formal application and approval
to continue providing services under certain government
contracts. For example, in connection with our acquisition of
AMR from Laidlaw, two of our subsidiaries were required to apply
for state and local ambulance operating authority in New York.
</DIV>

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Similarly, the change in corporate structure and ownership in
connection with this offering may require us to give notice and
make applications for authority in various jurisdictions. The
relevant laws and regulations are complex, and we are pursuing
the steps we believe we must take to retain or obtain all
requisite operating authorities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to receive payment from Medicare, Medicaid and certain
other government programs, healthcare providers are required to
enroll in these programs by completing complex enrollment
applications. Certain government programs, including Medicare
and Medicaid programs, require notice or re-enrollment when
</DIV>

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certain ownership changes occur. Generally, in jurisdictions
where we are required to obtain a new licensing authority, we
may also be required to re-enroll in that jurisdiction&#146;s
government payor program. If the payor requires us to complete
the re-enrollment process prior to submitting reimbursement
requests, we may be delayed in payment, receive refund requests
or be subject to recoupment for services we provide in the
interim. The change in ownership effected by the acquisition
from Laidlaw has required us to re-enroll in one jurisdiction,
and reimbursement from the relevant government program is likely
to be deferred for several months. This will affect our cash
flow, but will not affect our net revenue. We do not expect the
impact of this deferral to be material to us, but it is possible
that other jurisdictions will similarly require us to re-enroll.
</DIV>

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Compliance with these change in ownership requirements is
complicated by the fact that they differ from jurisdiction to
jurisdiction, and in some cases are not uniformly applied or
interpreted even within the same jurisdiction. Failure to comply
with these enrollment and reporting requirements can lead not
only to delays in payment and refund requests, but in extreme
cases can give rise to civil or criminal penalties in connection
with prior changes in our operations and ownership structure.
While we have made reasonable efforts to substantially comply
with these requirements in connection with prior changes in our
operations and ownership structure, and will do so in connection
with this offering, we cannot assure you that the agencies that
administer these programs will not find that we have failed to
comply in some material respects.
</DIV>

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The public and private payors that pay for our services
typically have differing and complex forms of billing
requirements that we must meet in order to receive payment for
services rendered. Reimbursement to us is conditioned typically
on our providing the correct procedure and diagnostic codes and
properly documenting the services themselves, including the
level of service provided, and the medical necessity for the
services. Incorrect or incomplete documentation and billing
information could result in non-payment for services rendered or
lead to allegations of billing fraud. This can lead to civil and
criminal penalties, including exclusion from government
healthcare programs such as Medicare and Medicaid. In addition,
third party payors may disallow, in whole or in part, requests
for reimbursement based on determinations that certain amounts
are not reimbursable under applicable coverage rules, they were
for services provided that were not medically necessary, there
was a lack of sufficient supporting documentation, or for a
number of other reasons.
</DIV>

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In addition, the Medicare program generally prohibits the
reassignment of Medicare payments due to a physician or other
healthcare provider to any other person or entity unless the
billing arrangement between that physician or other healthcare
provider and the other person or entity falls within an
enumerated exception to the Medicare reassignment prohibition.
Historically, there was no exception that allowed us to receive
directly Medicare payments related to the services of
independent contractor physicians. However, the Medicare
Modernization Act amended the Medicare reassignment statute as
of December&nbsp;8, 2003 and now permits our independent
contractor physicians to reassign their Medicare receivables to
us under certain circumstances. While we seek to comply
substantially with applicable Medicare reassignment regulations,
we cannot assure you that government authorities would find that
we comply in all respects with these regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Medicare prospective payment system, or PPS,
applicable to skilled nursing facilities, or SNFs, beginning in
1999, SNFs are financially responsible for some ancillary
services, including certain ambulance transports, or PPS
transports, rendered to certain of their Medicare patients.
Ambulance companies must bill the SNF, rather than Medicare, for
PPS transports, but may bill Medicare for other covered
transports provided to the SNF&#146;s Medicare patients.
Ambulance companies are responsible for obtaining sufficient
information from the SNF to determine which transports are PPS
transports and which ones may be billed to Medicare. The Office
of Inspector General of the Department of Health and Human
Services, or OIG, has issued two industry-wide audit reports
indicating that, in many cases, SNFs do not provide, or
ambulance companies and other ancillary service providers do not
obtain, sufficient information to make this determination
accurately. As a result, the OIG asserts that some PPS
transports that should have been billed by ambulance providers
to SNFs have been improperly billed to Medicare. The OIG has
recommended that Medicare recoup the amounts paid to ancillary
service providers, including ambulance companies, for such
services. Although we believe AMR currently has procedures in
place to correctly identify and bill for PPS
</DIV>

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<DIV align="left" style="font-size: 10pt;">
transports, we cannot assure you that AMR will not be subject to
such recoupments and other possible penalties.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Medicare regulations require that providers obtain the signature
of the patient or, if the patient is unable to provide a
signature, the signature of a representative, prior to
submitting a claim for payment from Medicare. An exception
exists for situations where it is not reasonably possible to do
so, provided that the reason for the exception is clearly
documented. This requirement historically has been difficult for
ambulance companies and other emergency medical services
providers to meet, because even when the patient is competent,
the exigency of the situation often makes it impracticable to
obtain a signature. Although we believe AMR currently has
procedures in place to assure that these signature requirements
are met, we cannot assure you that enforcement agencies will not
find that we have failed to comply with these requirements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Medicare regulations permit ambulance transport providers to
subcontract with other organizations for paramedic services.
Generally, only the transport provider may bill Medicare, and
the paramedic services subcontractor must receive any payment to
which it is entitled from that provider. Based on these rules,
in some jurisdictions we have established &#147;paramedic
intercept&#148; arrangements in which we may provide paramedic
services to a municipal or volunteer transport provider. We
previously entered into a settlement agreement with the United
States government arising from allegations that we improperly
billed Medicare for a small number of transports for which we
performed paramedic intercept services, even though we were not
the transport provider. Although we believe AMR currently has
procedures in place to assure that we do not bill Medicare for
paramedic intercept services we provide, we cannot assure you
that enforcement agencies will not find that we have failed to
comply with these requirements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare utilizes physician assistants and nurse practitioners,
sometimes referred to collectively as &#147;midlevel
practitioners,&#148; to provide care under the supervision of
our physicians. State and federal laws require that such
supervision be performed and documented using specific
procedures. For example, in some states some or all of the
midlevel practitioner&#146;s chart entries must be
countersigned. Under applicable Medicare rules, the midlevel
practitioner&#146;s services are reimbursed at a rate equal to
85% of the physician fee schedule amount and we do not bill
separately for the supervising physician&#146;s services.
However, when a midlevel practitioner assists a physician who is
directly and personally involved in the patient&#146;s care, we
often bill for the services of the physician at the full
physician fee schedule rates and do not bill separately for the
midlevel practitioner&#146;s services. We believe our billing
and documentation practices related to our use of midlevel
practitioners comply with applicable state and federal laws, but
we cannot assure you that enforcement authorities will not find
that our practices violate such laws.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When our services are covered by multiple third party payors,
such as a primary and a secondary payor, financial
responsibility must be allocated among the multiple payors in a
process known as &#147;coordination of benefits&#148;, or COB.
The rules governing COB are complex, particularly when one of
the payors is Medicare or another government program. Under
these rules, in some cases Medicare or other government payors
can be billed as a &#147;secondary payor&#148; only after
recourse to a primary payor (<I>e.g.</I>, a liability insurer)
has been exhausted. In some instances, multiple payors may
reimburse us an amount which, in the aggregate, exceeds the
amount to which we are entitled. In such cases, we are obligated
to process a refund. If we improperly bill Medicare or other
government payors as the primary payor when that program should
be billed as the secondary payor, or if we fail to process a
refund when required, we may be subject to civil or criminal
penalties. Although we believe we currently have procedures in
place to assure that we comply with applicable COB rules, and
that we process refunds when we receive overpayments, we cannot
assure you that payors or enforcement agencies will not find
that we have violated these requirements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event any of our billing and collection practices,
including but not limited to those described above, violate
applicable laws, we could be subject to refund demands and
recoupments. If our violations are deemed to be willing, knowing
or reckless, we may be subject to civil and criminal penalties
under the False Claims Act or other statutes, including
exclusion from federal and state healthcare programs. To the
extent that the complexity associated with billing for our
services causes delays in our cash collections, we assume the
financial risk of increased carrying costs associated with the
aging of our accounts receivable as well as
</DIV>


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increased potential for bad debts which could have a material
adverse effect on our revenue, provision for uncompensated care
and cash flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Providers in the healthcare industry, such as our
companies, are the subject of federal and state
investigations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Both federal and state government agencies have continued civil
and criminal enforcement efforts as part of numerous ongoing
investigations of healthcare companies, and their executives and
managers. Although there are a number of civil and criminal
statutes that can be applied to healthcare providers, a
significant number of these investigations involve the federal
False Claims Act. These investigations can be initiated not only
by the government but also by a private party asserting direct
knowledge of fraud. These &#147;qui tam&#148; whistleblower
lawsuits may be initiated against any person or entity alleging
such person or entity has knowingly or recklessly presented, or
caused to be presented, a false or fraudulent request for
payment from the federal government, or has made a false
statement or used a false record to get a claim approved.
Penalties for False Claims Act violations include fines ranging
from $5,500 to $11,000 for each false claim, plus up to three
times the amount of damages sustained by the federal government.
A False Claims Act violation may provide the basis for exclusion
from the federally-funded healthcare programs. In addition, some
states have adopted similar insurance fraud, whistleblower and
false claims provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The government and a number of courts have taken the position
that claims presented in violation of the various statutes,
including the federal Anti-Kickback Statute and the Stark Law,
can be considered a violation of the federal False Claims Act
based on the contention that a provider impliedly certifies
compliance with all applicable laws, regulations and other rules
when submitting claims for reimbursement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority, and are subject to investigation by
such agencies. We review such requests and notices and attempt
to take appropriate action. We have been subject to certain
requests for information and investigations in the past, are
currently subject to certain requests and are likely to be
subject to such requests for information and investigations in
the future, which could result in significant penalties. See
&#147;Business&nbsp;&#151; American Medical Response&nbsp;&#151;
Legal Matters&#148; for a description of certain business
practices currently being investigated by the
U.S.&nbsp;Department of Justice.
</DIV>

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<B><I>If we fail to comply with the terms of our settlement
agreements with the government, we could be subject to
additional litigation or other governmental actions which could
be harmful to our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the last five years, we have entered into four settlement
agreements with the United States government. In June 2002, one
of our subsidiaries, AMR of Massachusetts, entered into a
settlement agreement with the United States government to
resolve a number of allegations, including allegations related
to billing and documentation practices. In addition to a
monetary settlement, AMR of Massachusetts agreed to enter into a
three year Corporate Integrity Agreement, or CIA, with the
U.S.&nbsp;Department of Health and Human Services, or HHS. In
July 2004, our subsidiary, American Medical Response West, also
entered into a settlement agreement with the United States
government in connection with billing matters related to
emergency transports and specialized services pursuant to which
it paid a $3.5&nbsp;million fine and agreed to enter into a five
year CIA with HHS. As part of these CIAs, we, AMR of
Massachusetts and AMR West, are required to establish and
maintain a compliance program which includes, among other
elements, the appointment of a compliance officer and committee,
claims review by an independent review organization and
reporting of overpayments and other &#147;reportable
events.&#148; In February 2003, our subsidiary, AMR of South
Dakota, entered into a settlement agreement with the United
States government to resolve allegations that it incorrectly
billed for transports performed by other providers when an AMR
paramedic accompanied the patient during transport, and that it
billed for certain non-emergency transports using emergency
codes. We paid $141,000 to settle such allegations. We did not
enter into a CIA with respect to this settlement. In addition,
in August 2004, AMR entered into a settlement agreement with the
United States government on behalf of a subsidiary, Regional
Emergency Services LP, or RES, to resolve allegations of
violations of the False Claims Act by RES and a hospital system
based on the absence of certificates of medical necessity and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
other non-compliant billing practices. Pursuant to that
settlement agreement, we paid a $5.0&nbsp;million allocation of
the total $20.0&nbsp;million settlement amount, with the balance
paid by the hospital system. We did not enter into a CIA with
respect to this settlement. The Department of Justice currently
is investigating whether RES engaged in similar alleged conduct
in connection with certain other hospital contracts in Colorado
and Georgia. We cannot assure you that the compliance program
initiated by us has or will prevent any repetition of the issues
that were the subject of these settlement agreements, or that
the government will not raise similar allegations in other
jurisdictions or for other periods of time. See
&#147;Business&nbsp;&#151; Regulatory Matters&nbsp;&#151;
Corporate Compliance Program and Corporate Integrity
Obligations.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we fail or if we are accused of failing to comply with the
terms of the settlements and the CIAs, we may be subject to
additional litigation or other governmental actions, including
being excluded from participating in the Medicare program and
other federal and state healthcare programs, which could have a
material adverse effect on our business, financial condition or
results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We could be required to sever relationships with our
affiliated physician groups in order to comply with antitrust
laws.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our contracts with physicians include contracts with physicians
organized as separate legal professional entities (<I>e.g.</I>,
professional medical corporations) and as individuals. Antitrust
laws may deem each such physician/practice to be separate, both
from EmCare and from each other and, accordingly, each such
physician/practice is subject to a wide range of laws that
prohibit anti-competitive conduct between or among separate
legal entities or individuals. A review or action by regulatory
authorities or the courts could force us to terminate or modify
our contractual relationships with physicians and affiliated
medical groups or revise them in a manner that could be
materially adverse to our business. Since we derive a
significant portion of our revenue from these relationships, our
net revenue could decrease substantially. Moreover, if any
review or action by regulatory authorities required us to modify
our structure and organization to comply with such action or
review, the indenture and/or our senior secured credit facility
may not permit such modifications, thereby requiring us to
obtain the consent of the holders of such debt or requiring the
refinancing of such debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>If we are unable to effectively adapt to changes in the
healthcare industry, our business may be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Political, economic and regulatory influences are subjecting the
healthcare industry in the United States to fundamental change.
We anticipate that Congress and state legislatures may continue
to review and assess alternative healthcare delivery and payment
systems and may in the future propose and adopt legislation
effecting fundamental changes in the healthcare delivery system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Congress and state legislatures have adopted and may further
consider statutory changes affecting healthcare reform. We
cannot assure you as to the ultimate content, timing or effect
of any healthcare reform legislation, nor is it possible at this
time to estimate the impact of potential legislation. Further,
it is possible that future legislation enacted by Congress or
state legislatures could adversely affect our business or could
change the operating environment of our targeted customers. It
is possible that the changes to the Medicare or other government
program reimbursements may serve as precedent to possible
changes in other payor&#146;s reimbursement policies in a manner
adverse to us. Similarly, changes in private payor
reimbursements could lead to adverse changes in Medicare and
other government payor programs which could have a material
adverse effect on our business, financial condition or results
of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>If we fail to successfully comply with applicable
regulations regarding security and privacy of healthcare
information, we could suffer penalties, be required to make
significant changes to our operations and our cash flows could
be negatively affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996, or HIPAA,
required HHS to adopt standards to protect the security and
privacy of health related information. All healthcare providers
were required to be compliant with the new federal privacy
requirements enacted by HHS no later than April&nbsp;14, 2003.
The HIPAA privacy requirements contain detailed requirements
</DIV>

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<DIV align="left" style="font-size: 10pt;">
regarding the use and disclosure of individually identifiable
health information. In addition to enacting the foregoing
privacy requirements, HHS issued a final rule creating security
requirements for healthcare providers and other covered entities
on February&nbsp;20, 2003. The final security rule requires
covered entities to meet specified standards by April&nbsp;25,
2005. The security standards contained in the final rule do not
require the use of specific technologies (<I>e.g.</I>, no
specific hardware or software is required), but instead require
healthcare providers and other covered entities to comply with
certain minimum security procedures in order to protect data
integrity, confidentiality and availability. We believe we have
taken reasonable steps to comply with these standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
HIPAA also required HHS to adopt national standards establishing
electronic transaction standards that all healthcare providers
must use when submitting or receiving certain healthcare
transactions electronically. Although these standards were to
become effective October 2002, Congress extended the compliance
deadline until October 2003 for organizations, such as ours,
that submitted a request for an extension. We believe we have
taken reasonable measures to comply with these standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are found to not have complied with the HIPAA requirements
discussed above, we could be subject to civil and/or criminal
penalties that could have a material effect on our business,
financial condition or results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors Related to our Capital Structure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The interests of our controlling stockholder may conflict
with your interests.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering, the Onex entities will own all of our
outstanding LP exchangeable units, which are exchangeable at any
time, at our option or the option of the holder, for our
class&nbsp;B common stock. Our class&nbsp;A common stock has one
vote per share, while our class&nbsp;B common stock has ten
votes per share on all matters to be voted on by our
stockholders. Prior to the exchange for class&nbsp;B common
stock, the holders of the LP exchangeable units will be able to
exercise the same voting rights with respect to Emergency
Medical Services as they would have after the exchange through a
share of class&nbsp;B special voting stock. As a result, after
this offering, the Onex entities will
control &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the combined voting
power of our outstanding common stock. Accordingly, Onex will
exercise a controlling influence over our business and affairs
and will have the power to determine all matters submitted to a
vote of our stockholders, including the election of directors
and approval of significant corporate transactions such as
amendments to our certificate of incorporation, mergers and the
sale of all or substantially all of our assets. Onex could cause
corporate actions to be taken even if the interests of Onex
conflict with the interests of our other stockholders. This
concentration of voting power could have the effect of deterring
or preventing a change in control of Emergency Medical Services
that might otherwise be beneficial to our stockholders. Gerald
W. Schwartz, the Chairman, President and Chief Executive Officer
of Onex Corporation, owns shares representing a majority of the
voting rights of the shares of Onex Corporation. See
&#147;Principal and Selling Stockholders&#148; and
&#147;Description of Capital Stock.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our substantial indebtedness could adversely affect our
financial condition and our ability to operate our
business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have a substantial amount of debt. At June&nbsp;30, 2005, we
had total debt of $605.9&nbsp;million, including
$349.1&nbsp;million of borrowings under our senior secured
credit facility, $250.0&nbsp;million of our senior subordinated
notes and $5.8&nbsp;million of capital lease obligations, and we
had $24.3&nbsp;million of letters of credit outstanding. In
addition, subject to restrictions in the indenture governing our
notes and the credit agreement governing our senior secured
credit facility, we may incur additional debt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our substantial debt could have important consequences to you,
including the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    it may be difficult for us to satisfy our obligations, including
    debt service requirements under our outstanding debt,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to obtain additional financing for working capital,
    capital expenditures, debt service requirements or other general
    corporate purposes may be impaired,</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we must use a significant portion of our cash flow for payments
    on our debt, which will reduce the funds available to us for
    other purposes,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we are more vulnerable to economic downturns and adverse
    industry conditions and our flexibility to plan for, or react
    to, changes in our business or industry is more limited,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to capitalize on business opportunities and to react
    to competitive pressures, as compared to our competitors, may be
    compromised due to our high level of debt, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to borrow additional funds or to refinance debt may
    be limited.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, all of our debt under our senior secured credit
facility bears interest at variable rates. If these rates were
to increase significantly, our ability to borrow additional
funds may be reduced and the risks related to our substantial
debt would intensify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Servicing our debt will require a significant amount of
cash. Our ability to generate sufficient cash depends on
numerous factors beyond our control, and we may be unable to
generate sufficient cash flow to service our debt
obligations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business may not generate sufficient cash flow from
operating activities. Our ability to make payments on and to
refinance our debt and to fund planned capital expenditures will
depend on our ability to generate cash in the future. To some
extent, this is subject to general economic, financial,
competitive, legislative, regulatory and other factors that are
beyond our control. Lower net revenues, or higher provision for
uncollectibles, generally will reduce our cash flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are unable to generate sufficient cash flow to service our
debt and meet our other commitments, we may need to refinance
all or a portion of our debt, sell material assets or operations
or raise additional debt or equity capital. We cannot assure you
that we could effect any of these actions on a timely basis, on
commercially reasonable terms or at all, or that these actions
would be sufficient to meet our capital requirements. In
addition, the terms of our existing or future debt agreements
may restrict us from effecting any of these alternatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restrictive covenants in our senior secured credit
facility and the indenture governing our senior subordinated
notes may restrict our ability to pursue our business
strategies.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our senior secured credit facility and the indenture governing
our senior subordinated notes limit our ability, among other
things, to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    incur additional debt or issue certain preferred stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    pay dividends or make distributions to our stockholders,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    repurchase or redeem our capital,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    make investments,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    incur liens,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    make capital expenditures,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    enter into transactions with our stockholders and affiliates,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    sell certain assets,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    acquire the assets of, or merge or consolidate with, other
    companies,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    incur restrictions on the ability of our subsidiaries to make
    distributions or transfer assets to us.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to comply with these covenants may be affected by
events beyond our control, and any material deviations from our
forecasts could require us to seek waivers or amendments of
covenants, alternative sources of financing or reductions in
expenditures. We cannot assure you that such waivers, amendments
or alternative financings could be obtained, or, if obtained,
would be on terms acceptable to us.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the credit agreement governing our senior secured
credit facility requires us to meet certain financial ratios and
restricts our ability to make capital expenditures or prepay
certain other debt. We may not be able to maintain these ratios,
and the restrictions could limit our ability to plan for or
react to market conditions or meet extraordinary capital needs
or otherwise restrict corporate activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a breach of any covenant or restriction contained in our
financing agreements results in an event of default, those
lenders could discontinue lending, accelerate the related debt
(which would accelerate other debt) and declare all borrowings
outstanding thereunder to be due and payable. In addition, the
lenders could terminate any commitments they had made to supply
us with additional funds. In the event of an acceleration of our
debt, we may not have or be able to obtain sufficient funds to
make any accelerated debt payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our obligations under our senior secured credit facility
are secured by substantially all of our assets.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our obligations under our senior secured credit facility are
secured by liens on substantially all of our assets, and the
guarantees of our subsidiaries under our senior secured credit
facility are secured by liens on substantially all of those
subsidiaries&#146; assets. If we become insolvent or are
liquidated, or if payment under our senior secured credit
facility or of other secured obligations are accelerated, the
lenders under our senior secured credit facility or the obligees
with respect to the other secured obligations will be entitled
to exercise the remedies available to a secured lender under
applicable law and the applicable agreements and instruments,
including the right to foreclose on all of our assets.
Accordingly, you could lose all or a part of your investment in
our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors Related to this Offering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to this offering, there has been no public market for our
class&nbsp;A common stock. An active trading market for our
class&nbsp;A common stock may not develop or be sustained after
the offering. The lack of a public market may impair the value
of your shares and your ability to sell your shares at any time
you wish to sell them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our stock price may be volatile and you may not be able to
sell your shares at or above the offering price.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The initial public offering price for our shares of class&nbsp;A
common stock will be determined by negotiations between the
representatives of the underwriters and us. This price may not
reflect the market price of our class&nbsp;A common stock
following this offering. You may be unable to resell the
class&nbsp;A common stock you buy at or above the initial public
offering price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The stock markets in general have experienced extreme
volatility, often unrelated to the operating performance of
particular companies. Broad market fluctuations may adversely
affect the trading price of our class&nbsp;A common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Price fluctuations in our class&nbsp;A common stock could result
from general market and economic conditions and a variety of
other factors, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    actual or anticipated fluctuations in our operating results,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in healthcare pricing or reimbursement policies,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our competitors&#146; announcements of significant contracts,
    acquisitions or strategic investments,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in our growth rates or our competitors&#146; growth
    rates,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the timing or results of regulatory submissions or actions with
    respect to our business,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our inability to raise additional capital,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    conditions of the healthcare industry or in the financial
    markets or economic conditions in general,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in stock market analyst recommendations regarding our
    class&nbsp;A common stock, other comparable companies or the
    healthcare industry generally.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">28

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>You will experience immediate and substantial dilution in
the net tangible book value of your class&nbsp;A common
stock.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on our actual book value, the value of the shares of
class&nbsp;A common stock you purchase in this offering
immediately will be less than the offering price you paid. This
reduction in the value of your equity is known as dilution. This
dilution occurs in large part because our initial investors paid
less than the initial public offering price when they purchased
their shares. If you purchase class&nbsp;A common stock in this
offering, you will incur immediate dilution of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, based on an assumed initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>If a significant number of shares of our class&nbsp;A
common stock are sold into the market following this offering,
the market price of our class&nbsp;A common stock could
significantly decline, even if our business is doing
well.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of a substantial number of shares of our class&nbsp;A
common stock in the public market after this offering could
adversely affect the prevailing market price of our class&nbsp;A
common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, we will
have &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP
exchangeable units outstanding. Of these securities,
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock offered pursuant to this offering
will be freely tradable without restriction or further
registration under federal securities laws, except to the extent
shares are purchased in the offering by our affiliates.
The &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock owned by our officers and directors
and
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;B common stock issuable on exchange of the
LP&nbsp;exchangeable units and any class&nbsp;A common stock
held by our affiliates, as that term is defined in the
Securities Act of 1933, are &#147;restricted securities&#148;
under the Securities Act. Restricted securities may not be sold
in the public market unless the sale is registered under the
Securities Act or an exemption from registration is available.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this offering, we, each of our directors and
executive officers and the Onex entities have entered into
lock-up agreements that prevent the sale of shares of our common
stock for up to 180&nbsp;days after the date of this prospectus.
Following the expiration of the lock-up period, the Onex
entities will have the right, subject to certain conditions, to
require us to register the sale of these shares under the
federal securities laws. If this right is exercised, holders of
all shares subject to the registration rights agreement will be
entitled to participate in such registration. By exercising
their registration rights, and selling a large number of shares,
these holders could cause the prevailing market price of our
class&nbsp;A common stock to decline.
Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares of our common stock will be subject to our registration
rights agreement upon completion of this offering. See
&#147;Shares Eligible for Future Sale&#148; and
&#147;Description of Capital Stock&nbsp;&#151; Registration
Agreement.&#148; Commencing February&nbsp;10, 2006,
substantially all of these shares of common stock will also be
eligible for sale in the public market, subject to the volume,
notice of sale, manner of sale and other restrictions of
Rule&nbsp;144 promulgated under the Securities Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common that we issued pursuant to
Rule&nbsp;701 under the Securities Act will be eligible for sale
in the public market 180&nbsp;days after the date of this
prospectus. See &#147;Description of Capital Stock&nbsp;&#151;
Equityholders Agreements.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a trading market develops for our class&nbsp;A common stock,
our employees, officers and directors may elect to sell their
shares of our class&nbsp;A common stock or exercise their stock
options in order to sell the stock underlying their options in
the market. Sales of a substantial number of shares of our
class&nbsp;A common stock in the public market after this
offering could depress the market price of our class&nbsp;A
common stock and impair our ability to raise capital through the
sale of additional equity securities.
</DIV>

<P align="center" style="font-size: 10pt;">29
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Our certificate of incorporation and our by-laws contain
provisions that could discourage another company from acquiring
us and may prevent attempts by our stockholders to replace or
remove our current management.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provisions of our certificate of incorporation and our by-laws
may discourage, delay or prevent a merger or acquisition that
stockholders may consider favorable, including transactions in
which you might otherwise receive a premium for your shares. In
addition, these provisions may frustrate or prevent any attempts
by our stockholders to replace or remove our current management
by making it more difficult for stockholders to replace or
remove our current board of directors. These provisions include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    providing for a classified board of directors with staggered
    terms,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    providing for multi-vote shares of common stock which, upon
    exchange of LP exchangeable units, will be owned by the Onex
    entities,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    establishing advance notice requirements for nominations for
    election to the board of directors or for proposing matters that
    can be acted on by stockholders at stockholder meetings,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the authority of the board of directors to issue, without
    stockholder approval, up
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of preferred stock with such terms as the board of directors may
    determine and an
    additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Description of Capital Stock.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We are a &#147;controlled company&#148; within the meaning
of the New York Stock Exchange rules and, as a result, will
qualify for, and intend to rely on, exemptions from certain
corporate governance requirements.</I></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because the Onex entities will own more than 50% of the combined
voting power of our common stock after the completion of this
offering, we will be deemed a &#147;controlled company&#148;
under the rules of the New York Stock Exchange, or the NYSE. As
a result, we will qualify for, and intend to rely upon, the
&#147;controlled company&#148; exception to the board of
directors and committee composition requirements under the rules
of the NYSE. Pursuant to this exception, we will be exempt from
rules that would otherwise require that our board of directors
be comprised of a majority of &#147;independent directors,&#148;
and that our compensation committee and corporate governance and
nominating committee be comprised solely of &#147;independent
directors&#148; (as defined under the rules of the NYSE), so
long as the Onex entities continue to own more than 50% of the
combined voting power of our common stock. Upon completion of
this offering, our board of directors will be comprised of six
persons, of which one will be a representative from Onex and two
will be current executive officers and, therefore, will not be
&#147;independent.&#148; See &#147;Management&nbsp;&#151;
Composition of the Board of Directors after this Offering&#148;
and &#147;&#151;&nbsp;Committees of the Board of Directors.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We do not intend to pay cash dividends.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not intend to pay cash dividends on our common stock. We
currently intend to retain all available funds and any future
earnings for use in the operation and expansion of our business
and do not anticipate paying any cash dividends in the
foreseeable future. In addition, the terms of our current, as
well as any future, financing agreements may preclude us from
paying any dividends. As a result, capital appreciation, if any,
of our common stock will be your sole source of potential gain
for the foreseeable future.
</DIV>

<P align="center" style="font-size: 10pt;">30
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<DIV align="left" style="font-size: 10pt;">
<A name='103'></A>
</DIV>

<!-- link1 "CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS" -->


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus contains &#147;forward-looking statements.&#148;
Forward-looking statements give our current expectations or
forecasts of future events. Forward-looking statements generally
can be identified by the use of forward-looking terminology such
as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148;
&#147;intend,&#148; &#147;estimate,&#148;
&#147;anticipate,&#148; &#147;believe,&#148;
&#147;project,&#148; or &#147;continue,&#148; or other similar
words. These statements reflect management&#146;s current views
with respect to future events and are subject to risks and
uncertainties, both known and unknown. Our actual results may
vary materially from those anticipated in forward-looking
statements. We caution investors not to place undue reliance on
any forward-looking statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Important factors that could cause actual results to differ
materially from forward-looking statements include, but are not
limited to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the impact on our revenue of changes in transport volume, mix of
    insured and uninsured patients, and third party reimbursement
    rates,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the adequacy of our insurance coverage and insurance reserves,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potential penalties or changes to our operations if we fail to
    comply with extensive and complex government regulation of our
    industry,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to recruit and retain qualified physicians and other
    healthcare professionals, and enforce our non-compete agreements
    with our physicians,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the effect of changes in rates or methods of third party
    reimbursement,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to generate cash flow to service our debt
    obligations,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the cost of capital expenditures to maintain and upgrade our
    vehicle fleet and medical equipment,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the loss of services of one or more members of our senior
    management team,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the outcome of government investigations of certain of our
    business practices,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to successfully restructure our operations to comply
    with future changes in government regulation,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to perform services previously performed for us by
    Laidlaw,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the loss of existing contracts and the accuracy of our
    assessment of costs under new contracts,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the high level competition in our industry,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to maintain or implement complex information systems,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to implement our business strategy,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to obtain adequate bonding coverage,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to successfully integrate strategic acquisitions.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These factors are not exhaustive, and new factors may emerge or
changes to the foregoing factors may occur that could impact our
business. Except to the extent required by law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future
events or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should review carefully the sections captioned &#147;Risk
Factors&#148; and &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;
in this prospectus for a more complete discussion of these and
other factors that may affect our business. We note that the
safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995 does not apply
to statements made in connection with an initial public offering.
</DIV>

<P align="center" style="font-size: 10pt;">31
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<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "FORMATION OF HOLDING COMPANY" -->


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FORMATION OF HOLDING COMPANY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency Medical Services is a newly formed Delaware
corporation that is issuing class&nbsp;A common stock in this
offering. Immediately prior to the completion of this offering,
we intend to complete a reorganization in which EMS L.P., our
top-tier holding company prior to the reorganization, will
become a consolidated subsidiary of Emergency Medical Services
and the general partner of EMS L.P. will become a wholly-owned
subsidiary of Emergency Medical Services. The reorganization
will not affect our operations, which we will continue to
conduct through our operating subsidiaries.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will take the following steps concurrently to effect the
reorganization:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The holders of the capital stock of the sole general partner of
    EMS&nbsp;L.P. will contribute that capital stock to us in
    exchange for shares of class&nbsp;A common stock,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The holders of class&nbsp;B units of EMS L.P. will contribute
    their units to us in exchange for shares of our class&nbsp;A
    common stock,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The class&nbsp;A units of EMS L.P. will be designated as LP
    exchangeable units,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will issue one share of class&nbsp;B special voting stock to
    Onex Corporation as trustee to hold for the benefit of the LP
    exchangeable unitholders, and</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will amend our certificate of incorporation to effect
    a &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
    split.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares sold in this offering will be class&nbsp;A common
stock of Emergency Medical Services. The Onex entities&#146;
ownership of the LP exchangeable units will entitle them to
acquire from us all of the class&nbsp;B common stock of
Emergency Medical Services.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The LP exchangeable units will be exchangeable at any time, at
our option or the option of the holder, for shares of
class&nbsp;B common stock on a one-for-one basis, and the
LP&nbsp;exchangeable units will be substantially equivalent
economically to class&nbsp;B common stock. Shares of
class&nbsp;A common stock and shares of class&nbsp;B common
stock will be identical except with respect to voting rights and
except that each share of class&nbsp;B common stock may be
converted into a share of class&nbsp;A common stock at any time
at the option of the holder. On every matter properly submitted
to stockholders for their vote, each share of class&nbsp;A
common stock will be entitled to one vote, each share of
class&nbsp;B common stock will be entitled to ten votes,
reducing to one vote per share under certain limited
circumstances, and the one share of class&nbsp;B special voting
stock will be entitled to a number of votes equal to the number
of votes that could be cast if all of the then outstanding LP
exchangeable units were exchanged for class&nbsp;B common stock.
See &#147;Description of Capital Stock&nbsp;&#151; Common
Stock&#148; and &#147;&#151;&nbsp;LP Exchangeable Units and
Class&nbsp;B Special Voting Stock.&#148;
</DIV>


<P align="center" style="font-size: 10pt;">32
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that our net proceeds from the sale
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock in this offering will be
approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
based on an assumed initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the range on the cover of this
prospectus, and after deducting underwriting discounts and
commissions and estimated offering expenses payable by us. We
will not receive any of the proceeds from the sale of shares by
the selling stockholders if the underwriters exercise their
over-allotment option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to use the net proceeds as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    to repay debt outstanding under our senior secured credit
    facility,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the balance for working capital, capital expenditures and other
    general corporate purposes.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;10, 2005, we entered into a $450.0&nbsp;million
senior secured credit agreement, comprised of a
$100.0&nbsp;million revolving credit facility and a
$350.0&nbsp;million term loan. We borrowed the full amount of
the term loan and $20.2&nbsp;million under the revolving credit
facility to fund our acquisition of AMR and EmCare, including
the payment of related fees and expenses, and we have used
balances outstanding from time to time under the revolving
credit facility for working capital purposes. As of
June&nbsp;30, 2005, we had no borrowings outstanding under the
revolving credit facility and we had approximately $75.7 million
of availability under that facility, net of outstanding letters
of credit of $24.3 million. Commitments under our revolving
credit facility terminate on February&nbsp;10, 2010. We intend
to repay
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
of the term loan and any amount outstanding under the revolving
credit facility with the proceeds of this offering. The term
loan and the revolving credit facility bear interest at variable
rates (5.63% at June&nbsp;30, 2005). The revolving credit
facility matures on February&nbsp;10, 2011 and the term loan
matures on February&nbsp;10, 2012.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&#151; Liquidity and
Capital Resources&nbsp;&#151; Debt Facilities&#148; for
additional information regarding our outstanding debt.
</DIV>

<P align="center" style="font-size: 10pt;">33
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "CAPITALIZATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CAPITALIZATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth as of June&nbsp;30, 2005:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our consolidated capitalization on an actual basis,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our consolidated capitalization on a pro forma basis to give
    effect to our reorganization as a holding company and
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
    split to be effected immediately prior to this offering, and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our consolidated capitalization on a pro forma, as adjusted,
    basis to give effect to the sale
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;A common stock by us in this offering at an
    assumed initial public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, and the application of those proceeds as described in
    &#147;Use of Proceeds.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read this table together with our unaudited
consolidated pro forma financial information included elsewhere
in this prospectus. For additional information regarding our
outstanding debt, see &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of
Operations&nbsp;&#151; Liquidity and Capital
Resources&nbsp;&#151; Debt Facilities.&#148;
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>As of June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Actual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>as Adjusted</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(dollars in millions)</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt, including current portion:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revolving credit facility(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Term loan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>349.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>349.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital leases and other debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total senior debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>355.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>355.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Senior subordinated notes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>605.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partners&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stockholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Preferred stock, $0.01&nbsp;par value per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized; no shares issued and outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;A common stock, $0.01&nbsp;par value per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro
    forma; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro forma, as adjusted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;B common stock, $0.01&nbsp;par value per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized; no&nbsp;shares issued and outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    LP exchangeable units, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units
    issued and outstanding pro forma and as adjusted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional paid-in capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total capitalization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    The revolving credit facility provides for availability of
    borrowings and issuances of letters of credit for up to
    $100.0&nbsp;million. As of June&nbsp;30, 2005, we had
    $75.7&nbsp;million of availability under the revolving credit
    facility, net of $24.3&nbsp;million of letters of credit
    outstanding.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">34
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

<!-- link1 "DILUTION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DILUTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you invest in our class&nbsp;A common stock, your interest
will be diluted immediately to the extent of the difference
between the public offering price per share of our class&nbsp;A
common stock and the pro forma net tangible book value per share
of our common stock after this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, our net tangible book value,
determined on a pro forma basis as described below, was
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share of class&nbsp;A common stock and class&nbsp;B common stock
(together, our common stock). Pro forma net tangible book value
represents the amount of our total assets (excluding intangible
assets), less our total liabilities, divided, in the case of net
tangible book value per share, by the pro forma number of shares
outstanding giving effect to our reorganization into a holding
company and
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
split that we expect to effect in connection with this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After giving effect to our sale
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock in this offering, based on an
assumed initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, and after deducting underwriting discounts and
commissions and estimated offering expenses payable by us, our
adjusted pro forma net tangible book value at June&nbsp;30, 2005
would have been approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share of our common stock. This represents an immediate increase
in pro forma net tangible book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to our existing stockholders and an immediate net tangible
book value dilution of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to new investors purchasing shares in this offering. The
following table illustrates this dilution:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assumed initial public offering price per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma net tangible book value per share at June&nbsp;30, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in pro forma net tangible book value per share
    attributable to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma adjusted net tangible book value per share after this
    offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilution per share to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes, as of June&nbsp;30, 2005, as
adjusted to give effect to this offering, the differences
between the number of shares of our common stock purchased from
us, the total consideration paid to us and the average price per
share paid by our existing stockholders and by the new investors
purchasing common stock in this offering. The calculation is
based on an assumed initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, before deducting underwriting discounts and commissions
and estimated offering expenses payable by us.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Shares Purchased</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Total Consideration</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average Price</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Existing stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the underwriters exercise their over-allotment option in
full, our existing stockholders would own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total
number of shares of our common stock outstanding after this
offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preceding discussion and tables include the shares of our
class&nbsp;B common stock issuable on exchange of our
LP&nbsp;exchangeable units and
exclude &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common stock issuable upon the exercise of
outstanding stock options at an exercise price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common stock reserved for issuance under our
equity option plan. To the extent that all outstanding options
are exercised, your investment will be further diluted by an
addition
$0.0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, and our existing stockholders would own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total
number of shares of our common stock outstanding after this
offering. In addition, we may choose to raise additional capital
due to market conditions or strategic considerations even if we
believe we have sufficient funds for our current or future
operating plans. To the extent additional capital is raised
through the sale of equity or convertible debt securities, the
issuance of these securities could result in further dilution to
our stockholders.
</DIV>

<P align="center" style="font-size: 10pt;">35
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "DIVIDEND POLICY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIVIDEND POLICY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently intend to retain any future earnings to support our
operations and to fund the development and growth of our
business. In addition, the payment of dividends by us to holders
of our common stock is limited by our senior secured credit
facility. Our future dividend policy will depend on the
requirements of financing agreements to which we may be a party.
We do not intend to pay cash dividends on our common stock in
the foreseeable future. Any future determination to pay
dividends will be at the discretion of our board of directors
and will depend upon, among other factors, our results of
operations, financial condition, capital requirements and
contractual restrictions.
</DIV>

<P align="center" style="font-size: 10pt;">36

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<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

<!-- link1 "UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following pro forma consolidated financial statements
present Emergency Medical Services&#146; financial position and
results of operations resulting from the acquisition, the sale
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
class&nbsp;A common stock pursuant to this offering and the
application of the proceeds therefrom as described in &#147;Use
of Proceeds.&#148; AMR and EmCare combined are the predecessor
entity of Emergency Medical Services for the periods prior to
the acquisition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial statements
include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the pro forma consolidated balance sheet as of June&nbsp;30,
    2005, assuming this offering occurred on June&nbsp;30, 2005 and
    the proceeds were applied as described in &#147;Use of
    Proceeds,&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the pro forma consolidated statement of operations for the five
    months ended June&nbsp;30, 2005, assuming this offering occurred
    on February&nbsp;1, 2005 and the proceeds were applied as
    described in &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the pro forma consolidated statement of operations for the five
    months ended January&nbsp;31, 2005, assuming the transactions
    described below occurred as of September&nbsp;1, 2004,&nbsp;and</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the pro forma consolidated statement of operations for the year
    ended August&nbsp;31, 2004, assuming the transactions described
    below occurred as of September&nbsp;1, 2003,</TD>
</TR>


</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial information is
presented for informational purposes only and does not purport
to represent our financial condition or our results of
operations had the acquisition and this offering occurred on or
as of the dates noted above or to project the results for any
future date or period. In the opinion of management, all
adjustments have been made that are necessary to present fairly
the unaudited pro forma consolidated financial information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial statements for
periods prior to the acquisition are based on the historical
combined financial statements of AMR and EmCare, as predecessor
to Emergency Medical Services, included elsewhere in this
prospectus, adjusted to give pro forma effect to the following
transactions, all of which are deemed to have occurred
concurrently:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the acquisition, including:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    issuance of equity by Emergency Medical Services for aggregate
    contributions of $219.2&nbsp;million,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our senior secured credit facility, consisting of:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a revolving credit facility of $100.0&nbsp;million, of which we
    borrowed approximately $20.2&nbsp;million at the closing date of
    the acquisition and had outstanding $24.3&nbsp;million of
    letters of credit,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a term loan of $350.0&nbsp;million, all of which was borrowed on
    the closing date,</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the issuance and sale of $250.0&nbsp;million in aggregate
    principal amount of our senior subordinated notes,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our purchase of all of the outstanding common stock of AMR and
    EmCare,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of related fees and expenses related to the
    acquisition.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial statements for
all periods are adjusted to give pro forma effect to the
following, which are deemed to have occurred concurrently:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our formation as a holding company, with EMS L.P. and its
    general partner as subsidiaries, the issuance of common stock to
    our equityholders (including the issuance of our class&nbsp;B
    common stock upon exchange for LP&nbsp;exchangeable units) and
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
    split,&nbsp;and</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the sale of
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
    class&nbsp;A common stock offered hereby and the application of
    the proceeds therefrom as described in &#147;Use of
    Proceeds.&#148;</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt;">37

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial statements are
based on the estimates and assumptions set forth in the notes to
these statements that management believes are reasonable. These
estimates include an allocation of fair value to identifiable
intangible assets other than goodwill, and the resulting excess
of the purchase price over the carrying value of the net assets
acquired is recorded as goodwill. The pro forma adjustments
reflected in the following financial statements are based on
management&#146;s preliminary assessment of the fair value of
the tangible and intangible assets we acquired and liabilities
we assumed in the acquisition. The final purchase price
allocation will be performed when an independent appraisal of
certain assets acquired and liabilities assumed is finalized. We
expect that the final purchase price allocation may reflect
differences from our estimated amounts, as follows:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the fair value of our finite life contract intangible asset,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the fair value adjustment for favorable or unfavorable leases,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the fair value adjustment for property and equipment,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in the excess purchase price allocated to
    goodwill,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in the fair value of other liabilities assumed and
    incurred as part of the acquisition.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma consolidated financial statements should
be read in conjunction with our historical financial statements
and related notes and other financial information included
elsewhere in this prospectus, including &#147;Risk Factors&#148;
and &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations.&#148;
</DIV>


<P align="center" style="font-size: 10pt;">38

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Unaudited Pro Forma Consolidated Balance Sheet</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>June&nbsp;30, 2005</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma Equity</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Actual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="15" align="center" valign="top">
    <B>ASSETS</B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,785</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted marketable securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,011</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346,491</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parts and supplies inventory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,404</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,684</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,774</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,514</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,061</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,542</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,848</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted long-term investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,734</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,474</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="15" align="center" valign="top">
    <B>LIABILITIES AND EQUITY</B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47,906</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189,425</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,204</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,535</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>596,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,437</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>992,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partnership equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(219,429</TD>
    <TD align="left" valign="bottom" nowrap>)(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;A common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Class&nbsp;B common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    LP exchangeable units</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities and equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    To record the write-off of certain deferred financing costs
    associated with the portion of our senior secured credit
    facility we will pay down with the net proceeds of this offering.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    To record the pay-down of our senior secured credit facility
    with the net proceeds of this offering.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    To record (a)&nbsp;our formation as a holding company, with
    EMS&nbsp;L.P. and its general partner as subsidiaries, the
    (b)&nbsp;issuance of class&nbsp;A common stock to certain of our
    existing equityholders and the designation of the remaining
    partnership units as LP exchangeable units, exchangeable for our
    class&nbsp;B common stock and (c)&nbsp;net proceeds from this
    offering.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt;">39
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Unaudited Pro Forma Consolidated Statement of Operations</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>For the five months ended June&nbsp;30, 2005</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma Equity</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro&nbsp;Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized loss on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    Basic</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="9" align="left" valign="top">
    Diluted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    Weighted average shares&nbsp;&#151; basic</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="9" align="left" valign="top">
    Weighted average shares&nbsp;&#151; diluted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    To adjust income tax expense to reflect the reduction of
    interest expense, at an effective tax rate of 40%.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt;">40
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Unaudited Pro Forma Consolidated Statement of Operations</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>For the five months ended January&nbsp;31, 2005</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>AMR and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>EmCare</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Acquisition</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Equity Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Combined</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD align="left" valign="bottom" nowrap>(1)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,424</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,232</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,424</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,266</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,254</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(19,408</TD>
    <TD align="left" valign="bottom" nowrap>)(4)(5)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(6)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,578</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,500</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(7)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,078</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="9" align="left" valign="top">
    Basic</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    Diluted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="9" align="left" valign="top">
    Weighted average shares&nbsp;&#151; basic</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    Weighted average shares&nbsp;&#151; diluted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 2pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Represents certain Laidlaw fees and compensation charges,
    primarily relating to a compensation charge associated with the
    increase in the enterprise values of AMR and EmCare. Our
    estimated replacement costs for certain functions are not
    recorded on the face of this pro forma statement of operations
    because we do not have a contract for each element of these
    costs. We will be required to replace certain functions and
    costs previously provided to us by Laidlaw and which comprise
    Laidlaw fees and compensation charges. Our estimate of these
    costs on an annual basis ($1.67&nbsp;million for a five-month
    period) are:</TD>
</TR>

</TABLE>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="89%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits costs for personnel providing internal
    audit and tax services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Directors and officers insurance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses for external audit
    fees, treasury services and other costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sponsor management fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    AMR and EmCare combined amortization expense includes
    amortization (over a 7-year period) of the finite life
    intangible assets of $89.0&nbsp;million based on the preliminary
    value of identifiable intangible assets determined by an
    independent valuation group.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    To eliminate interest expense charged on the Laidlaw payable.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    To record amortization on $18.1&nbsp;million of deferred
    financing costs associated with our acquisition-related
    borrowings, utilizing a weighted average maturity of eight years
    on an effective yield basis.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    To record interest expense on our acquisition-related
    borrowings, assuming a weighted average interest rate of 7.14%.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    To adjust income tax expense to reflect the adjustments
    identified in notes (2)&nbsp;through (6), at an effective tax
    rate of 40%.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt;">41
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Unaudited Pro Forma Consolidated Statement of Operations</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>For the year ended August&nbsp;31, 2004</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>AMR and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>EmCare</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Acquisition</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Equity Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Combined</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD align="left" valign="bottom" nowrap>(1)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,134</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,873</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,134</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,840</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,223</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(46,528</TD>
    <TD align="left" valign="bottom" nowrap>)&nbsp;(4)(5)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Early debt retirement costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(43,439</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,375</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(7)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(26,064</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) per share:&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="89%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Represents certain Laidlaw fees and compensation charges,
    primarily relating to a compensation charge associated with the
    increase in the enterprise values of AMR and EmCare. Our
    estimated replacement costs for certain functions, are not
    recorded on the face of this pro forma statement of operations
    because we do not have a contract for each element of these
    costs. We will be required to replace certain functions and
    costs previously provided to us by Laidlaw and which comprise
    Laidlaw fees and compensation charges. Our estimate of these
    costs on an annual basis are:</TD>
</TR>

</TABLE>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="89%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits costs for personnel providing internal
    audit and tax services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Directors and officers insurance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses for external audit
    fees, treasury services and other costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sponsor management fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    AMR and EmCare combined amortization expense includes
    amortization (over a 7-year period) of the finite life
    intangible assets of $89.0&nbsp;million based on the value of
    identifiable intangible assets by an independent valuation group.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    To eliminate interest expense charged on the Laidlaw payable.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    To record amortization on $18.1&nbsp;million of deferred
    financing costs associated with our acquisition-related
    borrowings, utilizing a weighted average maturity of eight years
    on an effective yield basis.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    To record interest expense on our acquisition-related
    borrowings, assuming a weighted average interest rate of 7.14%.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    To adjust income tax expense to reflect the adjustments
    identified in notes (2)&nbsp;through (6), at an effective tax
    rate of 40%.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt;">42
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='110'></A>
</DIV>

<!-- link1 "SELECTED COMBINED AND CONSOLIDATED FINANCIAL INFORMATION AND OTHER DATA" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SELECTED COMBINED AND CONSOLIDATED FINANCIAL INFORMATION AND
OTHER DATA</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth our selected combined or
consolidated financial data for each of the periods indicated.
Financial data for the year ended August&nbsp;31, 2002
(Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy), nine months
ended May&nbsp;31, 2003 (Predecessor&nbsp;&#151; Pre-Laidlaw
Bankruptcy), as of and for the three months ended
August&nbsp;31, 2003 (Predecessor&nbsp;&#151; Post-Laidlaw
bankruptcy), the year ended August&nbsp;31, 2004
(Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy) and the five
months ended January&nbsp;31, 2005 (Predecessor&nbsp;&#151;
Post-Laidlaw Bankruptcy) are derived from our audited combined
financial statements included in this prospectus. As a result of
a correction to AMR&#146;s method of calculating its accounts
receivable allowances, we determined that the allowances were
understated at various balance sheet dates. The audited combined
financial statements included in this prospectus are restated to
correct this error. There were no adjustments necessary to
income subsequent to May&nbsp;31, 2003. Financial data as of and
for the five months ended January&nbsp;31, 2004
(Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy) and the three
months and five months ended June&nbsp;30, 2004
(Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy) are derived
from our unaudited combined financial statements included in
this prospectus. Financial data as of and for the three months
and five months ended June&nbsp;30, 2005 are derived from our
unaudited consolidated financial statements. Interim results are
not necessarily indicative of the results to be expected for the
entire fiscal year. You should read the information presented
below in conjunction with &#147;Capitalization,&#148;
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and our combined and
consolidated financial statements and related notes contained
elsewhere in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The comparability of our selected historical financial data has
been affected by a number of significant events and
transactions. As we discuss more fully in
Note&nbsp;1&nbsp;&#151; &#147;Fresh-Start Accounting&#148; of
the notes to our audited combined financial statements,
AMR&#146;s and EmCare&#146;s former parent, Laidlaw, and certain
of its affiliates filed voluntary petitions for reorganization
under Chapter&nbsp;11 of the U.S.&nbsp;Bankruptcy Code. Although
subsidiaries of Laidlaw, neither AMR nor EmCare was included in
the bankruptcy filing. Laidlaw emerged from bankruptcy
protection in June 2003. Laidlaw applied fresh-start accounting
as of June&nbsp;1, 2003 to AMR and EmCare and pushed down to us
our share of the fresh-start accounting adjustments. As a result
of the fresh-start change in the basis of accounting for our
underlying assets and liabilities, our results of operations and
cash flows have been separated as pre-June&nbsp;1, 2003 and
post-May&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective as of January&nbsp;31, 2005, we acquired EmCare and
AMR from Laidlaw, and in connection with the acquisition, we
changed our fiscal year to December&nbsp;31 from August&nbsp;31.
For all periods prior to the acquisition, the AMR and EmCare
businesses formerly owned by Laidlaw are referred to as the
&#147;Predecessor.&#148; For all periods from and subsequent to
the acquisition, the business is referred to as the
&#147;Successor.&#148; As a result of the acquisition, we
include as a reporting period of the Predecessor our
pre-acquisition period ended January&nbsp;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">43

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="39" align="center" nowrap><B>Predecessor (Pre-Acquisition)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Pre-Laidlaw Bankruptcy</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Successor (Post-</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Post-Laidlaw Bankruptcy</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Acquisition)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Ended January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="48" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Statement of Operations Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,355,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,386,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,103,335</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>384,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>667,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>399,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>663,880</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>445,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>980,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>967,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>960,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>757,183</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>264,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>461,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,610</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>201,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>216,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,447</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,661</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>117,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,576</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,865</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,867</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,269</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,144</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,183,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,381</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,256,873</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(50,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(239,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>34,130</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>69,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,700</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(95,087</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(66,181</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,418</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(908</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,073</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,646</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes and cumulative effect of
    change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,351,874</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(116,307</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(246,009</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,159</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,155</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,245</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,639</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(829</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,633</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,558</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before cumulative effect of change in accounting
    principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,406,513</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,330</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,288</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)(4)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,411,801</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(98,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other Financial Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash flows provided by (used in):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>156,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>58,769</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30,009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>127,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>81,269</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>94,703</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,983</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,442</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(57,347</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,835</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,136</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,516</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,767</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,667</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,121</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(875,235</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,060</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,222</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,328</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,501</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,043</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>797,266</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>57,438</TD>
    <TD align="left" valign="bottom" nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>34,768</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,387</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,052</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 7pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="79%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 6pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of</B></TD><TD></TD>
</TR>

<TR style="font-size: 6pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 6pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(dollars in</B></TD><TD></TD>
</TR>

<TR style="font-size: 6pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Balance Sheet Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt and capital lease obligations, including current
    maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>605,924</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partners&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,860</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Represents the combination of the audited financial statements
    of AMR and the unaudited financial statements of EmCare for the
    year ended August&nbsp;31, 2000.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Represents the combination of the audited financial statements
    of AMR and EmCare for the year ended August&nbsp;31, 2001.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    See note&nbsp;1 to our combined financial statements with
    respect to our fresh-start financial reporting.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    Reflects an impairment of goodwill recorded in connection with
    the adoption of SFAS&nbsp;No.&nbsp;142.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)</TD>
    <TD align="left">
    Includes $26.3&nbsp;million financed through capital leases.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">44
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the following discussion of our financial
condition and results of operations with the audited combined
financial statements, the notes to the audited combined
financial statements and the &#147;Selected Combined and
Consolidated Financial Information and Other Data&#148;
appearing elsewhere in this prospectus. The following covers
periods before the closing of the acquisition. Accordingly, the
discussion and analysis of historical periods do not reflect the
impact the acquisition will have on us. In addition, this
discussion contains forward-looking statements and involves
numerous risks and uncertainties, including, but not limited to,
those described in the &#147;Risk Factors&#148; section of this
prospectus. Our results may differ materially from those
anticipated in any forward-looking statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company Overview</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a leading provider of emergency medical services in the
United States. We operate our business and market our services
under the AMR and EmCare brands. AMR is the leading provider of
ambulance transport services in the United States. EmCare is the
leading provider of outsourced emergency department staffing and
management services in the United States. Approximately 86% of
our fiscal 2004&nbsp;net revenue was generated under exclusive
contracts. During fiscal 2004, we treated and transported
approximately 9&nbsp;million patients in more than 2,050
communities nationwide. For the fiscal year ended
August&nbsp;31, 2004, we generated net revenue of
$1.6&nbsp;billion, of which AMR and EmCare represented
approximately 66% and 34%, respectively. Over the past two
fiscal years, we increased our net revenue and EBITDA
organically at compound annual growth rates, or CAGRs, of 6.5%
and 14.7%, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over its 50&nbsp;years of operating history, AMR has developed
the largest network of ambulance transport services in the
United States. AMR has an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7&nbsp;million patients in
34&nbsp;states. AMR has approximately 2,550 contracts with
communities, government agencies, healthcare providers and
insurers to provide ambulance services. AMR&#146;s broad
geographic footprint enables us to contract on a national and
regional basis with managed care and insurance companies. AMR
has made significant investments in technology, customer service
plans, employee training and risk mitigation programs to deliver
a compelling value proposition to our customers, which we
believe has led to industry-leading contract retention rates.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For fiscal 2004, approximately 57% of AMR&#146;s net revenue was
generated from emergency 911 ambulance transport services.
Non-emergency ambulance transport services, including critical
care transfer, wheelchair transports and other interfacility
transports, or IFTs, accounted for 32% of AMR&#146;s net revenue
for the same period, with the balance generated from the
provision of training, dispatch centers and other services to
communities and public safety agencies. For fiscal 2004, AMR
generated net revenue of $1,054.8&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over its 33&nbsp;years of operating history, EmCare has become
the largest provider of outsourced emergency department staffing
and related management services to healthcare facilities. EmCare
has a 6% share of the total emergency department services market
and a 9% share of the outsourced emergency department services
market. In addition, EmCare has become one of the leading
providers of hospitalist services, with hospitalist-related net
revenue increasing from $7.2&nbsp;million in fiscal 2001 to
$23.5&nbsp;million in fiscal 2004. A hospitalist is a physician
who specializes in the care of acutely ill patients in an
in-patient setting. During fiscal 2004, EmCare had approximately
5.3&nbsp;million patient visits in 38&nbsp;states.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare primarily provides emergency department staffing and
related management services to healthcare facilities. EmCare
recruits and hires or subcontracts with physicians and other
healthcare professionals, who then provide professional services
within the healthcare facilities with which we contract. We also
provide
</DIV>


<P align="center" style="font-size: 10pt;">45
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
billing and collection, risk management and other administrative
services to our healthcare professionals and to independent
physicians. EmCare has 329&nbsp;contracts with hospitals and
independent physician groups to provide emergency department,
hospitalist and radiology staffing, and related management and
other administrative services. We believe that EmCare&#146;s
successful physician recruitment and retention, high level of
customer service and advanced risk management programs have
resulted in high contract retention rates and continued growth
in new customers. For the year ended August&nbsp;31, 2004,
EmCare generated net revenue of $549.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Key Factors and Measures We Use to Evaluate Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The key factors and measures we use to evaluate our business
focus on the number of patients we treat and transport and the
costs we incur to provide the necessary care and transportation
for each of our patients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We evaluate our revenue net of provisions for contractual payor
discounts and provisions for uncompensated care. Medicaid,
Medicare and certain other payors receive discounts from our
standard charges, which we refer to as contractual discounts. In
addition, individuals we treat and transport may be personally
responsible for a deductible or co-pay under their third party
payor coverage, and most of our contracts require us to treat
and transport patients who have no insurance or other third
party payor coverage. Due to the uncertainty regarding
collectibility of charges associated with services we provide to
these patients, which we refer to as uncompensated care, our net
revenue recognition is based on expected cash collections. Our
net revenue is gross billings after provisions for contractual
discounts and estimated uncompensated care. The table below
summarizes our approximate payor mix as a percentage of both net
revenue and total transports and patient visits for fiscal years
2003 and 2004.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Percentage&nbsp;of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Percentage&nbsp;of&nbsp;Total</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Net&nbsp;Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Transports&nbsp;and&nbsp;Visits</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Year&nbsp;Ended&nbsp;August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Year&nbsp;Ended&nbsp;August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicare</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicaid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commercial insurance and managed care</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Self-pay</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subsidies and fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to continually monitoring our payor mix, we also
analyze the following key factors and measures in each of our
business segments:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>AMR</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately 89% of AMR&#146;s fiscal 2004&nbsp;net revenue was
transport revenue derived from the treatment and transportation
of patients based on billings to third party payors and
healthcare facilities. The balance of AMR&#146;s net revenue is
derived from direct billings to communities and government
agencies for the provision of training, dispatch center and
other services. AMR&#146;s measures for transport net revenue
include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Transports.</I> We utilize transport data, including the
    number and types of transports, to evaluate net revenue and as
    the basis by which we measure certain costs of the business. We
    segregate transports into two main categories&nbsp;&#151;
    ambulance transports (including emergency, as well as
    non-emergency critical care and other interfacility transports)
    and wheelchair transports&nbsp;&#151; due to the significant
    differences in reimbursement and the associated costs of
    providing ambulance and wheelchair transports. As a result of
    these differences, in certain analyses we weight our transport
    numbers according to category in an effort to better measure net
    revenue and costs.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Net revenue per transport.</I> Net revenue per transport
    reflects the expected net revenue for each transport based on
    gross billings less all estimated provisions for contractual
    discounts and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">46

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    uncompensated care. In order to better understand the trends
    across business segments and in our transport rates, we analyze
    our net revenue per transport based on weighted transports to
    reflect the differences in our transportation mix.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The costs we incur in our AMR business segment consist primarily
of compensation and benefits for ambulance crews and support
personnel, direct and indirect operating costs to provide
transportation services, and costs related to accident and
insurance claims. AMR&#146;s key cost measures include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Unit hours and cost per unit hour.</I> Our measurement of a
    unit hour is based on a fully staffed ambulance or wheelchair
    van for one operating hour. We use unit hours and cost per unit
    hour to measure compensation-related costs and the efficiency of
    our deployed resources. We monitor unit hours and cost per unit
    hour on a combined basis, as well as on a segregated basis
    between ambulance and wheelchair transports.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Operating costs per transport.</I> Operating costs per
    transport is comprised of certain direct operating costs,
    including vehicle operating costs, medical supplies and other
    transport-related costs, but excluding compensation-related
    costs. Monitoring operating costs per transport allows us to
    better evaluate cost trends and operating practices of our
    regional and local management teams.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Accident and insurance claims.</I> We monitor the number and
    magnitude of all accident and insurance claims in order to
    measure the effectiveness of our risk management programs.
    Depending on the type of claim (workers compensation, auto,
    general or professional liability), we monitor our performance
    by utilizing various bases of measurement, such as net revenue,
    miles driven, number of vehicles operated, compensation dollars,
    and number of transports.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that the impact of the Balanced Budget Act of 1997,
or BBA, ambulance service rate decreases, as modified by the
phase-in provisions of the Medicare Modernization Act, resulted
in a decrease in AMR&#146;s net revenue for fiscal 2003 and
fiscal 2004 of approximately $20&nbsp;million and
$11&nbsp;million, respectively, will result in an increase in
AMR&#146;s net revenue of approximately $13&nbsp;million in
calendar 2005, and will result in a decrease in AMR&#146;s net
revenue of approximately $17&nbsp;million in 2006 and continuing
decreases thereafter to 2010. Although we have been able to
substantially mitigate the phased-in reductions of the BBA
through additional fee and subsidy increases, we may not be able
to continue to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>EmCare</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Of EmCare&#146;s fiscal 2004 net revenue, approximately 75% was
generated from billings to third party payors for emergency
department staffing, hospitalist and radiology services and
approximately 25% was generated by payments for other management
services to independent physician groups and hospitals. Our net
revenue derived from hospital contracts is based on billings to
third party payors for patient encounters and from billings to
hospitals for professional services. EmCare&#146;s key net
revenue measures are:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Number of contracts.</I> This reflects the number of
    contractual relationships we have for outsourced emergency
    department staffing and related management services, hospitalist
    services and other management services. We analyze the change in
    our number of contracts from period to period based on &#147;net
    new contracts,&#148; which is the difference between total new
    contracts and contracts that have terminated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Revenue per patient visit.</I> This reflects the expected net
    revenue for each patient encounter based on gross billings less
    all estimated provisions for contractual discounts and
    uncompensated care. Net revenue per patient encounter also
    includes net revenue from billings to third party payors and
    hospitals.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The costs incurred in our EmCare business segment consist
primarily of compensation and benefits for physicians and other
professional providers, professional liability costs, and
contract and other support costs. EmCare&#146;s key cost
measures include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Provider compensation per patient visit.</I> Provider
    compensation per patient visit includes all compensation and
    benefit costs for all professional providers, including
    physicians, physician assistants</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">47
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    and nurse practitioners, during each patient encounter.
    Providers include all full-time, part-time and independently
    contracted providers. Analyzing provider compensation per
    patient visit enables us to monitor our most significant cost in
    performing under our contracts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Professional liability costs.</I> These costs include
    provisions for estimated losses for actual claims, and claims
    likely to be incurred in the period, within our self-insurance
    limits based on our past loss experience, as well as actual
    direct costs, including investigation and defense costs, claims
    payments, reinsurance costs and other costs related to provider
    professional liability.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Contract and other support costs.</I> This includes the cost
    of all support functions, including billing and collections,
    regional and national support costs and other contract costs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Medicare pays for all physicians&#146; services based upon a
national fee schedule. The rate formula may result in
significant yearly fluctuations which may be unrelated to
changes in the actual cost of providing physician services.
Initially, the physician fee schedule update for 2004 called for
a payment decrease of 4.5%. Subsequently, Congress authorized a
1.5% increase that negated the planned rate cuts, and also
provided a 1.5% rate increase for 2005. We currently expect that
the fee schedule will provide for a 4.5% decrease to physician
rates effective January&nbsp;1, 2006, which would result in a
decrease in EmCare&#146;s 2006 net revenue of approximately
$5.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Results of Operations</B>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Basis of Presentation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As we discuss more fully in Note&nbsp;1&nbsp;&#151;
&#147;Fresh-Start Accounting&#148; of the notes to our audited
combined financial statements, AMR&#146;s and EmCare&#146;s
former parent, Laidlaw, and certain of its affiliates filed
voluntary petitions for reorganization under Chapter&nbsp;11 of
the U.S.&nbsp;Bankruptcy Code. Although subsidiaries of Laidlaw,
neither AMR nor EmCare was included in the bankruptcy filing.
Laidlaw emerged from bankruptcy protection in June 2003. Laidlaw
applied push-down accounting as of June&nbsp;1, 2003 to AMR and
EmCare and allocated to us our share of the fresh-start
accounting adjustments. For financial statement purposes, for
periods prior to February&nbsp;1, 2005, AMR and EmCare combined
are our Predecessor. As a result of the application of push-down
accounting and the fresh-start change in the basis of accounting
for our underlying assets and liabilities, our results of
operations and cash flows have been separated further as
pre-June&nbsp;1, 2003 (referred to as the
Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy) and
post-May&nbsp;31, 2003 and pre-February&nbsp;1, 2005 (referred
to as the Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective as of January&nbsp;31, 2005, we acquired EmCare and
AMR from Laidlaw and in connection with the acquisition we
changed our fiscal year to December&nbsp;31 from August&nbsp;31.
For all periods prior to the acquisition, the AMR and EmCare
businesses formerly owned by Laidlaw are referred to as the
&#147;Predecessor.&#148; For all periods subsequent to the
acquisition, the business is referred to as the
&#147;Successor.&#148; As a result of the acquisition, we
include as a reporting period of the Predecessor our
pre-acquisition period ended January&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have made no comparisons for our financial results or cash
flows and other liquidity measures for the
Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy&#146;s three
months ended August&nbsp;31, 2003 or for the
Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy&#146;s financial
results or cash flows and other liquidity measures for the nine
months ended May&nbsp;31, 2003. As the length of these periods
is significantly different from the length of any corresponding
comparative periods, these results are not comparable in
absolute dollar terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, to facilitate the identification of certain business
trends, we compare the financial results and cash flows for the
year ended August&nbsp;31, 2004 for the Predecessor&nbsp;&#151;
Post-Laidlaw Bankruptcy to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the combined financial results and cash flows for the year ended
    August&nbsp;31, 2003, which represents the financial results and
    cash flows for the Predecessor&nbsp;&#151; Post-Laidlaw
    Bankruptcy for the three months ended August&nbsp;31, 2003 and
    the financial results and cash flows for the
    Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy for the nine
    months ended May&nbsp;31, 2003,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy&#146;s
    financial results for the year ended August&nbsp;31, 2002.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">48

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The combined year ended August&nbsp;31, 2003 presented below
does not comply with SOP&nbsp;90-7, which calls for separate
reporting for the Predecessor&nbsp;&#151; Post-Laidlaw
Bankruptcy and the Predecessor&nbsp;&#151; Pre-Laidlaw
Bankruptcy. Additionally, for the reasons described in
Note&nbsp;1 and due to other non-recurring adjustments, the
Predecessor&nbsp;&#151; Pre-Laidlaw Bankruptcy&#146;s financial
statements for the periods prior to Laidlaw&#146;s emergence
from bankruptcy may not be comparable to our
Predecessor&nbsp;&#151; Post-Laidlaw Bankruptcy&#146;s financial
statements and results of operations which are for periods after
Laidlaw&#146;s emergence from bankruptcy. Investors should,
therefore, review this material with caution and should not rely
solely on the information concerning the Predecessor&nbsp;&#151;
Pre-Laidlaw Bankruptcy or the combined financial results for the
year ended August&nbsp;31, 2003 as being indicative of our
future results or as providing an accurate comparison of
financial performance from period to period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents, for the periods indicated,
information expressed as a percentage of net revenue. This
information has been derived from our audited combined
statements of operations, which include both our AMR and our
EmCare business segments, for the years ended August&nbsp;31,
2002, 2003 and 2004 and the five months ended January&nbsp;31,
2005, respectively, from our unaudited combined statements of
operations for the five months ended January&nbsp;31, 2004 and
the three months and five months ended June&nbsp;30, 2004,
respectively, and from our unaudited consolidated statements of
operations for the three months and five months ended
June&nbsp;30, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">49

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Combined and Consolidated Results of Operations and as a
Percentage of Net Revenue</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="27">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,487,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>667,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>399,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>663,880</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>445,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>960,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,021,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>461,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,610</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,661</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,479</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>104,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,865</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,269</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,381</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(239,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,700</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,418</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,599</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,073</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,646</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,462</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,558</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>68,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR and
    EmCare by Laidlaw pursuant to a formula based upon each
    company&#146;s share of Laidlaw&#146;s consolidated revenue.</TD>
</TR>

</TABLE>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70.0</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.8</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.6</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16.9</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR and
    EmCare by Laidlaw pursuant to a formula based upon each
    company&#146;s share of Laidlaw&#146;s consolidated revenue.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt;">50
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<!-- Landscape -->
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="54" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="54" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Five Months Ended January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>As Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="71" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>984,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,007,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,054,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>441,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>455,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>259,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>434,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>284,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>469,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>627,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>647,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>687,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>287,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>289,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>169,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>282,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65.1</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>180,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>296,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>195,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>195,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>194,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18.8</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.5</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(251,847</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(25.6</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>41,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR by
    Laidlaw pursuant to a formula based upon AMR&#146;s share of
    Laidlaw&#146;s consolidated revenue.</TD>
</TR>

</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 6pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="54" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="54" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Five Months Ended January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Net</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Revenue</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="71" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>431,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>480,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>549,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>225,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>241,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>140,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>229,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>160,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>261,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>332,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>374,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>430,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>191,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>181,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79.2</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>206,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>79.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,834</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.2</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,311</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,034</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to EmCare by
    Laidlaw pursuant to a formula based upon EmCare&#146;s share of
    Laidlaw&#146;s consolidated revenue.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt;">51
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Five months ended June&nbsp;30, 2005 (Successor) compared
to the five months ended June&nbsp;30, 2004 (Predecessor)</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest expense.</I> Interest expense for the five months
ended June&nbsp;30, 2005 was $21.6&nbsp;million compared to
$3.5&nbsp;million for the five months ended June&nbsp;30, 2004.
The $18.1&nbsp;million increase relates to the additional debt
incurred as part of the acquisition of AMR and EmCare by EMS L.P.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income tax expense.</I> Income tax expense for the five
months ended June&nbsp;30, 2005 was $7.2&nbsp;million compared
to $7.8&nbsp;million for the five months ended June&nbsp;30,
2004. The $0.6&nbsp;million decrease relates primarily to the
additional interest expense recorded during the 2005 period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the five months ended
June&nbsp;30, 2005 was $469.8&nbsp;million, an increase of
$35.5&nbsp;million, or 8.2%, from $434.3&nbsp;million for the
five months ended June&nbsp;30, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 7.2%. The increase in net
revenue per weighted transport was the result of rate increases
in several of our operating markets and Medicare rate increases
under the Medicare Modernization Act. In addition, we had a net
increase of approximately 10,800 weighted transports. Our total
increase in weighted transports of 55,300 was offset by a
decrease of approximately 44,500 weighted transports and
$8.9&nbsp;million in net revenue for the five months ended
June&nbsp;30, 2005 as a result of exiting the Pinellas County,
Florida market in September 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the five months ended June&nbsp;30, 2005 were
$296.1&nbsp;million, or 63.0% of net revenue, compared to
$282.9&nbsp;million, or 65.1% of net revenue, for the five
months ended June&nbsp;30, 2004. Total unit hours increased
period over period by approximately 19,800 due to the increase
in ambulance transport volume. In addition, ambulance crew wages
per ambulance unit hour increased by 5.0%, which increased
compensation costs by $7.7&nbsp;million. The ambulance crew
wages per ambulance unit hour increase resulted principally from
annual salary increases. Benefits costs increased
$2.8&nbsp;million due to increased health benefit claim costs
and health insurance premiums. The exit from the Pinellas
County, Florida market decreased ambulance unit hours by 97,400
and compensation and benefits costs by $6.7&nbsp;million in 2005
compared to 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the five
months ended June&nbsp;30, 2005 were $91.3&nbsp;million, or
19.4% of net revenue, compared to $81.8&nbsp;million, or 18.8%
of net revenue, for the five months ended June&nbsp;30, 2004.
The change is due primarily to additional fuel and vehicle
repair costs of approximately $3.1&nbsp;million and an increase
in external services of $1.9&nbsp;million. Costs for external
services grew as a result of increased ambulance transport
volumes and professional fees of $1.2&nbsp;million, primarily
related to post-acquisition consulting fees. Other operating
costs, including medical supplies, occupancy, telecommunications
and other expenses, increased by approximately
$3.3&nbsp;million, but remained flat as a percentage of net
revenue compared to the prior period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Insurance expense for the five months
ended June&nbsp;30, 2005 was $20.9&nbsp;million, or 4.5% of net
revenue, compared to $19.5&nbsp;million, or 4.5% of net revenue,
for the same period in 2004. The five months ended June&nbsp;30,
2005 and 2004 included comparable reductions of reserves based
on favorable development of claims costs and reserve estimates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the five months ended June&nbsp;30,
2005 was $16.2&nbsp;million, or 3.4% of net revenue, compared to
$12.1&nbsp;million, or 2.8% of net revenue, for the five months
ended June&nbsp;30, 2004. The five months ended June&nbsp;30,
2004 includes a one-time reversal of an accrued liability of
$1.8&nbsp;million and payroll tax refunds related to prior
periods of $2.0&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> AMR did not incur
Laidlaw fees and compensation charges for the five months ended
June&nbsp;30, 2005 as it was no longer a subsidiary of Laidlaw
International, Inc. For the five months ended June&nbsp;30,
2004, these fees and charges were $3.8&nbsp;million, or 0.9% of
net revenue. Costs incurred to date to replace the services
previously performed by Laidlaw are included in the statement of
operations for the five months ended June&nbsp;30, 2005.
</DIV>


<P align="center" style="font-size: 10pt;">52
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Restructuring charges.</I> AMR did not incur restructuring
charges during the five months ended June&nbsp;30, 2005.
Restructuring charges of $1.4&nbsp;million recorded during the
five months ended June&nbsp;30, 2004 relate to a reduction in
the number of operating regions. Oversight of the affected
operations was shifted to the remaining regional management
teams.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the five months ended June&nbsp;30,
2005 was $19.5&nbsp;million, or 4.1% of net revenue, compared to
$18.1&nbsp;million, or 4.2% of net revenue, for the five months
ended June&nbsp;30, 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the five months ended
June&nbsp;30, 2005 was $261.6&nbsp;million, an increase of
$32.0&nbsp;million, or 13.9%, from $229.6&nbsp;million for the
five months ended June&nbsp;30, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following June&nbsp;30,
2004, we added 27 net new contracts which accounted for a net
revenue increase of $22.4&nbsp;million for the five months ended
June&nbsp;30, 2005. Net revenue under our &#147;same store&#148;
contracts (contracts in existence for the entirety of both
fiscal periods) increased $14.2&nbsp;million in the five months
ended June&nbsp;30, 2005 due to a 4.4% increase in patient
encounters offset by a 2.1% decrease in net revenue per patient
encounter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the five months ended June&nbsp;30, 2005 were
$206.9&nbsp;million, or 79.1% of net revenue, compared to
$181.7&nbsp;million, or 79.2% of net revenue, for the five
months ended June&nbsp;30, 2004. Compensation and benefits costs
increased $13.7&nbsp;million from net new contract additions. Of
the remaining $11.5&nbsp;million increase in such costs,
$10.2&nbsp;million was attributable to an increase in provider
compensation costs related primarily to an increase in patient
encounters, and $1.3&nbsp;million was attributable to an
increase in billing support personnel and regional support
personnel for net new contract additions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the five
months ended June&nbsp;30, 2005 were $10.9&nbsp;million, or 4.2%
of net revenue, compared to $9.8&nbsp;million, or 4.3% of net
revenue, for the five months ended June&nbsp;30, 2004. Operating
expenses increased due to net new contract additions but
remained consistent as a percentage of net revenue.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Professional liability insurance
expense for the five months ended June&nbsp;30, 2005 was
$18.4&nbsp;million, or 7.0% of net revenue, compared to
$17.4&nbsp;million, or 7.6% of net revenue, for the five months
ended June&nbsp;30, 2004. The decrease as a percent of revenue
is due to continued favorable improvement in ultimate claims
costs.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the five months ended June&nbsp;30,
2005 was $7.0&nbsp;million, or 2.7% of net revenue, compared to
$7.2&nbsp;million, or 3.1% of net revenue, for the five months
ended June&nbsp;30, 2004. The $0.2&nbsp;million decrease in
selling, general and administrative expense includes a decrease
of $1.1&nbsp;million related to the Laidlaw long-term incentive
compensation plan which is no longer in effect, offset by
$0.9&nbsp;million of legal fees and settlements, Onex management
fees and D&#38;O insurance coverage.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> EmCare did not
incur Laidlaw fees and compensation charges for the five months
ended June&nbsp;30, 2005 as it was no longer a subsidiary of
Laidlaw International, Inc. For the five months ended
June&nbsp;30, 2004, these fees and charges were
$2.7&nbsp;million, or 1.2% of net revenue. Costs incurred to
date to replace the services previously performed by Laidlaw are
included in the statement of operations for the five months
ended June&nbsp;30, 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the five months ended June&nbsp;30,
2005 was $4.5&nbsp;million, or 1.7% of net revenue, compared to
$3.8&nbsp;million, or 1.7% of net revenue, for the five months
ended June&nbsp;30, 2004.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Three months ended June&nbsp;30, 2005 (Successor) compared
to the three months ended June&nbsp;30, 2004
(Predecessor)</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest expense.</I> Interest expense for the three months
ended June&nbsp;30, 2005 was $13.6&nbsp;million compared to
$3.1&nbsp;million for the three months ended June&nbsp;30, 2004.
The $10.5&nbsp;million increase relates to the additional debt
incurred as part of the acquisition of AMR and EmCare by EMS L.P.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income tax expense.</I> Income tax expense for the three
months ended June&nbsp;30, 2005 was $3.8&nbsp;million compared
to $4.8&nbsp;million for the three months ended June&nbsp;30,
2004. The $1.0&nbsp;million decrease relates primarily to the
additional interest expense recorded during the 2005 period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the three months ended
June&nbsp;30, 2005 was $284.7&nbsp;million, an increase of
$25.0&nbsp;million, or 9.6%, from $259.7&nbsp;million for the
three months ended June&nbsp;30, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 7.9%. The increase in net
revenue per weighted transport was the result of rate increases
in several of our operating markets and Medicare rate increases
under the Medicare Modernization Act. In addition, we had a net
increase of approximately 11,700 weighted transports. Our total
increase in weighted transports of 38,000 was offset by a
decrease of approximately 26,300 weighted transports and
$5.2&nbsp;million in net revenue for the three months ended
June&nbsp;30, 2005 as a result of exiting the Pinellas County,
Florida market in late September 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the three months ended June&nbsp;30, 2005 were
$180.8&nbsp;million, or 63.5% of net revenue, compared to
$169.9&nbsp;million, or 65.4% of net revenue, for the three
months ended June&nbsp;30, 2004. Total unit hours increased
period over period by approximately 47,400, due to the increase
in ambulance transport volume. In addition, ambulance crew wages
per ambulance unit hour increased by approximately 4.7%, which
increased compensation costs by $4.4&nbsp;million. The ambulance
crew wages per ambulance unit hour increase resulted principally
from annual salary increases. Benefits costs increased
$1.5&nbsp;million due to rising costs of health insurance
premiums and increased health benefit claims. The exit from the
Pinellas County, Florida market decreased ambulance unit hours
by 57,400 and compensation and benefits costs by $3.9 million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the three
months ended June&nbsp;30, 2005 were $56.1&nbsp;million, or
19.7% of net revenue, compared to $47.7&nbsp;million, or 18.4%
of net revenue, for the three months ended June&nbsp;30, 2004.
The change is due primarily to additional fuel and vehicle
repair costs of approximately $2.2&nbsp;million, and increases
in medical supplies, external services and professional fees of
$1.1&nbsp;million, $1.8&nbsp;million and $1.4&nbsp;million,
respectively. External services increased due to contract
changes, increased ambulance transport volumes and professional
fees related to post-acquisition consulting fees. Other
operating costs, including occupancy, telecommunications and
other expenses, increased by approximately $1.9&nbsp;million,
but remained relatively flat as a percentage of net revenue
compared to the prior period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Insurance expense for the three months
ended June&nbsp;30, 2005 was $11.8&nbsp;million, or 4.1% of net
revenue, compared to $12.4&nbsp;million, or 4.8% of net revenue,
for the same period in 2004. The three months ended
June&nbsp;30, 2005 included a $2.2&nbsp;million reduction of
reserves based on favorable development of claims costs and
reserve estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the three months ended June&nbsp;30,
2005 was $10.6&nbsp;million, or 3.7% of net revenue, compared to
$7.8&nbsp;million, or 3.0% of net revenue, for the three months
ended June&nbsp;30, 2004. The three months ended June&nbsp;30,
2004 includes payroll tax refunds related to prior periods of
approximately $2.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> AMR did not incur
Laidlaw fees and compensation charges for the three months ended
June&nbsp;30, 2005 as it was no longer a subsidiary of Laidlaw
International, Inc. For the three months ended June&nbsp;30,
2004, these fees and charges were $2.3&nbsp;million, or 0.9% of
net revenue. Costs incurred to date to replace the services
previously performed by Laidlaw are included in the statement of
operations for the three months ended June&nbsp;30, 2005.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the three months ended June&nbsp;30,
2005 was $11.5&nbsp;million, or 4.0% of net revenue, compared to
$10.8&nbsp;million, or 4.2% of net revenue, for the three months
ended June&nbsp;30, 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the three months ended
June&nbsp;30, 2005 was $160.3&nbsp;million, an increase of
$20.0&nbsp;million, or 14.3%, from $140.3&nbsp;million for the
three months ended June&nbsp;30, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following June&nbsp;30,
2004, we added 27 net new contracts which accounted for a net
revenue increase of $15.6&nbsp;million for the three months
ended June&nbsp;30, 2005. Net revenue under our &#147;same
store&#148; contracts (contracts in existence for the entirety
of both fiscal periods) increased $7.9&nbsp;million in the three
months ended June&nbsp;30, 2005 due to a 3.7% increase in
patient encounters and a 2.3% increase in net revenue per
patient encounter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the three months ended June&nbsp;30, 2005 were
$126.5&nbsp;million, or 78.9% of net revenue, compared to
$110.5&nbsp;million, or 78.7% of net revenue, for the three
months ended June&nbsp;30, 2004. Compensation and benefits costs
increased $9.1&nbsp;million from net new contract additions. Of
the remaining $6.9&nbsp;million increase in such costs,
$6.5&nbsp;million was attributable to an increase in provider
compensation costs related to an increase in patient encounters,
and $0.4&nbsp;million was attributable to an increase in billing
support personnel and regional support personnel for net new
contract additions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the three
months ended June&nbsp;30, 2005 were $7.1&nbsp;million, or 4.4%
of net revenue, compared to $5.8&nbsp;million, or 4.1% of net
revenue, for the three months ended June&nbsp;30, 2004.
Operating expenses, as a percentage of net revenue, increased
slightly due to higher collection fees incurred by our billing
operation.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Professional liability insurance
expense for the three months ended June&nbsp;30, 2005 was
$10.6&nbsp;million, or 6.6% of net revenue, compared to
$10.5&nbsp;million, or 7.5% of net revenue, for the three months
ended June&nbsp;30, 2004. The decrease as a percent of revenue
is due to continued favorable improvement in ultimate claims
costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the three months ended June&nbsp;30,
2005 was $3.9&nbsp;million, or 2.5% of net revenue, compared to
$5.0&nbsp;million, or 3.6% of net revenue, for the three months
ended June&nbsp;30, 2004. The $1.1&nbsp;million decrease in
selling, general and administrative expense is related to a
Laidlaw administered long-term incentive compensation plan which
is no longer in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> EmCare did not
incur Laidlaw fees and compensation charges for the three months
ended June&nbsp;30, 2005 as it was no longer a subsidiary of
Laidlaw International, Inc. For the three months ended
June&nbsp;30, 2004, these fees and charges were
$1.6&nbsp;million, or 1.1% of net revenue. Costs incurred to
date to replace the services previously performed by Laidlaw are
included in the statement of operations for the three months
ended June&nbsp;30, 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the three months ended June&nbsp;30,
2005 was $2.6&nbsp;million, or 1.7% of net revenue, compared to
$2.3&nbsp;million, or 1.6% of net revenue, for the three months
ended June&nbsp;30, 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Five months ended January&nbsp;31, 2005 (Successor)
compared to the five months ended January&nbsp;31, 2004
(Predecessor)</I></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest expense.</I> Interest expense for the five months
ended January&nbsp;31, 2005 was $5.6&nbsp;million compared to
$4.1&nbsp;million for the five months ended January&nbsp;31,
2004. The $1.5&nbsp;million difference relates to an increase in
the amount owed to Laidlaw during the five months ended
January&nbsp;31, 2005 compared to the same period in 2004.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income tax expense.</I> Income tax expense for the five
months ended January&nbsp;31, 2005 was $6.3&nbsp;million
compared to $8.6&nbsp;million for the five months ended
January&nbsp;31, 2004. The $2.3&nbsp;million decrease relates
primarily to additional interest expense and added costs
incurred by AMR and EmCare as a result of the acquisition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the five months ended
January&nbsp;31, 2005 was $455.1&nbsp;million, an increase of
$13.1&nbsp;million, or 3.0%, from $442.0&nbsp;million for the
five months ended January&nbsp;31, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 6%, offset by approximately
38,700 fewer weighted transports, including a 30,220 ambulance
transport decrease. The decrease in ambulance transports was due
primarily to exiting the Pinellas County, Florida market in late
September 2004, which accounted for a decrease of approximately
35,000 ambulance transports and $6.2&nbsp;million in net revenue
for the five months ended January&nbsp;31, 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the five months ended January&nbsp;31, 2005 were
$289.7&nbsp;million, or 63.7% of net revenue, compared to
$287.7&nbsp;million, or 65.1% of net revenue, for the five
months ended January&nbsp;31, 2004. Total unit hours decreased
period over period by 100,800 primarily as a result of the exit
from the Pinellas County, Florida market, which decreased
ambulance unit hours by 79,800 and compensation and benefits
costs by $5.3&nbsp;million. The decrease in total unit hours was
offset by an increase in our ambulance crew wages per ambulance
unit hour of 6.6%, which increased compensation costs by
$10.1&nbsp;million. The ambulance crew wages per ambulance unit
hour increase resulted principally from annual salary increases.
Benefits costs decreased $1.7&nbsp;million due to our shift of
employees previously covered under premium-based health
insurance plans to self-insured health plans.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the five
months ended January&nbsp;31, 2005 were $83.9&nbsp;million, or
18.4% of net revenue, compared to $80.3&nbsp;million, or 18.2%
of net revenue, for the five months ended January&nbsp;31, 2004.
This $3.6&nbsp;million increase was due primarily to higher fuel
costs, which were 2.0% of net revenue for the five months ended
January&nbsp;31, 2005, compared to 1.6% of net revenue for the
same period in 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Insurance expense for the five months
ended January&nbsp;31, 2005 was $22.4&nbsp;million, or 4.9% of
net revenue, compared to $22.7&nbsp;million, or 5.1% of net
revenue, for the same period in 2004. This $0.3&nbsp;million
decrease was primarily a result of improvements in ultimate
claims costs.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the five months ended
January&nbsp;31, 2005 was $15.7&nbsp;million, or 3.5% of net
revenue, compared to $16.2&nbsp;million, or 3.7% of net revenue,
for the five months ended January&nbsp;31, 2004. The
$0.5&nbsp;million decrease in selling, general and
administrative expense related primarily to deferred
compensation expense recorded as part of management incentive
programs that were implemented by Laidlaw during fiscal 2004 and
which were expensed as a component of Laidlaw fees and
compensation charges in 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> Laidlaw fees and
compensation charges for the five months ended January&nbsp;31,
2005 were $9.4&nbsp;million, or 2.1% of net revenue, compared to
$3.8&nbsp;million, or 0.9% of net revenue, for the five months
ended January&nbsp;31, 2004. This $5.6&nbsp;million increase was
primarily due to charges related to senior management incentive
plans expensed as part of the sale to Onex and additional
Laidlaw overhead costs allocated to AMR during the five months
ended January&nbsp;31, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the five months ended January&nbsp;31,
2005 was $16.4&nbsp;million, or 3.6% of net revenue, compared to
$18.3&nbsp;million, or 4.1% of net revenue, for the five months
ended January&nbsp;31, 2004. The $1.9&nbsp;million decrease
resulted from the elimination of the contract intangible asset
recorded in fiscal 2003 as part of our fresh-start accounting
adjustments. As this asset was eliminated in the fourth quarter
of fiscal 2004, no amortization expense was recorded for this
intangible asset in the five months ended January&nbsp;31, 2005.
</DIV>


<P align="center" style="font-size: 10pt;">56
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the five months ended
January&nbsp;31, 2005 was $241.1&nbsp;million, an increase of
$15.5&nbsp;million, or 6.9%, from $225.6&nbsp;million for the
five months ended January&nbsp;31, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following
January&nbsp;31, 2004, we added 33&nbsp;net new contracts which
accounted for a net revenue increase of $19.1&nbsp;million for
the five months ended January&nbsp;31, 2005. Net revenue under
our &#147;same store&#148; contracts (contracts in existence for
the entirety of both fiscal periods) increased $3.6&nbsp;million
in the five months ended January&nbsp;31, 2005 due to a 2.4%
increase in patient visits and a 3.7% increase in net revenue
per patient visit.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the five months ended January&nbsp;31, 2005 were
$191.6&nbsp;million, or 79.5% of net revenue, compared to
$174.2&nbsp;million, or 77.2% of net revenue, for the five
months ended January&nbsp;31, 2004. Compensation and benefits
costs increased $9.0&nbsp;million from net new contract
additions. Of the remaining $8.4&nbsp;million increase in such
costs, $8.0&nbsp;million was attributable to an increase in
provider compensation costs related primarily to an increase in
patient visits, and $0.4&nbsp;million was attributable to an
increase in billing support personnel and regional support
personnel for net new contract additions.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the five
months ended January&nbsp;31, 2005 were $11.0&nbsp;million, or
4.6% of net revenue, compared to $10.6&nbsp;million, or 4.7% of
net revenue, for the five months ended January&nbsp;31, 2004.
Operating expenses, as a percentage of net revenue, decreased
due to our leveraging of fixed billing and other fixed contract
costs.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Professional liability insurance
expense for the five months ended January&nbsp;31, 2005 was
$16.6&nbsp;million, or 6.9% of net revenue, compared to
$17.7&nbsp;million, or 7.9% of net revenue, for the five months
ended January&nbsp;31, 2004. Insurance expense, as a percentage
of net revenue, decreased due to an improvement in expected
ultimate claims costs.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the five months ended
January&nbsp;31, 2005 was $5.9&nbsp;million, or 2.5% of net
revenue, compared to $5.8&nbsp;million, or 2.6% of net revenue,
for the five months ended January&nbsp;31, 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> Laidlaw fees and
compensation charges for the five months ended January&nbsp;31,
2005 was $10.5&nbsp;million, or 4.3% of net revenue, compared to
$2.7&nbsp;million, or 1.2% of net revenue, for the five months
ended January&nbsp;31, 2004. This $7.8&nbsp;million increase was
primarily due to charges related to senior management incentive
plans expensed as part of the sale to Onex and additional
Laidlaw overhead costs allocated to EmCare during the five
months ended January&nbsp;31, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the five months ended January&nbsp;31,
2005 was $2.4&nbsp;million, or 1.0% of net revenue, compared to
$3.8&nbsp;million, or 1.7% of net revenue, for the five months
ended January&nbsp;31, 2004. The $1.4&nbsp;million decrease was
the result of the elimination of the contract intangible asset
recorded in fiscal 2003 as part of our fresh-start accounting
adjustments. As this asset was eliminated in the fourth quarter
of fiscal 2004, no amortization expense was recorded for this
intangible asset in the five months ended January 31, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Year ended August&nbsp;31, 2004 compared to the year ended
August&nbsp;31, 2003</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest expense.</I> Interest expense for the year ended
August&nbsp;31, 2004 was $10.0&nbsp;million compared to
$5.6&nbsp;million for the year ended August&nbsp;31, 2003. The
increase is a result of Laidlaw suspending certain related party
interest charges during the Laidlaw bankruptcy in 2003.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income tax expense.</I> Income tax expense for the year ended
August&nbsp;31, 2004 was $21.8&nbsp;million compared to
$9.5&nbsp;million for the year ended August&nbsp;31, 2003. The
$12.3&nbsp;million increase is a result of the release of full
valuation allowances on all deferred tax assets for the 2003
period in connection with Laidlaw&#146;s exit from bankruptcy.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the year ended
August&nbsp;31, 2004 was $1,054.8&nbsp;million, an increase of
$47.6&nbsp;million, or 4.7%, from $1,007.2&nbsp;million for the
year ended August&nbsp;31, 2003. The increase was due primarily
to an increase in weighted transports of 65,800, or 2.3%,
resulting in a net revenue increase of $22.9&nbsp;million. The
balance of the increase resulted from rate increases in several
of our markets that offset Medicare rate reductions in effect
prior to the July&nbsp;1, 2004 effective date of the Medicare
Modernization Act, together increasing our net revenue per
weighted transport by 2.4%, or $24.7&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the year ended August&nbsp;31, 2004 were
$687.2&nbsp;million, or 65.2% of net revenue, compared to
$647.3&nbsp;million, or 64.3%, for the year ended
August&nbsp;31, 2003. The increase of $39.9&nbsp;million
includes an increase in ambulance unit hours of 242,200, or
2.5%, associated with the increase in weighted transports,
totaling $8.9&nbsp;million of compensation-related costs.
Ambulance salaries per unit hour increased 3.5%, or
$12.6&nbsp;million. In fiscal 2004 we expanded our sales and
marketing team and our senior management, resulting in
$3.7&nbsp;million of compensation and benefits costs. Our health
insurance costs and other employee benefits also increased year
over year by $11.0&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the year ended
August&nbsp;31, 2004 were $194.4&nbsp;million, or 18.4% of net
revenue, compared to $195.1&nbsp;million, or 19.4% of net
revenue, for the year ended August&nbsp;31, 2003. These expenses
decreased primarily as a result of improvements in
telecommunications contract rates, totaling $0.6&nbsp;million,
and a reduction in medical supplies expense, totaling
$0.6&nbsp;million, from improved purchasing contracts and more
efficient inventory management. These decreases were offset in
part by increases in vehicle operating costs, totaling
$0.6&nbsp;million, resulting primarily from higher fuel costs
incurred in late fiscal 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Insurance expense for the year ended
August&nbsp;31, 2004 was $44.3&nbsp;million, or 4.2% of net
revenue, compared to $67.4&nbsp;million, or 6.7% of net revenue,
for the year ended August&nbsp;31, 2003. This decrease of
$23.1&nbsp;million primarily relates to insurance expense
recorded in fiscal 2003 of $14.6&nbsp;million resulting from
increases in actuarially-computed estimates of costs required to
settle prior years&#146; claims. In fiscal 2004, we recorded a
reduction of insurance expense of $4.5&nbsp;million due to
favorable developments with respect to these claims. We funded
these claims through Laidlaw&#146;s captive insurance program.
Excluding these adjustments, insurance expense decreased
$4.0&nbsp;million from fiscal 2003 to fiscal 2004 as a result of
improvements in ultimate claims costs. Management implemented a
number of additional risk mitigation programs at the beginning
of fiscal 2003 that we believe positively impacted claims costs
in fiscal 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the year ended August&nbsp;31, 2004
was $32.2&nbsp;million, or 3.1% of net revenue, compared to
$35.1&nbsp;million, or 3.5% of net revenue, for the year ended
August&nbsp;31, 2003. This decrease of $2.9&nbsp;million relates
primarily to a one-time expense reduction to eliminate a
contingent liability of $1.8&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> Laidlaw fees and
compensation charges for the year ended August&nbsp;31, 2004
increased from $3.6&nbsp;million, or 0.4% of net revenue, to
$9.0&nbsp;million, or 0.9% of net revenue, from the year ended
August&nbsp;31, 2003. The $5.4&nbsp;million increase was due to
charges related to senior management incentive plans and
additional Laidlaw overhead costs allocated to AMR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the year ended August&nbsp;31, 2004 was
$43.6&nbsp;million, or 4.1% of net revenue, compared to
$39.3&nbsp;million, or 3.9% of net revenue, for the year ended
August&nbsp;31, 2003. The $4.3&nbsp;million increase includes
$3.3&nbsp;million attributable to amortization of a contract
intangible asset recorded as part of our fresh-start accounting
adjustments. The balance of the increase is related primarily to
vehicle acquisitions made in late fiscal 2003 and fiscal 2004.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Restructuring charges.</I> Restructuring charges were
$2.1&nbsp;million, or 0.2% of net revenue, for the year ended
August&nbsp;31, 2004, a decrease from $2.7&nbsp;million, or 0.3%
of net revenue, for the year ended August&nbsp;31, 2003. Fiscal
2003 restructuring charges included severance-related costs for
several members of senior management who were replaced during
the year and costs incurred in restructuring and consolidating
our billing offices. In fiscal 2004, we reduced the number of
operating regions and shifted the oversight of the affected
operations to the remaining regional management teams.
</DIV>


<P align="center" style="font-size: 10pt;">58

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the year ended
August&nbsp;31, 2004 was $549.8&nbsp;million, an increase of
$69.2&nbsp;million, or 14.4%, from $480.6&nbsp;million for the
year ended August&nbsp;31, 2003. The increase was due primarily
to an increase in net new hospital contracts and net revenue
increases in existing contracts. During fiscal 2004, we added
35&nbsp;net new contracts (58 new contracts, including 50 new
emergency department contracts and 8 new hospitalist contracts,
offset by 23 contract terminations), for a net revenue increase
of $21.6&nbsp;million. Net revenue increased $23.6&nbsp;million
as a result of the net impact of contract additions and
terminations in fiscal 2003. &#147;Same store&#148; net revenue
increased $24.0&nbsp;million due to a 4.5% increase in patient
visits and an increase of 1.1% in net revenue per patient visit.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the year ended August&nbsp;31, 2004 were
$430.7&nbsp;million, or 78.3% of net revenue, compared to
$374.5&nbsp;million, or 77.9% of net revenue, for the year ended
August&nbsp;31, 2003. The $56.2&nbsp;million increase was
related primarily to the increase in net new contracts in fiscal
2003 and 2004. &#147;Same store&#148; contract compensation and
benefits costs increased $12.8&nbsp;million as a result of
increased net revenue per visit and an increase in volume of
patient visits, as a number of our contracts include
productivity-based compensation plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the year ended
August&nbsp;31, 2004 were $23.9&nbsp;million, or 4.3% of net
revenue, compared to $23.6&nbsp;million, or 4.9% of net revenue,
for the year ended August&nbsp;31, 2003. Operating expenses
decreased as a percent of net revenue from 4.9% in fiscal 2003
to 4.3% in fiscal 2004 due to our leveraging of fixed billing
and other contract costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Professional liability insurance
expense for the year ended August&nbsp;31, 2004 was
$36.0&nbsp;million, or 6.5% of net revenue, compared to
$36.8&nbsp;million, or 7.7% of net revenue, for the year ended
August&nbsp;31, 2003. The reduction as a percent of net revenue
represents a combination of improved investment returns, changes
in actuarial estimates of costs required to settle prior
years&#146; claims and a reduction in the estimate of ultimate
claims costs.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the year ended August&nbsp;31, 2004
was $15.7&nbsp;million, or 2.9% of net revenue, compared to
$14.8&nbsp;million, or 3.1% of net revenue, for the year ended
August&nbsp;31, 2003. The $0.9&nbsp;million increase in selling,
general and administrative expense includes $0.6&nbsp;million of
deferred compensation expense recorded as part of management
incentive programs during fiscal 2004 that were terminated in
connection with the acquisition and additional support costs
required for net new contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw fees and compensation charges.</I> Laidlaw fees and
compensation charges for the year ended August&nbsp;31, 2004
were $6.4&nbsp;million, or 1.2% of net revenue, compared to
$1.8&nbsp;million, or 0.4% of net revenue, for the year ended
August&nbsp;31, 2003. The increase was due to charges related to
senior management incentive plans and additional Laidlaw
overhead costs allocated to EmCare.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the year ended August&nbsp;31, 2004 was
$9.1&nbsp;million, or 1.7% of net revenue, compared to
$5.4&nbsp;million, or 1.1% of net revenue, for the year ended
August&nbsp;31, 2003. The increase of $3.7&nbsp;million was due
to amortization of a contract intangible asset recorded as part
of our fresh-start accounting adjustments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw reorganization costs.</I> There were no allocated
reorganization costs in fiscal 2004. Laidlaw reorganization
costs for the year ended August&nbsp;31, 2003 were
$3.7&nbsp;million, or 0.8% of net revenue. These costs were
allocated to EmCare by Laidlaw and reflect costs borne by
Laidlaw during its Chapter&nbsp;11 restructuring.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Year ended August&nbsp;31, 2003 compared to the year ended
August&nbsp;31, 2002</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest expense.</I> Interest expense for the year ended
August&nbsp;31, 2003 was $5.6&nbsp;million compared to
$6.4&nbsp;million for the year ended August&nbsp;31, 2002. The
decrease of $0.8&nbsp;million is due to higher interest costs on
vehicle capital leases in fiscal 2002.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Income tax expense.</I> Income tax expense for the year ended
August&nbsp;31, 2003 was $9.5&nbsp;million compared to
$1.4&nbsp;million for the year ended August&nbsp;31, 2002. The
$8.1&nbsp;million increase is due to increased income from
operations during fiscal 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the year ended
August&nbsp;31, 2003 was $1,007.2&nbsp;million, an increase of
$22.7&nbsp;million, or 2.3%, from $984.5&nbsp;million for the
same period in 2002. The increase for fiscal 2003 is due
primarily to rate increases we negotiated with several
communities and payors during fiscal 2003, partially in response
to Medicare rate reductions beginning in April 2002. Our rate
per weighted transport increased 2.9%, resulting in a
$28.4&nbsp;million increase in net revenue. This increase was
offset, in part, by a decrease in weighted transports of 16,900,
or 0.6%, resulting in a $5.7&nbsp;million decrease in net
revenue, due principally to fewer non-emergency transports.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the year ended August&nbsp;31, 2003 were
$647.3&nbsp;million, or 64.3% of net revenue, compared to
$627.8&nbsp;million, or 63.8% of net revenue, for the year ended
August&nbsp;31, 2002. The $19.5&nbsp;million increase relates
primarily to ambulance crew wage per unit hour increases of
approximately 2.9%, or $9.8&nbsp;million, in addition to an
increase in unit hours of approximately 90,900, or 0.9%,
resulting in a $2.5&nbsp;million increase. Benefits also
increased $3.6&nbsp;million from period to period as a result of
rising health insurance premium costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the year ended
August&nbsp;31, 2003 were $195.1&nbsp;million, or 19.4% of net
revenue, compared to $195.3&nbsp;million, or 19.8% of net
revenue, for the year ended August&nbsp;31, 2002. The
$0.2&nbsp;million decrease was a result of a $3.1&nbsp;million
decrease in occupancy costs from consolidating certain regional
facilities and a $6.1&nbsp;million decrease in professional
services from legal costs incurred in fiscal 2002 for
compliance-related matters, offset in part by a
$6.5&nbsp;million increase in external provider costs. The
increase in external provider costs resulted principally from a
significant expansion in our national and regional relationships
with managed care and insurance providers and the resulting
costs we incurred to subcontract certain transports to local
ambulance providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Insurance expense for the year ended
August&nbsp;31, 2003 was $67.4&nbsp;million, or 6.7% of net
revenue, compared to $36.1&nbsp;million, or 3.7% of net revenue,
for the year ended August&nbsp;31, 2002. In fiscal 2003, we
recorded $14.6&nbsp;million of expense related to reserve
adjustments resulting from increases in actuarially-computed
estimates of costs required to settle prior years&#146; claims.
We funded these claims through Laidlaw&#146;s captive insurance
program. In fiscal 2002, we recorded a reduction of insurance
expense of $8.1&nbsp;million related to the favorable
development of claims reserves on insurance liabilities prior to
fiscal 2002. Excluding these adjustments, the $8.6&nbsp;million
increase in insurance expense related to increasing premium and
claims costs associated with our workers compensation, and auto,
general and professional liability programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the year ended August&nbsp;31, 2003
was $35.1&nbsp;million, or 3.5% of net revenue, compared to
$44.7&nbsp;million, or 4.5% of net revenue, for the year ended
August&nbsp;31, 2002. The $9.6&nbsp;million reduction in
selling, general and administrative expense from fiscal 2002 to
fiscal 2003 is the result of severance recorded in fiscal 2002
to replace certain members of management, totaling
$3.7&nbsp;million, associated costs to close operations,
totaling $0.9&nbsp;million, and compliance-related penalties of
approximately $1.9&nbsp;million incurred in fiscal 2002. In
fiscal 2003, we recorded a one-time reduction of selling,
general and administrative expense relating to the release of
$1.2&nbsp;million in accrued liabilities and a reduction to
expense related to payroll tax refunds of $0.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the year ended August&nbsp;31, 2003 was
$39.3&nbsp;million, or 3.9% of net revenue, compared to
$62.2&nbsp;million, or 6.3% of net revenue, for the year ended
August&nbsp;31, 2002. The decrease of $22.9&nbsp;million
includes $21.3&nbsp;million attributable to the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
amortization of goodwill. Beginning in fiscal 2003, this
intangible asset was no longer amortized, but evaluated annually
for impairment under applicable accounting guidance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Impairment losses.</I> In fiscal 2002, we recorded an
impairment charge of $262.8&nbsp;million or 26.7% of net
revenue, on long-lived assets based on the evaluation at that
time that future operating cash flows would not be sufficient to
recover the carrying value of certain long-lived assets,
primarily goodwill.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Restructuring charges.</I> Restructuring charges were
$2.7&nbsp;million, or 0.3% of net revenue, in the year ended
August&nbsp;31, 2003, a decrease from $3.8&nbsp;million, or 0.4%
of net revenue, in the year ended August&nbsp;31, 2002. Fiscal
2003 restructuring charges included severance-related costs for
several members of senior management who were replaced during
the year and costs incurred in restructuring and consolidating
our billing offices. In fiscal 2002, AMR reduced the number of
operating regions, exited certain facilities, and shifted the
oversight of the impacted operations to the remaining regional
management teams.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EmCare</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net revenue.</I> Net revenue for the year ended
August&nbsp;31, 2003 was $480.6&nbsp;million, an increase of
$49.3&nbsp;million, or 11.4%, from $431.3&nbsp;million for the
year ended August&nbsp;31, 2002. The increase was due primarily
to an increase in net new hospital contracts and net revenue
increases in existing contracts. During fiscal 2003, we added
27&nbsp;net new contracts (55 new contracts, including 48 new
emergency department contracts and 7 new hospitalist contracts,
offset by 28 contract terminations), for a net revenue increase
of $30.4&nbsp;million. Net revenue increased $3.9&nbsp;million
as a result of the net impact of 2002 contract additions and
terminations. &#147;Same store&#148; net revenue increased
$15.0&nbsp;million due to a 2.0% increase in patient visits and
a 1.8% increase in net revenue per patient visit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation and benefits.</I> Compensation and benefits
costs for the year ended August&nbsp;31, 2003 were
$374.5&nbsp;million, or 77.9% of net revenue, compared to
$332.8&nbsp;million, or 77.1% of net revenue, for the year ended
August&nbsp;31, 2002. These costs increased $23.2&nbsp;million
as a result of net new contracts in 2003. &#147;Same store&#148;
contract compensation and benefits costs increased
$11.0&nbsp;million as a result of increased volume of patient
visits and increased net revenue per visit, as a number of our
contracts include productivity-based compensation plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operating expenses.</I> Operating expenses for the year ended
August&nbsp;31, 2003 were $23.6&nbsp;million, or 4.9% of net
revenue, compared to $24.0&nbsp;million, or 5.6% of net revenue,
for the year ended August&nbsp;31, 2002. Operating expenses
decreased as a percent of net revenue due to our leveraging of
fixed billing and other contract costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Insurance expense.</I> Professional liability insurance
expense for the year ended August&nbsp;31, 2003 was
$36.8&nbsp;million, or 7.7% of net revenue, compared to
$30.4&nbsp;million, or 7.0% of net revenue, for the year ended
August&nbsp;31, 2002 due to an increase in expected ultimate
losses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative.</I> Selling, general and
administrative expense for the year ended August&nbsp;31, 2003
was $14.8&nbsp;million, or 3.1% of net revenue, compared to
$16.8&nbsp;million, or 3.9% of net revenue, for the year ended
August&nbsp;31, 2002. The $2.0&nbsp;million decrease was a
result of reduced management contract costs, as contracted
management costs were converted to employee costs in fiscal 2003.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and amortization.</I> Depreciation and
amortization expense for the year ended August&nbsp;31, 2003 was
$5.4&nbsp;million, or 1.1% of net revenue, compared to
$5.0&nbsp;million, or 1.1% of net revenue, for the year ended
August&nbsp;31, 2002. The $0.4&nbsp;million increase was due to
additional billing technology investments completed at the end
of fiscal 2002.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Laidlaw reorganization costs.</I> Allocated reorganization
costs for the year ended August&nbsp;31, 2003 were
$3.7&nbsp;million, or 0.8% of net revenue, compared to
$8.8&nbsp;million, or 2.0% of net revenue, for the year ended
August&nbsp;31, 2002. These costs were allocated to EmCare by
Laidlaw and reflect costs borne by Laidlaw during its
Chapter&nbsp;11 restructuring.
</DIV>

<P align="center" style="font-size: 10pt;">61

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Liquidity and Capital Resources</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our primary sources of liquidity are cash flow provided by our
operating activities and, prior to the acquisition, related
party advances from Laidlaw. We are now using our revolving
senior secured credit facility, described below, to supplement
our cash flow provided by our operating activities. Our
liquidity needs are primarily to fund our working capital
requirements, capital expenditures related to the acquisition of
vehicles and medical equipment, technology-related assets and
insurance-related deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the five months ended June&nbsp;30, 2005 and 2004, we
generated cash flow from operating activities of
$94.7&nbsp;million and $81.3&nbsp;million, respectively. For the
five months ended June&nbsp;30, 2005, we had net income of
$11.1&nbsp;million, compared to $10.3&nbsp;million for the same
period in 2004. Operating cash flow from changes in working
capital for the five months ended June&nbsp;30, 2005 increased
$18.1&nbsp;million from the same period in 2004, primarily
reflecting improved collections on accounts receivable,
partially offset by a reduction in accrued compensation
liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities was $875.2&nbsp;million
for the five months ended June&nbsp;30, 2005, compared to
$24.1&nbsp;million for the same period in 2004. The
$851.1&nbsp;million increase was attributable principally to our
net cash outflow to fund the acquisition of AMR and EmCare.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the five months ended June&nbsp;30, 2005, net cash provided
by financing activities was $797.3&nbsp;million, compared to net
cash used in financing activities of $54.0&nbsp;million for the
five months ended June&nbsp;30, 2004. The increase in net cash
provided by financing activities relates primarily to borrowings
received from our senior secured credit facility and senior
subordinated notes. Net cash used in financing activities
included financing costs of $20.1&nbsp;million and repayments of
debt, including capital lease and senior secured credit facility
obligations totaling $23.7&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the five months ended January&nbsp;31, 2005 and 2004, we
generated cash flow from operating activities of
$16.0&nbsp;million and $17.5&nbsp;million, respectively.
Operating cash flow from changes in working capital for the five
months ended January&nbsp;31, 2005 increased $7.4&nbsp;million
from the same period in 2004, primarily reflecting improved
collections on accounts receivables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities was $21.7&nbsp;million for
the five months ended January&nbsp;31, 2005, compared to
$11.8&nbsp;million for the same period in 2004. The
$9.9&nbsp;million increase was attributable principally to our
net cash outflow to fund insurance-related deposits in our
EmCare business segment. The balance resulted primarily from the
purchase of new ambulance vehicles and certain medical equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the five months ended January&nbsp;31, 2005, net cash
provided by financing activities was $10.9&nbsp;million compared
to net cash used in financing activities of $5.5&nbsp;million
for the five months ended January&nbsp;31, 2004. Net cash used
in financing activities relates primarily to borrowings received
from Laidlaw and payments on our capital lease obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal 2004, our operating activities generated
$127.7&nbsp;million in cash flow compared to $88.8&nbsp;million
in fiscal 2003, an increase of $38.9&nbsp;million. Operating
cash flow from changes in working capital for fiscal 2004
increased $2.9&nbsp;million compared to fiscal 2003. The balance
of the change in cash flow provided by operating activities was
attributable principally to an increase in net income, which
includes increases in depreciation and amortization expense and
changes in deferred taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities was $81.5&nbsp;million and
$114.0&nbsp;million during fiscal years 2004 and 2003,
respectively. In fiscal 2004, we spent $42.8&nbsp;million on
property and equipment, of which $20.4&nbsp;million related to
the acquisition of vehicles, and medical and communications
equipment, technology-related acquisition and leasehold
improvements accounted for $22.4&nbsp;million. Our
$22.5&nbsp;million net decrease in insurance-related deposits
and investments, which consist of restricted cash and cash
equivalents, short-term deposits, marketable securities and
long-term investments, resulted from a reduction in cash
outflows to fund certain insurance-related programs consistent
with improved claims development trends. This increase was
principally to support our increase in claims liabilities and
professional liability reserves. In fiscal 2003, we spent
$52.8&nbsp;million on property and equipment, of which
$29.1&nbsp;million was related to the acquisition of
</DIV>

<P align="center" style="font-size: 10pt;">62

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<DIV align="left" style="font-size: 10pt;">
vehicles, and medical and communications equipment,
technology-related acquisition and leasehold improvements
accounted for $23.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in financing activities was $47.3&nbsp;million and
$55.3&nbsp;million during fiscal years 2004 and 2003,
respectively. In fiscal 2004, we made payments to Laidlaw of
$31.1&nbsp;million and made mandatory debt repayments of
$8.7&nbsp;million. Our bank overdrafts also decreased in fiscal
2004 by $4.5&nbsp;million. In fiscal 2003, we made payments to
Laidlaw of $58.8&nbsp;million and made mandatory debt repayments
of $8.2&nbsp;million. Bank overdrafts also increased
$7.9&nbsp;million during the year ended August&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain government programs, including Medicare and Medicaid
programs, require notice or re-enrollment when certain ownership
changes occur. If the payor requires us to complete the
re-enrollment process prior to submitting reimbursement
requests, we may be delayed in payment, receive refund requests
or be subject to recoupment for services we provide in the
interim. The change in ownership effected by the acquisition
from Laidlaw has required us to re-enroll in one jurisdiction,
and reimbursement from the relevant government program is likely
to be deferred for several months. This will affect our cash
flow, but will not affect our net revenue. We do not expect the
impact of this deferral to be material to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We expect to continue to fund the liquidity requirements of our
business principally with cash from operations and amounts
available under the revolving credit portion of our senior
secured credit facility. We have available to us, upon
compliance with customary conditions, $100.0&nbsp;million under
the revolving credit facility, less any letters of credit
outstanding. Outstanding letters of credit at June&nbsp;30, 2005
were $24.3&nbsp;million.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Debt Facilities</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The acquisition resulted in a significant increase in the level
of our outstanding debt. We have a $450.0&nbsp;million senior
secured credit facility bearing interest at variable rates at
specified margins above either the agent bank&#146;s alternate
base rate or its LIBOR rate. The senior secured credit facility
consists of a $100.0&nbsp;million, six-year revolving credit
facility and a $350.0&nbsp;million, seven-year term loan. We
borrowed the full amount of the term loan, and
$20.2&nbsp;million under the revolving credit facility, on
February&nbsp;10, 2005 to fund the acquisition of AMR and EmCare
and pay related fees and expenses. On February&nbsp;10, 2005, we
also issued $250.0&nbsp;million principal amount of
10%&nbsp;senior subordinated notes due 2015. We used the net
proceeds of this notes issuance to fund the acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our $350.0&nbsp;million term loan initially carried interest at
the alternate base rate, plus a margin of 1.75%, or the LIBOR
rate, plus a margin of 2.75%. We refinanced this term loan on
March&nbsp;29, 2005 for a term loan with identical terms except
that the margins were reduced by 0.25%. The term loan is subject
to quarterly amortization of principal (in quarterly
installments), with 1% of the aggregate principal payable in
each of the first six years, with the remaining balance due in
the final year. We intend to use
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million of the
proceeds of this offering to prepay
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million of the
term loan. Our $100.0&nbsp;million revolving credit facility
initially bears interest at the alternate base rate, plus a
margin of 1.75%, or the LIBOR rate, plus a margin of 2.75%. At
June&nbsp;30, 2005, we had no amounts outstanding under the
revolving credit portion of our senior secured credit facility
and letters of credit outstanding totaling $24.3&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have a conditional right under our senior secured credit
facility to request new or existing lenders to provide up to an
additional $100&nbsp;million of term debt (in $20&nbsp;million
increments).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All amounts borrowed under our senior secured credit facility
are secured by, among other things:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    substantially all present and future shares of the capital stock
    of AMR HoldCo, Inc. and EmCare HoldCo, Inc., our wholly-owned
    subsidiaries which are the co-borrowers, and each of their
    present and future domestic subsidiaries and 65% of the capital
    stock of controlled foreign corporations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    substantially all present and future intercompany debt of the
    co-borrowers and each guarantor;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    substantially all of the present and future property and assets,
    real and personal, of the co-borrowers and each guarantor.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">63
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The agreements governing our senior secured credit facility
contains customary affirmative and negative covenants,
including, among other things, restrictions on indebtedness,
liens, mergers and consolidations, sales of assets, loans,
acquisitions, joint ventures, restricted payments, transactions
with affiliates, dividends and other payment restrictions
affecting subsidiaries, a change in control of the company and
other matters customarily restricted in such agreements. The
agreement governing our senior secured credit facility also
contains financial covenants, including a maximum total leverage
ratio, maximum senior leverage ratio and a minimum fixed charge
coverage ratio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The indenture governing our senior subordinated notes contains a
number of covenants that, among other things, restrict our
ability and the ability of our subsidiaries, subject to certain
exceptions, to sell assets, incur additional debt or issue
preferred stock, repay other debt, pay dividends and
distributions or repurchase our capital stock, create liens on
assets, make investments, loans or advances, make certain
acquisitions, engage in mergers or consolidations and engage in
certain transactions with affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Quantitative and Qualitative Disclosures about Market Risk</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, we had $605.9&nbsp;million of debt, of
which $349.1&nbsp;million was variable rate debt under our
senior secured credit facility and the balance was fixed rate
debt, including the $250.0&nbsp;million aggregate principal
amount of our senior subordinated notes. An increase or decrease
in interest rates will affect our interest costs. For
comparative purposes, for every 0.125% change in interest rates,
our interest costs on our senior secured credit facility will
change by approximately $0.44&nbsp;million per year based on our
outstanding indebtedness at June&nbsp;30, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Off-Balance Sheet Arrangements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not have any relationships with unconsolidated entities or
financial partnerships, such as entities often referred to as
structured finance or special purpose entities, established for
the purpose of facilitating off-balance sheet arrangements or
other contractually narrow or limited purposes. Accordingly, we
are not materially exposed to any financing, liquidity, market
or credit risk that could arise if we had engaged in such
relationships.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Tabular Disclosure of Contractual Obligations and Other
Commitments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables reflect a summary of obligations and
commitments outstanding as of June&nbsp;30, 2005, including our
borrowings under our senior secured credit facility and our
senior subordinated notes.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Payments Due by Period</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Less than</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>More than</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1-3&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>3-5&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Contractual cash obligations:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>235</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>991</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Senior secured credit facility(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>331,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>349,125</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations (principal)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations (interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Senior subordinated notes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest on debt(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>308,673</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subtotal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>97,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>733,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,018,630</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">64
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Amount of Commitment Expiration Per Period</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Less than</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>More than</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1-3&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>3-5&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other commitments:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Guarantees of surety bonds</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,182</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Letters of credit(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,297</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subtotal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,479</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total obligations and commitments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>104,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>116,263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>97,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>760,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,078,109</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Excludes capital lease obligations.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Excludes interest on our senior secured credit facility and
    senior subordinated notes.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    Interest on our floating rate debt was calculated for all years
    using the effective rate as of June&nbsp;30, 2005 of 5.63%.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    Evergreen renewals are deemed to have expiration dates in excess
    of 5&nbsp;years.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
We have one capital lease relating to approximately 450
ambulances. The term of the lease extends to August 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Critical Accounting Policies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of financial statements requires management to
make estimates and assumptions relating to the reporting of
results of operations, financial condition and related
disclosure of contingent assets and liabilities at the date of
the financial statements. Actual results may differ from those
estimates under different assumptions or conditions. The
following are our most critical accounting policies, which are
those that require management&#146;s most difficult, subjective
and complex judgments, requiring the need to make estimates
about the effect of matters that are inherently uncertain and
may change in subsequent periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Claims Liability and Professional Liability
Reserves</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are self-insured up to certain limits for costs associated
with workers compensation claims, automobile, professional
liability claims and general business liabilities. Reserves are
established for estimates of the loss that we will ultimately
incur on claims that have been reported but not paid and claims
that have been incurred but not reported. These reserves are
based upon actuarial valuations that are prepared by our outside
actuaries. The actuarial valuations consider a number of
factors, including historical claim payment patterns and changes
in case reserves, the assumed rate of increase in healthcare
costs and property damage repairs. Historical experience and
recent trends in the historical experience are the most
significant factors in the determination of these reserves. We
believe the use of actuarial methods to account for these
reserves provides a consistent and effective way to measure
these subjective accruals. However, given the magnitude of the
claims involved and the length of time until the ultimate cost
is known, the use of any estimation technique in this area is
inherently sensitive. Accordingly, our recorded reserves could
differ from our ultimate costs related to these claims due to
changes in our accident reporting, claims payment and settlement
practices or claims reserve practices, as well as differences
between assumed and future cost increases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Revenue Recognition</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A significant portion of our revenue is derived from Medicare,
Medicaid and private insurance payors that receive discounts
from our standard charges (referred to as contractual
provisions). Additionally, we are also subject to collection
risk for services provided to uninsured patients or for the
deductible or co-pay portion of services for insured patients
(referred to as uncompensated care). We record our healthcare
services revenue net of estimated provisions for the contractual
allowances and uncompensated care.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Healthcare reimbursement is complex and may involve lengthy
delays. Third party payors are continuing their efforts to
control expenditures for healthcare and may disallow, in whole
or in part, claims for reimbursement based on determinations
that certain amounts are not reimbursable under plan coverage,
were for services provided that were not determined medically
necessary, or insufficient supporting information was provided.
In addition, multiple payors with different requirements can be
involved with each claim.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management utilizes sophisticated information systems and
financial models to estimate the provisions for contractual
allowances and uncompensated care. The estimate for contractual
allowances is determined on a payor-specific basis and is
predominantly based on prior collection experience, adjusted as
needed for known changes in reimbursement rates and recent
changes in payor mix and patient acuity factors. The estimate
for uncompensated care is based principally on historical
collection rates, write-off percentages and accounts receivable
agings. These estimates are analyzed continually and updated by
management by monitoring reimbursement rate trends from
governmental and private insurance payors, recent trends in
collections from self-pay patients, the ultimate cash collection
patterns from all payors, accounts receivable aging trends,
operating statistics and ratios, and the overall trends in
accounts receivable write-offs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The evaluation of these factors, as well as the interpretation
of governmental regulations and private insurance contract
provisions, involves complex, subjective judgments. As a result
of the inherent complexity of these calculations, our actual
revenues and net income, and our accounts receivable, could vary
from the amounts reported.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Income Tax Valuation Allowance</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have significant net deferred tax assets resulting from net
operating losses, or NOLs, and interest deduction carryforwards
and other deductible temporary differences that will reduce
taxable income in future periods. Statement of Financial
Accounting Standards No.&nbsp;109 &#147;Accounting for Income
Taxes&#148; requires that a valuation allowance be established
when it is &#147;more likely than not&#148; that all or a
portion of net deferred tax assets will not be realized. A
review of all available positive and negative evidence needs to
be considered, including expected reversals of significant
deductible temporary differences, a company&#146;s recent
financial performance, the market environment in which a company
operates, tax planning strategies and the length of the NOL and
interest deduction carryforward periods. Furthermore, the weight
given to the potential effect of negative and positive evidence
should be commensurate with the extent to which it can be
objectively verified. We routinely monitor the reliability of
our deferred tax assets. Changes in management&#146;s assessment
of recoverability could result in additions to the valuation
allowance, and such additions could be significant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Contingencies</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in note&nbsp;10&nbsp;&#151; Commitments and
Contingencies of notes to our combined financial statements,
management may not be able to make a reasonable estimate of
liabilities that result from the final resolution of certain
contingencies disclosed. Further assessments of the potential
liability will be made as additional information becomes
available. Management currently does not believe that these
matters will have a material adverse effect on our consolidated
financial position. It is possible, however, that results of
operations could be materially affected by changes in
management&#146;s assumptions relating to these matters or the
actual final resolution of these proceedings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Intangible Assets</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Definite life intangible assets are subject to impairment
reviews when evidence or triggering events suggest that an
impairment may have occurred. Should such triggering events
occur that cause us to review our definite life intangibles and
the fair value of our definite life intangible asset proves to
be less than our unamortized carrying amount, we would take a
charge to earnings for the decline. Should factors affecting the
value of our definite life intangibles change significantly,
such as declining contract retention rates or reduced
contractual cash flows, we may need to record an impairment
charge in amounts that are significant to our financial
statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Goodwill</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Goodwill is not amortized and is required to be tested annually
for impairment, or more frequently if changes in circumstances,
such as an adverse change to our business environment, cause us
to believe that goodwill may be impaired. Goodwill is allocated
at the reporting unit level. If the fair value of the reporting
unit falls below the book value of the reporting unit at an
impairment assessment date, an impairment charge would be
recorded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Should our business environment or other factors change, our
goodwill may become impaired and may result in charges to our
income statement that are material.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDUSTRY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to the Centers for Medicare and Medicaid Services, or
CMS, national healthcare spending increased 7.3% to $1.7
trillion in 2003, and increased 8.6% in 2002. This represents
faster growth than the overall economy, which grew 4.8% and 3.4%
during 2003 and 2002, respectively, as measured by the growth of
the gross domestic product.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Hospital care represents the largest individual segment of the
healthcare industry, accounting for an estimated 30.8% of total
healthcare spending in 2003. Hospital care expenditures
increased 5.1% to $511&nbsp;billion in 2003. CMS estimates that
hospital care expenditures will increase to approximately
$934&nbsp;billion by 2013, representing a CAGR of 6.1% from
2003. The aging population and longer life expectancy are
increasing demand for healthcare services in the United States,
and hospitals are expected to be among the principal
beneficiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services Industry</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate in the ambulance and emergency department services
markets, two large and growing segments of the emergency medical
services market. By law, most communities are required to
provide emergency ambulance services and most hospitals are
required to provide emergency department services. It is
estimated that 43% of all hospital admissions in 2003 originated
from the emergency department. Given that emergency medical
services are a core component of the patient care continuum, we
believe that expenditures for emergency medical services will
continue to correlate closely to growth in the
U.S.&nbsp;hospital market. We believe that the following key
factors will continue to drive growth in our emergency medical
services markets:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Increase in outsourcing.</I> Communities, government agencies
    and healthcare facilities are under significant pressure both to
    improve the quality and to reduce the cost of care. The
    outsourcing of certain medical services has become a preferred
    means to alleviate these pressures.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    From 2000 to 2003, we believe outsourced emergency department
    services increased from 55% to 65% of total emergency department
    services.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    From 1999 to 2003, the percentage of emergency medical
    transportation services supplied by private ambulance providers
    increased from 34% to 39% in the country&#146;s largest
    200&nbsp;cities.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Favorable demographics.</I> The growth and aging of the
    population will be a significant demand driver for healthcare
    services, and we believe it will result in an increase in
    ambulance transports, emergency department visits and hospital
    admissions.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The U.S.&nbsp;Census Bureau estimates that the number of
    Americans over 65 will increase to 39&nbsp;million by 2010 from
    31&nbsp;million in 1990. It is also expected that Americans over
    the age of 65 will increase from one in eight Americans in 2000
    to one in five by 2030.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A 2003 CDC Emergency Department Summary noted that patients aged
    65 or over represent 38% of patients delivered to emergency
    departments by ambulance. Emergency department visits for
    persons aged 65 or over increased to 17.5&nbsp;million in 2003,
    a 26% increase from 1993.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Increased federal funding for disaster preparedness and other
    federal programs.</I> The United States government has increased
    its focus on our nation&#146;s ability to respond quickly and
    effectively to emergencies, including both terrorist attacks and
    natural disasters. Federal programs, such as Homeland Security,
    FEMA and funding for services for undocumented aliens, have made
    increased funding available which is aimed directly at emergency
    services, including ambulance providers and emergency physician
    services.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B>Ambulance Services</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe the ambulance services market represents annual
expenditures of approximately $12&nbsp;billion. The ambulance
services market is highly fragmented, with more than 14,000
private, public and not-for-profit
</DIV>

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<DIV align="left" style="font-size: 10pt;">
service providers accounting for an estimated 36&nbsp;million
ambulance transports in 2004. There are a limited number of
regional ambulance providers and we are one of only two national
ambulance providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ambulance services encompass both 911 emergency response and
non-emergency transport services, including critical care
transfers, wheelchair transports and other inter-facility
transports. Emergency response services include the dispatch of
ambulances equipped with life support equipment and staffed with
paramedics and/or emergency medical technicians, or EMTs, to
provide immediate medical care to injured or ill patients.
Non-emergency services utilize paramedics and EMTs to transport
patients between healthcare facilities or between facilities and
patient residences. Given demographic trends, the total number
of ambulance transports is expected to continue to grow at a
steady rate of 1% to 2%&nbsp;per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
911 emergency response services are provided primarily under
long-term contracts with communities and government agencies. In
2003, approximately 54% of 911&nbsp;ambulance services were
provided principally by government agencies and fire
departments, with private providers representing approximately
42% of 911 services. Non-emergency services generally are
provided pursuant to non-exclusive contracts with healthcare
facilities, managed care and insurance companies. Usage tends to
be controlled by the facility discharge planners, nurses and
physicians who are responsible for requesting transport
services. Non-emergency services are provided primarily by
private ambulance companies. Quality of service, dependability
and name recognition are critical factors in winning
non-emergency business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to increased demand for technology-enhanced and data-driven
providers, cost-effectiveness of services, improved patient
outcomes and emergency preparedness and response, we believe
that the current trend by communities and hospitals to outsource
ambulance services will contribute to growth for private
providers. According to the Journal of Emergency Medical
Services, the percentage of emergency medical transportation
services delivered by private ambulance providers in the
nation&#146;s 200 largest cities increased from 34% in 1999 to
39% in 2003. Furthermore, we expect private providers to benefit
as hospitals continue to outsource more of their ambulance
services due to changes in reimbursement rates and increased use
of outpatient services.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B>Emergency Department Services</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe the physician reimbursement component of the
emergency department services market represents annual
expenditures of approximately $10&nbsp;billion. There are
approximately 4,700&nbsp;hospitals in the United States that
operate emergency departments, of which approximately 67% of
these hospitals outsource their physician staffing and
management for this department. The market for outsourced
emergency department staffing and related management services is
highly fragmented, with more than 800&nbsp;national, regional
and local providers. We believe we are one of only five national
providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Between 1993 and 2003, the total number of patient visits to
hospital emergency departments increased from 90.3&nbsp;million
to 113.9&nbsp;million, an increase of 26%. At the same time, the
number of hospital emergency departments declined 12%. As a
result, the average number of patient visits per hospital
emergency department increased substantially during that period.
We believe these trends are resulting in an increased focus by
hospitals on their emergency departments. As the per hospital
demand for emergency department visits continues to increase, we
believe that more hospitals will turn to well-established
providers, such as EmCare, which have a demonstrated track
record of improving productivity and efficiency while providing
high quality care.
</DIV>

<P align="center" style="font-size: 10pt;">68

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<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>BUSINESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency Medical Services Corporation is a leading provider of
emergency medical services in the United States. We operate our
business and market our services under the AMR and EmCare
brands. AMR is the leading provider of ambulance services in the
United States. EmCare is the leading provider of outsourced
emergency department staffing and related management services in
the United States. Approximately 86% of our fiscal 2004&nbsp;net
revenue was generated under exclusive contracts. During fiscal
2004, we provided emergency medical services to approximately
9&nbsp;million patients in more than 2,000 communities
nationwide. For the fiscal year ended August&nbsp;31, 2004, we
generated net revenue of $1.6&nbsp;billion, of which AMR and
EmCare represented 66% and 34%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We offer a broad range of essential emergency medical services
through our two business segments:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>AMR</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>EmCare</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <B>Core Services:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Pre- and post-hospital medical transportation</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Hospital-based medical care</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Emergency (&#147;911&#148;) ambulance transports</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Emergency department staffing and related management</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Non-emergency ambulance</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;services</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;transports</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Hospitalist services</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Customers:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Communities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Hospitals</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Government agencies</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Independent physician groups</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Healthcare facilities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Attending medical staff</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;Insurers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>National Market Position:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;#1 provider of ambulance transports</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;#1 provider of outsourced emergency department
    services</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;8% share of total ambulance market</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;6% share of emergency department services market</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;21% of private provider ambulance market</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;9% of outsourced emergency department services market</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Number of Contracts:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>At June&nbsp;30, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;153 &#147;911&#148; contracts</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;329 hospital contracts</TD>
</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;2,400 non-emergency transport contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Volume:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>For fiscal 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;3.7&nbsp;million transports</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &#149;&nbsp;5.3&nbsp;million patient visits</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="6" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Competitive Strengths</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe the following competitive strengths position our
company to capitalize on the favorable trends occurring within
the healthcare industry and the emergency medical services
markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Leading, Established Provider of Emergency Medical
Services.</I> We are a leading provider of emergency medical
services in the United States. AMR is the leading provider of
ambulance services, with net revenue approximately twice that of
our only national competitor. During fiscal 2004, AMR treated
and transported approximately 3.7&nbsp;million patients in
34&nbsp;states. AMR has made significant investments in
technology, which we believe delivers a compelling value
proposition to our customers. We believe that EmCare is the
leading provider of outsourced staffing and related management
services to emergency departments, with 32% more emergency
department staffing contracts than our principal national
competitor. EmCare&#146;s 4,500 affiliated physicians provide
services to over 300 client hospitals in 39&nbsp;states,
including many of the top 100 hospitals in the United States.
Our client hospitals range from high volume urban hospital
emergency department to lower volume community facilities.
EmCare is also one of the leading providers of hospitalist
services. We
</DIV>

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<DIV align="left" style="font-size: 10pt;">
believe our track record of consistently meeting or exceeding
our customers&#146; service expectations, coupled with our
ability to leverage our infrastructure and technology to drive
increased productivity and efficiency, have contributed to our
ability to retain existing and win new contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Significant Scale and Geographic Presence.</I> We believe our
significant scale and broad geographic presence provide a
competitive advantage over local and regional providers in most
areas, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Ability to recruit and retain quality personnel.</I> We are
    able to recruit and retain clinical and support employees by
    providing attractive compensation packages, comprehensive
    training programs, risk mitigation strategies, career
    development and greater breadth of job transferability. This
    lowers our costs associated with employee turnover and increases
    customer and patient satisfaction.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    One of the keys to our success has been our ability to recruit
    and retain high quality medical personnel. AMR has a competitive
    advantage in recruiting quality medical personnel through our
    in-house paramedic training institute, which we believe is the
    largest in the United States. EmCare has developed proprietary
    software that allows us to identify physicians, based on
    multiple characteristics, matching the specific needs of our
    customers. We provide continuing education to our affiliated
    medical professionals through EMEDS, our in-house Emergency
    Medical Education Systems.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We believe our 79% and 94% retention rates in fiscal 2004 for
    full-time medical personnel at AMR and EmCare, respectively, are
    among the highest in the emergency medical services segments in
    which they compete. We believe that successfully recruiting and
    retaining highly qualified clinicians and healthcare
    professionals improves the overall experience and outcomes for
    our customers and patients while significantly reducing our
    operating costs.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>National contracting and preferred provider
    relationships.</I> We are able to enter into national and
    regional contracts with managed care organizations and insurance
    companies. We have an exclusive provider contract with one of
    the largest managed care organizations, and we have preferred
    provider status with several healthcare systems and many managed
    care organizations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Cost efficiencies and broad program offering.</I> Our
    investments in technology may be too costly for certain
    providers to replicate, and provide us with several competitive
    advantages, including: (i)&nbsp;operating cost efficiencies,
    (ii)&nbsp;scalability and (iii)&nbsp;the capability to provide
    broad, high quality service offerings to our customers at
    competitive rates. In addition, our technology, including
    electronic patient records, and our expertise in providing both
    pre-hospital and hospital-based emergency care uniquely
    positions us to respond to community demand for enhanced
    coordination among their emergency service providers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Long-Term Relationships with Existing Customers.</I> We
believe our long-term, well-established relationships with
communities and healthcare facilities enhance our ability to
retain existing customers and win new contracts. AMR and EmCare
have maintained relationships with their ten largest customers
for an average of 34 and 12&nbsp;years, respectively, and during
that time have continually demonstrated an ability to meet and
exceed contractual commitments. As a result, we believe we are
in an advantageous position at the time of contract renewal when
a community or hospital is faced with a decision whether to
retain its existing provider or explore other alternatives. We
believe our industry-leading contract retention rates during
fiscal 2004 reflect our ability to deliver on our service
commitments to our customers over extended time periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Strong Financial Performance.</I> When we compete for new
business, one of the key factors our potential customers
evaluate is financial stability. As a result, we believe our
track record of strong financial performance provides us with a
competitive advantage over our competitors. We believe the
quality and breadth of our service offerings has allowed us to
increase our net revenue at a faster rate than the market for
emergency medical services. We believe our ability to
demonstrate consistently strong financial performance will
continue to differentiate our company and provide a competitive
advantage in winning new contracts and renewing existing
contracts.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Focus on Risk Management.</I> Considered one of the leading
programs of its kind in the emergency department industry,
EmCare&#146;s risk management initiatives are enhanced by the
use of our professional liability claims database. We analyze
this data to demonstrate claim trends on a national, hospital,
physician and procedure level, helping to manage and mitigate
risk exposure. AMR&#146;s risk/ safety program is aimed at
reducing worker injuries through training and improved
equipment, and increasing vehicle safety through the use of
technology. Over the last three years, our workers compensation,
auto, general and professional liability claims per 100,000
ambulance transports decreased 8.4% at AMR and our professional
liability claims per 100,000 emergency department visits
decreased 14.0% at EmCare.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Investment in Core Technologies.</I> We utilize technology as
a means to enhance the quality, reduce the cost of our service
offerings, more effectively manage risk and improve our
profitability. For example:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We believe AMR is the largest user of ambulance electronic
    patient care records, or e-PCR. Our proprietary system enables
    us to eliminate the use of manual patient records by replacing
    them with electronic records, which we expect will reduce both
    chart errors and costs.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    AMR utilizes proprietary software, Millennium, to determine the
    appropriate level of transportation services to be dispatched
    and track response times and other data for hospitals. Our
    initial implementation of these technologies has improved our
    ability to capture revenue, decrease our billing costs and bid
    more effectively for 911 contracts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    EmCare has developed proprietary physician recruitment software
    that has enhanced our recruitment efficiency and improved our
    physician retention rate.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At EmCare, we track risk exposure trends through what we believe
    is one of the largest emergency department risk databases,
    allowing us to assess, develop and implement targeted risk
    intervention programs.</TD>
</TR>


</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Proven and Committed Management Team.</I> We are led by an
experienced senior management team with an average of
21&nbsp;years of experience in the healthcare industry. Our
Chairman and Chief Executive Officer, William Sanger, has over
30&nbsp;years of experience within the healthcare services
industry, with leadership roles in multi-system hospitals,
ambulatory care facilities, post-acute service facilities,
physician management companies and insurance entities. Since
Mr.&nbsp;Sanger joined us in 2001, our senior management team
has been successful in growing the market share of our
businesses, managing changes in reimbursement policy, reducing
professional liability risk and improving the profitability of
our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Business Strategy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to leverage our competitive strengths to pursue our
business strategy:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Increase Revenue from Existing Customers.</I> We believe our
long track record of delivering excellent service and quality
patient care, as well as the breadth of our services, creates
opportunities for us to increase revenue from our existing
customer base. We have established strategies aimed at assisting
communities and facilities to manage their cost of emergency
medical services. Some of our initiatives with existing
customers include:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Implementing innovative productivity-enhancing programs</TD>
</TR>

</TABLE>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At EmCare, we have developed and implemented programs, such as
    &#147;fast track&#148; and advanced triage protocols, to improve
    throughput and wait times, thereby improving patient
    satisfaction and reducing the number of patients who leave
    without being seen.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At AMR, we have developed and implemented innovative programs to
    improve our productivity through decreased &#147;drop&#148; and
    &#147;on scene&#148; time. For example, we have recently
    established transition units at several hospitals to hold and
    monitor discharged patients awaiting transport, thereby
    increasing our productivity while accelerating inpatient bed
    availability and overall hospital throughput.</TD>
</TR>


</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Continuing to broaden product and service offerings to our
    customers</TD>
</TR>

</TABLE>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In 2002, we began marketing hospitalist services. Since that
    time, our hospitalist services revenue increased at a CAGR of
    48.3% from $7.2&nbsp;million to $23.5&nbsp;million in fiscal
    2004. Approximately fifty percent of our hospitalist contracts
    are with our emergency department customers.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At certain facilities, AMR provides a dedicated on-site
    non-emergency transport coordinator during times of peak demand
    to increase efficiency and ensure appropriate utilization of all
    medical transportation service levels.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Grow Our Customer Base.</I> We believe we have a unique
competency in the treatment, management and billing of episodic
care. We believe our long operating history, significant scope
and scale, strong brand recognition and leading market position
provide us with new and expanded opportunities to grow our
customer base. We continue to generate new revenue and client
growth through:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Targeted geographic sales and marketing programs,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Pursuing new outsourcing opportunities for emergency department,
    hospitalist, radiology and ambulance services,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Expanding our public/private ambulance partnerships with local
    fire departments,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Evaluating opportunities that leverage our core businesses,
    including our communications center infrastructure, to manage
    health-related transportation logistics.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare was awarded 52 new contracts with net revenue of
$79.0&nbsp;million in 2003 and 58 new contracts with net revenue
of $79.4&nbsp;million in 2004. AMR was awarded 109 new contracts
with net revenue of $17.1&nbsp;million in 2003 and 60 new
contracts with net revenue of $12.2&nbsp;million in 2004.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Pursue Select Acquisition Opportunities.</I> The emergency
medical services industry is highly fragmented, with only a few
large national providers, and presents opportunities for
consolidation. We plan to pursue select acquisitions in our core
businesses, including acquisitions to enhance our presence in
existing markets and our entry into new geographic markets. We
will also explore the acquisition of complementary businesses,
such as radiology, hospitalist and managed transportation
services and seek opportunities to expand the scope of services
in which we can leverage our core competencies.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Utilize Technology to Differentiate Our Services and Improve
Operating Efficiencies.</I> We intend to continue to invest in
technologies that broaden our services in the marketplace,
improve patient care, enhance our billing efficiencies and
increase our profitability. We believe that the complexities of
the healthcare industry and customer demand for broader, more
cost-effective service offerings will continue to benefit those
providers that remain at the forefront of technological
innovation. The following outlines certain technologies we
utilize:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>System Status Management (SSM):</I> Enables AMR to use
    current incident data to position our vehicles efficiently,
    minimizing response time while maximizing asset utilization. We
    currently utilize SSM in all communities in which we operate
    under contracts to provide 911 emergency ambulance services. We
    believe we are one of only a few ambulance services providers
    that have begun to implement &#147;real-time&#148; SSM
    technology.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Electronic patient care record (e-PCR):</I> Where
    implemented, allows AMR to capture billable revenue, decrease
    our billing costs and optimize reimbursement. In addition, our
    proprietary e-PCR enables us to shorten our billing cycle and
    reduce risk by utilizing defined clinical and rules-based
    protocols to capture patient information electronically.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Millennium software:</I> Millennium, our proprietary
    software, allows us greater flexibility in meeting our
    customers&#146; needs. This rules-based software program
    integrates medical protocol, managed care criteria and other
    detailed data prescribed by our customers, enabling AMR to
    efficiently dispatch appropriate transport and more effectively
    track response time.</TD>
</TR>


</TABLE>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>EmSource:</I> EmSource, our proprietary physician recruitment
    system, enables EmCare to more effectively recruit physicians
    who meet the needs of our customers. The system consists of a
    database of approximately 800,000 physicians that is updated
    weekly to provide the most current physician contact available.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>EmBillz:</I> EmBillz, our proprietary coding, billing and
    accounts receivable management system, enables EmCare to more
    effectively process more than five million emergency department
    visits each year.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Continued Focus on Risk Management.</I> Through our risk
management and quality assurance staffs, technology platform and
well-trained medical personnel, we will continue to conduct
aggressive risk management programs for loss prevention and
early intervention. We will continue to develop and utilize
clinical &#147;fail safes&#148; and use technology in our
ambulances to reduce vehicular incidents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Implement Cost Rationalization Initiatives.</I> We will
continue to rationalize our cost structure by aligning
compensation with productivity, developing risk management
initiatives that are focused on mitigating risk exposures, and
eliminating costs in our national and regional corporate support
structure. Since the acquisition, we have completed our
preliminary analysis of certain of our support areas, including
accounting, legal, information services and human resources, and
have begun to implement initiatives to increase productivity and
achieve further economies of scale across the company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company History</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR and EmCare have more than 50&nbsp;years and 33&nbsp;years,
respectively, of operating history. Since 1997, both companies
have been wholly-owned subsidiaries of Laidlaw International,
Inc. In February 2005, AMR and EmCare were purchased from
Laidlaw by an investor group led by Onex Partners LP and Onex
Corporation and including our management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Business Segments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate our business and market our services under our two
business segments: AMR and EmCare. We provide ambulance
transport services in 34&nbsp;states and the District of
Columbia and provide services to emergency department and
hospitalist programs in 39&nbsp;states.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that our operational structure enhances service
delivery and maintains favorable executive contact with key
contract decision-makers and community leaders. Each region
provides operational support and management of our local
business operating sites and facilities. Our regional management
is responsible for growing the business in the region,
overseeing key community and facility relationships, managing
labor and employee relations and providing regional support
activities to our operating sites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide strategic planning, centralized financial support,
payroll administration, legal services, human resources,
coordinated marketing and purchasing efforts and risk management
through our National Resource Center. We also support our
operating sites with integrated information systems and
standardized procedures that enable us to efficiently manage the
billing and collections processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a detailed business description for our two
business segments.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT style="font-variant:SMALL-CAPS">American Medical
Response</FONT></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Medical Response, Inc., or AMR, is the leading provider
of ambulance services in the United States. AMR and our
predecessor companies have a long history in emergency medical
services, having provided services to some communities for more
than 50&nbsp;years. We have an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7&nbsp;million patients in
34&nbsp;states utilizing more than 4,200 vehicles that operated
out of more than 200 sites. AMR has approximately 2,550
contracts with communities, government agencies, healthcare
providers and insurers to provide ambulance transport services.
AMR&#146;s broad geographic footprint enables us to contract on
a national and regional basis with managed care and insurance
companies.
</DIV>

<P align="center" style="font-size: 10pt;">73

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AMR has made significant investments in technology, customer
service programs, employee training and risk mitigation programs
to deliver a compelling value proposition to our customers,
which has led to what we believe is our industry-leading
contract retention rate of 99% in fiscal year 2004 and
significant new contract wins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For fiscal 2004, approximately 57% of AMR&#146;s net revenue was
generated from emergency 911 ambulance services, which include
treating and stabilizing patients, transporting the patient to a
hospital or other healthcare facility and providing attendant
medical care en-route. Non-emergency ambulance services,
including critical care transfer, wheelchair transports and
other interfacility transports, or IFTs, accounted for 32% of
AMR&#146;s net revenue for the same period, with the balance
generated from the provision of training, dispatch centers and
other services to communities and public safety agencies. For
the fiscal year ended August&nbsp;31, 2004, AMR generated net
revenue of $1.1&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have been instrumental in the development of protocols and
policies applicable to the emergency services industry. We
believe our key business competencies in communications and
logistics management and our partnerships with local fire
departments, which represented approximately 21% of AMR&#146;s
net revenue in fiscal 2004, enable us to operate profitably in
both large and small communities and position us to continue our
growth organically.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide substantially all of our ambulance services under our
AMR brand name. We operate under other names when required to do
so by local statute or contractual agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide a full range of emergency and non-emergency ambulance
transport and related services, which include:
</DIV>

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    <TD width="3%"></TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I>Emergency Response Services (911).</I> We provide emergency
    response services primarily under long-term exclusive contracts
    with communities and hospitals. Our contracts typically
    stipulate that we must respond to 911 calls in the designated
    area within a specified response time. We utilize two types of
    ambulance units&nbsp;&#151; Advanced Life Support, or ALS, units
    and Basic Life Support, or BLS, units. ALS units, which are
    staffed by two paramedics or one paramedic and an emergency
    medical technician, or EMT, are equipped with high-acuity life
    support equipment such as cardiac monitors, defibrillators and
    oxygen delivery systems, and carry pharmaceutical and medical
    supplies. BLS units are usually staffed by two EMTs and are
    outfitted with medical supplies and equipment necessary to
    administer first aid and basic medical treatment. The decision
    to dispatch an ALS or BLS unit is determined by our contractual
    requirements, as well as by the nature of the medical situation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Under certain of our 911 emergency response contracts, we are
    the first responder to an emergency scene. However, under most
    of our 911 contracts, the local fire department is the first
    responder. In these situations, the fire department typically
    begins stabilization of the patient. Upon our arrival, we
    continue stabilization through the provision of attendant
    medical care and transport the patient to the closest
    appropriate healthcare facility. In certain communities where
    the fire department historically has been responsible for both
    first response and emergency services, we seek to develop
    public/private partnerships with fire departments rather than
    compete with them to provide the emergency service. These
    partnerships emphasize collaboration with the fire departments
    and afford us the opportunity to provide 911 emergency services
    in communities that, for a variety of reasons, may not otherwise
    have outsourced this service to a private provider. In most
    instances, the provision of emergency services under our
    partnerships closely resembles that of our most common 911
    contracts described above. What differentiates the
    public/private partnerships is the level of contractually
    negotiated collaboration and coordination between AMR and the
    fire department. As an example, in several of our public/private
    partnerships, we utilize a fire department-employed paramedic
    when we transport the patient and subsequently reimburse the
    fire department for its employee&#146;s time. These partnerships
    benefit both parties&nbsp;&#151; they create a new revenue
    source for the fire department while relieving it of the
    complexities associated with the emergency transport business,
    and they enable us to provide emergency response services in
    communities that may not otherwise have outsourced this service.
    In addition, the</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">
    public/private partnerships lower our costs by reducing the
    number of full-time paramedics we would otherwise require. We
    estimate that these public/private partnerships represented
    approximately 20% of AMR&#146;s net revenue in fiscal 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I>Non-Emergency Transport Services.</I> With non-emergency
    services, we provide transportation to patients requiring
    ambulance or wheelchair transport with varying degrees of
    medical care needs between healthcare facilities or between
    healthcare facilities and their homes. Unlike emergency response
    services, which typically are provided by communities or private
    providers under exclusive or semi-exclusive contracts,
    non-emergency transportation usually involves multiple contract
    providers at a given facility, with one or more of the
    competitors designated as the &#147;preferred&#148; provider.
    Non-emergency transport business generally is awarded by a
    healthcare facility, such as a hospital or nursing home, or a
    healthcare payor, such as an HMO, managed care organization or
    insurance company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Non-emergency transport services include: (i)&nbsp;critical care
    transport, (ii)&nbsp;wheelchair and stretcher-car transports,
    and (iii)&nbsp;other IFTs.</TD>
</TR>

</TABLE>

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    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Critical care transports are provided to medically unstable
    patients (such as cardiac patients and neonatal patients) who
    require critical care while being transported between healthcare
    facilities. Critical care services differ from ALS services in
    that the ambulance may be equipped with additional medical
    equipment and may be staffed by one of our medical specialists
    or by an employee of a healthcare facility to attend to a
    patient&#146;s specific medical needs.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Wheelchair and stretcher-car transports are non-medical
    transportation provided to handicapped and certain
    non-ambulatory persons in some service areas. In providing this
    service, we use vans that contain hydraulic wheelchair lifts or
    ramps operated by drivers who generally are trained in
    cardiopulmonary resuscitation, or CPR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Other IFTs, that require advanced or basic levels of medical
    supervision during transfer, may be provided when a home-bound
    patient requires examination or treatment at a healthcare
    facility or when a hospital inpatient requires tests or
    treatments (such as magnetic resonance imaging, or MRI, testing,
    CAT scans, dialysis or chemotherapy treatment) available at
    another facility. We use ALS or BLS ambulance units to provide
    general ambulance services depending on the patient&#146;s needs.</TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I>Other Services.</I> In addition to our 911 emergency and
    non-emergency ambulance services, we provide the following
    services:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Dispatch Services.</I> Our dispatch centers manage our own
    calls and, in certain communities, also manage dispatch centers
    for public safety agencies, such as police and fire departments,
    aeromedical transport programs and others.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Event Medical Services.</I> We provide medical stand-by
    support for concerts, athletic events, parades, conventions,
    international conferences and VIP appearances in conjunction
    with local and federal law enforcement and fire protection
    agencies. We have contracts to provide stand-by support for
    numerous sports franchises, such as the Oakland Raiders, Oakland
    Athletics, Detroit Lions and Los Angeles Dodgers, as well as for
    various NASCAR events, Hollywood production studios and other
    specialty events.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Managed Transportation Services.</I> Managed care
    organizations and insurance companies contract with us to manage
    various of their medical transportation-related needs, including
    call-taking and scheduling, management of a network of
    transportation providers and billing and reporting through our
    e-PCR system.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Paramedic Training.</I> We own and operate Northern
    California Training Institute, or NCTI, the largest paramedic
    training school in the United States and the only accredited
    institution of its size, with over 500 graduates each year.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Medical Personnel and Quality Assurance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately 76% of our 18,000 employees have daily contact
with patients, including approximately 5,100 paramedics, 7,500
EMTs and 200 nurses. Paramedics and EMTs must be state-certified
to transport patients and perform emergency care services.
Certification as an EMT requires completion of a minimum of
140&nbsp;hours of training in a program designated by the United
States Department of Transportation, such as those offered at
our training institute, NCTI. Once this program is completed,
state-certified EMTs are then eligible to participate in a
state-certified paramedic training program. The average
paramedic program involves over 1,000&nbsp;hours of academic
training in advanced life support and assessment skills.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Local physician advisory boards develop medical protocols to be
followed by paramedics and EMTs in a service area. In addition,
instructions are conveyed on a case-by-case basis through direct
communications between the ambulance crew and hospital emergency
room physicians during the administration of advanced life
support procedures. Both paramedics and EMTs must complete
continuing education programs and, in some cases, state
supervised refresher training examinations to maintain their
certifications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We maintain a commitment to provide high quality pre- and
post-hospital emergency medical care. In each location in which
we provide services, a medical director, who usually is a
physician associated with a hospital we serve, monitors
adherence to medical protocol and conducts periodic audits of
the care provided. In addition, we hold retrospective care
audits with our employees to evaluate compliance with medical
and performance standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our commitment to quality is reflected in the fact that 15 of
our dispatch centers across the country are accredited by the
Commission on Accreditation of Ambulance Services, or CAAS,
representing 16% of the total CAAS accredited agencies. CAAS is
a joint program between the American Ambulance Association and
the American College of Emergency Physicians. The accreditation
process is voluntary and evaluates numerous qualitative factors
in the delivery of services. We believe communities and managed
care providers increasingly will consider accreditation as one
of the criteria in awarding contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Billing and Collections</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our internal patient billing services, or PBS, offices located
across the United States invoice and collect for our services.
We receive payment from the following sources:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the federal and state governments, primarily under the Medicare
    and Medicaid programs,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    health maintenance organizations, preferred provider
    organizations and private insurers,</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    individual patients,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    community subsidies and fees.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over the last three fiscal years, our self-pay revenue has
remained stable as a percentage of AMR&#146;s net revenue. The
table below presents the approximate percentages of AMR&#146;s
net revenue from the following sources:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Percentage of AMR</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Net Revenue</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicare</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicaid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commercial insurance/managed care</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Self-pay</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subsidies/fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">76

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have substantial experience in processing claims to third
party payors and employ a billing staff trained in third party
coverage and reimbursement procedures. Our integrated billing
and collection systems allow us to tailor the submission of
claims to Medicare, Medicaid and certain other third party
payors and has the capability to electronically submit claims to
the extent third party payors&#146; systems permit. This system
also provides for tracking of accounts receivable and status
pending payment. When collecting from individuals, we sometimes
use an automated dialer that pre-selects and dials accounts
based on their status within the billing and collection cycle,
which we believe improved our collection rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Companies in the ambulance services industry maintain
significant provisions for doubtful accounts compared to
companies in other industries. Collection of complete and
accurate patient billing information during an emergency service
call is sometimes difficult, and incomplete information hinders
post-service collection efforts. In addition, we cannot evaluate
the creditworthiness of patients requiring emergency transport
services. Our allowance for doubtful accounts generally is
higher for transports resulting from emergency ambulance calls
than for non-emergency ambulance requests. See &#147;Risk
Factors&nbsp;&#151; Risk Factors Related to Healthcare
Regulation&nbsp;&#151; We depend heavily on reimbursement by
third party payors, and delays and uncertainties in the
reimbursement process could have a negative impact on our net
revenue and cash flow.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
State licensing requirements, as well as contracts with
communities and healthcare facilities, typically require us to
provide ambulance services without regard to a patient&#146;s
insurance coverage or ability to pay. As a result, we often
receive partial or no compensation for services provided to
patients who are not covered by Medicare, Medicaid or private
insurance. The anticipated level of uncompensated care and
uncollectible accounts is considered in negotiating a
government-paid subsidy to provide for uncompensated care, and
permitted rates under contracts with a community or government
agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A significant portion of our ambulance transport revenue is
derived from Medicare payments. The Balanced Budget Act of 1997,
or BBA, modified Medicare reimbursement rates for emergency
transportation with the introduction of a national fee schedule.
The BBA provided for a phase-in of the national fee schedule by
blending the new national fee schedule rates with ambulance
service suppliers&#146; pre-existing &#147;reasonable
charge&#148; reimbursement rates. The BBA provided for this
phase-in period to begin on April&nbsp;1, 2002, with full
transition to the national fee schedule rates to be effective
January&nbsp;1, 2006. In some regions, the national fee schedule
would have resulted in a decrease in Medicare reimbursement
rates of approximately 25% by the end of the phase-in period.
Partially in response to the dramatic decrease in rates dictated
by the BBA in some regions, the Medicare Modernization Act
established regional rates, certain of which are higher than the
BBA&#146;s national rates, and provided for the blending of the
regional and national rates until January&nbsp;1, 2010. Other
rate provisions included in the Medicare Modernization Act
provide further temporary mitigation of the impact of the BBA
decreases, including a provision that provides for 1% to 2%
increases for blended rates for the period from January&nbsp;1,
2004 through December&nbsp;31, 2006. Because the Medicare
Modernization Act relief is of limited duration, we will
continue to pursue strategies to offset the decreases mandated
by the BBA, including seeking fee and subsidy increases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that the impact of the BBA rate decreases for fiscal
2003 and fiscal 2004 on AMR&#146;s net revenue was
$20&nbsp;million and $17&nbsp;million, respectively. We have
been able to substantially mitigate the phase-in reductions of
the BBA through additional fee and subsidy increases. As a 911
emergency response provider, we are uniquely positioned to
offset changes in reimbursement by requesting increases in the
rates we are permitted to charge for 911 services from the
communities we serve. In response, these communities often
permit us to increase rates for ambulance services from patients
and their third party payors in order to ensure the maintenance
of required community-wide 911 emergency response services.
While these rate increases do not result in higher payments from
Medicare and certain other public or private payors, overall
they increase our revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Regulatory Matters&nbsp;&#151; Medicare, Medicaid and
Other Government Program Reimbursement&#148; for additional
information on reimbursement from Medicare, Medicaid and other
government-sponsored programs.
</DIV>

<P align="center" style="font-size: 10pt;">77
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Contracts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of June&nbsp;30, 2005, we had approximately 153 contracts
with communities and government agencies to provide 911
emergency response services. Contracts with communities to
provide emergency transport services are typically exclusive,
three to five years in length and generally are obtained through
a competitive bidding process. In some instances where we are
the existing provider, communities elect to renegotiate existing
contracts rather than initiate new bidding processes. Our 911
contracts often contain options for earned extensions or
evergreen provisions. We have improved our contract retention
rate to 99% for fiscal 2004 compared to 81% in fiscal 2001. In
fiscal 2004, our top ten 911 contracts accounted for
approximately $243.3&nbsp;million, or 23.1% of AMR&#146;s net
revenue. We have served these ten customers on a continual basis
for an average of 34&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our 911 emergency response contracts typically specify maximum
fees we may charge and set forth minimum requirements, such as
response times, staffing levels, types of vehicles and
equipment, quality assurance and insurance coverage. Communities
and government agencies may also require us to provide a
performance bond or other assurances of financial
responsibility. The rates we are permitted to charge for
services under a contract for emergency ambulance services and
the amount of the subsidy, if any, we receive from a community
or government agency depend in large part on the nature of the
services we provide, payor mix and performance requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have approximately 2,400 contracts to provide non-emergency
ambulance services with hospitals, nursing homes and other
healthcare facilities that require a stable and reliable source
of medical transportation for their patients. These contracts
typically designate us as the preferred ambulance service
provider of non-emergency ambulance services to those facilities
and permit us to charge a base fee, mileage reimbursement, and
additional fees for the use of particular medical equipment and
supplies. We also provide a significant portion of our
non-emergency transports to facilities and organizations in
competitive markets without specific contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-emergency transports often are provided to managed care or
insurance plan members who are stabilized at the closest
available hospital and are then moved to facilities within their
health plan&#146;s network. We believe the increased prevalence
of managed care benefits larger ambulance service providers,
which can service a higher percentage of a managed care
provider&#146;s members. This allows the managed care provider
to reduce its number of vendors, thus reducing administrative
costs and allowing it to negotiate more favorable rates with
healthcare facilities. Our scale and broad geographic footprint
enable us to contract on a national and regional basis with
managed care and insurance companies. We have multi-year
contracts with large healthcare networks and insurers including
Kaiser, Aetna, Healthnet, Cigna and SummaCare.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that communities, government agencies, healthcare
facilities, managed care companies and insurers consider the
quality of care, historical response time performance and total
cost to be among the most important factors in awarding and
renewing contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dispatch and Communications</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dispatch centers control the deployment and dispatch of
ambulances in response to calls through the use of sophisticated
communications equipment 24&nbsp;hours a day, seven days a week.
In many operating sites, we communicate with our vehicles over
dedicated radio frequencies licensed by the Federal
Communications Commission. In certain service areas with a large
volume of calls, we analyze data on traffic patterns,
demographics, usage frequency and similar factors with the aid
of System Status Management, or SSM technology, to help
determine optimal ambulance deployment and selection. In
addition to dispatching our own ambulances, we also provide and
staff 52 dispatch centers for communities where we are not an
ambulance service provider. Our dispatch centers are staffed by
EMTs and other experienced personnel who use local medical
protocols to analyze and triage a medical situation and
determine the best mode of transport.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Emergency Transport.</I> Depending on the emergency medical
dispatch system used in a designated service area, the public
authority that receives 911 emergency medical calls either
dispatches our ambulances
</DIV>

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<DIV align="left" style="font-size: 10pt;">
directly from the public control center or communicates
information regarding the location and type of medical emergency
to our control center which, in turn, dispatches ambulances to
the scene. While the ambulance is en-route to the scene, the
ambulance receives information concerning the patient&#146;s
condition prior to the ambulance&#146;s arrival at the scene.
Our communication systems allow the ambulance crew to
communicate directly with the destination hospital to alert
hospital medical personnel of the arrival of the patient and the
patient&#146;s condition and to receive instructions directly
from emergency room personnel on specific pre-hospital medical
treatment. These systems also facilitate close and direct
coordination with other emergency service providers, such as the
appropriate police and fire departments, that also may be
responding to a call.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Non-Emergency Transport.</I> Requests for non-emergency
transports typically are made by physicians, nurses, case
managers and hospital discharge coordinators who are interested
primarily in prompt ambulance arrival at the requested pick-up
time. We are also offering on-line, web-enabled transportation
ordering to certain facilities. We use our Millennium software
to track and manage requests for transportation services for
large healthcare facilities and managed care companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Management Information Systems</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We support our regions with integrated information systems and
standardized procedures that enable us to efficiently manage the
billing and collections processes and financial support
functions. Our recently developed technology solutions provide
information for operations personnel, including real-time
operating statistics, tracking of strategic plan initiatives,
electronic purchasing and inventory management solutions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have three management information systems that we believe
have significantly enhanced our operations&nbsp;&#151; our e-PCR
technology, our Millennium call-taking system and our SSM
ambulance positioning system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>e-PCR.</I> In those operating sites where we have implemented
it, our e-PCR technology, has enhanced the process of capturing
clinical patient data. The electronic record replaces the paper
patient care record and provides the paramedic with clinical
flowcharts to document each assessment and procedure performed.
The technology also integrates patient clinical and demographic
information with billing information, allowing the ambulance
crew to ensure that patient information is updated at the scene.
Billing information can be transmitted electronically while the
ambulance is en-route, thus reducing the billing cycle time and
the cost associated with the manual input of patient care record
information. Our initial implementation of this technology has
improved our ability to capture billable revenue and decrease
our billing costs. We currently employ e-PCR technology on
ruggedized laptops in five of our operating sites and we plan to
implement it in six additional operating sites in fiscal 2005.
This technology currently is available in operating sites that
accounted for approximately 9% of AMR&#146;s fiscal 2004
ambulance transports and approximately 12% of AMR&#146;s fiscal
2004&nbsp;net transport revenue. Together with the operating
sites to be added in fiscal 2005, the e-PCR technology would
have accounted for 11% of AMR&#146;s fiscal 2004 ambulance
transports and 13% of its fiscal 2004&nbsp;net transport
revenue. Our per unit e-PCR capital costs continue to decline as
hardware costs decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Millennium.</I> Our proprietary Millennium system is a
call-taking application that tracks and manages requests for
transportation services for large healthcare facilities and
managed care companies. The system is designed to make certain
medical necessity and benefit level determinations prior to
transport. These determinations can be customized to fit an
individual customer&#146;s needs. Customers call a single
toll-free telephone number and are routed to the appropriate AMR
call center. The telephone system is integrated into the
Millennium application, which gives the answering agent specific
call information, including customized greetings, patient
information and priority of the call. The system logic verifies
whether the transport is authorized by the health plan. If the
transport is determined to be appropriate, the system then
assigns a response time and level of service based on the
information obtained from the requestor. In fiscal 2004, we
utilized Millennium for approximately 217,000 transactions
resulting in 210,000 transports in the year. We have initiated a
campaign to promote the benefits of this system to other
potential customers.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>SSM.</I> Our SSM technology enables us to use historical data
on fleet usage patterns to predict where our emergency transport
services are likely to be required. SSM also creates a visual
display of current demand, allowing us to position our ambulance
units more effectively. This flexible deployment allows us to
improve response times and increase asset utilization.
Additionally, we have recently begun to implement
&#147;real-time&#148; SSM. This state-of-the-art SSM technology
will allow us to continuously position our ambulances in
optimized locations, thereby further improving response times
and maximizing asset utilization. We believe our ability to
continue deploying real-time SSM will further differentiate us
from our competitors in terms of both service quality and cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sales and Marketing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our 100-person sales and marketing team is comprised of two
distinct groups&nbsp;&#151; one focused primarily on contract
retention and the other on generating new sales. Many of our
sales and marketing employees are former paramedics or EMTs who
began their careers in the emergency transportation industry and
are therefore well-qualified to understand the needs of our
customers. Our sales force is incentivized through a
compensation package that includes base salary and significant
bonus potential based on achieving specified performance targets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We continue to seek expansion in both the geographic markets we
serve and the scope of services we provide in existing markets.
Ownership of the local emergency response contract can be
advantageous to us when bidding for non-emergency business,
because our existing fleet of ambulances and dispatch centers
maintained for emergency response can also be used for
non-emergency business. For the same reason, our ownership of a
successful non-emergency business can be advantageous to us when
trying to unseat an incumbent emergency response operator or to
obtain a contract in a newly privatized market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are committed to the safety of our employees and the patients
and communities we serve. Our commitment is manifested in our
World Class&nbsp;Safety Program, which has gained distinction
with the National Safety Council and has served as a benchmark
for other companies. This program consists of two important
goals:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To be the leader for safety in the emergency medical services
    industry,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To be recognized as a leader for safety among all industries.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our World Class&nbsp;Safety Program is built upon five important
components:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Selecting highly qualified employees,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Providing exemplary safety policies and programs to control
    losses,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Effective training and education programs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Accountability of management and employees for safety of the
    operation,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Continuous review of new opportunities and existing programs for
    improvement.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We train and educate all new employees about our safety programs
including, among others, emergency vehicle operations, various
medical protocols, use of equipment and patient focused care and
advocacy. Our safety training also involves continuing education
programs and a monthly safety awareness campaign. We also work
directly with manufacturers to design equipment modifications
that enhance both patient and clinician safety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our safety and risk management team develops and executes
strategic planning initiatives focused on mitigating the factors
that drive losses in our operations. We aggressively investigate
and respond to all incidents we believe may result in a claim.
Operations supervisors submit documentation of such incidents to
the third party administrator handling the claim. We have a
dedicated liability unit with our third party administrator
which actively engages with our staff to gain valuable
information for closure of claims.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Information from the claims database is an important resource
for identifying trends and developing future safety initiatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We utilize an on-board monitoring system, RoadSafety, which
measures operator performance against our safe driving
standards. Our operations using RoadSafety have experienced
improved driving behaviors within 90&nbsp;days of installation.
RoadSafety has been implemented in 49% of our vehicles in the
emergency response markets and is being expanded to 58% of our
emergency fleet in fiscal 2006. We expect to recover the average
cost per vehicle over a period of approximately 24&nbsp;months
from installation due to reduced vehicle maintenance and repair
expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that, in fiscal 2004, our costs for vehicle
collisions were 19% lower than in fiscal 2000 and our average
cost per vehicle claim was 37% lower than in fiscal 2000. Over
the same period, we estimate that we reduced patient care
incidents and employee injuries by 8% and 25%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our predominant competitors are fire departments, with 35% of
the ambulance transport services market. Firefighters have
traditionally acted as the first responders during emergencies,
and in many communities provide emergency medical care and
transport as well. In many communities we have established
public/private partnerships, in which we integrate our transport
services with the first responder services of the local fire
department. We believe these public/private partnerships provide
a model for us to collaborate, rather than compete, with fire
departments to increase the number of communities we serve.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our largest competitor, Rural/ Metro Corporation, is the only
other national provider of ambulance transport services and
generates less than half of AMR&#146;s net revenue. Our other
private provider competitors include Southwest Ambulance in
Arizona and New Mexico, Acadian Ambulance Service in Louisiana
and small, locally owned operators that principally serve the
IFT market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Insurance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Workers Compensation, Auto and General Liability.</I> For
periods prior to September&nbsp;1, 2001, we are fully-insured
for our workers compensation, auto and general liability
programs through Laidlaw&#146;s captive insurance program. We
have retained liability for the first $1&nbsp;million to
$2&nbsp;million of the loss under these programs since
September&nbsp;1, 2001. Our self-insurance program, fronted by
ACE American Insurance Co. in fiscal 2002 and 2003 and funded
through Laidlaw&#146;s captive insurance program in fiscal 2004
and 2005 to the date of the acquisition, covers the first
$2&nbsp;million of auto and general liability claims per
occurrence and the first $1&nbsp;million of workers compensation
claims per occurrence. From the date of the acquisition, our
self-insurance program has been fronted by ACE. Generally, our
umbrella policies covering claims that exceed our deductible
levels have an annual cap of approximately $100&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Professional Liability.</I> For periods prior to
April&nbsp;15, 2001, we are insured for our professional
liability claims through third party insurers. Since
April&nbsp;15, 2001, we have a self-insured retention for our
professional liability coverage. The self-insured retention
covers the first $2&nbsp;million for policy year ending
April&nbsp;15, 2002, the first $5&nbsp;million for policy years
ending April&nbsp;15, 2003 and 2004 and the first
$5.5&nbsp;million for the policy years ending April&nbsp;15,
2005 and 2006. In addition, we have umbrella policies with third
party insurers covering claims exceeding these retention levels
with an aggregate cap of $10&nbsp;million for each separate
policy period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Property</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Vehicle Fleet.</I> We operate approximately 4,200 vehicles.
Of these, approximately 3,100 are ambulances, 600 are wheelchair
vans and 500 are support vehicles. We own approximately 89% of
our vehicles and lease the balance. We replace ambulances based
upon age and usage, but generally every eight to ten years. The
average age of our existing ambulance fleet is approximately
five years. We primarily use in-house maintenance services to
maintain our fleet. In those operations where our fleet is small
and quality external maintenance services that agree to maintain
our fleet in accordance with AMR standards are available, we
</DIV>

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<DIV align="left" style="font-size: 10pt;">
utilize these maintenance services. We are exploring ways to
decrease our overall capital expenditures for vehicles,
including major refurbishing and overhaul of our vehicles to
extend their useful life.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Facilities.</I> We lease approximately 55,000&nbsp;square
feet in an office building at 6200&nbsp;S.&nbsp;Syracuse Way,
Greenwood Village, Colorado for the AMR and Emergency Medical
Services corporate headquarters. We also lease administrative
facilities and other facilities used principally for ambulance
basing, garaging and maintenance in those areas in which we
provide ambulance services. We own 14 facilities used
principally for administrative services and stationing for our
ambulances. We believe our present facilities are sufficient to
meet our current and projected needs, and that suitable space is
readily available should our need for space increase. Our leases
expire at various dates through 2014.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Environmental Matters</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to federal, state and local laws and regulations
relating to the presence of hazardous materials and pollution
and the protection of the environment, including those governing
emissions to air, discharges to water, storage, treatment and
disposal of wastes, including medical waste, remediation of
contaminated sites, and protection of worker health and safety.
We believe our current operations are in substantial compliance
with all applicable environmental requirements and that we
maintain all material permits required to operate our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain environmental laws impose strict, and under certain
circumstances joint and several, liability for investigation and
remediation of the release of regulated substances into the
environment. Such liability can be imposed on current or former
owners or operators of contaminated sites, or on persons who
dispose or arrange for disposal of wastes at a contaminated
site. Releases have occurred at a few of the facilities we lease
as a result of historical practices of the owners or former
operators. Based on available information, we do not believe
that any known compliance obligations, releases or
investigations under environmental laws or regulations will have
a material adverse effect on our business, financial position
and results of operations. However, there can be no guarantee
that these releases or newly discovered information, more
stringent enforcement of or changes in environmental
requirements, or our inability to enforce available
indemnification agreements will not result in significant costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At June&nbsp;30, 2005, we had approximately
18,000&nbsp;employees, including approximately 5,100 paramedics,
7,500&nbsp;EMTs, 200&nbsp;nurses and 5,200&nbsp;support
personnel. Approximately 48% of our employees are represented by
41&nbsp;collective bargaining agreements with 40&nbsp;different
union locals. Twelve of these collective bargaining agreements,
representing approximately 1,850&nbsp;employees, are subject to
renegotiation in 2005, and 14&nbsp;agreements, representing
approximately 4,000&nbsp;employees, are subject to renegotiation
in 2006. We believe we have a good relationship with our
employees. We have reduced our employee turnover to 19.9% in
fiscal 2004, a 44.3% reduction since fiscal 2002. We have never
experienced any union-related work stoppages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Legal Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to litigation arising in the ordinary course of
our business, including litigation principally relating to
professional liability, auto accident and workers compensation
claims. There can be no assurance that our insurance coverage
will be adequate to cover all liabilities occurring out of such
claims. In the opinion of management, we are not engaged in any
legal proceedings that we expect will have a material adverse
effect on our business, financial condition, cash flows or
results of our operations other than as set forth below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority. Such requests can include subpoenas
or demand letters for documents to assist the government in
audits or investigations. We review such requests and notices
and take appropriate action. We have been subject to certain
requests for information and investigations in the past and
could be subject to such requests for information and
investigations in the future.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the Medicare and Medicaid fraud and abuse
laws, which prohibit, among other things, any false claims, or
any bribe, kick-back, rebate or other remuneration, in cash or
in kind, in return for the referral of Medicare and Medicaid
patients. Violation of these prohibitions may result in civil
and criminal penalties and exclusion from participation in the
Medicare and Medicaid programs. We have implemented policies and
procedures that management believes will assure that we are in
substantial compliance with these laws, but we cannot assure you
that the government or a court will not find that some of our
business practices violate these laws.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;9, 2002, we received a subpoena from the Office of
Inspector General for the United States Department of Health and
Human Services, or OIG. The subpoena requested copies of
documents for the period from January 1993 through May 2002. The
subpoena required us to produce a broad range of documents
relating to Regional Emergency Services, or RES, contracts in
Texas, Georgia and Colorado. The Department of Justice
ultimately added allegations involving contracts in Texas to its
other claims against RES and a hospital system arising from a
contract between RES and the hospital system in Florida. These
claims, including both Texas and Florida, were settled by RES
and the hospital system for approximately $20.0&nbsp;million, of
which we were responsible for, and have paid, $5.0&nbsp;million.
The government investigations in Georgia and Colorado have not
been resolved.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the first quarter of fiscal 2004, we were advised by the
U.S.&nbsp;Department of Justice that it was investigating
certain business practices at AMR. The specific practices at
issue were (1)&nbsp;whether ambulance transports involving
Medicare eligible patients complied with the &#147;medical
necessity&#148; requirement imposed by Medicare regulations,
(2)&nbsp;whether patient signatures, when required, were
properly obtained from Medicare eligible patients, and
(3)&nbsp;whether discounts in violation of the federal
Anti-Kickback Statute were provided by AMR to hospitals and
nursing homes in exchange for referrals involving Medicare
eligible patients. This investigation has not yet been resolved.
In connection with the third issue, the government has alleged
that certain of our hospital and nursing home contracts in
effect in Texas, primarily certain contracts in effect in 1996
and 1997, contained discounts in violation of the federal
Anti-Kickback Statute. The government recently has provided us
with an analysis of the investigation conducted in connection
with this contract issue, and invited us to respond. We are
considering the government&#146;s analysis and intend to provide
our views, as requested. The government may also be
investigating whether our contracts with health facilities in
Oregon and other jurisdictions violate the Anti-Kickback Statute.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;12, 2005, we received a letter and draft Audit
Report from the OIG requesting our response to its draft
findings that our Massachusetts subsidiary received substantial
overpayments from Medicare for services performed between
July&nbsp;1, 2002 and December&nbsp;31, 2002. The draft findings
state that some of these services did not meet Medicare medical
necessity and reimbursement requirements. We disagree with the
OIG&#146;s finding and are in the process of responding to the
draft Audit Report. If we are unsuccessful in challenging the
OIG&#146;s draft findings, and in any administrative appeals to
which we may be entitled following the release of a final Audit
Report, we may be required to make a substantial repayment.
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT style="font-variant:SMALL-CAPS">EmCare</FONT></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare is the largest provider of outsourced emergency
department staffing and related management services to
healthcare facilities in the United States. EmCare has a 6%
share of the total emergency department services market and a 9%
share of the outsourced emergency department services market.
During fiscal 2004, EmCare had approximately 5.3&nbsp;million
patient visits in 39&nbsp;states. EmCare has 329 exclusive
contracts with hospitals and independent physician groups to
provide emergency department and hospitalist staffing,
management and other administrative services. We believe that
EmCare&#146;s successful physician recruitment and retention,
high level of customer service and advanced risk management
programs have resulted in what we believe is our
industry-leading contract retention rate of 91% in fiscal 2004
and new contract wins.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare primarily provides emergency department staffing and
related management services to healthcare facilities. We recruit
and hire or subcontract with physicians and other healthcare
professionals, who then provide professional services to the
hospitals with whom we contract. We also have practice support
</DIV>


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<DIV align="left" style="font-size: 10pt;">
agreements with independent physician groups and hospitals
pursuant to which we provide unbundled management services such
as billing and collection, recruiting, risk management and
certain other administrative services. For the fiscal year ended
August&nbsp;31, 2004, EmCare generated net revenue of
$549.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we have become one of the leading providers of
hospitalist services. A hospitalist is a physician who
specializes in the care of acutely ill patients in an in-patient
setting. While we have provided limited hospitalist services for
the past 10&nbsp;years, it is only in the last 18&nbsp;months
that we have focused on expanding this program. We have
increased our hospitalist programs from 8&nbsp;contracts at
August&nbsp;31, 2003 to 28&nbsp;contracts at June&nbsp;30, 2005,
increasing our net revenue for this program from approximately
$7.2&nbsp;million in fiscal 2001 to approximately
$23.5&nbsp;million, or approximately 4% of EmCare&#146;s net
revenue, for fiscal 2004. As of June&nbsp;30, 2005, we
independently contracted with or employed approximately
170&nbsp;hospitalist physicians.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare was founded in Dallas, Texas in 1972. Initially we grew
by targeting larger hospitals in the Texas marketplace. We then
expanded our presence nationally, primarily through a series of
acquisitions in the 1990s. Throughout our history, EmCare has
enjoyed a strong reputation as a quality provider of emergency
department staffing and related management services.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The range of staffing and related management services we provide
includes:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    recruiting, scheduling and credentials coordination for clinical
    professionals,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    support services, such as payroll, insurance coverage,
    continuing education services and management training,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    coding, billing and collection of fees for services provided by
    medical professionals.</TD>
</TR>


</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a leading provider of outsourcing services to both market
segments, and have developed specific competencies and operating
groups to address the unique needs of each. In fiscal 2004, the
high volume and medium to low volume segments represented 88%
and 12%, respectively, of our emergency department net revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide a full range of outsourced physician staffing and
related management services for emergency department and
hospitalist programs, which include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Contract Management.</I> We utilize an integrated approach to
contract management that involves physicians, non-clinical
business experts, operational efficiency specialists and
hospital representatives. Together, the team works to improve
the quality and reduce the cost of care. We believe that our
approach fosters the culture that is necessary to operate
effectively in high stress emergency environments. An on-site
medical director is responsible for the day-to-day oversight of
the operation, including clinical quality, and works closely
with the hospital&#146;s management in developing strategic
initiatives and objectives. The regional director of operations,
which is a clinical position, provides systems analysis and
improvement plans. A quality manager develops site-specific
quality improvement programs, and practice improvement staff
focuses on chart documentation and physician utilization
patterns. The regional-based management staff provides support
for these efforts and ensures that each customer&#146;s
expectations are identified, that service plans are developed
and executed to meet those expectations, and that the
company&#146;s and the customer&#146;s financial objectives are
achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Staffing.</I> We provide a full range of staffing services to
meet the unique needs of each healthcare facility. Our dedicated
clinical teams include qualified, career-oriented physicians and
other healthcare professionals responsible for the delivery of
high quality, cost-effective care. These teams also rely on
managerial personnel, many of whom have clinical experience, who
oversee the administration and operations of the clinical area.
As a result of our staffing services, healthcare facilities can
focus their efforts on improving their core business of
providing healthcare services for their communities rather than
recruiting and managing physicians. Ensuring that each contract
is staffed with the appropriately qualified physicians and that
coverage is provided without any service deficiencies is
critical to the success of the contract. We believe
</DIV>

<P align="center" style="font-size: 10pt;">84

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<DIV align="left" style="font-size: 10pt;">
that our approach to recruiting, staffing and scheduling
provides us with a unique advantage in achieving these
objectives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Recruiting.</I> Many healthcare facilities lack the resources
necessary to identify and attract specialized, career-oriented
physicians. We have committed significant resources to the
development of a proprietary national physician database that we
utilize in our recruiting programs across the country. Our
marketing and recruiting staff continuously updates our database
of more than 800,000 physicians with relevant data to allow us
to match potential physician candidates to specific openings
based upon personal preferences. This targeted recruiting method
increases the success and efficiency of our recruiters, and we
believe significantly increases our physician retention rates.
We actively recruit physicians through various media options
including telemarketing, direct mail, conventions, journal
advertising and our Internet site.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Scheduling.</I> Our scheduling departments assist our medical
directors in scheduling physicians and other healthcare
professionals in accordance with the coverage model at each
facility. We provide 24-hour service to ensure that unscheduled
shift vacancies, due to situations such as physician illness and
personal emergencies, are filled with alternative coverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Payroll Administration and Benefits.</I> We provide payroll
administration services for the physicians and other healthcare
professionals with whom we contract to provide services at
customer sites. Our clinical employees benefit significantly by
our ability to aggregate physicians to provide professional
liability coverage at lower rates than many hospitals or
physicians could negotiate on a stand-alone basis. Additionally,
healthcare facilities benefit from the elimination of the
overhead costs associated with the administration of payroll
and, where applicable, employee benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Customer Satisfaction Programs.</I> We design and implement
customized patient satisfaction programs for our hospital
customers. These programs are designed to improve patient
satisfaction through the use of communication, family inclusion
and hospitality techniques. These programs are delivered to the
clinical and non-clinical members of the hospital emergency
department.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other Services.</I> We provide a substantial portion of our
services to hospitals through our affiliate physician groups.
Because we have also identified situations in which hospitals
and physicians are interested in receiving stand-alone
management services such as billing and collection, scheduling,
recruitment and risk management, we often unbundle our services
to meet this need. Pursuant to these practice support
agreements, which generally will have a term of one to three
years, we provide these services to independent physician groups
and healthcare facilities. As of August&nbsp;31, 2004, we had 19
practice support agreements which generated $5.6&nbsp;million in
net revenue in fiscal 2004, a 33% increase over fiscal 2003. We
are working to commercialize our expertise in staffing and
billing and expect to enter into similar stand-alone practice
support agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Operational Assessments.</I> We undertake operational
assessments for our hospital customers that include
comprehensive reviews of critical operational matrices,
including turnaround times, triage systems, &#147;left without
being seens,&#148; throughput times and operating systems. These
assessments establish baseline values, develop and implement
process improvement programs, and then monitor the success of
the initiatives. This is an ongoing process that we continually
monitor and modify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Practice Improvement.</I> We provide ongoing comprehensive
documentation review and training for our affiliated physicians.
We review certain statistical indicators that allow us to
provide specific training to individual physicians regarding
documentation, and we tailor training for broader groups of
physicians as we see trends developing in documentation-related
areas. Our training focuses on the completeness of the medical
record or chart, specific payor requirements, and government
rules and regulations.
</DIV>

<P align="center" style="font-size: 10pt;">85

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We utilize our risk management department, senior medical
leadership and on-site medical directors to conduct aggressive
risk management and quality assurance programs. We take a
proactive role in promoting early reporting, evaluation and
resolution of incidents that may evolve into claims. Our risk
management function is designed to mitigate risk associated with
the delivery of care and to prevent or minimize costs associated
with medical professional liability claims and includes:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Incident Reporting Systems.</I> We have established a
    comprehensive support system for medical professionals. Our Risk
    Management Hotline provides each physician with the ability to
    discuss medical issues with a peer. In the event of a negative
    patient outcome, the physician may discuss legal and medical
    issues in anticipation of litigation directly with an EmCare
    attorney experienced with medical malpractice issues.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Tracking and Trending Claims.</I> We have an extensive claims
    database developed from our experience in the emergency
    department setting. From this database, we track multiple data
    points on each professional liability claim. We utilize the
    database to identify claim trends and risk factors so that we
    can better target our risk management initiatives. Each year, we
    target the medical conditions associated with our most frequent
    professional liability claims, and provide detailed education to
    assist our affiliated medical professionals in treating these
    medical conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Professional Risk Assessment.</I> We conduct risk assessments
    of our medical professionals. Typically, a risk assessment
    includes a thorough review of professional liability claims
    against the professional, assessment of issues raised by
    hospital risk management and identification of areas where
    additional education may be advantageous for the professional.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Hospital Risk Assessment.</I> We conduct risk assessments of
    potential hospital customers in conjunction with our sales and
    contracting process. As part of the risk assessment, registered
    nurses or physicians employed by us conduct a detailed analysis
    of the hospital&#146;s operations affecting the emergency
    department or hospitalist services, including the triage
    procedures, on-call coverage, transfer procedures, nursing
    staffing and related matters in an effort to address risk
    factors contractually during negotiations with potential
    customer hospitals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Clinical Fail-Safe Programs.</I> We review and identify key
    risk areas which we believe may result in increased incidence of
    patient injuries and resulting claims against us and our
    affiliated medical professionals. We continue to develop
    &#147;fail-safe&#148; clinical tools and make them available to
    our affiliated physicians for use in conjunction with their
    practice and to our customer hospitals for use as a part of
    their peer review process. These &#147;fail-safe&#148; tools
    assist physicians in identifying common patient attributes and
    complaints that may identify the patient as being at high risk
    for certain conditions (<I>e.g.</I>, a heart attack).</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Quality Improvement Programs.</I> Our medical directors are
    actively engaged in their respective hospital&#146;s quality
    improvement committees and initiatives. In addition, we provide
    tools that provide guidance to the medical directors on how to
    conduct quality reviews of their physicians and help them track
    their physicians&#146; medical practices.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Physician Education Programs.</I> Our wholly owned
    subsidiary, Emergency Medical Education Systems, Inc, or EMEDS,
    conducts physician education through risk management and board
    review conferences and on-line teaching modules. Our affiliated
    medical professionals can access EMEDS to obtain valuable
    medical information. Our internal continuing education services
    are fully accredited by the Accreditation Council for Continuing
    Medical Education. This allows us to grant our physicians and
    nurses continuing education credits for internally developed
    educational programs at a lower cost than if such credits were
    earned through external programs. Our risk management department
    also provides other forms of education, including articles in
    the company newsletter that highlight current medical literature
    on important emergency medicine topics.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">86

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Proactive Professional Liability Claims Handling.</I> We
    utilize a third party claims administrator to manage
    professional liability claims against companies and medical
    professionals covered under our insurance program. For each
    case, detailed reports are reviewed to ensure proactively that
    the defense is comprehensive and aggressive. Each professional
    liability claim brought against an EmCare affiliated medical
    professional or EmCare affiliated company is reviewed by
    EmCare&#146;s Claims Committee, consisting of physicians,
    attorneys and company executives, before any resolution of the
    claim. The Claims Committee periodically instructs EmCare&#146;s
    risk management department to undertake an analysis of
    particular physicians or hospital locations associated with a
    given claim.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Billing and Collections</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We receive payment for patient services from:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the federal and state governments, primarily under the Medicare
    and Medicaid programs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    health maintenance organizations, preferred provider
    organizations and private insurers,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    hospitals,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    individual patients.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over the last three fiscal years, our self-pay revenue has
remained stable as a percentage of EmCare&#146;s net revenue.
The table below presents the approximate percentages of
EmCare&#146;s net revenue from the following sources:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Percentage of EmCare&#146;s</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Net Revenue</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicare</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Medicaid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commercial insurance/managed care</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Self-pay</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subsidies/fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;&#151;&nbsp;Regulatory Matters&nbsp;&#151; Medicare,
Medicaid and Other Government Program Reimbursement&#148; for
additional information on reimbursement from Medicare, Medicaid
and other government-sponsored programs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We code and bill for physician services through our wholly-owned
subsidiary, Reimbursement Technologies, Inc. We utilize
state-of-the-art document imaging and paperless workflow
processes to expedite the billing cycle and improve compliance
and customer service. Currently, at approximately 45% of our
customer locations, medical records and emergency department
logs are scanned and transmitted electronically to us. We are in
the process of transitioning additional customers to on-site
scanning. By providing these enhanced services, we believe we
increase the value of services we provide to our customers and
improve customer relations. Additionally, we believe these
comprehensive services differentiate us in sales situations and
improve the chance of being selected in competitive bidding
processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do substantially all of the billing for our affiliated
physicians, and we have extensive experience in processing
claims to third party payors. We employ a billing staff of
approximately 600 employees who are trained in third party
coverage and reimbursement procedures. Our integrated billing
and collection system uses proprietary software to tailor the
submission of claims to Medicare, Medicaid and certain other
third party payors and has the capability to electronically
submit most claims to the third party payors&#146; systems. We
forward uncollected accounts electronically to two outside
collection agencies automatically, based on established
parameters. Each of these collection agencies have on-site
employees working at our in-house
</DIV>

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<DIV align="left" style="font-size: 10pt;">
billing company to assist in providing patients with quality
customer service. Our comprehensive billing and collection
system allows us to have full control of accounts receivable at
each step of the process.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Contracts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have contracts with (i)&nbsp;hospital customers to provide
professional staffing and related management services,
(ii)&nbsp;healthcare facilities and independent physician groups
to provide management services, and (iii)&nbsp;affiliated
physician groups and medical professionals to provide management
services and various benefits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Hospital and Practice Support Contracts.</I> As of
June&nbsp;30, 2005, EmCare provides services under 329
contracts. Typically, the agreements with the hospitals are
awarded on a competitive basis, and have an initial term of
three years with one-year automatic renewals and termination by
either party on specified notice. We have improved our contract
retention rate to 91% for fiscal 2004, up from 74% in fiscal
2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our contracts with hospitals provide for one of three payment
models:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we bill patients and third party payors directly for physician
    fees,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we bill patients and third party payors directly for physician
    fees, with the hospital paying us an additional pre-arranged fee
    for our services,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we bill the hospitals directly for the services of the
    physicians.</TD>
</TR>


</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In all cases, the hospitals are responsible for billing and
collecting for non-physician-related services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established long-term relationships with some of the
largest names in healthcare services, including Baylor Health
System, Community Health Systems, HCA, Quorum Healthcare, Tenet
Healthcare and Universal Health System. Our top ten hospital
emergency department contracts represent $68.3&nbsp;million, or
12.4%, of EmCare&#146;s fiscal 2004&nbsp;net revenue. We have
maintained our relationships with these customers for an average
of 12&nbsp;years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Affiliated Physician Group Contracts.</I> In most states, we
contract directly with our hospital customers to provide
physician staffing and related management services. We, in turn,
contract with a professional corporation that is wholly-owned by
one or more physicians, which we refer to as an affiliated
physician group, or with independent contractor physicians. It
is these physicians who provide the medical professional
services. We then provide comprehensive management services to
the physicians. We typically provide professional liability and
workers compensation coverage to our affiliated physicians.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain states have laws that prohibit or restrict unlicensed
persons or business entities from practicing medicine. The laws
vary in scope and application from state to state. Some of these
states may prohibit us from contracting directly with hospitals
or physicians to provide professional medical services. In those
states, the affiliated physician groups contract with the
hospital, as well as all medical professionals. We provide
management services to the affiliated physician groups.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Medical Professional Contracts.</I> We contract with medical
professionals as either independent contractors or employees to
provide services to our customers. The medical professionals
generally are paid an hourly rate for each hour of coverage, a
variable rate based upon productivity or contract margin, or a
combination of both a fixed hourly rate and a variable rate
component. We typically provide professional liability and
workers compensation coverage to our medical professionals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The contracts with medical professionals typically have one-year
terms with automatic renewal clauses for additional one-year
terms. The contracts can be terminated with cause for various
reasons, and usually contain provisions allowing for termination
without cause by either party upon 90&nbsp;days&#146; notice.
Agreements with physicians generally contain a non-compete or
non-solicitation provision and, in the case of medical
directors, a non-compete provision. The enforceability of these
provisions varies from state to state.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Management Information Systems</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have invested in scalable information systems and proprietary
software packages designed to allow us to grow efficiently and
to deliver and implement our best practice procedures
nationally, while retaining local and regional flexibility. We
have developed and maintain integrated systems to facilitate the
exchange of information between our regions and our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our customers, affiliated physicians and employees throughout
the country access a wide variety of information through our
custom portal, <I>www.emcare.com.</I> Designed as a forum to
deliver information and communicate with our various
constituencies, this website provides a unifying platform to
promote the growth in our business. It includes individualized
content, including physician schedules, rosters and performance
reports, all delivered securely to the intended individuals
through the use of a password.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have developed and implemented the following proprietary
applications that we believe provides us with a competitive
advantage in billing and collections, and in recruiting,
credentialing, enrolling, scheduling and compensating healthcare
professionals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmSource </I>is our system for our recruiting staff to source
physician candidates. The system consists of a database of
approximately 800,000 physicians that is updated weekly to
provide the most current physician contact information available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmTrac </I>is our primary operations support system that
supports credentialing and scheduling. Information collected in
<I>EmSource </I>during the recruiting process populates
<I>EmTrac,</I> forms the basis for the credentialing module, and
is used to provide alerts on license and privilege expirations.
<I>EmTrac </I>is used by our schedulers to match physician
availability and preferences with the needs of the hospital
customer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmComp </I>is our system for calculating physician&#146;s
gross pay and is an important tool supporting our compensation
strategy. Physicians are compensated by a wide variety of pay
plans ranging from simple hourly wages to &#147;fee for
service&#148; plans linked to productivity. <I>EmComp </I>has
been designed to support an unlimited variety of pay plans,
thereby giving EmCare a competitive advantage in physician
recruitment and retention. The system takes the actual hours
worked from <I>EmTrac </I>and the production data from
<I>EmBillz,</I> and applies the pay rules from the
physician&#146;s contract to calculate gross pay.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>EmBillz </I>is the coding, billing and accounts receivable
management system through which we process more than five
million emergency department visits each year. This proprietary
system supports the full collection process: from capturing the
emergency department patient logs, coding and issuing bills in
accordance with applicable federal and state regulations, and
payment follow-up and cash receipt posting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Edison </I>is a system that automates much of our physician
enrollment. To bill Medicare, Medicaid and some other third
party payors, each physician must have an approved provider
number for that payor. There are hundreds of unique forms from
the combination of states and payors. <I>Edison </I>facilitates
the completion of the forms, thereby relieving physicians of
significant administrative workload and enabling us to track
pending receivables and ensure timely completion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sales and Marketing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Contracts for outsourced emergency department and hospitalist
services are obtained through strategic marketing programs and
responses to requests for proposals. EmCare&#146;s business
development team includes five Vice Presidents of Practice
Development located throughout the United States who are
responsible for developing sales and acquisition opportunities
for the operating group in his or her territory. A significant
portion of the compensation program for these sales
professionals is commission-based, with incentive compensation
based on the profitability of the contracts they sell and actual
contract performance in the first year. Leads for new hospital
customers are developed through our business development group,
which telemarkets the United States hospital industry. In
addition, leads are generated through our website, journal
advertising and a lead referral program. Each Vice President of
Practice Development is responsible for working with the
regional chief executive officer to structure and provide
customer proposals for new prospects in their respective regions.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency medicine practices vary among healthcare facilities. A
healthcare facility request for proposal generally will include
demographic information of the facility department, a list of
services to be performed, the length of the contract, the
minimum qualifications of bidders, billing information,
selection criteria and the format to be followed in the bid.
Prior to responding to a request for proposal, EmCare&#146;s
senior management ensures that the proposal is in line with
certain financial parameters. Senior management evaluates all
aspects of each proposal, including financial projections,
staffing model, resource requirements and competition, to
determine how to best achieve our business objectives and the
customer goals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Competition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market for outsourced emergency department staffing and
related management services is highly fragmented, with more than
800 national, regional and local providers handling over
113&nbsp;million patient visits in 2003. There are more than
4,700&nbsp;hospitals in the United States with emergency
departments, of which 67% currently outsource physician
services. Of these hospitals that outsource, we believe
approximately 50% contract with a local provider, 25% contract
with a regional provider and 25% contract with a national
provider.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Team Health is our largest competitor and has the second largest
share of the emergency department services market with an
approximately 4.4% share. The other national providers of
outsourced emergency department services are Sterling
Healthcare, National Emergency Service and the Schumacher Group,
which tend to focus on hospitals with lower to medium volume
emergency departments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Insurance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Professional Liability Program.</I> For the period
January&nbsp;1, 2001 through December&nbsp;31, 2004, our
professional liability insurance program provided claims made
insurance coverage with limits of $1&nbsp;million per loss
event, with a $3&nbsp;million annual per physician aggregate,
for all medical professionals for whom we have agreed to procure
coverage. Our subsidiaries and affiliated corporate entities are
provided with coverage of $1&nbsp;million per loss event, but
share a $10&nbsp;million annual corporate aggregate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the 2001 calendar year, Lexington Insurance Company provided
the majority of the professional liability insurance coverage,
subject to an aggregate policy limit of $10&nbsp;million. We
also procured coverage on a regional basis under separate
policies of insurance during this period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the 2002, 2003 and 2004 calendar years, Columbia Casualty
Company and Continental Casualty Company, collectively referred
to as CCC, provided our professional liability insurance
coverage, covering all claims occurring and reported during
those calendar years. The CCC policies have a retroactive date
of January&nbsp;1, 2001, thereby covering all claims occurring
during the 2001 calendar year but reported in the 2002, 2003 and
2004 calendar years. We also procured coverage on a regional
basis under separate policies of insurance during this period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are maintaining our calendar year 2004 professional liability
insurance program for calendar year 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Captive Insurance Arrangement.</I> On December&nbsp;10, 2001,
we formed EMCA Insurance Company, Ltd., or EMCA, as a wholly
owned subsidiary under the Companies Law of the Cayman Islands.
EMCA reinsures CCC for all losses associated with the CCC
insurance policies under the professional liability insurance
program, and provides collateral for the reinsurance arrangement
through a trust agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Workers Compensation Program.</I> For the period
September&nbsp;1, 2002 through August&nbsp;31, 2004, we procured
workers compensation insurance coverage for employees of EmCare
and affiliated physician groups through Continental Casualty
Company. Continental reinsures a portion of this workers
compensation exposure, on both a per claim and an aggregate
basis, with EMCA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From September&nbsp;1, 2004, EmCare has insured its workers
compensation exposure through The Travelers Indemnity Company,
which reinsures a portion of the exposure with EMCA.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Properties</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We lease approximately 48,990&nbsp;square feet in an office
building at 1717&nbsp;Main Street, Dallas, Texas for our
corporate headquarters. We also lease 16&nbsp;facilities to
house administrative, billing and other support functions for
our regional operations. We believe our present facilities are
sufficient to meet our current and projected needs, and that
suitable space is readily available should our need for space
increase. Our leases expire at various dates through 2014.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is an approximate break down of our affiliated
physicians, independent contractors and employees by job
classification as of June&nbsp;30, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Job Classification</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Full-Time</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Part-Time</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Physicians*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,601</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Physician assistants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Nurse practitioners</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>198</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-clinical employees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,195</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,298</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    We have approximately 4,500 affiliated physicians. These figures
    represent clinicians providing services at a particular time.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
We believe that our relations with our employees are good. None
of our physicians, physician assistants, nurse practitioners or
non-clinical employees are subject to any collective bargaining
agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We offer our physicians substantial flexibility in terms of type
of facility, scheduling of work hours, benefit packages,
opportunities for relocation and career development. This
flexibility, combined with fewer administrative burdens,
improves physician retention rates and stabilizes our contract
base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Legal Matters</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to litigation arising in the ordinary course of
our business, including litigation principally relating to
professional liability claims. There can be no assurance that
our insurance coverage will be adequate to cover all liabilities
occurring out of such claims. In the opinion of management, we
are not engaged in any legal proceedings that we expect will
have a material adverse effect on our business, financial
condition, cash flows or results of our operations other than as
set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority. Such requests can include subpoenas
or demand letters for documents to assist the government in
audits or investigations. We review such requests and notices
and take appropriate action. We have been subject to certain
requests for information and investigations in the past and
could be subject to such requests for information and
investigations in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our healthcare businesses are subject to the Medicare and
Medicaid fraud and abuse laws, which prohibit, among other
things, any false claims, or any bribe, kick-back or rebate in
return for the referral of Medicare and Medicaid patients.
Violation of these prohibitions may result in civil and criminal
penalties and exclusion from participation in the Medicare and
Medicaid programs. We have implemented policies and procedures
that management believes will assure that we are in substantial
compliance with these laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare has been named a defendant in a collective action lawsuit
brought by a number of nurse practitioners and physician
assistants under the Fair Labor Standards Act. The plaintiffs
are seeking to recover overtime pay for the hours they worked in
excess of 40 in a workweek and reclassification as non-exempt
</DIV>

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<DIV align="left" style="font-size: 10pt;">
employees. Certain of the plaintiffs brought a related action
under California state law. We have entered into a settlement of
the California state law claims.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT style="font-variant:SMALL-CAPS">Regulatory
Matters</FONT></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a participant in the healthcare industry, our operations and
relationships with healthcare providers such as hospitals, other
healthcare facilities and healthcare professionals are subject
to extensive and increasing regulation by numerous federal and
state government entities as well as local government agencies.
Specifically, but without limitation, we are subject to the
following laws and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Medicare, Medicaid and Other Government Program
Reimbursement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive a significant portion of our revenue from services
rendered to beneficiaries of Medicare, Medicaid and other
government-sponsored healthcare programs. To participate in
these programs, we must comply with stringent and often complex
enrollment and reimbursement requirements from the federal and
state governments. We are subject to governmental reviews and
audits of our bills and claims for reimbursement. Retroactive
adjustments to amounts previously reimbursed from these programs
can and do occur on a regular basis as a result of these reviews
and audits. In addition, these programs are subject to statutory
and regulatory changes, administrative rulings, interpretations
and determinations, all of which may materially increase or
decrease the payments we receive for our services as well as
affect the cost of providing services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Government funding for health care programs is subject to
statutory and regulatory changes, administrative rulings,
interpretations of policy and determinations by intermediaries
and governmental funding restrictions, all of which could
materially impact program reimbursements for our services. In
recent years, Congress has consistently attempted to curb
federal spending on such programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reimbursement to us typically is conditioned on our providing
the correct procedure and diagnosis codes and properly
documenting both the service itself and the medical necessity
for the service. Incorrect or incomplete documentation and
billing information, or the incorrect selection of codes for the
level of service provided, could result in non-payment for
services rendered or lead to allegations of billing fraud.
Moreover, third party payors may disallow, in whole or in part,
requests for reimbursement based on determinations that certain
amounts are not reimbursable, they were for services provided
that were not medically necessary, there was a lack of
sufficient supporting documentation, or for a number of other
reasons. Retroactive adjustments, recoupments or refund demands
may change amounts realized from third party payors. Additional
factors that could complicate our billing include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    disputes between payors as to which party is responsible for
    payment,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the difficulty of adherence to specific compliance requirements,
    diagnosis coding and various other procedures mandated by the
    government,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    failure to obtain proper physician credentialing and
    documentation in order to bill governmental payors.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the nature of our business and our participation in the
Medicare and Medicaid reimbursement programs, we are involved
from time to time in regulatory reviews, audits or
investigations by government agencies of matters such as
compliance with billing regulations and rules. We may be
required to repay these agencies if a finding is made that we
were incorrectly reimbursed, or we may lose eligibility for
certain programs in the event of certain types of
non-compliance. Delays and uncertainties in the reimbursement
process adversely affect our level of accounts receivable,
increase the overall cost of collection, and may adversely
affect our working capital and cause us to incur additional
borrowing costs. Unfavorable resolutions of pending or future
regulatory reviews or investigations, either individually or in
the aggregate, could have a material adverse effect on our
business, financial condition and results of operations.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We establish an allowance for discounts applicable to Medicare,
Medicaid and other third party payors and for doubtful accounts
based on credit risk applicable to certain types of payors,
historical trends, and other relevant information. We review our
allowance for doubtful accounts on an ongoing basis and may
increase or decrease such allowance from time to time, including
in those instances when we determine that the level of effort
and cost of collection of certain accounts receivable is
unacceptable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that regulatory trends in cost containment will
continue. We cannot assure you that we will be able to offset
reduced operating margins through cost reductions, increased
volume, the introduction of additional procedures or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Ambulance Services.</I> In February 2002, the Health Care
Financing Administration, now renamed the Centers for Medicare
and Medicaid Services, issued the Medicare Ambulance Fee
Schedule&nbsp;Final Rule, or Final Rule, that revised Medicare
policy on the coverage of ambulance transport services,
effective April&nbsp;1, 2002. The Final Rule was the result of a
mandate under the Balanced Budget Act of 1997 to establish a
national fee schedule for payment of ambulance transport
services that would control increases in expenditures under
Part&nbsp;B of the Medicare program, establish definitions for
ambulance transport services that link payments to the type of
services furnished, consider appropriate regional and
operational differences and consider adjustments to account for
inflation, among other provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Final Rule provided for a five-year phase-in of a national
fee schedule, beginning April&nbsp;1, 2002. Prior to that date,
Medicare used a charge-based reimbursement system for ambulance
transport services and reimbursed 80% of charges determined to
be reasonable, subject to the limits fixed for the particular
geographic area. The patient was responsible for co-pay amounts,
deductibles and the remaining balance of the transport cost, if
we did not accept the assigned reimbursement, and Medicare
required us to expend reasonable efforts to collect the balance.
In determining reasonable charges, Medicare considered and
applied the lowest of various charge factors, including the
actual charge, the customary charge, the prevailing charge in
the same locality, the amount of reimbursement for comparable
services, and the inflation-indexed charge limit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;1, 2002, the Final Rule became effective. The
Final Rule categorizes seven levels of ground ambulance
services, ranging from basic life support to specialty care
transport, and two categories of air ambulance services. Ground
providers are paid based on a base rate conversion factor
multiplied by the number of relative value units assigned to
each level of transport, plus an additional amount for each mile
of patient transport. The base rate conversion factor for
services to Medicare patients was set initially at $170.54
(which is adjusted each year by the Consumer Price Index).
Adjustments to the base rate conversion factor are also included
to recognize differences in relative practice costs among
geographic areas, and higher transportation costs that may be
incurred by ambulance providers in rural areas with low
population density. The Final Rule requires ambulance providers
to accept assignment on Medicare claims, which means a provider
must accept Medicare&#146;s allowed reimbursement rate as full
payment. Medicare typically reimburses 80% of that rate and the
remaining 20% is collectible from a secondary insurance or the
patient. Originally, the Final Rule called for a five-year
phase-in period to allow providers time to adjust to the new
payment rates. The national fee schedule was to be phased in at
20% increments each year, with payments being made at 100% of
the national fee schedule in 2006 and thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the passage of the Medicare Prescription Drug Improvement
and Modernization Act of 2003, or the Medicare Modernization
Act, modifications were made to the phase-in of the ambulance
fee schedule in order to mitigate decreases in reimbursement in
some regions caused by the Final Rule. The Medicare
Modernization Act established regional fee schedules based on
historic costs in each region. Effective July&nbsp;1, 2004, in
those regions where the regional fee schedule exceeds the
national fee schedule, the regional fee schedule is blended with
the original national fee schedule on a temporary basis, until
2010. During this period, the Medicare allowable reimbursement
rate will be the greater of (a)&nbsp;the national fee schedule
and (b)&nbsp;a blend of the national fee schedule and the
regional fee schedule. For 2004, that 20% of the blended rate
was based on the national fee schedule and 80% of the blended
rate was based on the regional fee schedule. For each succeeding
year through 2007, the percentages will increase 20% for the
national fee schedule and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
decrease 20% for the regional fee schedule portions of the
blended rate. For 2008 and 2009, the fee schedule will remain at
the 2007 mix of 20% regional and 80% national. In addition to
the regional fee schedule change, the Medicare Modernization Act
included other provisions for additional reimbursement for
ambulance transport services provided to Medicare patients.
Among other relief, the Medicare Modernization Act provides for
a 1% increase in reimbursement for urban transports and a 2%
increase for rural transports for the remainder of the original
phase-in period of the national ambulance fee schedule, through
2006. Although we expect these provisions under the Medicare
Modernization Act to positively impact the effects of the Final
Rule on our transport revenue attributable to Medicare patients,
we currently are unable to predict the total impact.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
State or local government regulations or administrative policies
regulate rate structures in some states in which we provide
ambulance transport services. For example, in certain service
areas in which we are the exclusive provider of ambulance
transport services, the community sets the rates for emergency
ambulance services pursuant to an ordinance or master contract
and may also establish the rates for general ambulance services
that we are permitted to charge. We may be unable to receive
ambulance service rate increases on a timely basis where rates
are regulated or to establish or maintain satisfactory rate
structures where rates are not regulated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Emergency Physician Services Fee Schedule.</I> Medicare pays
for all physician services based upon a national fee schedule,
or Fee Schedule, which contains a list of uniform rates. The
payment rates under the Fee Schedule are determined based on:
(1)&nbsp;national uniform relative value units for the services
provided, (2)&nbsp;a geographic adjustment factor and (3)&nbsp;a
conversion factor. The Centers for Medicare and Medicaid
Services, or CMS, updates the conversion factor annually. The
Fee Schedule uses a target-setting formula system called the
Sustainable Growth Rate, or SGR, to update annually the
conversion factor. The SGR is a target rate of growth in
spending for physician services which is intended to control the
growth of Medicare expenditures for physicians&#146; services.
The Fee Schedule update is adjusted to reflect the comparison of
actual expenditures to target expenditures. Because one of the
factors for calculating the SGR system is linked to the growth
in the U.S.&nbsp;gross domestic product, the SGR formula may
result in a negative payment update if growth in Medicare
beneficiaries&#146; use of services exceeds GDP growth. The SGR
formula may result in significant yearly fluctuations in Fee
Schedule updates, which may be unrelated to changes in the
actual cost of providing physician services.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Medicare Reassignment.</I> The Medicare program prohibits the
reassignment of Medicare payments due to a physician or other
healthcare provider to any other person or entity unless the
billing arrangement between that physician or other healthcare
provider and the other person or entity falls within an
enumerated exception to the Medicare reassignment prohibition.
Historically, there was no exception that allowed us to receive
directly Medicare payments related to the services of
independent contractor physicians. However, the Medicare
Modernization Act amended the Medicare reassignment statute as
of December&nbsp;8, 2003 and now permits our independent
contractor physicians to reassign their Medicare receivables to
us under certain circumstances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Federal False Claims Act</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the federal False Claims Act that imposes
civil and criminal liability on individuals or entities that
submit false or fraudulent claims for payment to the government.
Government agencies continue civil and criminal enforcement
efforts in connection with investigations of healthcare
companies and their executives and managers, many of which
involve the False Claims Act. The False Claims Act provides, in
part, that the federal government may bring a lawsuit against
any person whom it believes has knowingly or recklessly
presented, or caused to be presented, a false or fraudulent
request for payment from the federal government, or who has made
a false statement or used a false record to get a claim
approved. In addition, private parties may initiate <I>&#147;qui
tam&#148;</I> whistleblower lawsuits against any person or
entity under the False Claims Act in the name of the government
and share in the proceeds of the lawsuit.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The government and a number of courts have taken the position
that claims presented in violation of the various statutes,
including the federal Anti-Kickback Statute and the Stark Law,
can be considered a violation of the False Claims Act based on
the contention that a provider impliedly certifies compliance
with all applicable laws, regulations and other rules when
submitting claims for reimbursement. Penalties for False Claims
Act violations include fines ranging from $5,500 to $11,000 for
each false claim, plus up to three times the amount of damages
sustained by the federal government. A False Claims Act
violation may provide the basis for exclusion from the
federally-funded healthcare programs. In addition, some states
have adopted similar insurance fraud, state whistleblower and
false claims provisions. Although we intend and endeavor to
conduct our business in compliance with all applicable fraud and
abuse laws, we cannot assure you that our arrangements or
business practices will not be subject to government scrutiny or
be found to violate applicable fraud and abuse laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Federal Anti-Kickback Statute</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to the federal Anti-Kickback Statute. The
Anti-Kickback Statute is broadly worded and prohibits the
knowing and willful offer, payment, solicitation or receipt of
any form of remuneration in return for, or to induce,
(1)&nbsp;the referral of a person covered by Medicare, Medicaid
or other governmental programs, (2)&nbsp;the furnishing or
arranging for the furnishing of items or services reimbursable
under Medicare, Medicaid or other governmental programs or
(3)&nbsp;the purchase, lease of order or arranging or
recommending purchasing, leasing or ordering of any item or
service reimbursable under Medicare, Medicaid or other
governmental programs. Certain federal courts have held that the
Anti-Kickback Statute can be violated if &#147;one purpose&#148;
of a payment is to induce referrals. Violations of the
Anti-Kickback Statute can result in exclusion from Medicare,
Medicaid or other governmental programs as well as civil and
criminal penalties, including fines of up to $50,000&nbsp;per
violation and three times the amount of the unlawful
remuneration. Imposition of any of these remedies could have a
material adverse effect on our business, financial condition and
results of operations.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to a few statutory exceptions, the OIG has published
safe harbor regulations that outline categories of activities
that are deemed protected from prosecution under the
Anti-Kickback Statute provided all applicable criteria are met.
The failure of a financial relationship to meet all of the
applicable safe harbor criteria does not necessarily mean that
the particular arrangement violates the Anti-Kickback Statute.
In order to obtain additional clarification on arrangements that
may not be subject to a statutory exception or may not satisfy
the criteria of a safe harbor, Congress established a process
under the Health Insurance Portability and Accountability Act of
1996 in which parties can seek an advisory opinion from the OIG.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and others in the healthcare community have taken advantage
of the advisory opinion process, and a number of advisory
opinions have addressed issues that pertain to our various
operations, such as discounted ambulance services being provided
to skilled nursing facilities, patient co-payment
responsibilities, compensation formulas under a management
services arrangement, and ambulance restocking arrangements. In
a number of these advisory opinions the government concluded
that such arrangements could be problematic if the requisite
intent were present. Although advisory opinions are binding only
on HHS and the requesting party or parties, when new advisory
opinions are issued, regardless of the requestor, we review them
and their application to our operations as part of our ongoing
corporate compliance program and endeavor to make appropriate
changes where we perceive the need to do so. See
&#147;&#151;&nbsp;Corporate Compliance Program and Corporate
Integrity Obligations.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Health facilities such as hospitals and nursing homes refer two
categories of ambulance transports to us and other ambulance
companies: (1)&nbsp;transports for which the facility must pay
the ambulance company, and (2)&nbsp;transports which the
ambulance company can bill directly to Medicare or other public
or private payors. In Advisory Opinion 99-2, which we requested,
the OIG addressed the issue of whether substantial contractual
discounts provided to nursing homes on the transports for which
the nursing homes are financially responsible may violate the
Anti-Kickback Statute when the ambulance company also receives
referrals of Medicare and other government-funded transports.
The OIG opined that such discounts implicate the Anti-Kickback
Statute if even one purpose of the discounts is to induce the
referral of the transports paid for by
</DIV>


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<DIV align="left" style="font-size: 10pt;">
Medicare and other federal programs. The OIG further indicated
that a violation may exist even if there is no contractual
obligation on the part of the facility to refer federally funded
patients, and even if similar discounts are provided by other
ambulance companies in the same marketplace. Following our
receipt of this Advisory Opinion in March of 1999, we began
taking steps to bring our contracts with health facilities into
compliance with the OIG&#146;s views. However, the government
has alleged that certain of our contracts in effect in Texas,
principally in periods prior to the issuance of the Advisory
Opinion, violated the Anti-Kickback Statute. Our contracting
practices in Oregon and possibly other jurisdictions may also be
under investigation. See &#147;&nbsp;&#151;&nbsp;American
Medical Response&nbsp;&#151;&nbsp;Legal Matters.&#148; We cannot
assure you that the OIG or other authorities will not find that
our discounting practices in such other jurisdictions, or for
other periods of time, violate the Anti-Kickback Statute.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The OIG has also addressed potential violations of the
Anti-Kickback Statute (as well as other risk areas) in its
Compliance Program Guidance for Ambulance Suppliers. In addition
to discount arrangements with health facilities, the OIG notes
that arrangements between local governmental agencies that
control 911 patient referrals and ambulance companies which
receive such referrals may violate the Anti-Kickback Statute if
the ambulance companies provide inappropriate remuneration in
exchange for such referrals. Although we believe we have
structured our arrangements with local agencies in a manner
which complies with the Anti-Kickback Statute, we cannot assure
you that enforcement agencies will not find that some of those
arrangements violate that statute.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fee-Splitting; Corporate Practice of Medicine</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to various state laws that prohibit the practice
of medicine by corporations and are intended to prevent
unlicensed persons from interfering with or influencing the
physician&#146;s professional judgment and the sharing of
professional services income with non-professional or business
interests. Activities other than those directly related to the
delivery of healthcare may be considered an element of the
practice of medicine in many states. Under the corporate
practice of medicine restrictions of certain states, decisions
and activities such as scheduling, contracting, setting rates
and the hiring and management of non-clinical personnel may
implicate the restrictions on corporate practice of medicine. In
such states, we maintain long-term management contracts with
affiliated physician groups, which employ or contract with
physicians to provide physician services. We believe that we are
in material compliance with applicable state laws relating to
the corporate practice of medicine and fee-splitting. However,
regulatory authorities or other parties, including our
affiliated physicians, may assert that, despite these
arrangements, we are engaged in the corporate practice of
medicine or that our contractual arrangements with affiliated
physician groups constitute unlawful fee-splitting. In this
event, we could be subject to adverse judicial or administrative
interpretations, to civil or criminal penalties, our contracts
could be found legally invalid and unenforceable or we could be
required to restructure our contractual arrangements with our
affiliated physician groups.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Federal Stark Law</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also subject to a provision of the Social Security Act,
commonly known as the &#147;Stark Law.&#148; Where applicable,
this law prohibits a physician from referring Medicare patients
and Medicaid patients to an entity providing &#147;designated
health services&#148; if the physician or a member of such
physician&#146;s immediate family has a &#147;financial
relationship&#148; with the entity, unless an exception applies.
The penalties for violating the Stark Law include the denial of
payment for services ordered in violation of the statute,
mandatory refunds of any sums paid for such services and civil
penalties of up to $15,000 for each violation, and twice the
dollar value of each such service and possible exclusion from
future participation in the federally-funded healthcare
programs. A person who engages in a scheme to circumvent the
Stark Law&#146;s prohibitions may be fined up to $100,000 for
each applicable arrangement or scheme. Although we believe that
we have structured our agreements with physicians so as to not
violate the Stark Law and related regulations, a determination
of liability under the Stark Law could have an adverse effect on
our business, financial condition and results of operations.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Other Federal Healthcare Fraud and Abuse Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also subject to other federal healthcare fraud and abuse
laws. Under the Health Insurance Portability and Accountability
Act of 1996, there are two additional federal crimes that could
have an impact on our business: &#147;Healthcare Fraud&#148; and
&#147;False Statements Relating to Healthcare Matters.&#148; The
Healthcare Fraud statute prohibits knowingly and recklessly
executing a scheme or artifice to defraud any healthcare benefit
program, including private payors. A violation of this statute
is a felony and may result in fines, imprisonment and/or
exclusion from government-sponsored programs. The False
Statements Relating to Healthcare Matters statute prohibits
knowingly and willfully falsifying, concealing or covering up a
material fact by any trick, scheme or device or making any
materially false, fictitious or fraudulent statement in
connection with the delivery of or payment for healthcare
benefits, items or services. A violation of this statute is a
felony and may result in fines and/or imprisonment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although we intend and endeavor to conduct our business in
compliance with all applicable fraud and abuse laws, we cannot
assure you that our arrangements or business practices will not
be subject to government scrutiny or be found to violate
applicable fraud and abuse laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996, or HIPAA,
required the Department of Health and Human Services, or HHS, to
adopt standards to protect the privacy and security of
health-related information. All healthcare providers were
required to be compliant with the new federal privacy
requirements enacted by HHS no later than April&nbsp;14, 2003.
We believe we have taken reasonable measures to comply with
these requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The HIPAA privacy requirements contain detailed requirements
regarding the use and disclosure of individually identifiable
health information. Improper use or disclosure of identifiable
health information covered by the HIPAA privacy regulations can
result in the following civil and criminal penalties:
(1)&nbsp;civil money penalties for HIPAA privacy violations are
$100&nbsp;per incident, to a maximum of $25,000, per person, per
year, per standard violated; (2)&nbsp;a person who knowingly and
in violation of the HIPAA privacy regulations obtains
individually identifiable health information or discloses such
information to another person may be fined up to $50,000 and
imprisoned up to one year, or both; (3)&nbsp;if the offense is
committed under false pretenses, the fine may be up to $100,000
and imprisonment for up to five years; and (4)&nbsp;if the
offense is done with the intent to sell, transfer or use
individually identifiable health information for commercial
advantage, personal gain or malicious harm, the fine may be up
to $250,000 and imprisonment for up to ten years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to enacting the foregoing privacy requirements, HHS
issued a final rule creating security requirements for
healthcare providers and other covered entities on
February&nbsp;20, 2003. The final security rule requires covered
entities to meet specified standards by April&nbsp;25, 2005. The
security standards contained in the final rule do not require
the use of specific technologies (<I>e.g.</I>, no specific
hardware or software is required), but instead require
healthcare providers and other covered entities to comply with
certain minimum security procedures in order to protect data
integrity, confidentiality and availability. We believe we have
taken reasonable steps to comply with these standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
HIPAA also required HHS to adopt national standards establishing
electronic transaction standards that all healthcare providers
must use when submitting or receiving certain healthcare
transactions electronically. Although these standards were to
become effective October 2002, Congress extended the compliance
deadline until October 2003 for organizations, such as ours,
that submitted a request for an extension. We believe we have
taken reasonable steps to comply with these standards.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fair Debt Collection Practices Act</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of our operations may be subject to compliance with certain
provisions of the Fair Debt Collection Practices Act and
comparable statutes in many states. Under the Fair Debt
Collection Practices Act, a third party collection company is
restricted in the methods it uses to contact consumer debtors
and elicit payments with respect to placed accounts.
Requirements under state collection agency statutes vary, with
most requiring compliance similar to that required under the
Fair Debt Collection Practices Act. We believe we are in
substantial compliance with the Fair Debt Collection Practices
Act and comparable state statutes where applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>State Fraud and Abuse Provisions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to state fraud and abuse statutes and
regulations. Most of the states in which we operate have adopted
a form of anti-kickback law, almost all of those states also
have adopted self-referral laws and some have adopted separate
false claims or insurance fraud provisions. The scope of these
laws and the interpretations of them vary from state to state
and are enforced by state courts and regulatory authorities,
each with broad discretion. Generally, state laws cover all
healthcare services and not just those covered under a
federally-funded healthcare program. A determination of
liability under such laws could result in fines and penalties
and restrictions on our ability to operate in these
jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although we intend and endeavor to conduct our business in
compliance with all applicable fraud and abuse laws, we cannot
assure you that our arrangements or business practices will not
be subject to government scrutiny or be found to violate
applicable fraud and abuse laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Licensing, Certification, Accreditation and Related Laws and
Guidelines</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In certain jurisdictions, changes in our ownership structure
require pre-or post-notification to governmental licensing and
certification agencies. Relevant laws and regulations may also
require re-application and approval to maintain or renew our
operating authorities or require formal application and approval
to continue providing services under certain government
contracts. For example, in connection with our acquisition of
AMR from Laidlaw, two of our subsidiaries were required to apply
for state and local ambulance operating authority in New York.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and our affiliated physicians are subject to various federal,
state and local licensing and certification laws and regulations
and accreditation standards and other laws, relating to, among
other things, the adequacy of medical care, equipment, personnel
and operating policies and procedures. We are also subject to
periodic inspection by governmental and other authorities to
assure continued compliance with the various standards necessary
for licensing and accreditations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because we perform services at hospitals and other types of
healthcare facilities, we and our affiliated physicians may be
subject to laws which are applicable to those entities. For
example, our operations are impacted by the Emergency Medical
Treatment and Active Labor Act of 1986, which prohibits
&#147;patient dumping&#148; by requiring hospitals and hospital
emergency department and others to assess and stabilize any
patient presenting to the hospital&#146;s emergency department
or urgent care center requesting care for an emergency medical
condition, regardless of the patient&#146;s ability to pay. Many
states in which we operate have similar state law provisions
concerning patient dumping. Violations of the Emergency Medical
Treatment and Active Labor Act of 1986 can result in civil
penalties and exclusion of the offending physician from the
Medicare and Medicaid programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the Emergency Medical Treatment and Active Labor
Act of 1986 and its state law equivalents, significant aspects
of our operations are affected by state and federal statutes and
regulations governing workplace health and safety, dispensing of
controlled substances and the disposal of medical waste. Changes
in ethical guidelines and operating standards of professional
and trade associations and private accreditation commissions
such as the American Medical Association and the Joint
Commission on
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Accreditation of Healthcare Organizations may also affect our
operations. We believe our operations as currently conducted are
in substantial compliance with these laws and guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Compliance Program and Corporate Integrity
Obligations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have developed a corporate compliance program in an effort to
monitor compliance with federal and state laws and regulations
applicable to healthcare entities, to ensure that we maintain
high standards of conduct in the operation of our business and
to implement policies and procedures so that employees act in
compliance with all applicable laws, regulations and company
policies. Our program also attempts to monitor compliance with
our Corporate Compliance Plan, which details our standards for:
(1)&nbsp;business ethics, (2)&nbsp;compliance with applicable
federal, state and local laws, and (3)&nbsp;business conduct. We
have an Ethics and Compliance Department whose focus is to
prevent, detect and mitigate regulatory risks. We attempt to
accomplish this mission through:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    providing guidance, education and proper controls based on the
    regulatory risks associated with our business model and
    strategic plan,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    conducting internal audits and reviews to identify any improper
    practices that may be occurring,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    resolving regulatory matters,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    enhancing the ethical culture and leadership of the organization.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe our compliance program has been structured
appropriately in light of the guidance provided by the OIG. The
primary compliance program components recommended by the OIG,
all of which we have attempted to implement, include:
</DIV>


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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    formal policies and written procedures,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    designation of a Compliance Officer,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    education and training programs,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    internal monitoring and reviews,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    responding appropriately to detected misconduct,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    open lines of communication,&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    discipline and accountability.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our corporate compliance program is based on the overall goal of
promoting a culture that encourages employees to conduct
activities with integrity, dignity and care for those we serve,
and in compliance with all applicable laws and policies.
Notwithstanding the foregoing, we audit compliance with our
compliance program on a sample basis. Although such an approach
reflects a reasonable and accepted approach in the industry, we
cannot assure you that our program will detect and rectify all
compliance issues in all markets and for all time periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As do other healthcare companies which operate effective
compliance programs, from time to time we identify practices
that may have resulted in Medicare or Medicaid overpayments or
other regulatory issues. For example, we have previously
identified situations in which we may have inadvertently
utilized incorrect billing codes for some of the services we
have billed to government programs such as Medicare or Medicaid.
In such cases, it is our practice to disclose the issue to the
affected government programs and, if appropriate, to refund any
resulting overpayments. The government usually accepts such
disclosures and repayments without taking further enforcement
action, and we generally expect that to be the case with respect
to our past and future disclosures and repayments. However, it
is possible that such disclosures or repayments will
</DIV>

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<DIV align="left" style="font-size: 10pt;">
result in allegations by the government that we have violated
the False Claims Act or other laws, leading to investigations
and possibly civil or criminal enforcement actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, as a condition to settlement of two government
investigations, certain of our operations are subject to
Corporate Integrity Agreements, or CIAs, with the HHS. As part
of these CIAs, AMR was required to establish and maintain a
compliance program that includes the following elements:
(1)&nbsp;a compliance officer and committee, (2)&nbsp;written
standards including a code of conduct and policies and
procedures, (3)&nbsp;general and specific training and
education, (4)&nbsp;claims review by an independent review
organization, (5)&nbsp;disclosure program for reporting of
compliance issues or questions, (6)&nbsp;screening and removal
processes for ineligible persons, (7)&nbsp;notification of
government investigations or legal proceedings and
(8)&nbsp;reporting of overpayments and other &#147;reportable
events.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we fail or if we are accused of failing to comply with the
terms of the settlements, we may be subject to additional
litigation or other government actions, including being excluded
from participating in the Medicare program and other federal
healthcare programs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Risk Factors&nbsp;&#151; Risk Factors Related to
Healthcare Regulation&#148; for additional information related
to regulatory matters.
</DIV>


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<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

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<B>MANAGEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Directors and Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information regarding our
directors and executive officers.
</DIV>

<CENTER>
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<TR style="font-size: 1pt;">
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    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
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<TR>
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position*</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, Chairman and Chief Executive Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, President and Chief Operating Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Financial Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton C. Packard,&nbsp;M.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Medical Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    General Counsel</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Robert M. Le Blanc</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lead Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Steven B. Epstein</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James T. Kelly</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Michael L. Smith</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    Unless otherwise noted, the positions identified are the
    positions held with the general partner of Emergency Medical
    Services L.P. prior to this offering and with Emergency Medical
    Services Corporation following this offering, and it is the
    entity that will survive the reorganization of Emergency Medical
    Services L.P.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<I>William A. Sanger </I>has been a director, chairman and Chief
Executive Officer of Emergency Medical Services Corporation
since February&nbsp;10, 2005. Mr.&nbsp;Sanger was appointed
President of EmCare in 2001 and Chief Executive Officer of AMR
and EmCare in June 2002. Mr.&nbsp;Sanger is a co-founder of
BIDON Companies where he has been a Managing Partner since 1999.
Mr.&nbsp;Sanger served as President and Chief Executive Officer
of Cancer Treatment Centers of America, Inc. from 1997 to 2001.
From 1994 to 1997, Mr.&nbsp;Sanger was co-founder and Executive
Vice President of PhyMatrix Corp., then a publicly traded
diversified health services company. In addition,
Mr.&nbsp;Sanger was president and chief executive officer of
various other healthcare entities, including JFK Health Care
System. Mr.&nbsp;Sanger has an MBA from the Kellogg School of
Management at Northwestern University. Mr.&nbsp;Sanger has been
a leader in the healthcare industry for more than three decades.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Don S. Harvey </I>has been President and Chief Operating
Officer of Emergency Medical Services Corporation since
February&nbsp;10, 2005, and was elected a director of Emergency
Medical Services Corporation in July 2005. Mr.&nbsp;Harvey
joined EmCare as an executive officer in 2001 and was appointed
President in June 2002. Mr.&nbsp;Harvey is a co-founder of BIDON
Companies where he has been a Managing Partner since 1999. Prior
to that, he served as President of the Eastern Region of Cancer
Treatment Centers of America, Inc. from 1997 to 1999. Prior to
that, Mr.&nbsp;Harvey was an executive officer of PhyMatrix
Corp. and Executive Vice President of JFK Healthcare System.
Mr.&nbsp;Harvey is a director of several organizations,
including the emergency medicine industry trade association
EDPMA. Mr.&nbsp;Harvey has more than 20&nbsp;years of experience
in healthcare services serving the public, governmental and
private markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Randel G. Owen </I>has been Chief Financial Officer of
Emergency Medical Services Corporation since February&nbsp;10,
2005. Mr.&nbsp;Owen was appointed Executive Vice President and
Chief Financial Officer of AMR in March 2003. He joined EmCare
in July 1999 and served as Executive Vice President and Chief
Financial Officer from June 2001 to March 2003. Before joining
EmCare, Mr.&nbsp;Owen was Vice President of Group Financial
Operations for PhyCor, Inc. in Nashville, Tennessee from 1995 to
1999. Mr.&nbsp;Owen has more than 20&nbsp;years of financial
experience in the health care industry. Mr.&nbsp;Owen received
an accounting degree from Abilene Christian University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dighton C. Packard,&nbsp;M.D. </I>has been Chief Medical
Officer of EmCare since 1990 and became Chief Medical Officer of
Emergency Medical Services Corporation in April 2005.
Dr.&nbsp;Packard is also the Chairman of the Department of
Emergency Medicine at Baylor University Medical Center in
Dallas, Texas and a member of the Board of Trustees for Baylor
University Medical Center and for Baylor Heart and Vascular
</DIV>

<P align="center" style="font-size: 10pt;">101
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<DIV align="left" style="font-size: 10pt;">
Hospital. Dr.&nbsp;Packard has practiced emergency medicine for
more than 25&nbsp;years. He received his BS from Baylor
University at Waco and his MD from the University of Texas
Medical School at San&nbsp;Antonio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Todd G. Zimmerman </I>has been General Counsel of Emergency
Medical Services Corporation since February&nbsp;10, 2005.
Mr.&nbsp;Zimmerman was appointed General Counsel and Executive
Vice President of EmCare in July 2002 and of AMR in May 2004.
Mr.&nbsp;Zimmerman joined EmCare in October 1997 in connection
with EmCare&#146;s acquisition of Spectrum Emergency Care, Inc.
where he served as Corporate Counsel. Prior to joining Spectrum
in 1997, Mr.&nbsp;Zimmerman worked in the private practice of
law for seven years, providing legal advice and support to
various large corporations. Mr.&nbsp;Zimmerman received his BS
in Business Administration from St.&nbsp;Louis University and
his J.D. from the University of Virginia School of Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Robert M. Le Blanc </I>has served as Managing Director of
Onex Investment Corp., an affiliate of Onex Corporation, a
diversified industrial corporation, since 1999. Prior to joining
Onex in 1999, he was with Berkshire Hathaway for seven years.
From 1988 to 1992, Mr.&nbsp;Le Blanc held numerous positions
with GE Capital, with responsibility for corporate finance and
corporate strategy. Mr.&nbsp;Le Blanc serves as a Director of
Magellan Health Services, Inc., Res-Care, Inc., Center for
Diagnostic Imaging, Inc. and First Berkshire Hathaway Life.
Mr.&nbsp;Le Blanc became a director of Emergency Medical
Services Corporation in December 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Steven B. Epstein </I>became a director of Emergency Medical
Services Corporation in July 2005. Mr.&nbsp;Epstein is the
founder and senior healthcare partner of the law firm of Epstein
Becker&nbsp;&#38; Green,&nbsp;P.C. Epstein Becker&nbsp;&#38;
Green,&nbsp;P.C. generally is recognized as one of the
country&#146;s leading healthcare law firms. Mr.&nbsp;Epstein
serves as a legal advisor to healthcare entities throughout the
U.S.&nbsp;Mr.&nbsp;Epstein received his B.A. from Tufts
University, where he serves on the Board of Trustees and the
Executive Committee, and his J.D. from Columbia Law School,
where he serves as Chairman of the Law School&#146;s Board of
Visitors. In addition, Mr.&nbsp;Epstein serves as a director of
many health care companies and venture capital and private
equity firms, including HealthExtras, Inc. (a pharmacy benefit
company).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>James T. Kelly </I>became a director of Emergency Medical
Services Corporation in July 2005. From 1986 to 1996,
Mr.&nbsp;Kelly served as President and Chief Executive Officer
of Lincare Holding Inc., and he served as Chairman of the Board
of Lincare from 1994 to 2000. Lincare is a publicly traded
company that provides respiratory care, infusion therapy and
medical equipment to patients in the home. Prior to joining
Lincare, Mr.&nbsp;Kelly was with Union Carbide Corporation for
19&nbsp;years, where he served in various management positions.
Mr.&nbsp;Kelly also serves as a director of American Dental
Partners, Inc. (a provider of dental management services) and
HMS Holdings Corp. (a provider of consulting and business office
outsourcing and reimbursement services to healthcare providers).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Michael L. Smith </I>became a director of Emergency Medical
Services Corporation in July 2005. Mr.&nbsp;Smith served as
Executive Vice President and Chief Financial and Accounting
Officer of Anthem, Inc. and its subsidiaries, Anthem Blue Cross
and Blue Shield, from 2001 until his retirement in January 2005.
Mr.&nbsp;Smith was Executive Vice President and Chief Financial
Officer of Anthem Insurance from 1999, and from 1996 to 1998 he
served as Chief Operating Officer and Chief Financial Officer of
American Health Network Inc., then a subsidiary of Anthem.
Mr.&nbsp;Smith was Chairman, President and Chief Executive
Officer of Mayflower Group, Inc. (a transportation company) from
1989 to 1995, and held various other management positions with
that company from 1974 to 1989. Mr.&nbsp;Smith also serves as a
director of First Indiana Corporation and its principal
subsidiary, First Indiana Bank, Finishmaster, Inc. (auto paint
distribution), InterMune, Inc. (a biopharmaceutical company) and
Kite Realty Group Trust (a retail property REIT). Mr.&nbsp;Smith
also serves as a member of the Board of Trustees of DePauw
University, a Trustee of the Indianapolis Museum of Art and a
Trustee of the Michigan Maritime Museum.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as described in this prospectus, there are no
arrangements or understandings between any member of the board
of directors or executive officer and any other person pursuant
to which that person was elected or appointed to his or her
position.
</DIV>

<P align="center" style="font-size: 10pt;">102
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board of directors has the power to appoint our executive
officers. Each executive officer will hold office for the term
determined by the board of directors and until such
person&#146;s successor is chosen or until such person&#146;s
death, resignation or removal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Le Blanc is serving as our Lead Director. In that role,
his primary responsibility is to preside over periodic executive
sessions of our board of directors in which management directors
and other members of management do not participate, and he has
the authority to call meetings of the non-management directors.
The Lead Director also chairs certain portions of board
meetings, serves as liaison between the Chairman of the Board
and the non-management directors, and develops, together with
the Chairman, the agenda for board meetings. The Lead Director
will also perform other duties the board delegates from time to
time to assist the board in fulfilling its responsibilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are no family relationships among any of our directors and
executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Composition of the Board of Directors after this Offering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation, as in effect upon completion
of this offering, will provide for a classified board of
directors consisting of three staggered classes of directors, as
nearly equal in number as possible. At each annual meeting of
stockholders, a class of directors will be elected for a
three-year term to succeed the directors of the same class whose
terms are then expiring. The terms of the directors will expire
upon election and qualification of successor directors at the
annual meeting of stockholders to be held during the years 2006
for the Class&nbsp;I directors, 2007 for the Class&nbsp;II
directors and 2008 for the Class&nbsp;III directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective upon the closing of this offering, our board of
directors will consist of six members, classified as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Class&nbsp;I directors will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Class&nbsp;II directors will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our Class&nbsp;III directors will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our by-laws, as in effect immediately prior to this offering,
will provide that the authorized number of directors, which will
be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
may be changed by a resolution adopted by at least a majority of
our directors then in office. Any additional directorships
resulting from an increase in the number of directors may only
be filled by the directors and will be distributed among the
three classes so that, as nearly as possible, each class will
consist of one-third of the directors. This classification of
our board of directors could have the effect of delaying or
preventing changes in control or changes in our management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following the consummation of this offering, we will be deemed
to be a &#147;controlled company&#148; under the rules of the
NYSE, and we will qualify for, and intend to rely upon, the
&#147;controlled company&#148; exception to the board of
directors and committee composition requirements under the rules
of the NYSE. Pursuant to this exception, we will be exempt from
the rules that would otherwise require that our board of
directors be comprised of a majority of &#147;independent
directors&#148; and that our executive compensation and
corporate governance and nominating committees be comprised
solely of &#147;independent directors,&#148; as defined under
the rules of the NYSE. The &#147;controlled company&#148;
exception does not modify the independence requirements for the
audit committee, and we intend to comply with the requirements
of the Sarbanes-Oxley Act of 2002 and the NYSE rules, which
require that our audit committee be comprised of independent
directors exclusively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the completion of this offering, our board will consist of
six directors, three of whom will qualify as
&#147;independent&#148; according to the rules and regulations
of the SEC and the New York Stock Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Committees of the Board of Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the completion of this offering, our board of directors
will have established an audit committee, a compensation
committee and a corporate governance and nominating committee.
The composition, duties and responsibilities of these committees
are set forth below. Committee members will hold office for a
term of one year.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Audit Committee. </I>The audit committee is responsible for
(1)&nbsp;selecting the independent auditor, (2)&nbsp;approving
the overall scope of the audit, (3)&nbsp;assisting the board of
directors in monitoring the integrity of our financial
statements, the independent accountant&#146;s qualifications and
independence, the performance of the independent accountants and
our internal audit function and our compliance with legal and
regulatory requirements, (4)&nbsp;annually reviewing our
independent auditor&#146;s report describing the auditing
firms&#146; internal quality-control procedures, and any
material issues raised by the most recent internal
quality-control review, or peer review, of the auditing firm,
(5)&nbsp;discussing the annual audited financial and quarterly
statements with management and the independent auditor,
(6)&nbsp;discussing earnings press releases, as well as
financial information and earnings guidance provided to analysts
and rating agencies, (7)&nbsp;discussing policies with respect
to risk assessment and risk management, (8)&nbsp;meeting
separately, periodically, with management, internal auditors and
the independent auditor, (9)&nbsp;reviewing with the independent
auditor any audit problems or difficulties and management&#146;s
response, (10)&nbsp;setting clear hiring policies for employees
or former employees of the independent auditors,
(11)&nbsp;handling such other matters that are specifically
delegated to the audit committee by the board of directors from
time to time and (12)&nbsp;reporting regularly to the full board
of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, our audit committee will
consist of Messrs.&nbsp;Epstein, Kelly and Smith, with
Mr.&nbsp;Smith serving as chairman of the committee. All of the
committee members have been determined to be independent
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
Mr.&nbsp;Smith have each been determined to be an &#147;audit
committee financial expert,&#148; as such term is defined in
Item&nbsp;401(h) of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation Committee. </I>The compensation committee is
responsible for (1)&nbsp;reviewing key employee compensation
policies, plans and programs, (2)&nbsp;reviewing and approving
the compensation of our executive officers, (3)&nbsp;reviewing
and approving employment contracts and other similar
arrangements between us and our executive officers,
(4)&nbsp;reviewing and consulting with the chief executive
officer on the selection of officers and evaluation of executive
performance and other related matters, (5)&nbsp;administration
of stock plans and other incentive compensation plans and
(6)&nbsp;such other matters that are specifically delegated to
the compensation committee by the board of directors from time
to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, our compensation committee
consists of Messrs.&nbsp;Kelly, Le Blanc
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
with Mr.&nbsp;Kelly serving as chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Corporate Governance and Nominating Committee. </I>Our
corporate governance and nominating committee&#146;s purpose
will be to assist our board of directors by identifying
individuals qualified to become members of our board consistent
with the criteria set by our board and to develop our corporate
governance principles. This committee&#146;s responsibilities
will include: (1)&nbsp;evaluating the composition, size and
governance of our board of directors and its committees and
making recommendations regarding future planning and the
appointment of directors to our committees,
(2)&nbsp;establishing a policy for considering stockholder
nominees for election to our board of directors,
(3)&nbsp;recommending ways to enhance communications and
relations with our stockholders, (4)&nbsp;evaluating and
recommending candidates for election to our board of directors,
(5)&nbsp;overseeing our board of directors&#146; performance and
self-evaluation process and developing continuing education
programs for our directors, (6)&nbsp;reviewing our corporate
governance principles and providing recommendations to the board
of directors regarding possible changes, and (7)&nbsp;reviewing
and monitoring compliance with our code of ethics and our
insider trading policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, our corporate governance and
nominating committee will consist of Messrs.&nbsp;Le
Blanc, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compliance Committee.</I> Our compliance committee is
responsible for overseeing our Corporate Compliance Program. The
committee&#146;s responsibilities include oversight of our
processes for maintaining and monitoring compliance with federal
and state laws applicable to healthcare entities. The specific
functions overseen by the committee include our procedures for
(1)&nbsp;providing guidance and education to our workforce,
(2)&nbsp;performing compliance audits, (3)&nbsp;resolving
regulatory matters that come to our attention through our
compliance hotline, our audit activities or contacts from
government agencies and (4)&nbsp;enhancing the ethical culture
and leadership of our organization. Our compliance officers, who
supervise our Ethics and Compliance Department, will report
directly to the compliance committee and will meet with it on a
regular basis.
</DIV>

<P align="center" style="font-size: 10pt;">104

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, our compliance committee will
consist of Messrs. Le
Blanc, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
with Mr. Le Blanc serving as chairman.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other Committees. </I>Our board of directors may establish
other committees as it deems necessary or appropriate from time
to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation arrangements for our Chief Executive Officer
and each of our named executive officers were established
pursuant to the terms of the respective employment agreements
between us and each executive officer. The terms of the
employment agreements were established pursuant to arms-length
negotiations between a representative of Onex and each executive
officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None of our executive officers serves, and we anticipate that
none will serve, as a member of the board of directors or
compensation committee of any entity that has one or more
executive officers that serves on our board of directors or
compensation committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering, directors who are not our employees
will receive an annual cash payment of $35,000, payable
quarterly, $2,000 for each board meeting attended in person and
$1,000 for each board meeting attended via conference call, and
$1,000 and $500, respectively, for each committee meeting
attended in person or via conference call. The chair of the
audit committee and the compensation committee will receive an
additional $15,000 and $10,000, respectively. Consistent with
corporate policy, Mr.&nbsp;Le Blanc, as chairman of the
compliance committee, will receive no compensation for his
services to the company. When they were elected to the board, we
granted to each of Messrs. Epstein, Kelly and Smith an option to
purchase 2,500 partnership units, with the same vesting schedule
as is applicable to our executive officers. See
&#147;Management&nbsp;&#151; Executive Compensation&#148;. All
directors are reimbursed for their out-of-pocket expenses
incurred in connection with such services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the compensation of our chief
executive officer and the four other most highly compensated
executive officers during fiscal 2004. We refer to these
officers as our named executive officers.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary Compensation Table</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Annual Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Annual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Long-Term</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name and Principal Position(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Salary</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Bonus</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation Awards(3)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation(4)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>571,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>488,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>9,957</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Executive Officer of AMR and of EmCare</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>390,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>337,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>3,925</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Operating Officer of EmCare</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>286,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>117,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>55,944(5</TD>
    <TD align="left" valign="top" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>35,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>7,745</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Financial Officer of AMR</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton C. Packard,&nbsp;M.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>211,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>83,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>21,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>4,571</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chief Medical Officer of EmCare</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>201,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>146,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>11,594</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>5,157</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    General Counsel of EmCare</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Represents each person&#146;s principal position in fiscal 2004.
    All of these individuals became executive officers of Emergency
    Medical Services in connection with the acquisition.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt;">105
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    In accordance with the rules of the SEC, other annual
    compensation disclosed in this table does not include various
    perquisites and other personal benefits received by a named
    executive officer that does not exceed the lesser of $50,000 or
    10% of such officer&#146;s total annual salary and bonus
    disclosed in this table.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    Represents the vesting of restricted share awards granted to the
    named executive officers by Laidlaw on November&nbsp;24, 2004,
    as follows: Mr.&nbsp;Owen&nbsp;&#151; 1,900&nbsp;shares;
    Dr.&nbsp;Packard&nbsp;&#151; 1,150&nbsp;shares;
    Mr.&nbsp;Zimmerman&nbsp;&#151; 625&nbsp;shares. In connection
    with the acquisition, these awards terminated and no further
    restricted shares will vest.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    Represents matching contributions to company 401(k) plans.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)</TD>
    <TD align="left">
    Other annual compensation for Mr.&nbsp;Owen includes a
    relocation allowance of $47,544.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
Substantially all of our salaried employees, including our named
executive officers, participate in our 401(k) savings plans. We
maintain three 401(k) plans for eligible AMR employees.
Employees may contribute a maximum of 40% of their compensation
up to a maximum of $13,000. We match the contribution up to a
maximum of 3% to 6% of the employee&#146;s salary per year,
depending on the plan. Eligible EmCare employees may elect to
contribute 1% to 25% of their annual compensation and we match
50% of the first 6% of base compensation that an employee
contributes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to our acquisition of AMR and EmCare, our named executive
officers participated in the Laidlaw, Inc. U.S. Supplemental
Executive Retirement Arrangement, or SERP. The benefit amount
payable under the plan at age 65 is based upon an
employee&#146;s final average earnings. The form of the benefit
would be an annuity, guaranteed for five years. Based on the
number of years of service and their respective salaries prior
to the acquisition, the following are the total estimated
accrued values of future benefits payable under the Laidlaw SERP
to the named executive officers on retirement, calculated at
August&nbsp;31, 2004: Mr.&nbsp;Sanger&nbsp;&#151; $169,532;
Mr.&nbsp;Harvey &nbsp;&#151; $69,782; Mr.&nbsp;Owen&nbsp;&#151;
$141,190; Dr.&nbsp;Packard&nbsp;&#151; $169,030; and
Mr.&nbsp;Zimmerman &nbsp;&#151; $92,481. No additional benefits
will accrue under the SERP.
</DIV>

<P align="center" style="font-size: 10pt;">106

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Option Grants and Stock Awards</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were no stock option grants or restricted stock awards to
the named executive officers in fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information regarding options
granted to each of our named executive officers in February 2005
in connection with our acquisition of AMR and EmCare. Potential
realizable value is based upon the assumed initial public
offering of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, and is net of the exercise price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. The potential realizable value set forth in the last
column of the table is calculated based on the term of the
option at the time of the grant, which is ten years. The assumed
5% and 10% rates of appreciation comply with the rules of the
SEC and do not represent our estimate of future stock price.
Actual gains, if any, on stock option exercises will be
dependent on future performance of our class&nbsp;A common
stock. We have not granted any stock appreciation rights to any
of the named executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exercise price of each option listed below is equal to the
price paid per share by our initial investors. Each option may
be exercised only upon the vesting of such options. One-half of
the options held by each named executive officer vest ratably
over a four-year period as of the one-year anniversaries of the
grant (the 6-month anniversaries, in the case of
Mr.&nbsp;Sanger), and one-half vest ratably over the same period
but are exercisable only if a specified performance target is
met. See &#147;&nbsp;&#151; Equity Plans&nbsp;&#151; Equity
Option Plan.&#148; The percentage of total options is based upon
options to purchase an aggregate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock granted to employees under the
equity option plan we adopted in connection with the acquisition
of AMR and EmCare.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Option Grants in Fiscal 2005</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="16" align="center" nowrap><B>Individual Grants</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Potential Realizable</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="16" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Value of Assumed</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Annual Rates of Stock</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Price Appreciation for</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Underlying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Option Term</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Employees in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expiration Date(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5%</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>10%</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>988,112</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February 10, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>247,028</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February 10, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>247,028</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February 10, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>98,811</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February 10, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton C. Packard,&nbsp;M.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,500</TD>
    <TD align="left" valign="bottom" nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>February 10, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    The options may expire earlier, upon termination of employment
    or certain corporate events. See &#147;&#151; Equity
    Plans&nbsp;&#151; Equity Option Plan.&#148; If the
    employee&#146;s employment is terminated prior to
    February&nbsp;10, 2015, his options will expire earlier as
    follows: (a)&nbsp;upon the termination of employment if the
    termination is for &#147;cause&#148;, (b)&nbsp;30&nbsp;days
    after the termination of employment, or such other date as
    determined by the compensation committee, following termination
    by the employee for &#147;good reason&#148; or by us without
    &#147;cause&#148; or due to retirement, or (c)&nbsp;90&nbsp;days
    after termination of employment due to death or disability.
    Vesting of the options may accelerate, and all options will
    terminate if not exercised, upon (i)&nbsp;a sale of our equity
    (other than a sale as part of an initial public offering)
    whereby any person other than existing equity holders as of the
    grant date acquire our voting power to elect a majority of our
    board of directors or (ii)&nbsp;a sale of all or substantially
    all of our assets.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    The options vest ratably on the first eight six-month
    anniversaries of the grant date, <I>provided</I>, that the
    exercisability of one-half of the options is conditioned upon
    meeting certain specified performance targets. See &#147;&#151;
    Equity Plans&nbsp;&#151; Equity Option Plan.&#148; If
    Mr.&nbsp;Sanger is terminated, the options will vest as
    scheduled to the nearest six-month anniversary of the grant date.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    The options vest ratably on the first four anniversaries of the
    grant date, provided, that the exercisability of one-half of the
    options is conditioned upon meeting certain specified
    performance targets. See &#147;&#151; Equity Plans&nbsp;&#151;
    Equity Option Plan.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
None of the named executive officers held any stock options
during the fiscal year ended August&nbsp;31, 2004 and none of
them held unexercised stock options at that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employment Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into employment agreements with
Messrs.&nbsp;Sanger, Harvey, Owen and Zimmerman, each effective
February&nbsp;10, 2005, and with Dr.&nbsp;Packard effective
April&nbsp;19, 2005. Mr.&nbsp;Sanger&#146;s employment agreement
has a five-year term and Mr.&nbsp;Harvey&#146;s employment
agreement has a four-year term. The employment agreements of
Mr.&nbsp;Owen, Mr.&nbsp;Zimmerman and Dr.&nbsp;Packard have a
three-year, a two-year term
</DIV>

<P align="center" style="font-size: 10pt;">107

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<DIV align="left" style="font-size: 10pt;">
and a one-year term, respectively, and renew automatically for
successive one-year terms unless either party gives notice at
least 90&nbsp;days prior to the expiration of the then current
term. Each executive has the right to terminate his agreement on
90&nbsp;days&#146; notice, in which event he will be subject to
the non-compete provisions described below, provided he receives
specified severance benefits. The employment agreements include
provisions for the payment of an annual base salary as well as
the payment of a bonus based upon the achievement of performance
criteria established by our board of directors or, in the case
of Dr.&nbsp;Packard, our Chief Executive Officer or President.
The annual base salary of Mr.&nbsp;Sanger is subject to annual
review and adjustment after the second anniversary of the
effectiveness of the agreement. The annual base salary of
Messrs.&nbsp;Harvey, Owen and Zimmerman are subject to annual
review and adjustment after the first anniversary of the
effectiveness of the agreements. Dr.&nbsp;Packard&#146;s base
salary is subject to a $100,000 increase if he reduces his
clinical activities and increases the time he provides services
to us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we terminate a named executive officer&#146;s employment
without cause or any of them leaves after a change of control
for one of several specified reasons, we have agreed to continue
the executive&#146;s base salary and provide his benefits for a
period of 24&nbsp;months from the date of termination for
Messrs.&nbsp;Sanger, Harvey and Owen, 18&nbsp;months for
Mr.&nbsp;Zimmerman, and 12&nbsp;months for Dr.&nbsp;Packard.
These agreements contain non-competition and non-solicitation
provisions pursuant to which the executive agrees not to compete
with AMR or EmCare or solicit or recruit our employees for a
period from the date of termination for 24&nbsp;months in the
case of Mr.&nbsp;Sanger, Mr.&nbsp;Harvey, Mr.&nbsp;Owen and
Dr.&nbsp;Packard and 12&nbsp;months in the case of
Mr.&nbsp;Zimmerman.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The annual base salary and target bonus for each named executive
officer is as follows:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Target</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Annual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Bonus</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Executive</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Base Salary</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>850,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton C. Packard,&nbsp;M.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>260,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to their employment agreements, effective
February&nbsp;10, 2005, we granted options to purchase our
class&nbsp;A common stock to each named executive officer. See
&#147;&#151;&nbsp;Option Grants and Stock Awards&#148; and
&#147;&#151;&nbsp;Equity Plans&nbsp;&#151; Equity Option
Plan.&#148; The option grant to each of these named executive
officers was conditioned upon his investment in our equity in an
amount as indicated in his respective employment agreement.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our executive employment agreements with Messrs.&nbsp;Sanger,
Harvey, Owen and Zimmerman include indemnification provisions.
Under those agreements, we agree to indemnify each of these
individuals against claims arising out of events or occurrences
related to that individual&#146;s service as our agent or the
agent of any of our subsidiaries to the fullest extent legally
permitted. Under Delaware law, an officer may be indemnified,
except to the extent any claim arises from conduct that was not
in good faith or in a manner reasonably believed to be in, or
not opposed to, our best interest or, with respect to any
criminal action or proceedings, there was reasonable cause to
believe such conduct was unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Equity Plans</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Equity Option Plan</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We adopted our equity option in connection with the acquisition
of AMR and EmCare. We have granted options to purchase 2,337,479
partnership units under the plan and have reserved an additional
379,830 units for future grants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation committee of our board of directors, or the
board itself if there is no committee, administers the equity
option plan.
</DIV>

<P align="center" style="font-size: 10pt;">108

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The plan provides that if Emergency Medical Services undergoes a
reorganization, recapitalization or other change in its equity,
the compensation committee may make adjustments to the plan in
order to prevent dilution of outstanding options. In connection
with this offering, each option to purchase one partnership unit
at a price
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
unit will be adjusted to become the right to
purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock at a price
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The options to purchase 2,337,479 partnership units we have
granted under the plan are non-qualified options for federal
income tax purposes. These options have the following terms:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    exercise price equal to $10.00 per unit, being the equity
    purchase price paid by the initial investors,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    vesting ratably on each of the first four anniversaries of the
    grant date (the first eight 6-month anniversaries in the case of
    Mr. Sanger), <I>provided</I>, that the exercisability of
    one-half of the options granted to each employee is subject to
    the further condition that Onex has realized a 15% internal rate
    of return, as defined, or, on the fourth anniversary of the
    grant date, we have achieved an aggregate EBITDA of not less
    than $617.4&nbsp;million, subject to certain adjustments, for
    the four fiscal years ending December&nbsp;31, 2008,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    each option expires on the tenth anniversary of the grant date
    unless the employee&#146;s employment is terminated earlier, in
    which case the options will expire as follows: (i)&nbsp;upon the
    termination of employment if the termination is for
    &#147;cause&#148;, (ii)&nbsp;30&nbsp;days after the termination
    of employment, or such other date as determined by the
    compensation committee, following termination by the employee
    for &#147;good reason&#148; or by us without &#147;cause&#148;
    or due to retirement, or (iii)&nbsp;90&nbsp;days after
    termination of employment due to death or disability, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    upon (i)&nbsp;a sale of the equity of Emergency Medical Services
    (other than a sale as part of this offering) whereby any person
    other than existing equity holders as of the grant date acquire
    voting power to elect a majority of our board of directors or
    (ii)&nbsp;a sale of all or substantially all of our assets, all
    options granted to each employee will accelerate (although still
    subject to the performance target) and will terminate if not
    exercised.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All options and Emergency Medical Services equity held by our
senior management are governed by agreements which:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    restrict transfer of their equity until the fifth anniversary of
    purchase, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    grant &#147;piggyback&#148; registration rights.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
See &#147;Description of Capital Stock&nbsp;&#151; Equityholder
Agreements&#148; and &#147;&#151;&nbsp;Registration
Agreement&#148; for a description of the transfer restrictions
and &#147;piggyback&#148; registration rights.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Management Investment and Equity Purchase Plan</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with our acquisition of AMR and EmCare, our named
executive officers purchased an aggregate of 407,500 units. See
&#147;Certain Relationships and Related Party
Transactions&nbsp;&#151; Issuance of Shares.&#148; Approximately
160&nbsp;employees and affiliated physicians, physician
assistants and nurse practitioners purchased in the aggregate an
additional 155,050 partnership units pursuant to our equity
purchase plan. All units held by these investors, including our
named executive officers, and
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common stock these units will be converted
into, are governed by equityholders agreements. These agreements
contain restrictions on transfer of the equity. See
&#147;Description of Capital Stock&nbsp;&#151; Equityholder
Agreements.&#148;
</DIV>


<P align="center" style="font-size: 10pt;">109
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<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

<!-- link1 "PRINCIPAL AND SELLING STOCKHOLDERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PRINCIPAL AND SELLING STOCKHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows information with respect to the
beneficial ownership of our common stock as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005, giving effect to our reorganization as a holding company,
including the exchange of limited partnership units for
class&nbsp;A common stock, the assumed exchange of LP
exchangeable units for our class&nbsp;B common stock,
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock
split, and as adjusted to reflect the sale of our class&nbsp;A
common stock being offered in this offering, by:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    each person known by us to own beneficially 5% or more of our
    class&nbsp;A or class&nbsp;B common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    each of our directors,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    each of our named executive officers, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    all of our directors and executive officers as a group.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, up
to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP
exchangeable units owned by the Onex entities may be exchanged
for shares of our class&nbsp;B common stock, converted into
class&nbsp;A common stock and sold if the underwriters exercise
their over-allotment option, as set forth in this section. No
members of management, and no other stockholder, is selling
common stock as a part of this offering.
</DIV>


<P align="center" style="font-size: 10pt;">110
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<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Before Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>After Offering</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Class/All</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Class/All</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Voting</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Voting</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Owned(1)(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Five Percent Stockholders</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Corporation(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LP(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LLC(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex EMSC Co-Invest LP(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Directors and Executive Officers</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Robert M. Le Blanc(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Steven B. Epstein(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James T. Kelly(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Michael L. Smith(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton C. Packard, M.D.(9)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All directors and executive officers as a group (9&nbsp;persons)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><BR>class B<BR><BR>class A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp; &nbsp;*&nbsp; &nbsp;</TD>
    <TD align="left">
    Represents beneficial ownership of less than 1%.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The amounts and percentages of our common stock beneficially
    owned are reported on the basis of regulations of the SEC
    governing the determination of beneficial ownership of
    securities. Under the rules of the SEC, a person is deemed to be
    a &#147;beneficial owner&#148; of a security if that person has
    or shares &#147;voting power,&#148; which includes the power to
    vote or direct the voting of such security, or &#147;investment
    power,&#148; which includes the power to dispose of or to direct
    the disposition of such security. A person is also deemed to be
    a beneficial owner of any securities of which that person has a
    right to acquire beneficial ownership within 60&nbsp;days,
    including our common stock subject to an option that is
    exercisable within 60&nbsp;days. Under these rules, more than
    one person may be deemed to be a beneficial owner of such
    securities as to which such person has an economic interest.
    None of the options granted under our equity option plan is
    exercisable within 60&nbsp;days.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    On each matter submitted to the stockholders for their vote, our
    class&nbsp;A common stock is entitled to one vote per share, and
    our class&nbsp;B common stock is entitled to ten votes per
    share, reducing to one vote per share under certain limited
    circumstances. Except as required by law, our class A and
    class&nbsp;B common stock vote together on all matters submitted
    to stockholders for their vote.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Includes the following:
    (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by Onex Partners LP;
    (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by Onex Partners LLC;
    (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by Onex EMSC Co-Invest LP;
    (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by EMS Executive Investco LLC;
    (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by Onex US Principals LP; and
    (vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
    units held by Emergency Medical Services Corporation. Onex
    Corporation may be deemed to own beneficially the LP
    exchangeable units held by (a)&nbsp;Onex Partners&nbsp;LP,
    through Onex&#146; ownership of all of the common stock of Onex
    Partners&nbsp;GP, Inc., the general partner of Onex
    Partners&nbsp;GP&nbsp;LP, the general partner of Onex
    Partners&nbsp;LP; (b)&nbsp;Onex Partners&nbsp;LLC, through
    Onex&#146; ownership of all of the equity of Onex
    Partners&nbsp;LLC; (c)&nbsp;Onex EMS Co-Invest&nbsp;LP, through
    Onex&#146; ownership of all of the common stock of Onex</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">111

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">Partners&nbsp;GP, Inc., the general
    partner of Onex Partners&nbsp;GP&nbsp;LP, the general partner of
    Onex EMSC Co-Invest&nbsp;LP; (d)&nbsp;EMS&nbsp;Executive
    Investco LLC, through Onex&#146; ownership of Onex American
    Holdings&nbsp;II&nbsp;LLC which owns 33.33% of the voting power
    of EMS&nbsp;Executive Investco&nbsp;LLC; and (e)&nbsp;Onex
    US&nbsp;Principals&nbsp;LP through Onex&#146; ownership of all
    of the equity of Onex American Holdings&nbsp;GP&nbsp;LLC, the
    general partner of Onex US&nbsp;Principals&nbsp;LP.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">In addition, prior to the formation
    of our holding company, Onex Corporation&#146;s subsidiary, Onex
    American Holdings&nbsp;II&nbsp;LLC, owns 50% of the voting stock
    of Emergency Medical Services Corporation, the general partner
    of EMS&nbsp;L.P., and a 99.9% economic interest in Emergency
    Medical Services Corporation. Emergency Medical Services
    Corporation owns directly less than .001% of the equity interest
    of EMS&nbsp;L.P. However, as its general partner, Emergency
    Medical Services Corporation may be deemed to own beneficially
    all of the equity of the partnership. The equity owned by
    Emergency Medical Services Corporation may be deemed
    beneficially owned 50% by Mr.&nbsp;Le&nbsp;Blanc and 50% by Onex
    American Holdings&nbsp;II LLC and Onex Corporation.
    Mr.&nbsp;Le&nbsp;Blanc disclaims such beneficial ownership.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">Mr.&nbsp;Gerald W. Schwartz, the
    Chairman, President and Chief Executive Officer of Onex
    Corporation, owns shares representing a majority of the voting
    rights of the shares of Onex Corporation and as such may be
    deemed to own beneficially all of the LP&nbsp;exchangeable units
    owned beneficially by Onex Corporation. Mr.&nbsp;Schwartz
    disclaims such beneficial ownership. The address for Onex
    Corporation is 161 Bay Street, Toronto, ON M5J 2S1
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">All of the LP&nbsp;exchangeable
    units owned by Onex Partners LP may be deemed owned beneficially
    by each of Onex Partners GP LP, Onex Partners&nbsp;GP,&nbsp;Inc.
    and Onex Corporation. The address for Onex Partners LP is
    c/o&nbsp;Onex Investment Corporation, 712 Fifth Avenue, New
    York, New York 10019.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">All of the LP exchangeable units
    owned by Onex Partners LLC may be deemed owned beneficially by
    Onex Corporation. The address for Onex Partners LLC is 421
    Leader Street, Marion, Ohio 43302.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">All of the LP exchangeable units
    owned by Onex EMSC Co-Invest LP may be deemed owned beneficially
    by each of Onex Partners GP LP, Onex Partners GP, Inc. and Onex
    Corporation. The address for Onex EMSC Co-Invest LP is
    c/o&nbsp;Onex Investment Corporation, 712 Fifth Avenue, New
    York, New York 10019.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">Includes
    (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP
    exchangeable units held by Onex US&nbsp;Principals LP which may
    be deemed owned beneficially by Mr.&nbsp;Le&nbsp;Blanc by reason
    of his pecuniary interest in the LP exchangeable units owned by
    Onex US&nbsp;Principals LP,
    (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP
    exchangeable units owned by Onex EMSC Co-Invest LP which may be
    deemed to be owned beneficially by Mr.&nbsp;Le Blanc by reason
    of his pecuniary interest in Onex EMSC Co-Invest LP and
    (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of LP exchangeable units owned by Emergency Medical Services
    Corporation. Prior to our reorganization into a holding company,
    Mr.&nbsp;Le Blanc owns 50% of the voting common stock of
    Emergency Medical Service Corporation and a 0.01% economic
    interest in Emergency Medical Services Corporation. See note
    (3)&nbsp;with respect to Emergency Medical Services
    Corporation&#146;s equity interest in EMS&nbsp;L.P., as to which
    Mr.&nbsp;Le Blanc disclaims beneficial ownership. Mr.&nbsp;Le
    Blanc also disclaims beneficial interest in the LP exchangeable
    units owned by Onex US Principals LP and Onex EMSC
    Co-Invest&nbsp;LP. Mr.&nbsp;Le Blanc&#146;s address is
    c/o&nbsp;Onex Investment Corporation, 712 Fifth Avenue, New
    York, New&nbsp;York&nbsp;10019.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">The address of these stockholders
    is c/o Emergency Medical Services Corporation, 6200 S. Syracuse
    Way, Suite&nbsp;200, Greenwood Village, Colorado 80111-4737.
    </FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT style="font-size: 8pt">(9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT style="font-size: 8pt">The address of this stockholder is
    c/o EmCare Holdings Inc., 1717 Main Street, Suite&nbsp;5200,
    Dallas, Texas 75201.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information regarding the
ownership of shares of our common stock assuming the
underwriters&#146; over-allotment option is exercised in full:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Shares Beneficially Owned</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>After the Offering</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Offered</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>in Over-</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Allotment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Class/All</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Option</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting Power</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LP</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex EMSC Co-Invest LP</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex US Principals LP</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EMS Executive Investco LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreed to pay all the expenses of the selling
stockholders in connection with this offering other than
underwriting discounts and commissions. In the event the
underwriters&#146; over-allotment option is not exercised in
full, the number of shares to be sold by the selling
stockholders named above will be reduced proportionately.
</DIV>

<P align="center" style="font-size: 10pt;">112
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='124'></A>
</DIV>

<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF CAPITAL STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following description summarizes the material terms of our
capital stock and provisions of our restated certificate of
incorporation and restated by-laws as they will be in effect
upon completion of this offering. This description also
summarizes the principal agreements relating to the LP
exchangeable units. Because this is only a summary, it does not
contain all of the information that may be important to you. For
a complete description, you should refer to our restated
certificate of incorporation and restated by-laws, the
EMS&nbsp;L.P. limited partnership agreement, and the voting and
exchange trust agreement and the support agreement referred to
below, copies of which will be filed as exhibits to the
registration statement of which this prospectus is a part, and
to the applicable provisions of the Delaware General Corporation
Law, or the DGCL, and the Delaware Revised Uniform Limited
Partnership Act. References to our certificate of incorporation
and to our by-laws are references to these documents, as
restated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the time of this offering, our authorized capital stock will
consist of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    shares of class&nbsp;A common stock, par value $0.01 per share,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    shares of class&nbsp;B common stock, par value $0.01 per share,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    one share of class&nbsp;B special voting stock, $0.01 par value,
    and</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    shares of preferred stock, par value $0.01 per share.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Of
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized
shares of class&nbsp;A common stock, pursuant to this offering
we are
offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
and, subject to the underwriters&#146; exercise of their
over-allotment option in full, the selling stockholders are
offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares.
On the closing of this offering, if the underwriters&#146;
over-allotment option is not
exercised, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock will be
outstanding, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP
exchangeable units will be outstanding and held by the Onex
entities, and there will be no shares of class&nbsp;B common
stock or preferred stock outstanding. If the underwriters&#146;
over-allotment option is exercised in full, the number of shares
of class&nbsp;A common stock outstanding will increase, and the
number of LP exchangeable units outstanding will decrease,
by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We refer to our class&nbsp;A common stock and our class&nbsp;B
common stock together as &#147;our common stock.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The class&nbsp;A common stock and the class&nbsp;B common stock
will be identical in all respects, except with respect to voting
and except that each share of class&nbsp;B common stock is
convertible into one share of class&nbsp;A common stock at the
option of the holder. All of our existing common stock is, and
the shares of class&nbsp;A common stock being offered by us and
the selling stockholders, if any, in this offering will be, upon
payment therefor, validly issued, fully paid and non-assessable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Voting Rights. </I>Generally, on all matters on which the
holders of common stock are entitled to vote, the holders of the
class&nbsp;A common stock, the class&nbsp;B common stock and the
class&nbsp;B special voting stock vote together as a single
class. On all matters with respect to which the holders of our
common stock are entitled to vote, each outstanding share of
class&nbsp;A common stock is entitled to one vote, each
outstanding share of class&nbsp;B common stock is entitled to
ten votes and the one share of class&nbsp;B special voting stock
is entitled to a number of votes equal to the number of votes
that could be cast if all of the then outstanding LP
exchangeable units were exchanged for class&nbsp;B common stock.
If the Minimum Hold Condition is no longer satisfied, the number
of votes per share of class&nbsp;B common stock will be reduced
automatically to one vote per share. The Minimum Hold Condition
is satisfied so long as the aggregate of the numbers of
outstanding shares of class&nbsp;B common stock and LP
exchangeable units is at least 10% of the total number of shares
of common stock and LP exchangeable units outstanding.
</DIV>


<P align="center" style="font-size: 10pt;">113

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I>Class&nbsp;A Common Stock. </I>In addition to the other
    voting rights or power to which the holders of class&nbsp;A
    common stock are entitled, holders of class A common stock are
    entitled to vote as a separate class on approval of (i)&nbsp;any
    alteration, repeal or amendment of our certificate of
    incorporation which would adversely affect the powers,
    preferences or rights of the holders of class&nbsp;A common
    stock; and (ii)&nbsp;any merger or consolidation of our company
    with any other entity if, as a result, shares of class&nbsp;B
    common stock would be converted into or exchanged for, or
    receive, any consideration that differs from that applicable to
    the shares of class&nbsp;A common stock as a result of such
    merger or consolidation, other than a difference limited to
    preserving the relative voting power of the holders of the
    class&nbsp;A common stock, the class&nbsp;B common stock and the
    class&nbsp;B special voting stock. In respect of any matter as
    to which the holders of the class&nbsp;A common stock are
    entitled to a class vote, holders have one vote per share, and
    the affirmative vote of the holders of a majority of the shares
    of class&nbsp;A common stock outstanding is required for
    approval.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I>Class&nbsp;B Common Stock and Class&nbsp;B Special Voting
    Stock.</I> In addition to the other voting rights or power to
    which the holders of class&nbsp;B common stock and class&nbsp;B
    special voting stock are entitled, holders of class&nbsp;B
    common stock and class&nbsp;B special voting stock are entitled
    to vote together as a single class on approval of (i)&nbsp;any
    alteration, repeal or amendment of our certificate of
    incorporation which would adversely affect the powers,
    preferences or rights of the holders of class&nbsp;B common
    stock or class&nbsp;B special voting stock; and (ii)&nbsp;any
    merger or consolidation of our company with any other entity if,
    as a result, (a)&nbsp;the class&nbsp;B special voting stock
    would not remain outstanding or (b)&nbsp;shares of class&nbsp;B
    common stock would be converted into or exchanged for, or
    receive, any consideration that differs from that applicable to
    the shares of Class&nbsp;A common stock as a result of such
    merger or consolidation, other than a difference limited to
    preserving the relative voting power of the holders of the
    class&nbsp;A common stock, the class&nbsp;B common stock and the
    class&nbsp;B special voting stock. In respect of any matter as
    to which the holders of the class&nbsp;B common stock and
    class&nbsp;B special voting stock are entitled to a class vote,
    holders of class&nbsp;B common stock have one vote per share and
    the holder of the class&nbsp;B special voting stock will have
    one vote for each LP&nbsp;exchangeable unit outstanding, and the
    affirmative vote of the holders of a majority of the votes
    entitled to be cast is required for approval.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Dividend Rights. </I>Subject to preferences that may apply to
shares of preferred stock outstanding at the time, holders of
our outstanding common stock are entitled to any dividend
declared by the board of directors out of funds legally
available for this purpose. No dividend can be declared on the
class&nbsp;A or class&nbsp;B common stock unless at the same
time an equal dividend is paid on each share of class&nbsp;A or
class&nbsp;B common stock, as the case may be. Dividends paid in
shares of our common stock must be paid, with respect to a
particular class of common stock, in shares of that class. We
will not pay dividends on our class&nbsp;B special voting stock.
The holders of the LP exchangeable units have the right to
receive distributions equivalent to, on a per share/per unit
basis, the dividends paid to the holders of the class&nbsp;A and
class&nbsp;B common stock. If a dividend with respect to our
common stock is paid in shares of common stock, the
corresponding distribution with respect to the
LP&nbsp;exchangeable units will be made in LP&nbsp;exchangeable
units.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Conversion Rights.</I> The class&nbsp;A common stock is not
convertible. Each share of class&nbsp;B common stock may be
converted at any time at the option of the holder into one share
of class&nbsp;A common stock. The class&nbsp;B common stock will
be converted automatically into class&nbsp;A common stock upon a
transfer thereof to any person other than (i)&nbsp;Onex
Corporation, (ii)&nbsp;an affiliate of Onex, (iii)&nbsp;Gerald
W. Schwartz or an affiliate of Mr.&nbsp;Schwartz, (iv)&nbsp;Onex
Partners LP or (v)&nbsp;or another person or entity,
<I>provided</I>, that, in the case of this clause&nbsp;(v),
Onex, an affiliate of Onex, Mr.&nbsp;Schwartz or Onex Partners
LP has or shares &#147;voting power&#148; or &#147;investment
power,&#148; as those terms are defined in the rules of the SEC,
over the class&nbsp;B common stock held by that person or
entity. In addition, the holders of a majority of the
outstanding shares of class&nbsp;B common stock and LP
exchangeable units may elect that the Minimum Hold Condition is
deemed not to be satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Preemptive or Similar Rights. </I>Our common stock is not
entitled to preemptive or other similar rights to purchase any
of our securities.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Right to Receive Liquidation Distributions. </I>Upon our
voluntary or involuntary liquidation, dissolution or winding up,
the holders of our common stock are entitled to receive pro rata
our assets which are legally available for distribution, after
payment of all debts and other liabilities and subject to the
rights of any holders of preferred stock then outstanding, and
subject to the rights of the holders of LP exchangeable units to
receive distributions of assets equivalent to, on a per
share/per unit basis, the distributions to the holders of
class&nbsp;A and class&nbsp;B common stock. We will not make any
distribution of assets with respect to the class&nbsp;B special
voting stock upon our liquidation, dissolution or winding up.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>NYSE Listing. </I>We intend to apply to include the
class&nbsp;A common stock for trading on the NYSE under the
symbol &#147;EMS&#148;. The class&nbsp;B common stock, the
class&nbsp;B special voting stock and the LP&nbsp;exchangeable
units will not be listed on any securities exchange.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LP Exchangeable Units and Class&nbsp;B Special Voting
Stock</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of the LP exchangeable units will be a security of EMS L.P.
that, taking into account the ancillary rights described in this
section, are substantially equivalent economically to a share of
class&nbsp;B common stock. The holders of LP exchangeable units
will have the following rights:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the right to exchange those units, at the holders&#146; option,
    for shares of class&nbsp;B common stock on a one-for-one basis,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the right to receive distributions, on a per unit basis, in
    amounts (or property in the case of non-cash dividends), which
    are the same as, or economically equivalent to, and which are
    payable at the same time as, dividends declared on the
    class&nbsp;B common stock (or dividends that would be required
    to be declared if class&nbsp;B common stock were outstanding),</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the right to vote, through the trustee holder of the
    class&nbsp;B special voting stock, at all stockholder meetings
    at which holders of the class&nbsp;B common stock or
    class&nbsp;B special voting stock are entitled to vote, and</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the right to participate on a pro rata basis with the
    class&nbsp;B common stock in the distribution of assets of
    Emergency Medical Services, upon specified events relating to
    the voluntary or involuntary liquidation, dissolution, winding
    up or other distribution of the assets through the mandatory
    exchange of LP exchangeable units for shares of class&nbsp;B
    common stock.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the closing of this offering, we will enter into a voting and
exchange trust agreement and issue one share of class&nbsp;B
special voting stock to Onex Corporation as trustee to be held
for the benefit of the holders of LP exchangeable units. By
furnishing instructions to the trustee, holders of the LP
exchangeable units will be able to exercise essentially the same
voting rights with respect to Emergency Medical Services as they
would have if they had exchanged their LP exchangeable units for
shares of our class&nbsp;B common stock.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Concurrently with the closing of this offering, we will also
enter into a support agreement under which we will agree to
maintain the economic equivalency of the LP exchangeable units
and the class&nbsp;B common stock by, among other things, not
declaring and paying dividends on the class&nbsp;A common stock
or class&nbsp;B common stock unless EMS&nbsp;L.P. is able to
make, and in fact makes, economically equivalent and
contemporaneous distributions on the LP exchangeable units in
accordance with the terms of those units. EMS L.P. may also make
such unit distributions or adjustments from time to time as
necessary to maintain the one-for-one economic equivalence
between the LP&nbsp;exchangeable units and shares of our
class&nbsp;B common stock. The LP exchangeable units do not
carry any other right to receive distributions from EMS&nbsp;L.P.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The support agreement provides that, in the event that a tender
offer, share exchange offer, issuer bid, take-over bid or
similar transaction for the purpose of acquiring the
class&nbsp;A common stock and/ or class&nbsp;B common stock is
proposed by Emergency Medical Services or is proposed to
Emergency Medical Services or its stockholders and is
recommended by the board of directors of Emergency Medical
Services, or is otherwise effected or to be effected with the
consent or approval of the board of directors of Emergency
</DIV>


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<DIV align="left" style="font-size: 10pt;">
Medical Services and the LP exchangeable units are not otherwise
exchanged for shares of class&nbsp;B common stock, then
Emergency Medical Services will use its reasonable efforts to
enable and permit holders of LP exchangeable units to
participate in such an offer to the same extent and on an
economically equivalent basis as the holders of our common
stock. Without limiting the generality of the foregoing,
Emergency Medical Services will use its reasonable efforts to
ensure that holders of LP exchangeable units may participate in
all such offers without being required to exercise their right
to exchange their LP exchangeable units for class&nbsp;B common
stock or, if so required, to ensure that any such exchange shall
be effective only upon, and shall be conditional upon, the
closing of the offer and only to the extent necessary to tender
or deposit under the offer. In the event of the acquisition of
Emergency Medical Services through a merger or similar
transaction, Emergency Medical Services will use its reasonable
efforts to permit holders of LP exchangeable units to
participate in such transaction to the same extent, and on an
economically equivalent basis, as the holders of our common
stock. Without limiting the generality of the foregoing,
Emergency Medical Services will use its reasonable efforts to
ensure that the holders of LP exchangeable units may participate
in such transaction without being required to exercise their
right to exchange their LP exchangeable units for class&nbsp;B
common stock by effecting a concurrent merger or similar
transaction of EMS L.P. with the acquiring entity.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exchange rights of the LP exchangeable units are subject to
adjustment or modification in the event of a stock split,
combination or other change to our capital structure so as to
maintain the initial one-to-one relationship between the LP
exchangeable units and our class&nbsp;B common stock. We may at
any time cause all of the outstanding LP exchangeable units to
be exchanged for one share of our class&nbsp;B common stock for
each LP exchangeable unit held.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The LP exchangeable units that will be outstanding on the
closing of this offering may not be resold or otherwise
transferred in the United States except to an Onex entity (or in
connection with a tender offer, share exchange offer, issuer
bid, take-over bid or similar transaction or merger as described
above) and then only pursuant to an effective registration
statement under the Securities Act or an exemption from
registration under the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering, our board of directors may, without
further action by our stockholders, from time to time, direct
the issuance of up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares of preferred stock in series and may, at the time of
issuance, determine the rights, preferences and limitations of
each series. Satisfaction of any dividend preferences of
outstanding shares of preferred stock would reduce the amount of
funds available for the payment of dividends on shares of our
common stock. Holders of shares of preferred stock may be
entitled to receive a preference payment in the event of our
liquidation, dissolution or winding-up before any payment is
made to the holders of shares of our common stock. Under
specified circumstances, the issuance of shares of preferred
stock may render more difficult or tend to discourage a merger,
tender offer or proxy contest, the assumption of control by a
holder of a large block of our securities or the removal of
incumbent management. Upon the affirmative vote of a majority of
the total number of directors then in office, the board of
directors, without stockholder approval, may issues shares of
preferred stock with voting and conversion rights which could
adversely affect the holders of shares of our common stock. Upon
consummation of this offering, there will be no shares of
preferred stock outstanding, and we have no present intention to
issue any shares of preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Options</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering, we will have outstanding under our
equity option plan options to purchase a total of
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock with an exercise price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Anti-Takeover Effects of our Certificate of Incorporation and
By-Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some provisions of our certificate of incorporation and our
by-laws contain provisions that are intended to enhance the
likelihood of continuity and stability in the composition of our
board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These provisions also may have the effect of delaying, deferring
or preventing a future takeover or change in control unless the
takeover or change in control is approved by our board of
directors.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Class&nbsp;B Common Stock and Class&nbsp;B Special Voting
    Stock</I></B></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Onex entities&#146; ownership of the LP exchangeable units
entitles them to acquire from us all of the outstanding
class&nbsp;B common stock which carries ten votes per share.
Through the class&nbsp;B special voting stock, the Onex entities
will exercise essentially the same voting rights with respect to
Emergency Medical Services as they would have if they had
exchanged their LP exchangeable units for our class&nbsp;B
common stock. Upon completion of this offering, Onex will own
beneficially &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of our common stock and will
control &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of the combined voting power of our outstanding common stock.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Undesignated Preferred Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ability to authorize undesignated preferred stock makes it
possible for our board of directors to issue one or more series
of preferred stock with voting or other rights or preferences
that could impede the success of any attempt to change control
of us. These and other provisions may have the effect of
deferring hostile takeovers or delaying changes in control or
management of our company.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Advance Notice Requirements for Stockholder Proposals and
    Directors Nominations</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our by-laws provide that stockholders seeking to bring business
before our annual meeting of stockholders, or to nominate
candidates for election as directors at our annual meeting, must
provide timely notice of their intent in writing. To be timely,
a stockholder&#146;s notice must be delivered to, or mailed and
received at, our principal executive offices not less than
120&nbsp;days prior to the first anniversary of the date of our
notice of annual meeting provided with respect to the previous
year&#146;s annual meeting of stockholders; <I>provided</I>,
that if no annual meeting of stockholders was held in the
previous year or the date of the annual meeting of stockholders
has been changed to be more than 30 calendar days earlier than
such anniversary, notice by the stockholder, to be timely, must
be received a reasonable time before the solicitation is made.
These by-law provisions are not applicable to a holder of
class&nbsp;B common stock or class&nbsp;B special voting stock.
Our by-laws also specify certain requirements as to the form and
content of a stockholder&#146;s notice. These provisions may
have the effect of precluding our stockholders from bringing
matters before a meeting or from making nominations for
directors if the proper procedures are not followed or may
discourage or defer a potential acquiror from conducting a
solicitation of proxies to elect our slated directors or
otherwise attempting to obtain control of the Company.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Call of Special Meetings</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our by-laws provide that, except as otherwise required by law,
special meetings of the stockholders may be called only by the
board of directors, our chief executive officer, our secretary
or the holders of our common stock having a majority of the
voting power of all our outstanding class&nbsp;A common stock,
class&nbsp;B common stock and class&nbsp;B special voting stock,
collectively. Stockholders are not otherwise permitted to call a
special meeting or to require the board of directors to call a
special meeting.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Filling of Board Vacancies; Removal</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our by-laws authorize only our board of directors to fill
vacancies and newly created directorships, resignation or
removal. This may deter a stockholder from increasing the size
of our board and gaining control of our board of directors by
filling the resulting vacancies with its own nominees.
</DIV>


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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Staggered Board</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation provides that our board is
classified into three classes of directors. The existence of a
staggered board could delay a successful tender offeror from
obtaining majority control of our board, and the prospect of
such delay may deter a potential offeror. Please see
&#147;Management&nbsp;&#151; Composition of the Board of
Directors after this Offering&#148; for more information
regarding the staggered board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Additional Certificate of Incorporation and By-Law
Provisions</B>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Stockholder Action by Written Consent</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any action required or permitted to be taken at an annual or
special stockholders&#146; meeting may be taken without a
meeting, without prior notice and without a vote, if a consent
or consents in writing, setting forth the action so taken, shall
be signed by the holders of outstanding stock having not less
than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted. The action must
be evidenced by one or more written consents describing the
action taken, signed by the stockholders entitled to take action
without a meeting, and delivered to us in the manner prescribed
by the DGCL.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Delaware &#147;Business Combination&#148; Statute</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have elected not to be subject to Section&nbsp;203 of the
DGCL, which generally prohibits a publicly held Delaware
corporation from engaging in various &#147;business
combination&#148; transactions with any &#147;interested
stockholder&#148; for a period of three years after the date of
the transaction in which the person became an &#147;interested
stockholder,&#148; unless the transaction is approved by the
board of directors before that person becomes an
&#147;interested stockholder&#148; or another exception is
available. A &#147;business combination&#148; includes mergers,
asset sales and other transactions resulting in a financial
benefit to a stockholder. An &#147;interested stockholder&#148;
is a person who, together with affiliates and associates, owns
(or within three years, did own) 15% or more of a
corporation&#146;s voting stock. The statute is intended to
prohibit or delay the accomplishment of mergers or other
takeover or change in control attempts that do not receive the
prior approval of the board of directors. By virtue of our
decision to elect out of the statute&#146;s provisions, the
statute does not apply to us, but we could elect to be subject
to Section&nbsp;203 in the future by amending our certificate of
incorporation.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Amendments to our Certificate of Incorporation and
    By-laws</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except where our board of directors is permitted by law or by
our certificate of incorporation to act without any action by
our stockholders, provisions of our certificate of incorporation
may not be adopted, repealed, altered or amended, in whole or in
part, without the approval of a majority of the outstanding
stock entitled to vote thereon and a majority of the outstanding
stock of each class entitled to vote thereon as a class. The
holders of the outstanding shares of a particular class of our
capital stock are entitled to vote as a class upon any proposed
amendment of our certificate of incorporation that would alter
or change the relative powers, preferences or participating,
optional or other special rights of the shares of such class so
as to affect them adversely relative to the holders of any other
class. Our by-laws may be amended or repealed and new by-laws
may be adopted by a vote of the holders of a majority of the
voting power of our common stock or, except to the extent
relating to stockholders meetings and stockholder action by
written consent, by the board of directors. Any by-laws adopted
or amended by the board of directors may be amended or repealed
by the stockholders entitled to vote thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Indemnification of Directors and Officers and Limitations on
Liability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation and by-laws provide a right to
indemnification to the fullest extent permitted by law to any
person who was or is a party or is threatened to be made a party
to or is involved in any threatened, pending or completed
action, suit or proceeding, whether civil, criminal,
administrative or investigative and whether by or in our right
or otherwise, by reason of the fact that he or she, or a person
of
</DIV>

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<DIV align="left" style="font-size: 10pt;">
whom he or she is the legal representative, is or was our
director or officer or is or was serving at our request as a
director or officer of another corporation or in a capacity with
comparable authority or responsibilities for any partnership,
joint venture, trust, employee benefit plan or other enterprise,
and that such person will be indemnified and held harmless by us
to the fullest extent authorized by, and subject to the
conditions and procedures set forth in the DGCL, against all
judgments, fines, penalties, excise taxes, amounts paid in
settlement and costs, charges and expenses (including
attorneys&#146; fees, disbursements and other charges). Our
by-laws authorize us to take steps to ensure that all persons
entitled to the indemnification are properly indemnified,
including, if the board of directors so determines, purchasing
and maintaining insurance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation provides that none of the
directors shall be personally liable to us or our stockholders
for monetary damages for breach of fiduciary duty as a director,
except liability for:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any breach of the director&#146;s duty of loyalty to us or our
    stockholders,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    acts or omissions not in good faith or which involve intentional
    misconduct or a knowing violation of law,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of unlawful dividends and unlawful repurchase or
    redemption of our capital stock prohibited by the DGCL, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any transaction from which the director derived any improper
    personal benefits.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The effect of this provision of our certificate of incorporation
is to eliminate our rights and the rights of our stockholders to
recover monetary damages against a director for breach of the
fiduciary duty of care as a director, including breaches
resulting from negligent or grossly negligent behavior, except
in the situations described above. This provision does not limit
or eliminate our rights or the rights of any stockholder to seek
non-monetary relief, such as an injunction or rescission in the
event of a breach of a director&#146;s duty of care.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Equityholder Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a party to an investor equityholders agreement with the
Onex entities and certain of their affiliates, which we refer to
together as the Onex Investors, and certain other equityholders,
whom we refer to together as the Other Investors. Our Other
Investors include all of our named executive officers and our
directors who hold class&nbsp;A common stock. Under this
agreement, until the fifth anniversary of the closing of this
offering, an Other Investor&#146;s right to sell common stock he
owns immediately prior to this offering, and any shares he
acquires upon the exercise of options he holds immediately prior
to this offering, is limited. An Other Investor may sell up to
12.5% of those shares in the first year following this offering,
increasing 12.5% each year up to a maximum of 50% of his shares
(or, if greater, the percentage of its shares sold by Onex
Partners), <I>plus </I>the number of shares required to pay any
income taxes on the exercise of options. The other substantive
provisions of the investor equityholders agreement will
terminate upon completion of this offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are also a party to an equityholders agreement with the Onex
Investors and certain employee and affiliated physician
investors. Under this agreement, the employees and affiliated
physicians may not sell their class&nbsp;A common stock for a
period of 180&nbsp;days after the date of this prospectus.
Certain of these employees are subject to the further
limitations on resale that are applicable to the Other Investors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Registration Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a party to a registration agreement with Onex Partners,
certain Onex affiliates and the Other Investors, including the
management investors. Following the completion of this offering,
stockholders holding
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares of our common stock and LP exchangeable units will have
the right, subject to various conditions and limitations, to
include their shares of class&nbsp;A common stock in
registration statements relating to our securities. In addition,
the Onex entities have the right, beginning 180&nbsp;days after
the date of this prospectus, on unlimited occasions, to demand
that we register their shares of our common stock under the
Securities Act, subject to certain limitations. If we propose to
register any shares of our common
</DIV>


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<DIV align="left" style="font-size: 10pt;">
stock under the Securities Act either for our account or for the
account of any stockholders, the holders having piggyback
registration rights are entitled to receive notice of such
registration and include their shares of our common stock in any
such registration. These registration rights are subject to
certain conditions and limitations, including the right of the
underwriters of an offering to limit the number of shares of
common stock to be included in a registration. We generally are
required to bear all expenses of such registrations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Registration of any of the shares of our common stock held by
stockholders with registration rights would result in such
shares becoming freely tradable without restriction under the
Securities Act immediately upon the effectiveness of such
registration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders who have the right to demand registration have agreed
not to exercise this right without the prior consent of Banc of
America Securities LLC and JPMorgan Securities Inc. for a period
of 180&nbsp;days from the date of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transfer Agent and Registrar</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
serve as our transfer agent and registrar for our class&nbsp;A
common stock. The transfer agent&#146;s address
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
the telephone number
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Listing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to apply to include our class&nbsp;A common stock for
trading on the New York Stock Exchange under the symbol
&#147;EMS.&#148; The class&nbsp;B common stock, class&nbsp;B
special voting stock and LP&nbsp;exchangeable units will not be
listed on any securities exchange.
</DIV>


<P align="center" style="font-size: 10pt;">120

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<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since September 2001, we have not engaged in any transactions
valued in excess of $60,000 with any of our executive officers,
directors or holders of more than 5% of our outstanding voting
securities, other than the transactions described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transactions with Laidlaw</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The Acquisition</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to stock purchase agreements with Laidlaw
International, Inc. and a subsidiary of Laidlaw, on
February&nbsp;10, 2005 we purchased all of the capital stock of
AMR and EmCare for an aggregate purchase price of
$815.8&nbsp;million, subject to certain post-closing
adjustments. These adjustments included a decrease to reflect
debt assumed by us and an increase to reflect the increase in
the combined net worth of AMR and EmCare from August&nbsp;31,
2004 through the date of closing, subject to the contractual
provision that the aggregate purchase price would not be more
than $835.8&nbsp;million <I>minus </I>outstanding debt we
assumed. For purposes of these adjustments, the closing was
deemed to be effective as of the close of business on
January&nbsp;31, 2005, and we had the benefit and the risks of
the businesses from that date. The aggregate purchase price we
paid was $826.6&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the stock purchase agreement, in March 2005 we
purchased an AMR subsidiary from Laidlaw for a purchase price of
approximately $2.2&nbsp;million. This deferred purchase enabled
Laidlaw to prepay an outstanding debt obligation of the
subsidiary that was secured by the subsidiary&#146;s property.
The purchase price paid to Laidlaw at the closing of the
acquisition had been reduced by approximately $2.2&nbsp;million.
Accordingly, the aggregate purchase price for the acquisition,
including this subsidiary, was $828.8&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The stock purchase agreements contain customary representations,
warranties and covenants. Pursuant to the stock purchase
agreements, we are indemnified by the seller (a subsidiary of
Laidlaw that directly owned AMR and EmCare) and Laidlaw, subject
to specified exceptions, for losses arising from:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    breaches by the seller of its representations, warranties,
    covenants and agreements contained in the stock purchase
    agreements,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    damages relating to certain government investigations, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    tax liabilities for periods prior to closing.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Claims for indemnification are subject to an aggregate
deductible equal to 1% of the aggregate purchase price and may
not exceed 15% of the aggregate purchase price (in each case,
without giving effect to any purchase price adjustment), each
subject to certain specified exceptions. Most claims for
indemnification must be made by the date that is 18&nbsp;months
from the closing date; claims for environmental matters, taxes
and certain healthcare matters may be made for periods ranging
from three years to the applicable statute of limitations
(solely for certain tax matters), and certain representations,
such as those relating to corporate organization and ownership
of the capital stock of AMR and EmCare, do not expire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the acquisition, Laidlaw provided various services to
AMR and EmCare, including income tax accounting, preparation of
tax returns, certain risk management/compliance/insurance
coverage services, cash management, certain benefit plan
administration and internal audit, and AMR and EmCare guaranteed
certain Laidlaw debt. See notes 10, 11 and 12 to the audited
combined financial statements included in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Management Bonuses in Connection with the
Acquisition</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the acquisition, Laidlaw paid bonuses to
Mr.&nbsp;Sanger and Mr.&nbsp;Harvey of $12,691,032 and
$2,270,002, respectively, pursuant to their employment
agreements. Also in connection with the acquisition, Laidlaw
paid Mr.&nbsp;Owen, Mr.&nbsp;Zimmerman and Dr.&nbsp;Packard
$200,363, $174,301 and $325,188, respectively, under
Laidlaw&#146;s equity plan. Pursuant to that plan, in 2003,
units were granted to the named executive officers and other
members of senior management of AMR and EmCare. These units
vested in
</DIV>

<P align="center" style="font-size: 10pt;">121
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<DIV align="left" style="font-size: 10pt;">
installments and were valued based upon the difference between
the initial value and the final value of AMR or EmCare, as
applicable. Participation in this plan by AMR and EmCare
management, including the named executive officers, terminated
upon the completion of the acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Transition Services Agreement</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the acquisition, we entered into a transition
services agreement with Laidlaw. Pursuant to this agreement:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we agreed to hire a tax employee who will work for Laidlaw on a
    consulting basis, until about December&nbsp;31, 2005, to assist
    in Laidlaw&#146;s preparation of pre-closing period state and
    federal tax returns relating to AMR and EmCare,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Laidlaw agreed to make its tax personnel available to us on a
    consulting basis until December&nbsp;31, 2005, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Laidlaw agreed to lease certain Arlington, Texas office space to
    us for 120&nbsp;days at a lease price of $3,500 per month.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
We will pay Laidlaw for tax consulting services based on a fixed
hourly rate. Laidlaw will reimburse us for 120% of our tax
employee&#146;s salary through June&nbsp;30, 2005 and thereafter
for 75% of the 120% of salary, it will pay the out-of-pocket
expenses related to the tax employee&#146;s services to Laidlaw
and it will pay 50% of any search firm fee with respect to the
tax employee. For the five months ended June&nbsp;30, 2005,
under the transition services agreement we paid Laidlaw $19,515.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Performance Bond Arrangement</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain of AMR&#146;s ambulance transport services contracts
require that AMR or its subsidiary post a surety or performance
bond. In the AMR stock purchase agreement, Laidlaw agrees to
continue to provide to us any cash required as collateral to
support the performance bonds in effect at January&nbsp;31,
2005, and for a three-year period to pay any bond premiums in
excess of the rates in effect at the closing date. We have
agreed to indemnify Laidlaw for any claims against Laidlaw in
connection with these performance bonds. Under this agreement,
at June&nbsp;30, 2005, Laidlaw continued to hold the performance
bond collateral amount of $16.4&nbsp;million, which represents
50% of the face amount of the performance bonds at
January&nbsp;31, 2005. The cash collateral relating to each bond
will be delivered to us, or to a new surety for our benefit,
when Laidlaw is released from its indemnity obligations with
respect to the outstanding bond; until that release, Laidlaw and
we share equally investment income on the cash collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Risk Financing Program</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR is party to separate risk financing agreements with Laidlaw
for the period September&nbsp;1, 1993 to August&nbsp;31, 2001
and the period September&nbsp;1, 2003 to the date of the closing
of the acquisition. Pursuant to these agreements, AMR had
insured its workers compensation, auto and general liability
claims through Laidlaw&#146;s captive insurance company and
participated in Laidlaw&#146;s group policies with respect to
other types of coverage for occurrences during the specific
period of each agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the period September&nbsp;1, 1993 to August&nbsp;31, 2001,
we are fully-insured for AMR&#146;s workers compensation, auto
and general liability programs. We have no further payment
obligation to Laidlaw under that agreement, having previously
made all premium payments, and Laidlaw has agreed to bear the
cost of any claims relating to such claims for this period. For
the period September&nbsp;1, 2003 to February&nbsp;10, 2005, we
retain the risk of loss as to the first $2&nbsp;million of auto
and general liability claims per occurrence and the first
$1&nbsp;million of workers compensation claims per occurrence,
as a self-insurance program funded through Laidlaw&#146;s
captive insurance program. AMR had collateral deposited with
Laidlaw totaling approximately $42.2&nbsp;million at
February&nbsp;10, 2005 and $37.7&nbsp;million at June&nbsp;30,
2005. This collateral is held in a trust fund owned by Laidlaw,
and is applied by Laidlaw to cover AMR&#146;s claims and related
expenses. We are responsible to Laidlaw for any claims costs in
excess of the collateral amount, and any excess collateral will
be repaid to us by Laidlaw. This self-insurance program for the
period September&nbsp;1, 2003 to February&nbsp;10,
</DIV>

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<DIV align="left" style="font-size: 10pt;">
2005 can be terminated by either party on 60&nbsp;days&#146;
written notice. See &#147;Business&nbsp;&#151; American Medical
Response&nbsp;&#151; Insurance.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Management Agreement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are party to a management agreement dated February&nbsp;10,
2005 with Onex Partners Manager LP, or Onex Manager, a
wholly-owned subsidiary of Onex Corporation. In exchange for an
annual management fee of $1.0&nbsp;million, Onex Manager
provides us with corporate finance and strategic planning
consulting services. The annual fee may be increased, to a
maximum of $2.0&nbsp;million, with the approval of directors who
are not affiliated with Onex. We also reimburse Onex Manager for
out-of-pocket expenses incurred in connection with the provision
of services pursuant to the agreement, and reimburse Onex
Manager for out-of-pocket expenses incurred in connection with
the acquisition. The management agreement has an initial term of
five years, subject to automatic one-year renewals, unless
terminated by either party by notice given at least 90&nbsp;days
prior to the scheduled expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Issuance of Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the purchases of units of limited
partnership of Emergency Medical Services L.P. by our directors,
executive officers and holders who beneficially own more than 5%
of our outstanding voting securities. The information in this
table, as to the type and number of shares purchased, gives
effect to (i)&nbsp;the conversion of units into our common stock
to be effected immediately prior to this offering and
(ii)&nbsp;the exchange of the LP&nbsp;exchangeable units into
our class&nbsp;B common stock.
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Purchase</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Number and Type of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date of Purchase</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    5% Holders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Corporation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;B common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>214,050,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LP</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;B common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>114,844,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex Partners LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;B common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>74,046,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Onex EMSC Co-Invest LP</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;B common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>18,965,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 28, 2005</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Executive Officers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    William A. Sanger</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>3,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Don S. Harvey</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Randel G. Owen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dighton S. Packard, M.D.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class&nbsp;A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February&nbsp;10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Todd G. Zimmerman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-Officer Directors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Robert M. Le Blanc</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class B common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>373,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    February 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Steven B. Epstein</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    April 22, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James T. Kelly</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>750,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    March 10, 2005</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Michael L. Smith</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    June&nbsp;30, 2005</TD>
</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">123
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employment Agreements and Indemnification Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have an employment agreement and an option agreement with
Mr.&nbsp;Sanger, our Chairman and Chief Executive Officer, and
with certain of our other senior executives. For a description,
see &#147;Management&nbsp;&#151; Employment Agreements.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 1999, Texas EM-I Medical Services, P.A., a physician
group affiliated with EmCare, entered into an employment
agreement with Dighton C. Packard, M.D. Dr.&nbsp;Packard&#146;s
employment agreement automatically renews for successive
two-year terms unless either party gives notice 180&nbsp;days
prior to the expiration of the then current term.
Dr.&nbsp;Packard has the right to terminate his agreement upon
180&nbsp;days&#146; notice, in which event he agrees to not
compete with Texas EM-I for 12&nbsp;months following termination
of employment. Under the employment agreement, Dr.&nbsp;Packard
is to receive an annual base salary plus a bonus based on the
performance of the group under the agreements with Baylor
University Medical Center.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into indemnification agreements with each of our
directors, and our executive employment agreements include
indemnification provisions. Under those agreements, we agree to
indemnify each of these individuals against claims arising out
of events or occurrences related to that individual&#146;s
service as our agent or the agent of any of our subsidiaries to
the fullest extent legally permitted. See &#147;Description of
Capital Stock&nbsp;&#151; Indemnification of Directors and
Officers and Limitations on Liability.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Equityholder Agreements and Registration Agreement</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;10, 2005, we entered into an investor
equityholders agreement and a registration rights agreement with
certain of our equityholders, including each of the named
executive officers. We are also party to an equityholders
agreement with certain of our employee, affiliated physician,
physician assistant and nurse practitioner equityholders. For a
descriptions of these agreements, see &#147;Description of
Capital Stock&nbsp;&#151; Equityholder Agreements&#148; and
&#147;Description of Capital Stock&nbsp;&#151; Registration
Agreement.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consulting Agreement with BIDON Companies</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;16, 2001, EmCare entered into a management
services agreement with BIDON, Inc., the stock of which is owned
by William A. Sanger, Don S. Harvey and a third partner.
Pursuant to the agreement, BIDON provided consulting and
management services to EmCare, including the services of
Messrs.&nbsp;Sanger and Harvey on a substantially full-time
basis. The agreement provided that BIDON was entitled to a
management fee and an incentive bonus, as well as a performance
fee payable upon a change in control of EmCare. The agreement
expired in March&nbsp;31, 2003 and Messrs.&nbsp;Sanger and
Harvey entered into employment agreements with EmCare at that
time. Pursuant to the agreement, EmCare paid total fees and
bonuses to BIDON, including expense reimbursement, of
$2.6&nbsp;million and $2.3&nbsp;million in fiscal 2002 and
fiscal 2003, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Other Related Party Transactions and Business
Relationships</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Steven B. Epstein, one of our directors, is a founding member
and the senior health law partner in the Washington, D.C. firm
of Epstein, Becker &#38; Green, P.C., or EBG. EBG provided
healthcare-related legal services to Onex in connection with our
acquisition of AMR and EmCare.
</DIV>

<P align="center" style="font-size: 10pt;">124
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<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

<!-- link1 "MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MATERIAL U.S.&nbsp;FEDERAL INCOME TAX CONSIDERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following summary describes certain material federal income
tax consequences arising from the purchase, ownership and
disposition of our class&nbsp;A common stock acquired in this
offering. This discussion does not cover all aspects of
U.S.&nbsp;federal income taxation that may be relevant to each
such holder due to the particular circumstances of such holder
or, except as expressly stated, address estate and gift tax
consequences, state, local or other tax consequences or
non-U.S.&nbsp;tax laws. This summary is based on the provisions
of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), final, temporary and proposed United States
Treasury regulations promulgated thereunder, and the
administrative and judicial interpretations thereof, all as in
effect as of the date of this prospectus and all of which are
subject to change, possibly with retroactive effect. In
particular, this summary does not address the considerations
that may be applicable to (a)&nbsp;particular classes of
taxpayers, including financial institutions, insurance
companies, small business investment companies, mutual funds,
partnerships or other pass-through entities or investors in such
entities, expatriates, broker-dealers and tax-exempt
organizations, (b)&nbsp;holders with a &#147;functional
currency&#148; other than the U.S.&nbsp;dollar or
(c)&nbsp;holders of 10% or more of the total combined voting
power of the Company&#146;s shares. This summary deals only with
the tax treatment of holders who own our common stock as
&#147;capital assets&#148; as defined in Section&nbsp;1221 of
the Code.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>THE SUMMARY OF U.S.&nbsp;FEDERAL INCOME TAX CONSIDERATIONS
SET FORTH BELOW IS FOR GENERAL INFORMATION ONLY AND DOES NOT
CONSTITUTE TAX ADVICE. ALL PROSPECTIVE PURCHASERS SHOULD CONSULT
THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES TO
THEM OF THE PURCHASE, OWNERSHIP, SALE OR OTHER DISPOSITION OF
SECURITIES INCLUDING THE EFFECTS OF APPLICABLE STATE, LOCAL,
NON-U.S.&nbsp;OR OTHER TAX LAWS, POSSIBLE CHANGES IN THE TAX
LAWS AND THE POSSIBLE APPLICABILITY OF INCOME TAX TREATIES.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used herein, the term &#147;U.S.&nbsp;Holder&#148; means a
beneficial owner of our common stock that is for
U.S.&nbsp;federal income tax purposes:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a U.S.&nbsp;citizen or individual resident in the United States,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a corporation, or other entity treated as a corporation created
    or organized under the laws of the United States or any
    political subdivision thereof,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an estate the income of which is subject to U.S.&nbsp;federal
    income taxation regardless of its source,&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a trust (i)&nbsp;if a U.S.&nbsp;court can exercise primary
    supervision over the administration of such trust and one or
    more U.S.&nbsp;fiduciaries have the authority to control all of
    the substantial interests of such trust or (ii)&nbsp;that has a
    valid election in effect under applicable U.S.&nbsp;Treasury
    regulations to be treated as a United States person.</TD>
</TR>


</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as provided below in the discussion of estate tax, the
term &#147;Non-U.S.&nbsp;Holder&#148; is a beneficial owner of
our common stock that is, for U.S.&nbsp;federal income tax
purposes, a nonresident alien individual or a corporation, trust
or estate that is not a U.S.&nbsp;Holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a partnership, including any entity treated as a partnership
for U.S.&nbsp;federal income tax purposes, is a holder of our
common stock, the tax treatment of a partner in the partnership
will generally depend upon the status of the partner and the
activities of the partnership. If you are a partnership, or a
partner in such a partnership, you should consult your own tax
advisor regarding the tax consequences of the purchase,
ownership and disposition of our common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dividends</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not anticipate paying cash dividends on our common stock
in the foreseeable future. See &#147;Dividend Policy.&#148; If
distributions are paid on shares of our common stock, such
distributions will constitute dividends for U.S.&nbsp;federal
income tax purposes to the extent paid from our current or
accumulated earnings and profits, as determined under
U.S.&nbsp;federal income tax principles. If a distribution
exceeds our current and accumulated earnings and profits, it
will constitute a return of capital that is applied against and
reduces, but
</DIV>


<P align="center" style="font-size: 10pt;">125
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<DIV align="left" style="font-size: 10pt;">
not below zero, a holder&#146;s adjusted tax basis in our common
stock. Any remainder will constitute gain from the deemed sale
of the common stock. See &#147;&#151;&nbsp;Dispositions.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>U.S.&nbsp;Holders.</I> Any dividends payable by us will be
treated as U.S.&nbsp;source dividend income and will be eligible
for the dividends-received deduction generally allowed to
U.S.&nbsp;corporations under Section&nbsp;243 of the Code
(subject to certain limitations and holding period requirements).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For taxable years ending on or before December&nbsp;31, 2008,
certain &#147;qualified dividend income&#148; will be taxable to
a non-corporate U.S.&nbsp;Holder at the special reduced rate
normally applicable to capital gains (subject to certain
limitations). A U.S.&nbsp;Holder will be eligible for this
reduced rate only if it has held our common stock for more than
60&nbsp;days during the 121-day period beginning 60&nbsp;days
before the ex-dividend date.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Non-U.S.&nbsp;Holders.</I> The dividends on our common stock
paid to a Non-U.S.&nbsp;Holder generally will be subject to
withholding of U.S.&nbsp;federal income tax at a 30% rate on the
gross amount of the dividend or such lower rate as may be
provided by an applicable income tax treaty. Dividends that are
effectively connected with a Non-U.S.&nbsp;Holder&#146;s conduct
of a trade or business in the United States and, if a tax treaty
applies, attributable to a permanent establishment or fixed base
in the United States, known as &#147;U.S.&nbsp;trade or business
income,&#148; are generally not subject to the 30% withholding
tax if the Non-U.S.&nbsp;Holder files the appropriate
U.S.&nbsp;Internal Revenue Service form with the payor. However,
such U.S.&nbsp;trade or business income, net of specified
deductions and credits, generally is taxed at the same graduated
rates as applicable to U.S.&nbsp;persons. Any U.S.&nbsp;trade or
business income received by a Non-U.S.&nbsp;Holder that is a
corporation may also, under certain circumstances, be subject to
an additional &#147;branch profits tax&#148; at a 30% rate or
such lower rate as specified by an applicable income tax treaty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Non-U.S.&nbsp;Holder that claims the benefit of an applicable
income tax treaty generally will be required to satisfy
applicable certification and other requirements prior to the
distribution date. Non-U.S.&nbsp;Holders should consult their
tax advisors regarding their entitlement to benefits under a
relevant income tax treaty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Non-U.S.&nbsp;Holder that is eligible for a reduced rate of
U.S.&nbsp;federal withholding tax or other exclusion from
withholding under an income tax treaty but that did not timely
provide required certifications or other requirements, or that
has received a distribution subject to withholding in excess of
the amount properly treated as a dividend, may obtain a refund
or credit of any excess amounts withheld by timely filing an
appropriate claim for refund with the U.S.&nbsp;Internal Revenue
Service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dispositions</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>U.S.&nbsp;Holders.</I> A U.S.&nbsp;Holder will recognize gain
or loss for U.S.&nbsp;federal income tax purposes upon the sale
or other disposition of our common stock in an amount equal to
the difference between the amount realized and the
U.S.&nbsp;Holder&#146;s adjusted tax basis for such stock. Such
gain or loss will be capital gain or loss and will be long-term
capital gain or loss if the stock had been held for more than
one year. If the U.S.&nbsp;Holder&#146;s holding period on the
date of the sale or exchange is one year or less, such gain or
loss will be short-term capital gain or loss. However, if a
U.S.&nbsp;Holder has received a dividend to which the special
reduced rate of tax, discussed above, applies, and which exceeds
10% of the U.S.&nbsp;Holder&#146;s basis for the stock (taking
into account certain rules that aggregate dividends for this
purpose), any loss on sale or other disposition generally will
be a long-term capital loss to the extent of that dividend,
regardless of the U.S.&nbsp;Holder&#146;s actual holding period.
Any gain or loss recognized on the sale or other disposition of
our common stock will generally be U.S.&nbsp;source income. Any
capital loss realized upon sale, exchange or other disposition
of our common stock is generally deductible only against capital
gains and not against ordinary income, except that in the case
of noncorporate taxpayers, a capital loss may be deductible to
the extent of capital gains plus ordinary income of up to $3,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A U.S.&nbsp;Holder&#146;s tax basis for his, her or its shares
of our common stock will generally be the purchase price paid
therefor by such U.S.&nbsp;Holder (reduced by amounts of any
distributions, in excess of earnings and profits of the Company,
received by such U.S.&nbsp;Holder). The holding period of each
share of our common
</DIV>

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<DIV align="left" style="font-size: 10pt;">
stock owned by a U.S.&nbsp;Holder will commence on the day
following the date of the U.S.&nbsp;Holder&#146;s purchase of
such share and will include the day on which the share is sold
by such U.S.&nbsp;Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Non-U.S.&nbsp;Holders.</I> A Non-U.S.&nbsp;Holder generally
will not be subject to U.S.&nbsp;federal income tax (or
withholding thereof) on gain recognized on a disposition of our
common stock unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the gain is U.S.&nbsp;trade or business income, in which case
    such gain generally will be taxed in the same manner as gains of
    U.S.&nbsp;persons, and such gains may also be subject to the
    branch profits tax in the case of a corporate
    Non-U.S.&nbsp;Holder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the Non-U.S.&nbsp;Holder is an individual who is present in the
    United States for more than 182&nbsp;days in the taxable year of
    the disposition and who meets certain other requirements, in
    which case such holder generally will be subject to
    U.S.&nbsp;federal income tax at a rate of 30% (or a reduced rate
    under an applicable treaty) on the amount by which capital gains
    allocable to U.S.&nbsp;sources (including gains from the sale,
    exchange, retirement or other disposition of the common stock)
    exceed capital losses allocable to U.S.&nbsp;sources;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we are or have been a &#147;U.S.&nbsp;real property holding
    corporation&#148; for U.S.&nbsp;federal income tax purposes at
    any time during the shorter of the five-year period ending on
    the date of disposition or the period that the
    Non-U.S.&nbsp;Holder held our common stock (the &#147;applicable
    period&#148;).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, a corporation is a &#147;U.S.&nbsp;real property
holding corporation&#148; if the fair market value of its
&#147;U.S.&nbsp;real property interests&#148; equals or exceeds
50% of the sum of the fair market value of its worldwide real
property interests plus its other assets used or held for use in
a trade or business. The tax relating to stock in a
&#147;U.S.&nbsp;real property holding corporation&#148;
generally will not apply to a Non-U.S.&nbsp;Holder whose
holdings, actual or constructive, at all times during the
applicable period, constituted 5% or less of our common stock,
provided that our common stock was regularly traded on an
established securities market. We believe we have never been,
are not currently and are not likely to become a U.S.&nbsp;real
property holding corporation for U.S.&nbsp;federal income tax
purposes in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Information Reporting and Backup Withholding.</I> We must
report annually to the U.S.&nbsp;Internal Revenue Service and to
each holder the amount of dividends paid to that holder and the
tax withheld with respect to those dividends. Copies of the
information returns reporting those dividends and the amount of
tax withheld may also be made available to the tax authorities
in the country in which a Non-U.S.&nbsp;Holder is a resident
under the provisions of an applicable income tax treaty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Backup withholding, currently imposed at a rate of 28%, may
apply to payments of dividends paid by us. If you are a
U.S.&nbsp;Holder, backup withholding will apply if you fail to
provide an accurate taxpayer identification number or
certification of exempt status or fail to report all interest
and dividends required to be shown on your federal income tax
returns. Certain U.S.&nbsp;Holders (including, among others,
corporations) are not subject to backup withholding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you are a Non-U.S.&nbsp;Holder, backup withholding will apply
to dividend payments if you fail to provide us with the required
certification that you are not a U.S.&nbsp;person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payments of the proceeds from a disposition (including a
redemption) effected outside the United States by or through a
non-US. broker generally will not be subject to information
reporting or backup withholding. However, information reporting,
but generally not backup withholding, will apply to such a
payment if the broker has certain connections with the United
States unless the broker has documentary evidence in its records
that the beneficial owner of the disposed stock is a
Non-U.S.&nbsp;Holder and either specified conditions are met or
an exemption is otherwise established. Backup withholding and
information reporting will apply to dispositions made by or
through a U.S.&nbsp;office of any broker (U.S. or foreign).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Backup withholding is not an additional tax. Any amounts
withheld from a payment to you that result in an overpayment of
taxes generally will be refunded, or credited against your
U.S.&nbsp;federal income tax liability, if any, provided that
the required information is timely furnished to the
U.S.&nbsp;Internal Revenue Service.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders should consult their own tax advisors regarding
application of backup withholding in their particular
circumstance and the availability of, and procedure for
obtaining, an exemption from backup withholding under current
U.S.&nbsp;Treasury regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Federal Estate Tax.</I> Common stock owned or treated as
owned by an individual who is a Non-U.S. Holder (as specifically
defined for U.S.&nbsp;federal estate tax purposes) at the time
of death will be included in such individual&#146;s gross estate
for U.S.&nbsp;federal estate tax purposes, unless an applicable
treaty provides otherwise.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

<!-- link1 "SHARES ELIGIBLE FOR FUTURE SALE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SHARES ELIGIBLE FOR FUTURE SALE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to this offering, there has been no public market for our
class&nbsp;A common stock, and we cannot assure you that a
significant public market for our class&nbsp;A common stock will
develop or be sustained after this offering. Sales of
significant amounts of our class&nbsp;A common stock in the
public market after this offering, including shares of our
class&nbsp;A common stock issued upon exercise of outstanding
options or exchange of our LP&nbsp;exchangeable units for our
class&nbsp;B common stock and conversion into class&nbsp;A
common stock, or the perception that such sales could occur,
could adversely affect the prevailing market price of our
class&nbsp;A common stock and could impair our future ability to
raise capital through the sale of our equity securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sale of Restricted Shares and Lock-Up Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this
offering, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LP&nbsp;exchangeable
units will be outstanding, assuming no exercise of the
underwriters&#146; over-allotment option.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Of
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock to be outstanding upon completion
of this
offering, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock offered pursuant to this offering,
or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
if the underwriters&#146; option is exercised in full, will be
freely tradable without restriction or further registration
under federal securities laws except to the extent shares of
class&nbsp;A common stock are purchased in this offering by our
affiliates, as that term is defined in Rule&nbsp;144 under the
Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
remaining &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock outstanding and all of our
LP&nbsp;exchangeable units were issued and sold by us in private
transactions. These shares of class&nbsp;A common stock, as well
as
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock issuable on conversion of
class&nbsp;B common stock, are, or when issued on conversion
will be, eligible for public sale if registered under the
Securities Act or sold in accordance with Rule&nbsp;144 of the
Securities Act, subject to the contractual provisions of our
equityholders agreements. See &#147;Description of Capital
Stock&nbsp;&#151; Equityholder Agreements.&#148; Of these
remaining shares of our common stock and LP&nbsp;exchangeable
units, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
are held by officers, directors and certain existing
stockholders who are subject to market stand-off provisions that
prohibit their sale for a period of 180&nbsp;days after the date
of this prospectus. In addition, Onex, our executive officers
and directors and certain of our other existing stockholders,
who hold in the
aggregate &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock (giving effect to the exchange of the
LP&nbsp;exchangeable units), are subject to various lock-up
agreements that prohibit the holders from offering, selling,
contracting to sell, granting an option to purchase, making a
short sale or otherwise disposing of any shares of our common
stock or any option to purchase shares of our common stock or
any securities exchangeable for or convertible into shares of
common stock for a period of 180&nbsp;days after the date of
this prospectus without the prior written consent of Banc of
America Securities LLC. Banc of America Securities LLC, in its
discretion and at any time without notice, may release all or
any portion of our common stock held by our officers, directors
and existing stockholders subject to these lock-up agreements.
Banc of America Securities LLC has agreed with J.P.&nbsp;Morgan
Securities Inc. that it will not, without the consent of
J.P.&nbsp;Morgan Securities Inc., exercise its discretion to
release all or any portion of our common stock held by our
officers, directors and existing stockholders subject to these
lock-up agreements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The issuance of the shares of our class A common stock to
holders of EMS L.P. partnership units in connection with our
formation as a holding company is registered by a prospectus
included with the registration statement filed for this offering.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of the agreements described above, the registration
of our class A common stock issued in connection with our
formation as a holding company and the provisions of
Rule&nbsp;144 of the Securities
Act, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common stock will be available for sale in
the public market as follows:
</DIV>


<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    will be eligible for sale beginning 180&nbsp;days after the date
    of this prospectus,</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>


<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    held by our executive officers and directors will be eligible
    for sale under Rule&nbsp;144 commencing one-year from the date
    of this offering, or, if earlier, after the shares are
    registered under the Securities Act, and</TD>
</TR>


</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    will be eligible for sale under Rule&nbsp;144 one year from the
    date of the exchange of the class B exchangeable units for class
    B common stock or, if earlier, after the exchange or the resale
    of the shares registered under the Securities Act.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Rule&nbsp;144</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, Rule&nbsp;144 allows a stockholder (or stockholders
where shares are aggregated) who has beneficially owned shares
of our class&nbsp;A common stock for at least one year and who
files a Form&nbsp;144 with the SEC to sell within any
three-month period commencing 90&nbsp;days after the date of
this prospectus a number of those shares that does not exceed
the greater of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    1% of the number of shares of our class&nbsp;A common stock then
    outstanding, which will equal
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    immediately after this offering, assuming no exercise of the
    underwriters&#146; over-allotment option,&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the average weekly trading volume of our class&nbsp;A common
    stock during the four calendar weeks preceding the filing of the
    Form&nbsp;144 with respect to such sale.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Registration Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As described above in &#147;Description of Capital
Stock&nbsp;&#151; Registration Agreement,&#148; upon completion
of this offering, the holders of
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock will have the right, subject to various
conditions and limitations, to demand the filing of, and include
their shares in, registration statements relating to our common
stock, subject to the 180-day lock-up arrangement described
above. These registration rights of our stockholders could
impair the prevailing market price and impair our ability to
raise capital by depressing the price at which we could sell our
class&nbsp;A common stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Options</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to
the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of class&nbsp;A common stock outstanding immediately after this
offering, as of the date of this prospectus, there were
outstanding options to
purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our class&nbsp;A common stock. None of these options are
currently exercisable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As soon as practicable after the completion of this offering, we
intend to file a registration statement on Form&nbsp;S-8 under
the Securities Act covering shares of our class&nbsp;A common
stock reserved for issuance under our equity option plan.
Accordingly, shares of our class&nbsp;A common stock registered
under such registration statement will be available for sale in
the open market upon exercise by the holders, subject to vesting
restrictions, Rule&nbsp;144 limitations applicable to our
affiliates and the contractual lock-up and market stand-off
provisions described above.
</DIV>

<P align="center" style="font-size: 10pt;">130
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='119'></A>
</DIV>

<!-- link1 "UNDERWRITING" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNDERWRITING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and the selling stockholders are offering the shares of
class&nbsp;A common stock described in this prospectus through a
number of underwriters. Banc of America Securities LLC and
J.P.&nbsp;Morgan Securities Inc. are the representatives of the
underwriters. We and the selling stockholders have entered into
a firm commitment underwriting agreement with the
representatives. Subject to the terms and conditions of the
underwriting agreement, we and the selling stockholders have
agreed to sell to the underwriters, and each underwriter has
agreed to purchase from us and the selling stockholders, the
number of shares of class&nbsp;A common stock listed next to its
name in the following table:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" nowrap><B>Underwriter</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Banc of America Securities LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    J.P.&nbsp;Morgan Securities Inc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CIBC World Markets Corp.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credit Suisse First Boston LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scotia Capital (USA) Inc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Utendahl Capital Group, LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriting agreement is subject to a number of terms and
conditions and provides that the underwriters must buy all of
the shares if they buy any of them. The underwriters will sell
the shares to the public when and if the underwriters buy the
shares from us and the selling stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters initially will offer the shares to the public
at the price specified on the cover page of this prospectus. The
underwriters may allow a concession of not more than
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to selected dealers. The underwriters may also allow, and
those dealers may re-allow, a concession of not more than
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to some other dealers. If all the shares are not sold at
the public offering price, the underwriters may change the
public offering price and the other selling terms. The
class&nbsp;A common stock is offered subject to a number of
conditions, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    receipt and acceptance of the class&nbsp;A common stock by the
    underwriters;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the underwriters&#146; right to reject orders in whole or in
    part.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Over-Allotment Option.</I> The selling stockholders have
granted the underwriters an over-allotment option to buy up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares of our class&nbsp;A common stock at the same price per
share as they are paying for the shares shown in the table
above. These additional shares would cover sales of shares by
the underwriters which exceed the total number of shares shown
in the table above. The underwriters may exercise this option at
any time within 30&nbsp;days after the date of this prospectus.
To the extent that the underwriters exercise this option, each
underwriter will purchase additional shares from the selling
stockholders in approximately the same proportion as it
purchased the shares shown in the table above. If purchased, the
additional shares will be sold by the underwriters on the same
terms as those on which the other shares are sold. We will pay
the expenses associated with the exercise of this option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Discount and Commissions.</I> The following table shows the
per share and total underwriting discounts and commissions to be
paid to the underwriters by us and the selling stockholders.
These amounts are shown assuming no exercise and full exercise
of the underwriters&#146; option to purchase additional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that the expenses of the offering to be paid by us,
not including underwriting discounts and commissions, will be
approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Paid by the</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Paid by Us</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Selling Stockholders</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>No Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Full Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>No Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Full Exercise</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Per Share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">131

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Listing.</I> We intend to apply to include our class&nbsp;A
common stock for trading on the New York Stock Exchange under
the symbol &#147;EMS.&#148; In order to meet one of the
requirements for listing our class&nbsp;A common stock on the
New York Stock Exchange, the underwriters have undertaken to
sell 100 or more shares of our class&nbsp;A common stock to a
minimum of 2,000&nbsp;beneficial holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Stabilization.</I> In connection with this offering, the
underwriters may engage in activities that stabilize, maintain
or otherwise affect the price of our common stock, including:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    stabilizing transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    short sales;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    syndicate covering transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    imposition of penalty bids;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    purchases to cover positions created by short sales.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stabilizing transactions consist of bids or purchases made for
the purpose of preventing or retarding a decline in the market
price of our class&nbsp;A common stock while this offering is in
progress. Stabilizing transactions may include making short
sales of our class&nbsp;A common stock, which involves the sale
by the underwriters of a greater number of shares of
class&nbsp;A common stock than they are required to purchase in
this offering, and purchasing shares of class&nbsp;A common
stock from the selling stockholders or on the open market to
cover positions created by short sales. Short sales may be
&#147;covered&#148; shorts, which are short positions in an
amount not greater than the underwriters&#146; over-allotment
option referred to above, or may be &#147;naked&#148; shorts,
which are short positions in excess of that amount. Syndicate
covering transactions involve purchases of our class&nbsp;A
common stock in the open market after the distribution has been
completed in order to cover syndicate short positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters may close out any covered short position either
by exercising their over-allotment option, in whole or in part,
or by purchasing shares in the open market. In making this
determination, the underwriters will consider, among other
things, the price of shares available for purchase in the open
market compared to the price at which the underwriters may
purchase shares through the over-allotment option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A naked short position is more likely to be created if the
underwriters are concerned that there may be downward pressure
on the price of the class&nbsp;A common stock in the open market
that could adversely affect investors who purchased in this
offering. To the extent that the underwriters create a naked
short position, they will purchase shares in the open market to
cover the position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The representatives also may impose a penalty bid on
underwriters and dealers participating in the offering. This
means that the representatives may reclaim from any syndicate
members or other dealers participating in the offering the
underwriting discount, commissions or selling concession on
shares sold by them and purchased by the representatives in
stabilizing or short covering transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These activities may have the effect of raising or maintaining
the market price of our class&nbsp;A common stock or preventing
or retarding a decline in the market price of our class&nbsp;A
common stock. As a result of these activities, the price of our
class&nbsp;A common stock may be higher than the price that
otherwise might exist in the open market. If the underwriters
commence the activities, they may discontinue them at any time.
The underwriters may carry out these transactions on the New
York Stock Exchange, in the over-the-counter market or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Discretionary Accounts.</I> The underwriters have informed us
that they do not expect to make sales to accounts over which
they exercise discretionary authority in excess of 5% of the
shares of class&nbsp;A common stock being offered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>IPO Pricing.</I> Prior to this offering, there has been no
public market for our class&nbsp;A common stock. The initial
public offering price will be negotiated between us and the
representatives of the underwriters. Among the factors to be
considered in these negotiations are:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the history of, and prospects for, our company and the industry
    in which we compete;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">132

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our past and present financial performance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an assessment of our management;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the present state of our development;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the prospects for our future earnings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the prevailing conditions of the applicable United States
    securities market at the time of this offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    market valuations of publicly traded companies that we and the
    representatives of the underwriters believe to be comparable to
    us;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    other factors deemed relevant.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The estimated initial public offering price range set forth on
the cover of this preliminary prospectus is subject to change as
a result of market conditions and other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Qualified Independent Underwriter.</I> Because we anticipate
that the underwriters or their affiliates will receive more than
10% of the net proceeds of this offering in connection with our
application of the net proceeds, Rule&nbsp;2710(h)(1) of the
Conduct Rules of the NASD Manual requires the price to be no
higher than the price recommended by a &#147;qualified
independent underwriter&#148; which has participated in the
preparation of the registration statement and performed its
usual standard of due diligence in connection with that
preparation. In accordance with this requirement, Credit Suisse
First Boston LLC has assumed the responsibilities of acting as a
qualified independent underwriter and will recommend a price in
compliance with the requirements of Rule&nbsp;2720 of the
Conduct Rules. Credit Suisse First Boston LLC will receive no
compensation for acting in this capacity; however, we have
agreed to indemnify Credit Suisse First Boston LLC for acting as
a qualified independent underwriter against specified
liabilities under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Lock-up Agreements.</I> We, our directors and our executive
officers have entered into lock-up agreements with the
underwriters. Under these agreements, subject to exceptions, we
may not issue any new shares of common stock, and those holders
of stock and options may not, directly or indirectly, offer,
sell, contract to sell, pledge or otherwise dispose of or hedge
any common stock or securities convertible into or exchangeable
for shares of common stock, or publicly announce the intention
to do any of the foregoing, without the prior written consent of
Banc of America Securities LLC and J.P. Morgan Securities Inc.
for a period of 180&nbsp;days from the date of this prospectus.
This consent may be given at any time without public notice. In
addition, during this 180-day period, we have agreed not to file
any registration statement for, and the Onex entities have
agreed not to make any demand for, or exercise any right of, the
registration of, any shares of common stock or any securities
convertible into or exercisable or exchangeable for common stock
without the prior written consent of Banc of America Securities
LLC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Indemnification.</I> We and the selling stockholders will
indemnify the underwriters against some liabilities, including
liabilities under the Securities Act. If we and the selling
stockholders are unable to provide this indemnification, we and
the selling stockholders will contribute to payments the
underwriters may be required to make in respect of those
liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Online Offering.</I> A prospectus in electronic format may be
made available on the web sites maintained by one or more of the
underwriters participating in this offering. Other than the
prospectus in electronic format, the information on any such web
site, or accessible through any such web site, is not part of
the prospectus. The representatives may agree to allocate a
number of shares to underwriters for sale to their online
brokerage account holders. Internet distributions will be
allocated by the underwriters that will make internet
distributions on the same basis as other allocations. In
addition, shares may be sold by the underwriters to securities
dealers who resell shares to online brokerage account holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Conflicts/Affiliates.</I> The underwriters and their
affiliates have provided, and may in the future provide, various
investment banking, commercial banking and other financial
services for us and our affiliates for which services they have
received, and may in the future receive, customary fees. Bank of
America, N.A., an affiliate of Banc of America Securities LLC,
is the administrative agent, collateral agent and a lender under
our senior secured credit facility. JPMorgan Chase Bank, N.A.,
an affiliate of J.P.&nbsp;Morgan Securities Inc., is
</DIV>

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<DIV align="left" style="font-size: 10pt;">
the syndication agent and a lender under our existing senior
secured credit facility. In addition, Banc of America Securities
LLC and J.P.&nbsp;Morgan Securities Inc. acted as joint
book-running managers in connection with the offering of our
10%&nbsp;senior subordinated notes due 2015.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling Restrictions.</I> Each of the underwriters has
represented and agreed that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it has not made or will not
    make an offer of shares to the public in the United Kingdom
    within the meaning of section&nbsp;102B of the Financial
    Services and Markets Act 2000 (as amended) (&#147;FSMA&#148;)
    except to legal entities which are authorized or regulated to
    operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities or otherwise in circumstances which do not require
    the publication by the company of a prospectus pursuant to the
    Prospectus Rules of the Financial Services Authority
    (&#147;FSA&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it has only communicated or
    caused to be communicated and will only communicate or cause to
    be communicated an invitation or inducement to engage in
    investment activity (within the meaning of section&nbsp;21 of
    FSMA) to persons who have professional experience in matters
    relating to investments falling within Article&nbsp;19(5) of the
    Financial Services and Markets Act 2000 (Financial Promotion)
    Order 2005 or in circumstances in which section&nbsp;21 of FSMA
    does not apply to the company;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it has complied with, and will
    comply with all applicable provisions of FSMA with respect to
    anything done by it in relation to the shares in, from or
    otherwise involving the United Kingdom.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a
&#147;Relevant Member State&#148;), each Underwriter has
represented and agreed that with effect from and including the
date on which the Prospectus Directive is implemented in that
Relevant Member State (the &#147;Relevant Implementation
Date&#148;) it has not made and will not make an offer of Shares
to the public in that Relevant Member State prior to the
publication of a prospectus in relation to the Shares which has
been approved by the competent authority in that Relevant Member
State or, where appropriate, approved in another Relevant Member
State and notified to the competent authority in that Relevant
Member State, all in accordance with the Prospectus Directive,
except that it may, with effect from and including the Relevant
Implementation Date, make an offer of Shares to the public in
that Relevant Member State at any time:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to legal entities which are
    authorized or regulated to operate in the financial markets or,
    if not so authorized or regulated, whose corporate purpose is
    solely to invest in securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to any legal entity which has
    two or more of (1)&nbsp;an average of at least 250 employees
    during the last financial year; (2)&nbsp;a total balance sheet
    of more
    than&nbsp;<FONT face="times new roman,times">&#128;</FONT>&nbsp;43,000,000
    and (3)&nbsp;an annual net turnover of more than
    <FONT face="times new roman,times">&#128;</FONT>&nbsp;50,000,000,
    as shown in its last annual or consolidated accounts;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in any other circumstances
    which do not require the publication by the Issuer of a
    prospectus pursuant to Article&nbsp;3 of the Prospectus
    Directive.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the purposes of this provision, the expression an
&#147;offer of Shares to the public&#148; in relation to any
Shares in any Relevant Member State means the communication in
any form and by any means of sufficient information on the terms
of the offer and the Shares to be offered so as to enable an
investor to decide to purchase or subscribe the Shares, as the
same may be varied in that Member State by any measure
implementing the Prospectus Directive in that Member State and
the expression &#147;Prospectus Directive&#148; means Directive
2003/71/ EC and includes any relevant implementing measure in
each Relevant Member State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This offering is exempted from prospectus requirements in Norway
pursuant to the Norwegian Securities Trading Act. No prospectus
(including any amendment, supplement or replacement thereto) has
been prepared in connection with the offering of the
class&nbsp;A common stock that has been reviewed by the Oslo
Stock Exchange or the Norwegian Registry of Business
Enterprises, or by the competent authority of another State that
is a contracting party to the EEA agreement. This prospectus
shall not be released, distributed, published or reproduced, in
whole or in part, nor should its contents be disclosed by any
recipients to any other person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This is not a prospectus and has not been prepared in accordance
with the prospectus requirements provided for in the Swedish
Financial Instruments Trading Act (lagen (1991:980) om handel
med finasiella
</DIV>

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<DIV align="left" style="font-size: 10pt;">
instrument) nor any other Swedish enactment. Neither the Swedish
Financial Supervisory Authority nor any other Swedish public
body has examined, approved or registered this document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus has not been notified to or approved by the
Belgian Banking, Finance and Insurance Commission
(&#147;Commission bancaire, financiere et des
assurances&#148;/&#147;Commissie voor het Bank, Financie- en
Assurantiewezen&#148;) and is therefore transmitted on a purely
confidential basis. Accordingly, the class&nbsp;A common stock
may not be offered for sale, sold or marketed in Belgium by
means of a public offering under Belgian law. Any offer to sell
the class&nbsp;A common stock in Belgium will be permitted
exclusively to either:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;persons who each subscribe for
    a minimum
    of&nbsp;<FONT face="times new roman,times">&#128;</FONT>&nbsp;250,000,&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;qualifying institutional
    investors, acting for their own account, and listed in
    Article&nbsp;3, 2<I>f</I> of the Royal Decree of July&nbsp;7,
    1999. Qualifying institutional investors under Article&nbsp;3,
    2<I>f</I> of the Royal Decree are the following:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="5%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)</TD>
    <TD align="left">
    the European Central Bank, certain Belgian sovereigns and public
    institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD align="left">
    licensed Belgian and foreign credit institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD align="left">
    licensed Belgian and foreign investment firms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)</TD>
    <TD align="left">
    licensed Belgian and foreign collective investment schemes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)</TD>
    <TD align="left">
    licensed Belgian and foreign insurance companies, Belgian and
    foreign reinsurance companies, and certain pensions funds;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)</TD>
    <TD align="left">
    Belgian holding companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(7)</TD>
    <TD align="left">
    authorized Belgian coordination centers;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(8)</TD>
    <TD align="left">
    Belgian and foreign companies listed on a Belgian or a foreign
    regulated market with consolidated own funds of at least
    <FONT face="times new roman,times">&#128;</FONT>&nbsp;425&nbsp;million.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No prospectus (including any amendment, supplement or
replacement thereto) has been prepared in connection with the
offering of the class&nbsp;A common stock that has been approved
by the <I>Autorit&#233; des march&#233;s financiers </I>or by
the competent authority of another state that is a contracting
party to the Agreement on the European Economic Area that has
been recognized in France; no class&nbsp;A common stock has been
offered or sold and will be offered or sold, directly or
indirectly, to the public in France except to qualified
investors <I>(investisseurs qualifi&#233;s)</I> and/or to a
limited circle of investors <I>(cercle restreint
d&#146;investisseurs)</I> acting for their own account as
defined in article L. 411-2 of the French <I>Code Mon&#233;taire
et Financier </I>and applicable regulations thereunder; none of
this prospectus or any other materials related to the offering
or information contained therein relating to the class&nbsp;A
common stock has been released, issued or distributed to the
public in France except to qualified investors <I>(investisseurs
qualifi&#233;s)</I> and/or to a limited circle of investors
<I>(cercle restreint d&#146;investisseurs)</I> mentioned above;
and the direct or indirect resale to the public in France of any
class&nbsp;A common stock acquired by any qualified investors
<I>(investisseurs qualifi&#233;s)</I> and/or any investors
belonging to a limited circle of investors <I>(cercle restreint
d&#146;investisseurs)</I> may be made only as provided by
articles L. 412-1 and L. 621-8 of the French <I>Code
Mon&#233;taire et Financier </I>and applicable regulations
thereunder.
</DIV>

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The class&nbsp;A common stock has not been and will not be
registered under the Securities and Exchange Law of Japan (the
Securities and Exchange Law) and each underwriter has agreed
that it will not offer or sell any securities, directly or
indirectly, in Japan or to, or for the benefit of, any resident
of Japan (which term as used herein means any person resident in
Japan, including any corporation or other entity organized under
the laws of Japan), or to others for re-offering or resale,
directly or indirectly, in Japan or to a resident of Japan,
except pursuant to an exemption from the registration
requirements of, and otherwise in compliance with, the
Securities and Exchange Law and any other applicable laws,
regulations and ministerial guidelines of Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The class&nbsp;A common stock may not be offered or sold by
means of any document other than to persons whose ordinary
business is to buy or sell shares or debentures, whether as
principal or agent, or in circumstances which do not constitute
an offer to the public within the meaning of the Companies
Ordinance
</DIV>

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<DIV align="left" style="font-size: 10pt;">
(Cap. 32)&nbsp;of Hong Kong, and no advertisement, invitation or
document relating to the class&nbsp;A common stock may be
issued, whether in Hong Kong or elsewhere, which is directed at,
or the contents of which are likely to be accessed or read by,
the public in Hong Kong (except if permitted to do so under the
securities laws of Hong Kong) other than with respect to
class&nbsp;A common stock which are or are intended to be
disposed of only to persons outside Hong Kong or only to
&#147;professional investors&#148; within the meaning of the
Securities and Futures Ordinance (Cap. 571) of Hong Kong and any
rules made thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus has not been registered as a prospectus with the
Monetary Authority of Singapore. Accordingly, this prospectus
and any other document or material in connection with the offer
or sale, or invitation or subscription or purchase, of the
class&nbsp;A common stock may not be circulated or distributed,
nor may the class&nbsp;A common stock be offered or sold, or be
made the subject of an invitation for subscription or purchase,
whether directly or indirectly, to persons in Singapore other
than under circumstances in which such offer, sale or invitation
does not constitute an offer or sale, or invitation for
subscription or purchase, of the class&nbsp;A common stock to
the public in Singapore.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='120'></A>
</DIV>

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<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The validity of the shares of class&nbsp;A common stock offered
hereby and certain other legal matters will be passed upon for
us by Kaye Scholer LLP, New York, New York. Certain regulatory
matters will be passed upon for us by Foley&nbsp;&#38; Lardner
LLP, San&nbsp;Diego, California. The validity of the shares of
class&nbsp;A common stock and certain other legal matters will
be passed upon for the underwriters by Cahill Gordon&nbsp;&#38;
Reindel&nbsp;<FONT style="font-variant:SMALL-CAPS">llp</FONT>,
New York, New York.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='121'></A>
</DIV>

<!-- link1 "EXPERTS" -->


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The combined financial statements of American Medical Response,
Inc. and EmCare Holdings Inc. for the year ended August&nbsp;31,
2002 (Predecessor), the nine months ended May&nbsp;31, 2003
(Predecessor), and as of and for the three months ended
August&nbsp;31, 2003, the year ended August&nbsp;31, 2004 and
the five months ended January&nbsp;31, 2005 are included in this
prospectus in reliance on the report of PricewaterhouseCoopers
LLP, an independent registered public accounting firm given on
the authority of said firm as experts in auditing and
accounting, as stated in their reports appearing herein.
</DIV>


<DIV align="left" style="font-size: 10pt;">
<A name='122'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed a registration statement on Form&nbsp;S-1 with the
Securities and Exchange Commission under the Securities Act with
respect to the shares of class&nbsp;A common stock offered by
this prospectus. This prospectus, which constitutes a part of
the registration statement, does not contain all of the
information included in the registration statement or the
schedules, exhibits and amendments to the registration
statement. You should refer to the registration statement and
its exhibits and schedules for further information. Statements
made in this prospectus as to any of our contracts, agreements
or other documents referred to are not necessarily complete. In
each instance, if we have filed a copy of such contract,
agreement or other document as an exhibit to the registration
statement, you should read the exhibit for a more complete
understanding of the matter involved. Each statement regarding a
contract, agreement or other document is qualified in all
respects by reference to the actual document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may read and copy information omitted from this prospectus
but contained in the registration statement at the public
reference facilities maintained by the SEC at Room&nbsp;1024,
Judiciary Plaza, 450&nbsp;Fifth Street, N.W.,
Washington,&nbsp;D.C. 20549. You may also request copies of all
or any portion of such material from the Public Reference
Section of the SEC at 100 F Street, NE, Room&nbsp;1580,
Washington,&nbsp;D.C. 20549 at prescribed rates. Please call the
Securities and Exchange Commission at 1-800-SEC-0330 for further
information on the operation of the public reference rooms. In
addition, materials filed electronically with the SEC are
available at the SEC&#146;s World Wide Web site at
<I>http://www.sec.gov.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, we will become subject to the
information and periodic reporting requirements of the
Securities Exchange Act of 1934, and, in accordance therewith,
will file periodic reports, proxy statements and other
information with the SEC. Such periodic reports, proxy
statements and other information will be available for
inspection and copying at the public reference room and web site
of the SEC referred to above. We also intend to furnish our
stockholders with annual reports containing our financial
statements audited by an independent public accounting firm and
quarterly reports containing our unaudited financial
information. We maintain a web site at <I>www.emsc.net</I>. You
may access our annual report on Form&nbsp;10-K, quarterly
reports on Form&nbsp;10-Q, current reports on Form&nbsp;8-K, and
amendments to those reports, filed or furnished pursuant to
section&nbsp;13(a) or 15(d) of the Exchange Act with the SEC
free of charge at our web site as soon as reasonably practicable
after this material is electronically filed with, or furnished
to, the SEC. The reference to our web address does not
constitute incorporation by reference of the information
contained at that site.
</DIV>


<P align="center" style="font-size: 10pt;">137
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMERICAN MEDICAL RESPONSE, INC.&nbsp;&#38; EMCARE HOLDINGS
INC.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='123'></A>
</DIV>

<!-- link1 "INDEX TO COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS" -->

<DIV align="center" style="font-size: 10pt;">
<B>INDEX TO COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Combined Financial Statements (as Restated) for the Five
    Months Ended January&nbsp;31, 2005, for the Year Ended
    August&nbsp;31, 2004, for the Three Months Ended August&nbsp;31,
    2003, for the Nine Months Ended May&nbsp;31, 2003 (Predecessor)
    for the Year Ended August&nbsp;31, 2002 (Predecessor)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Report of Independent Registered Public Accounting Firm</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined Balance Sheets at January&nbsp;31, 2005,
    August&nbsp;31, 2004 and 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined Statements of Operations and Comprehensive Income
    (Loss) for the five months ended January&nbsp;31, 2005, for the
    year ended August&nbsp;31, 2004, for the three months ended
    August&nbsp;31, 2003, for the nine months ended May&nbsp;31,
    2003 (Predecessor) and for the year ended August&nbsp;31, 2002
    (Predecessor)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statements of Changes in Combined Equity for the five months
    ended January&nbsp;31, 2005, for the year ended August&nbsp;31,
    2004, for the three months ended August&nbsp;31, 2003, for the
    nine months ended May&nbsp;31, 2003 (Predecessor) and for the
    year ended August&nbsp;31, 2002 (Predecessor)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined Statements of Cash Flows for the five months ended
    January&nbsp;31, 2005, for the year ended August&nbsp;31, 2004,
    for the three months ended August&nbsp;31, 2003, for the nine
    months ended May&nbsp;31, 2003 (Predecessor), and for the year
    ended August&nbsp;31, 2002 (Predecessor)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes to Combined Financial Statements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-9</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Unaudited Consolidated/ Combined Financial Statements for the
    Three Months and Five Months Ended June&nbsp;30, 2005 and
    June&nbsp;30, 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unaudited Consolidated Balance Sheet at June&nbsp;30, 2005 and
    Combined Balance Sheet at January&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unaudited Consolidated/ Combined Statements of Operations and
    Comprehensive Income for the three months and five months ended
    June&nbsp;30, 2005 and 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unaudited Consolidated/Combined Statements of Cash Flows for
    five months ended June&nbsp;30, 2005 and 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes to Unaudited Consolidated/ Combined Financial Statements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-39</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-1
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the Stockholders of American Medical Response, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt;">
and EmCare Holdings, Inc.:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, the accompanying combined balance sheets
(successor basis) and the related combined statements of
operations and comprehensive income (loss) (successor basis),
changes in combined equity (successor basis) and cash flows
(successor basis) present fairly, in all material respects, the
financial position of American Medical Response, Inc. and its
subsidiaries (&#147;AMR&#148;) and EmCare Holdings, Inc. and its
subsidiaries (&#147;EmCare&#148;) as of January&nbsp;31, 2005
and August&nbsp;31, 2004 and 2003 and the results of their
operations and changes in combined equity and cash flows for the
five-month period ended January&nbsp;31, 2005, for the year
ended August&nbsp;31, 2004 and for the three-month period ended
August&nbsp;31, 2003, in conformity with accounting principles
generally accepted in the United States of America. These
combined financial statements are the responsibility of the AMR
and EmCare management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with the
standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;1 to the combined financial
statements, AMR and EmCare are wholly-owned subsidiaries of
Laidlaw International, Inc., previously Laidlaw, Inc.
(&#147;Laidlaw&#148;). The United States Bankruptcy Court for
the Western District for New York confirmed Laidlaw&#146;s Third
Amended Plan of Reorganization (the &#147;plan&#148;) on
February&nbsp;27, 2003. Confirmation of the plan resulted in the
discharge of all claims against Laidlaw that arose on or before
June&nbsp;28, 2001 and terminated all rights and interest of
equity security holders as provided for in the plan. The plan
was implemented in June 2003 and Laidlaw emerged from
bankruptcy. In connection with its emergence from bankruptcy,
Laidlaw adopted fresh-start accounting and recorded fresh-start
accounting adjustments in the separate financial statements of
AMR and EmCare on June&nbsp;1, 2003. As a result, the
Company&#146;s post-emergence (successor basis) financial
statements reflect a different basis of accounting than its
pre-emergence (predecessor basis) financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;1 to the combined financial
statements, the Company has restated its financial statements as
of August&nbsp;31, 2004 and 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
PricewaterhouseCoopers LLP
</DIV>

<DIV align="left" style="font-size: 10pt;">
Denver, Colorado
</DIV>

<DIV align="left" style="font-size: 10pt;">
August&nbsp;1, 2005
</DIV>

<P align="center" style="font-size: 10pt;">F-2
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<DIV align="left" style="font-size: 10pt;">
<A name='200'></A>
</DIV>

<!-- link1 "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" -->


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To the Stockholders of American Medical Response, Inc.
</DIV>



<DIV align="left" style="font-size: 10pt;">
and EmCare Holdings, Inc.:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, the accompanying combined statements of
operations and comprehensive income (loss) (predecessor basis),
changes in combined equity (predecessor basis) and cash flows
(predecessor basis) present fairly, in all material respects,
the results of operations and changes in combined equity and
cash flows of American Medical Response, Inc. and its
subsidiaries (&#147;AMR&#148;) and EmCare Holdings, Inc. and its
subsidiaries (&#147;EmCare&#148;) for the nine-month period
ended May&nbsp;31, 2003, and for the year ended August&nbsp;31,
2002, in conformity with accounting principles generally
accepted in the United States of America. These combined
financial statements are the responsibility of the AMR and
EmCare management; our responsibility is to express an opinion
on these financial statements based on our audits. We conducted
our audits of these statements in accordance with the standards
of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;1 to the combined financial
statements, AMR and EmCare are wholly-owned subsidiaries of
Laidlaw International, Inc., previously Laidlaw, Inc.
(&#147;Laidlaw&#148;). The United States Bankruptcy Court for
the Western District of New York confirmed Laidlaw&#146;s Third
Amended Plan of Reorganization (the &#147;plan&#148;) on
February&nbsp;27, 2003. Confirmation of the plan resulted in the
discharge of all claims against Laidlaw that arose on or before
June&nbsp;28, 2001 and terminated all rights and interest of
equity security holders as provided for in the plan. The plan
was implemented in June 2003 and Laidlaw emerged from
bankruptcy. In connection with its emergence from bankruptcy,
Laidlaw adopted fresh-start accounting and recorded fresh-start
accounting adjustments in the separate financial statements of
AMR and EmCare on June&nbsp;1, 2003. As a result, the
Company&#146;s post-emergence (successor basis) financial
statements reflect a different basis of accounting than its
pre-emergence (predecessor basis) financial statements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;2 to the combined financial
statements, on September&nbsp;1, 2002, AMR and EmCare changed
their method of accounting for goodwill.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;1 to the combined financial
statements, the Company has restated its financial statements
for the nine-month period ended May&nbsp;31, 2003 and the year
ended August&nbsp;31, 2002.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
PricewaterhouseCoopers LLP
</DIV>



<DIV align="left" style="font-size: 10pt;">
Denver, Colorado
</DIV>



<DIV align="left" style="font-size: 10pt;">
January&nbsp;14, 2005, except as to the restatement described in
</DIV>



<DIV align="left" style="font-size: 10pt;">
Note&nbsp;1, as to which the date is August&nbsp;1, 2005
</DIV>


<P align="center" style="font-size: 10pt;">F-3
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 21pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>&nbsp;&#38; EmCare Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Combined Financial Statements</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003 (as
restated)</B>
</DIV>

<P align="center" style="font-size: 10pt;">F-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc. and EmCare Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='201'></A>
</DIV>

<!-- link1 "Combined Balance Sheets" -->

<DIV align="center" style="font-size: 10pt;">
<B>Combined Balance Sheets</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>January&nbsp;31, 2005, August&nbsp;31, 2004 and 2003</B>
</DIV>


<DIV align="center" style="font-size: 10pt;">
<B>(dollars in thousands)</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated&nbsp;&#151;</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>See Note&nbsp;1</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="16" align="center" valign="top">
    <B>ASSETS</B></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,641</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>939</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted marketable securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>201</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>344,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,452</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parts and supplies inventory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,444</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaids and other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,836</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>520,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>469,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>440,720</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,546</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>148,205</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>202,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted long-term investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,608</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,071</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>983,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>949,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>914,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="16" align="center" valign="top">
    <B>LIABILITIES AND COMBINED EQUITY</B></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>55,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50,182</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>171,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>166,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,270</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233,309</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>204,631</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,787</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>142,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,789</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>375,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>354,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commitments and contingencies (notes&nbsp;7, 9 and 10)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>202,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>186,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,416</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>546,144</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings (deficit)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(315</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>598,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>573,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560,539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities and combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>983,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>949,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>914,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="center" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these combined
financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-5
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc. and EmCare Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 5pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='202'></A>
</DIV>

<!-- link1 "Combined Statements of Operations and Comprehensive Income (Loss)" -->

<DIV align="center" style="font-size: 10pt;">
<B>Combined Statements of Operations and Comprehensive Income
(Loss)</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>For the Five Months Ended January&nbsp;31, 2005, for the Year
Ended August&nbsp;31, 2004, for the Three Months Ended
August&nbsp;31, 2003, for the Nine Months Ended May&nbsp;31,
2003 (Predecessor) and for the Year Ended August&nbsp;31, 2002
(Predecessor)</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(dollars in thousands)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor&nbsp;&#151; as Restated</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>See note&nbsp;1</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>384,461</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,103,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,117,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>264,604</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>757,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>960,590</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,212</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,321</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,671</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,479</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,017</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,455</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,560</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,598</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(239,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(908</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,418</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes and cumulative effect of
    change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,802</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(246,009</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,633</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(829</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before cumulative effect of a change in accounting
    principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss), net of tax</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains (losses) during the period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(309</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>38,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,021</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(147,788</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,267</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these combined
financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc. and EmCare Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='203'></A>
</DIV>

<!-- link1 "Statements of Changes in Combined Equity" -->

<DIV align="center" style="font-size: 10pt;">
<B>Statements of Changes in Combined Equity</B>
</DIV>


<DIV align="center" style="font-size: 10pt;">
<B>For the Five Months Ended January&nbsp;31, 2005, for the Year
Ended August&nbsp;31, 2004, for the Three Months Ended
August&nbsp;31, 2003, for the Nine Months Ended May&nbsp;31,
2003 (Predecessor) and for the Year Ended August&nbsp;31, 2002
(Predecessor)</B>
</DIV>



<DIV align="center" style="font-size: 10pt;">
<B>(dollars in thousands)</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Retained</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Laidlaw</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Laidlaw</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Earnings</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Comprehensive</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Combined</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Payable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Deficit)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Income (Loss)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Equity</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances August&nbsp;31, 2001 (Predecessor)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,422,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,089,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(2,437,836</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,073,628</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior period adjustment&nbsp;&#151; see note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(41,020</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(41,020</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,823</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,823</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances August&nbsp;31, 2002 (Predecessor) as
    restated&nbsp;&#151; see note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,397,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,089,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,726,239</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>760,518</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(83</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(83</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>603</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances May&nbsp;31, 2003 (Predecessor) as restated&nbsp;&#151;
    see note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,397,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,089,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(2,874,630</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>612,647</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start balances June&nbsp;1, 2003 as restated&nbsp;&#151;
    see note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>66,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>546,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>612,647</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(44,087</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(44,087</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances August&nbsp;31, 2003, as restated&nbsp;&#151; see
    note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>546,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560,539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend to Laidlaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(200,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start adjustments (note&nbsp;1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,406</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35,638</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35,638</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,184</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances August&nbsp;31, 2004 as restated&nbsp;&#151; see
    note&nbsp;1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>186,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>573,840</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances from Laidlaw, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,264</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(309</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(309</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balances January&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>202,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(315</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>598,277</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these combined
financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-7
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc. and EmCare Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='204'></A>
</DIV>

<!-- link1 "Combined Statements of Cash Flows" -->

<DIV align="center" style="font-size: 10pt;">
<B>Combined Statements of Cash Flows</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>For the Five Months Ended January&nbsp;31, 2005, for the Year
Ended August&nbsp;31, 2004, for the Three Months Ended
August&nbsp;31, 2003, for the Nine Months Ended May&nbsp;31,
2003 (Predecessor)</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>and for the Year Ended August&nbsp;31, 2002 (Predecessor)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor&nbsp;&#151; as</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>restated</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>see note&nbsp;1</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(dollars in thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Operating Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net income (loss) to net cash provided
    by operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,775</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,359</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,205</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss (gain) on disposal of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(446</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(316</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(349</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment charge</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>262,780</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle
    (note&nbsp;3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>223,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-cash allocated expenses (income)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,505</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,522</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,094</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes payable discount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss (gain)&nbsp;on restricted investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(90</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,421</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments (note&nbsp;1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(46,416</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets/liabilities (net of acquisitions):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(26,057</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(23,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,522</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,049</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,352</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parts and supplies inventory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,133</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(517</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(153</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaids and other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(269</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,700</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,257</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,345</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable and accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,553</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,614</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,350</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compliance and insurance accruals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,520</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,575</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges and acquisition accruals</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,681</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(907</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,344</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(802</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,009</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>156,544</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Investing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,045</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(42,787</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,079</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34,768</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31,118</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of business</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,200</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale of business</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>341</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,549</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of restricted cash and investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31,257</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(64,357</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,287</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(66,266</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,946</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale and maturity of restricted investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,530</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,215</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(79</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,359</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35,173</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,047</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in Laidlaw insurance deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,521</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(28,433</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,667</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,516</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,136</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(98,835</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(57,347</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Financing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments of capital lease obligations and other debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,992</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,709</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,851</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,338</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,817</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in bank overdrafts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,544</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,675</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(815</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,134</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances from (payments to) Laidlaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,982</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(31,133</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(55,609</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,141</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,729</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in other non-current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,942</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,563</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(386</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by (used in) financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,328</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(47,222</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,060</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(36,066</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,165</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32,349</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(48,126</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,131</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, beginning of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,990</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, end of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,641</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>91,116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these combined
financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-8
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='205'></A>
</DIV>

<!-- link1 "Notes to Combined Financial Statements" -->

<DIV align="center" style="font-size: 10pt;">
<B>Notes to Combined Financial Statements</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(dollars in thousands)</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>General</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Basis of Presentation of Financial Statements</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of
America (&#147;GAAP&#148;) to reflect the combined financial
position, results of operations and cash flows of American
Medical Response, Inc. and its subsidiaries (&#147;AMR&#148;)
and EmCare Holdings Inc. and its subsidiaries
(&#147;EmCare&#148;) (combined or each individually, the
&#147;Company&#148;). These financial statements have been
prepared in connection with the definitive sale agreement
referred to in note&nbsp;17 to reflect the businesses that were
purchased. AMR and EmCare are indirect, wholly owned
subsidiaries of Laidlaw International Inc., previously Laidlaw
Inc. (&#147;Laidlaw&#148; or the &#147;Parent&#148;). The
Company operates in two segments, AMR in the Healthcare
Transportation Service business and EmCare in the Emergency
Management Service business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR operates in 34&nbsp;states, providing a full range of
medical transportation services from basic patient transit to
the most advanced emergency care and pre-hospital assistance. In
addition, AMR operates emergency (911)&nbsp;call and response
services for large and small communities all across the United
States, offers medical staff for large entertainment venues like
stadiums and arenas, and provides telephone triage,
transportation dispatch and demand management services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare provides outsourced business services to hospitals
primarily for emergency departments, related urgent care centers
and for certain inpatient departments for 313 hospitals in
38&nbsp;states. EmCare recruits physicians, gathers their
credentials, arranges contracts for their services, assists in
monitoring their performance and arranges their scheduling. In
addition, EmCare assists clients in such operational areas as
staff coordination, quality assurance, departmental
accreditation, billing, record-keeping, third-party payment
programs, and other administrative services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restatement</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Accounts receivable allowance.</I> The Company determined
that because of an error in its reserving methodology, its
accounts receivable allowances were understated at various
balance sheet dates prior to and including the periods presented
herein. As a result, AMR has recorded an adjustment of
$50&nbsp;million to increase the accounts receivable allowance
as of May&nbsp;31, 2003, of which $39&nbsp;million reduces
previously reported retained earnings (deficit) as of
August&nbsp;31, 2001. Adjustments were also required for the
nine-month period ended May&nbsp;31, 2003 and the year ended
August&nbsp;31, 2002, reflecting a reduction of net revenue and
a corresponding increase in accounts receivable allowances of
$8.0&nbsp;million and $3.0&nbsp;million, respectively. There
were no further adjustments necessary subsequent to May&nbsp;31,
2003. In addition, the Company made other adjustments related to
certain deferred rent and leasehold amortization matters,
reducing previously reported retained earnings (deficit) as of
August&nbsp;31, 2001 by $2.0&nbsp;million and reducing earnings
for the nine-month period ended May&nbsp;31, 2003 by
$0.1&nbsp;million and for the year ended August&nbsp;31, 2002 by
$0.2&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR adopted SFAS&nbsp;No.&nbsp;142, <I>Goodwill and Other
Intangible Assets</I> (&#147;SFAS&nbsp;No.&nbsp;142&#148;), on
September&nbsp;1, 2002 and recorded a charge associated with a
change in accounting principle based on a fair value assessment
of goodwill. The impact of reducing the net accounts receivable
balance prior to the assessment reduced the charge necessary
upon adoption of SFAS&nbsp;No.&nbsp;142 by $42&nbsp;million.
Effective June&nbsp;1, 2003, the Company&#146;s parent emerged
from bankruptcy and applied fresh-start accounting. The impact
of the correction made to the nine-month period ended
May&nbsp;31, 2003 increased the fresh-start income adjustment by
$8.1&nbsp;million.
</DIV>


<P align="center" style="font-size: 10pt;">F-9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Also as a part of applying fresh-start accounting, the Company
adjusted its assets and liabilities to fair value. As a result
of the restatement which reduced net assets by
$52.3&nbsp;million, as discussed above, the Company allocated
$52.3&nbsp;million to goodwill at June&nbsp;1, 2003 as the
reorganization value exceeded the fair value of the assets and
liabilities. See &#147;Chapter&nbsp;11
Reorganization&nbsp;&#151; Laidlaw&#148;, below, for further
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of these corrections, as of May&nbsp;31, 2003,
deferred tax assets of $20.3&nbsp;million have been recorded
with a corresponding full valuation allowance. In fiscal 2004,
AMR had reversed all of its valuation allowance, which reversal
now includes the valuation allowance referred to above. In
accordance with fresh-start accounting, the reversal of
valuation allowances first reduces intangible assets to zero,
and then any excess is credited to the Laidlaw investment in the
Statement of Changes in Combined Equity. As a result of the
increased goodwill of $52.3&nbsp;million and the release of the
valuation allowance of $20.3&nbsp;million discussed above, the
Company reduced its previously recorded credit to Laidlaw
investment by $32.0&nbsp;million. See note&nbsp;5 for further
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following is a summary of the effects of these changes on the
Company&#146;s Combined Balance Sheet as of August&nbsp;31, 2004
and 2003 and Combined Statements of Operations for the nine
months ended May&nbsp;31, 2003 and for the fiscal year ended
August&nbsp;31, 2002. Correcting for the error did not require
adjustment to total net cash flows provided by operating
activities, net cash flows used in investing activities, or net
cash flows provided by (used in) financing activities.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Combined Balance Sheets</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>August&nbsp;31, 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>394,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(50,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>344,210</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,981</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>500,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,954</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>469,706</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant&nbsp;&#38; equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(677</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,685</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>213,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214,389</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>979,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,369</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>949,599</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>142,580</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>374,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>375,759</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>388,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32,052</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>605,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32,052</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>573,840</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities and combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>979,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,369</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>949,599</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="13">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>August&nbsp;31, 2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>370,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,452</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>490,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>440,720</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant&nbsp;&#38; equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(677</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,546</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>95,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>148,205</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>913,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>914,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,789</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>352,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>354,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities and combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>913,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>914,746</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-10
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 30pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Combined Statements of Operations and Comprehensive Income
(Loss)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Nine months ended May&nbsp;31, 2003 (predecessor)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,111,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,103,335</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,447</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,144</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,142</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,130</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(267,939</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(192,609</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(192,006</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(147,788</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ended August&nbsp;31, 2002 (predecessor)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,418,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,321</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(236,762</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,198</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(239,960</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes and cumulative effect of a
    change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(242,811</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,198</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(246,009</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before cumulative effect of a change in accounting
    principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(244,185</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,198</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(244,185</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,198</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(244,069</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(3,198</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,267</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Chapter&nbsp;11 Reorganization&nbsp;&#151; Laidlaw</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;28, 2001, Laidlaw and certain of its affiliates
filed voluntary petitions for reorganization under
Chapter&nbsp;11 of the Bankruptcy Code. During the pendency of
the Chapter&nbsp;11 case, Laidlaw continued to operate its
businesses in accordance with the applicable provisions of the
Bankruptcy Code. Although subsidiaries of Laidlaw, neither AMR
nor EmCare filed for reorganization under Chapter&nbsp;11 of the
Bankruptcy Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laidlaw emerged from bankruptcy protection during fiscal 2003,
and on June&nbsp;1, 2003 adopted Statement of
Position&nbsp;90-7, &#147;Financial Reporting by Entities in
Reorganization Under the Bankruptcy Code&#148; (SOP&nbsp;90-7),
applying fresh-start accounting to its balance sheet as of the
close of business on May&nbsp;31, 2003. In accordance with the
principles of fresh-start accounting, Laidlaw determined the
reorganization value of its individual business units and
adjusted their assets and liabilities to estimated fair values
as of May&nbsp;31, 2003. On May&nbsp;31, 2003, Laidlaw applied
&#147;push-down&#148; accounting and allocated to the Company
its share of reorganization value aggregating
$939.9&nbsp;million. Reorganization value, as defined in
SOP&nbsp;90-7, is the amount that approximates the fair value of
the assets of an entity before considering liabilities. The
reorganization value allocated to the Company was based on the
consideration of factors such as the industries in which the
Company operates, the general economic conditions that impact
the health care industry, and application of certain valuation
methods, including a discounted cash flow analysis, an analysis
of comparable publicly traded company multiples and a comparable
acquisitions analysis. The net effect of all fresh-start
accounting
</DIV>

<P align="center" style="font-size: 10pt;">F-11

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
adjustments pushed down to the Company resulted in additional
income of $46.4&nbsp;million, which is reflected as an
adjustment to the financial results for the period from
September&nbsp;1, 2002 through May&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of the application of push-down accounting, the
Company&#146;s balance sheet as of the close of business
May&nbsp;31, 2003 and financial statements for periods beginning
on June&nbsp;1, 2003, referred to as &#147;Successor
Company&#148;, may not be comparable with its financial
statements for periods before June&nbsp;1, 2003, referred to as
Predecessor Company&#148; because they are, in effect, those
reflecting the application of a new basis of accounting. The
balances below have been adjusted for the restatement described
above. As a result, trade receivables, property plant and
equipment, intangible assets and other long-term liabilities
changed by $(50)&nbsp;million, $(0.6)&nbsp;million,
$44.2&nbsp;million and $1.6&nbsp;million, respectively, in the
Predecessor and Successor columns. Retained earnings (deficit)
increased by $8.1&nbsp;million in the Predecessor fair value
adjustment column and the adjustment to intangible fair value
decreased by $8.1&nbsp;million. The effects of fresh-start
reporting on the Company&#146;s combined balance sheet as of the
close of business May&nbsp;31, 2003 are as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Company</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Company</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Assets</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,990</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>321,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>321,974</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parts and supplies inventory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,927</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,907</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,493</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>418,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>491,445</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant, and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,212</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;(a)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,683</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,529</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,222</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;(b)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(79,843</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150,379</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,918</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted long-term investments&nbsp;&#151; trust</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,764</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>879,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>61,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>941,631</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Successor</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Company</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjustments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Company</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Liabilities and Combined Equity</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40,156</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,777</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;(d)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141,777</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,807</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190,740</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,052</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>106,723</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;(e)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121,192</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>328,984</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,355</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;(f)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,503</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,419,470</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;(f)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,873,326</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>546,144</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings (deficit)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,913,313</TD>
    <TD align="left" valign="bottom" nowrap>)&nbsp;&nbsp;(f)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,913,313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>719</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;(f)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(719</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>566,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>612,647</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities and combined equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>879,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>61,885</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>941,631</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a)</TD>
    <TD></TD>
    <TD valign="top">
    Adjusts property, plant and equipment to reflect the estimated
    fair value of the assets based on independent appraisals.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (b)</TD>
    <TD></TD>
    <TD valign="top">
    Eliminates the Predecessor Company&#146;s historic goodwill,
    records identifiable intangible assets at estimated fair value
    based upon independent appraisals and records the remaining
    reorganization value to goodwill.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (c)</TD>
    <TD></TD>
    <TD valign="top">
    Records the net deferred income tax assets of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (d)</TD>
    <TD></TD>
    <TD valign="top">
    Records the operating leases at their estimated fair value based
    on independent valuations and the current borrowing rate of the
    Company.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (e)</TD>
    <TD></TD>
    <TD valign="top">
    Adjusts the Company&#146;s insurance reserves to their estimated
    fair value.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (f)</TD>
    <TD></TD>
    <TD valign="top">
    Reflects the elimination of the accumulated deficit and
    comprehensive income and establishes the payable account to
    Laidlaw.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>Summary of Significant Accounting Policies</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Combination</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The combined financial statements include the accounts of the
Company or of the Predecessor Company consolidated with all of
their respective subsidiaries. All significant intracompany
transactions are eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Use of Estimates</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of financial statements in accordance with GAAP
requires the Company to make estimates and assumptions that
affect reported amounts of assets, liabilities, revenue and
expenses, and disclosure of contingencies. Future events could
alter such estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Cash and Cash Equivalents</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash and cash equivalents are composed of highly liquid
investments with an original maturity of three months or less
and are recorded at market value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003, bank
overdrafts of $22.0&nbsp;million, $16.1&nbsp;million and
$20.6&nbsp;million, respectively, were included in accounts
payable on the accompanying combined balance sheets.
</DIV>

<P align="center" style="font-size: 10pt;">F-13

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restricted Cash and Cash Equivalents</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Restricted cash and cash equivalents include short-term
investments that are part of the portfolio of the Company&#146;s
captive insurance arrangement. These investments are highly
liquid and have original maturities of three months or less.
These assets are used to support the current portion of claim
liabilities under the captive arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restricted Marketable Securities</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Marketable securities were pledged as collateral against the
Company&#146;s claim liabilities under the captive insurance
arrangement. Restricted marketable securities are
income-yielding securities that can be converted readily into
cash and include commercial paper, corporate and foreign notes
and bonds, and U.S.&nbsp;Treasury and agency obligations. Such
securities are stated at market value and are classified as
available-for-sale under Financial Accounting Standards Board
Statement of Financial Accounting Standards No.&nbsp;115,
<I>Accounting for Certain Investments in Debt and Equity
Securities </I>(&#147;SFAS&nbsp;No.&nbsp;115&#148;), with
unrealized gains and losses reported, net of tax, in other
comprehensive income as a component of combined equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Trade and Other Accounts Receivable, net</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company determines its allowances based on payor
reimbursement schedules, historical write-off experience and
other economic data. The allowance for uncompensated care is
reviewed monthly. Management continually evaluates the
collectibility of trade and accounts receivable based on payor
reimbursement schedules, historical write-off experience and
other economic data. Account balances are charged off against
the allowance when it is probable the receivable will not be
recovered.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003,
trade and other accounts receivable are net of allowances for
contractual discounts and uncompensated care of
$910.0&nbsp;million, $827.4&nbsp;million and
$695.0&nbsp;million, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Parts and Supplies Inventory</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Parts and supplies inventory is valued at cost, determined on a
first-in, first-out basis. Durable medical supplies, including
stretchers, oximeters and other miscellaneous items, are
capitalized as inventory and expensed as used.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Property, Plant and Equipment, net</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property, plant and equipment were reflected at their fair
values as of June&nbsp;1, 2003. Additions to property, plant and
equipment subsequent to this date are recorded at cost.
Maintenance and repairs that do not extend the useful life of
the property are charged to expense as incurred. Gains and
losses from dispositions of property, plant and equipment are
recorded in the period incurred. Depreciation of property, plant
and equipment is provided substantially on a straight-line basis
over their estimated useful lives, which are as follows:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Buildings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    35 to 40&nbsp;years</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Leasehold improvements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Shorter of expected life or life of lease</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vehicles</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    5 to 7&nbsp;years</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Computer hardware and software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    3 to 5&nbsp;years</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    3 to 10&nbsp;years</TD>
</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-14

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Goodwill</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Predecessor Company adopted SFAS&nbsp;No.&nbsp;142 on
September&nbsp;1, 2002. SFAS&nbsp;No.&nbsp;142 requires that any
goodwill recorded in connection with an acquisition consummated
on or after July&nbsp;1, 2001 not be amortized, and instead
requiring a periodic assessment of recoverability utilizing a
fair value measurement. In connection with the adoption of this
standard, the Predecessor Company impaired $223.7&nbsp;million
of restated goodwill, which is included in the accompanying
combined financial statements for the nine months ended
May&nbsp;31, 2003, as a cumulative effect of a change in
accounting principle. Recording this change had no tax-related
benefit or expense. Goodwill balances are as follows:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Predecessor Company:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance on August&nbsp;31, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>453,943</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss under SFAS&nbsp;No.&nbsp;142, September&nbsp;1,
    2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance on May&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>230,222</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Successor Company:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start adjustment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(177,862</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance on June&nbsp;1, 2003 and August&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,360</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax valuation adjustment, August&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52,360</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance on August&nbsp;31, 2004 and January&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Had the change in the accounting policy for amortizing goodwill
been in effect in the prior year, the Predecessor Company&#146;s
income (loss) before cumulative effect of a change in accounting
principle for the year ended August&nbsp;31, 2002 would have
been ($226.0)&nbsp;million compared to ($247.4)&nbsp;million as
originally recorded. There would have been no changes to the
results recorded for the five months ended January&nbsp;31,
2005, the year ended August&nbsp;31, 2004, the three months
ended August&nbsp;31, 2003 or the Predecessor Company nine
months ended May&nbsp;31, 2003.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Impairment of Long-lived Assets other than Goodwill and
Other Indefinite Lived Intangibles</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-lived assets other than goodwill and other indefinite lived
intangibles are assessed for impairment whenever events or
changes in circumstances indicate that the carrying value may
not be recoverable. Important factors which could trigger
impairment review include significant underperformance relative
to historical or projected future operating results, significant
changes in the use of the acquired assets or the strategy for
the overall business, and significant negative industry or
economic trends. If indicators of impairment are present,
management evaluates the carrying value of long-lived assets
other than goodwill and other indefinite lived intangibles in
relation to the projection of future undiscounted cash flows of
the underlying business. Projected cash flows are based on
historical results adjusted to reflect management&#146;s best
estimate of future market and operating conditions, which may
differ from actual cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Contract Value</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;31, 2005, August&nbsp;31, 2004 and 2003, the
Company&#146;s contracts and customer relationships, recorded as
part of fresh-start push-down accounting, represent the
amortized fair value of such assets held by the Company at
June&nbsp;1, 2003. Contract Assets are amortized on a
straight-line basis over the average length of the contracts and
the expected contract renewal period of 10&nbsp;years. In
accordance with the provisions of fresh-start accounting, the
reversal of the income tax valuation allowance resulted in a
reduction in certain Contract Assets at August&nbsp;31, 2004
(note&nbsp;5).
</DIV>


<P align="center" style="font-size: 10pt;">F-15

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Radio Frequencies</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The radio frequency licenses, recorded as part of push-down
accounting and included in net intangible assets on the
accompanying combined balance sheet, total $4.0&nbsp;million at
August&nbsp;31, 2003 and are considered to be indefinite lived
intangible assets. As such, they are not amortized. The radio
frequency licenses are reviewed for impairment on an annual
basis. In accordance with the provisions of fresh-start
accounting, the reversal of the income tax valuation allowance
resulted in the radio frequency asset being reduced to zero at
August&nbsp;31, 2004 (note&nbsp;5).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restricted Long-Term Investments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Restricted long-term investments include investments that are
part of the portfolio of the Company&#146;s captive insurance
subsidiary. In accordance with SFAS&nbsp;No.&nbsp;115<I>,
</I>the Company determines the classification of securities as
held-to-maturity or available-for-sale at the time of purchase
and re-evaluates such designation at each balance sheet date.
Securities are classified as held-to-maturity when the Company
has the positive intent and ability to hold securities to
maturity. Held-to-maturity securities are stated at cost,
adjusted for amortization of premiums and discounts to maturity.
Investments not classified as held-to-maturity are classified as
available-for-sale. Available-for-sale securities are carried at
fair value, with unrealized gains and losses reported as a
separate component of equity. The cost of securities sold is
based on the specific identification method. Restricted
long-term investments are available-for-sale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These investments are used to support the Company&#146;s
self-insurance program. The investments are comprised
principally of government securities and investment grade debt
securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other Long-Term Liabilities</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-term portions of insurance reserves, acquisition-related
liabilities and other liabilities are classified as other
long-term liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Contractual Arrangements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare structures its contractual arrangements for emergency
department management services in various ways. In most states,
a wholly-owned subsidiary of EmCare (&#147;EmCare
Subsidiary&#148;) contracts with hospitals to provide emergency
department management services. The EmCare Subsidiary enters
into an agreement (&#147;PA Management Agreement&#148;) with a
professional association or professional corporation
(&#147;PA&#148;), whereby the EmCare Subsidiary provides the PA
with management services, and the PA agrees to provide physician
services for the hospital contract. The PA employs physicians
directly or subcontracts with another entity for the physician
services. In certain states, the PA contracts directly with the
hospital, but provides physician services and obtains management
services in the same manner as described above. In all
arrangements, decisions regarding patient care are made
exclusively by the physicians. In consideration for these
services, the EmCare Subsidiary receives a monthly fee that may
be adjusted from time to time to reflect industry practice,
business conditions, and actual expenses for administrative
costs and uncollectible accounts. In most states, these fees
approximate the excess of the PA&#146;s revenues over its
expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each PA is wholly-owned by a physician who enters into a Stock
Transfer and Option Agreement with EmCare. This agreement gives
EmCare the right to replace the physician owner with another
physician in accordance with the terms of the agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare has determined that existing management contracts meet
Emerging Issues Task Force 97-2, <I>Application of FASB
Statement No.&nbsp;94 and APB Opinion No.&nbsp;16 to Physician
Practice Entities</I>, requirements
</DIV>


<P align="center" style="font-size: 10pt;">F-16
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
for consolidation. Accordingly, the consolidated financial
statements of EmCare and these combined financial statements
include the accounts of EmCare and its subsidiaries and the PAs.
The financial statements of the PAs are consolidated with EmCare
and its subsidiaries because EmCare has ultimate control over
the assets and business operations of the PAs as described
above. Notwithstanding the lack of technical majority ownership,
consolidation of the PAs is necessary to present fairly the
financial position and results of operations of EmCare because
of the existence of a control relationship by means other than
record ownership of the PAs&#146; voting stock. Control of a PA
by EmCare is perpetual and other than temporary because EmCare
may replace the physician owner of the PA at any time and
thereby continue EmCare&#146;s relationship with the PA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Financial Instruments and Concentration of Credit
Risk</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s cash and cash equivalents, accounts
receivable, accounts payable, accrued liabilities (other than
current portion of self-insurance estimates), long-term debt and
long-term liabilities (other than self-insurance estimates)
constitute financial instruments. Based on management&#146;s
estimates, the carrying value of the Company&#146;s cash and
cash equivalents, accounts receivable, accounts payable, accrued
liabilities (other than current portion of self-insurance
estimates), long-term debt and long-term liabilities (other than
self-insurance estimates) approximates their fair value as of
January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003.
Concentration of credit risks in accounts receivable is limited,
due to the large number of customers comprising the
Company&#146;s customer base throughout the United States. A
significant component of the Company&#146;s revenue is derived
from Medicare and Medicaid. Given that these are government
programs, the credit risk for these customers is considered low.
The Company performs ongoing credit evaluations of its other
customers, but does not require collateral to support customer
accounts receivable. The Company establishes an allowance for
uncompensated care based on the credit risk applicable to
particular customers, historical trends and other relevant
information. For each of the periods presented, the Company
derived approximately 35% of its net revenue from Medicare and
Medicaid, 60% from insurance providers and contracted payors,
and 5% directly from patients.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Revenue Recognition</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Revenue is recognized at the time of service and is recorded net
of provisions for contractual discounts and estimated
uncompensated care. These provisions amounted to approximately
61%, 56%, 53%, 52% and 49% of gross revenue for the five months
ended January&nbsp;31, 2005, the year ended August&nbsp;31,
2004, the three months ended August&nbsp;31, 2003, the nine
months ended May&nbsp;31, 2003 and the year ended
August&nbsp;31, 2002, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Healthcare reimbursement is complex and may involve lengthy
delays. Third-party payors are continuing their efforts to
control expenditures for healthcare, including proposals to
revise reimbursement policies. The Company has from time to time
experienced delays in reimbursement from third-party payors. In
addition, third-party payors may disallow, in whole or in part,
claims for reimbursement based on determinations that certain
amounts are not reimbursable under plan coverage, determinations
of medical necessity, or the need for additional information.
Laws and regulations governing the Medicare and Medicaid
programs are very complex and subject to interpretation. As a
result, there is a reasonable possibility that recorded
estimates will change materially in the short-term. Retroactive
adjustments may change the amounts realized from third-party
payors and are considered in the recognition of revenue on an
estimated basis in the period the related services are rendered.
Such amounts are adjusted in future periods, as adjustments
become known.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsidies and fees in connection with community contracts are
recognized ratably over the service period the payment covers.
</DIV>

<P align="center" style="font-size: 10pt;">F-17
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company also provides services to patients who have no
insurance or other third-party payor coverage. In certain
circumstances, federal law requires providers to render services
to any patient who requires emergency care regardless of their
ability to pay.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Income Taxes</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for income taxes under SFAS&nbsp;109.
Deferred income taxes reflect the impact of temporary
differences between the reported amounts of assets and
liabilities for financial reporting purposes and such amounts as
measured by tax laws and regulations. The deferred tax assets
and liabilities represent the future tax return consequences of
those differences, which will either be taxable or deductible
when the assets and liabilities are recovered or settled. A
valuation allowance is provided for deferred tax assets when
management concludes it is more likely than not that some
portion of the deferred tax assets will not be recognized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR and EmCare are included in the consolidated U.S.&nbsp;income
tax return with other Laidlaw U.S.&nbsp;subsidiaries. The tax
allocation agreement calculates tax liability on a separate
company basis and provides for reimbursement or payment for
utilization of carryovers among members of the group.
Consequently, AMR and EmCare only receive the benefits of net
operating loss and interest carryforwards to the extent utilized
in Laidlaw&#146;s consolidated return. Costs related to income
taxes are included as payable to or receivable from Laidlaw.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Recent Accounting Pronouncements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the Financial Accounting Standards Board
(&#147;FASB&#148;) issued Statement No.&nbsp;123 (revised 2004),
&#147;<I>Share-Based Payment</I>.&#148; This Statement is a
revision of FASB Statement No.&nbsp;123, &#147;<I>Accounting for
Stock-Based Compensation</I>&#148; and is effective as of the
beginning of the first interim or annual reporting period that
begins after June&nbsp;15, 2005. The Statement requires public
companies to measure the cost of employee services received in
exchange for an award of equity instruments based on the
grant-date fair value of the award. The Company anticipates that
the adoption of this Statement will not have a material impact
on its financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>Property, Plant and Equipment, net</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property, plant and equipment, net consisted of the following at
January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,079</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Building and leasehold improvements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,670</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vehicles</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,163</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Computer hardware and software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,290</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,130</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>196,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>182,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,332</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: accumulated depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(67,617</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49,920</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,786</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>128,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>132,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>133,546</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vehicles include certain vehicles held under capital leases with
a net book value of $11.7&nbsp;million, $13.9&nbsp;million and
$19.0&nbsp;million at January&nbsp;31, 2005 and August&nbsp;31,
2004 and 2003, respectively. Accumulated depreciation and
amortization at January&nbsp;31, 2005 and August&nbsp;31, 2004
and 2003 includes $8.4&nbsp;million, $6.3&nbsp;million and
$1.3&nbsp;million, respectively, relating to such vehicles.
Depreciation expense was
</DIV>

<P align="center" style="font-size: 10pt;">F-18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
$18.0&nbsp;million for the five months ended January&nbsp;31,
2005, $43.2&nbsp;million for the year ended August&nbsp;31,
2004, $10.2&nbsp;million for the three months ended
August&nbsp;31, 2003, $32.2&nbsp;million for the nine months
ended May&nbsp;31, 2003 and $45.7&nbsp;million for the year
ended August&nbsp;31, 2002.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>Intangible Assets, net</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets, net consisted of the following at
January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>52,360</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Contract value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,177</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Radio frequencies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Covenant not to compete</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150,556</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: accumulated amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,719</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,351</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>148,205</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Amortization expense of intangible assets was $0.8&nbsp;million
for the five months ended January&nbsp;31, 2005,
$9.5&nbsp;million for the year ended August&nbsp;31, 2004 and
$2.4&nbsp;million for the three months ended August&nbsp;31,
2003, $0 for the nine months ended May&nbsp;31, 2003 and
$21.4&nbsp;million for the year ended August&nbsp;31, 2002.
Covenants and the contract value are amortized over a life of
10&nbsp;years. As a result of the reversal of the separate
company tax valuation allowance as of August&nbsp;31, 2004 under
fresh-start accounting, AMR reduced its intangible assets to
zero and EmCare reduced its intangible assets to
$15.8&nbsp;million. Estimated annual amortization over each of
the next five years is approximately $2.2&nbsp;million.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>Income Taxes</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts
used for income tax purposes. Significant components of the
Company&#146;s deferred taxes were as follows at
January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>38,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>34,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>54,447</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,120</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,311</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest carryforwards</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,474</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net operating loss carryforwards</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,576</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>279,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>277,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>319,928</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Excess of tax over book depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,651</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,449</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,544</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>311,384</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(155,952</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>267,561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>267,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>155,432</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-19
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has significant net deferred tax assets resulting
from net operating loss (&#147;NOL&#148;) and interest deduction
carryforwards and other deductible temporary differences that
will reduce taxable income in future periods.
SFAS&nbsp;No.&nbsp;109 &#147;<I>Accounting for Income
Taxes</I>&#148; requires that a valuation allowance be
established when it is &#147;more likely than not&#148; that
all, or a portion, of net deferred tax assets will not be
realized. A review of all available positive and negative
evidence needs to be considered, including expected reversals of
significant deductible temporary differences, a company&#146;s
recent financial performance, the market environment in which a
company operates, tax planning strategies and the length of NOL
and interest deduction carryforward periods. Furthermore, the
weight given to the potential effect of negative and positive
evidence should be commensurate with the extent to which it can
be objectively verified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the fresh-start accounting date, May&nbsp;31, 2003, the
Company recorded a valuation allowance of $156.0&nbsp;million,
based on the criteria required under SFAS&nbsp;No.&nbsp;109
discussed above. During fiscal 2004, write-offs of net operating
loss carryforwards and realization of other assets reduced the
valuation allowance by $48.2&nbsp;million. As a result of the
Company&#146;s improved financial performance during fiscal
2004, management reduced the deferred tax valuation allowance by
an additional $107.8&nbsp;million during the year ended
August&nbsp;31, 2004. As required under fresh-start accounting,
this change also resulted in a reduction in intangible assets
and goodwill and an increase in Laidlaw equity of AMR.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has interest carryovers of $222.6&nbsp;million at
January&nbsp;31, 2005 limited by Internal Revenue Code
Section&nbsp;163(j) without expiration, and federal net
operating loss carryforwards of $143.7&nbsp;million which expire
in the years 2005 to 2024. The interest carryovers and
$134.0&nbsp;million of the net operating loss carryforwards are
subject to Laidlaw&#146;s annual Section&nbsp;382 limitation of
$58&nbsp;million.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the sale described in note&nbsp;17, the value
of deferred tax assets and liabilities will be adjusted.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The components of income tax benefit (expense) were as follows:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD><!-- Left VRule -->
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Current tax expense</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(162</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(694</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,216</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(135</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,054</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Deferred tax expense</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(76</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,345</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,421</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total tax expense</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(238</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,871</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,633</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-20
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A reconciliation of the provision (benefit) for income taxes at
the federal statutory rate compared to the Company&#146;s
effective tax rate is as follows:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD><!-- Left VRule -->
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As Restated</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense (benefit) at the statutory rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>631</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(86,103</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Decrease(increase) in income taxes resulting from:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State taxes, net of federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(155</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>893</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill amortization/impairment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,517</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,246</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parent Company allocations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,577</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,990</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,826</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,377</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,607</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50,158</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>167</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>286</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision for income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,633</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.</B></TD>
    <TD>
    <B>Accrued Liabilities</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accrued liabilities were as follows at January&nbsp;31, 2005 and
August&nbsp;31, 2004 and 2003:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued wages and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>65,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,960</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued paid time off</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,896</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of self-insurance reserve</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,206</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued restructuring</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,088</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of compliance and legal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,056</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued billing and collection fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,300</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued profit sharing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,552</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,121</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>171,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>166,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>146,179</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-21
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>Long-term Debt</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-term debt consisted of the following at January&nbsp;31,
2005 and August&nbsp;31, 2004 and 2003:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes due at various dates from 2004 to 2022 with interest rates
    from 6% to 10%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,478</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mortgage loan due 2010 with an interest rate of 7%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,242</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations due at various dates from 2006 to 2007
    (note&nbsp;10)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,337</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,846</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,565</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,270</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,787</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate amount of minimum payments (deposit refunds)
required on long-term debt in each of the years indicated is as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="87%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" nowrap><B>Year ending January&nbsp;31,</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,846</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,771</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(878</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>108</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,529</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,497</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>Restructuring Charges and Impairment Losses</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The activity in the accrued restructuring balance is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>2002 Plan</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003 Plan</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004 Plan</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Severance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Lease</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Severance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Severance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,777</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(456</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(149</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(605</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(605</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>August&nbsp;31, 2002</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,172</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Incurred April 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,288</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Incurred August 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,449</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(559</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(561</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,120</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,701</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>August&nbsp;31, 2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,088</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,115</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(502</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(566</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,068</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,036</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,488</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,592</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>August&nbsp;31, 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,611</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Incurred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(238</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(238</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(255</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(493</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>January&nbsp;31, 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,118</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-22

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Restructuring Plans</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal year 2004, AMR was re-aligned into three
geographic regions. The billing centers and operating units
within the four original AMR regions were shifted to create the
new structure and the administrative office of the former
South-Central region was closed. The functions previously
performed by this group were distributed to the remaining
regions. This restructuring plan is expected to be completed by
December 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal year 2003, AMR&#146;s Northern Pacific Region
re-aligned the management structure of its operations. The first
phase occurred in April 2003 and the second and final phase
occurred in August 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal year 2002, in an effort to eliminate the
differences in size among regions, AMR was re-aligned into four
geographic regions. The operating units within the five original
regions were shifted to create the new structure and the
administrative offices of the former South region and one
billing center were closed. National Products and Services was
also closed. The functions previously performed by this group
were distributed to the remaining regions and the corporate
office. This restructuring plan is expected to be completed by
December 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>2002 Impairment Losses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal year 2002, AMR incurred an impairment charge of
$262.8&nbsp;million, including $254.9 goodwill impairment and
$7.9&nbsp;million property, plant and equipment impairment. The
impairment losses resulted from the inability of AMR to recover
the carrying value of the long-lived assets from expected future
operating cash flows.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.</B></TD>
    <TD>
    <B>Retirement Plans and Employee Benefits</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR maintains three 401(k) plans (the &#147;AMR Plans&#148;) for
its employees and employees of its subsidiaries who meet the
eligibility requirements set forth in the AMR Plans. Employees
may contribute a maximum of 40% of their compensation up to a
maximum of $13 (thousand). Generally 50% of the contribution is
matched by AMR up to a maximum of 3% to 6% of the
employee&#146;s salary per year, depending on the plan.
AMR&#146;s contributions to the AMR Plans for the five months
ended January&nbsp;31, 2005 were $3.7&nbsp;million, the year
ended August&nbsp;31, 2004 were $8.1&nbsp;million, for the three
months ended August&nbsp;31, 2003 were $1.9&nbsp;million and for
the nine months ended May&nbsp;31, 2003 were $5.7&nbsp;million.
For the year ended August&nbsp;31, 2002, AMR&#146;s
contributions to the AMR Plans were $6.9&nbsp;million.
Contributions are included in operating expenses on the
accompanying combined statements of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare established the EmCare Holdings Inc. 401(k) Savings Plan
(the &#147;EmCare Plan&#148;) in 1994 to provide retirement
benefits to its employees. Employees may elect to participate in
the EmCare Plan at the beginning of each calendar quarter and
may contribute 1% to 25% of their annual compensation on a
tax-deferred basis subject to limits established by the Internal
Revenue Service. EmCare contributes 50% of the first 6% of base
compensation that a participant contributes to the EmCare Plan
during any calendar year. The EmCare Plan follows a calendar
year-end. Accordingly, EmCare makes its matching contributions
based on eligible employee contributions for each calendar year.
EmCare contributed $0.1&nbsp;million to the EmCare Plan during
the five months ended January&nbsp;31, 2005. During calendar
years 2004, 2003 and 2002, EmCare contributed $0.5&nbsp;million,
$0.4 and $0.4&nbsp;million, respectively, to the EmCare Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In fiscal 2004, Laidlaw issued Value Appreciation Rights
(&#147;VAR&#148;) to various employees of AMR and EmCare. There
were no VARs issued prior to fiscal 2004. The VARs vest 100% on
the third anniversary of the date of the grant. The VARs
compensation is based on prescribed formulas that estimate
changes in the enterprise values of AMR and EmCare. The Company
recognizes compensation expense on a straight-line
</DIV>

<P align="center" style="font-size: 10pt;">F-23

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
basis over the vesting period with compensation expense of
$4.1&nbsp;million for fiscal 2004. The Company recognized
$15.3&nbsp;million of expense related to the VARs for the period
ended January&nbsp;31, 2005 which is included in Laidlaw fees
and compensation charges. This expense related to the sale
transaction discussed in note&nbsp;17 and was funded by Laidlaw
in accordance with the terms of the sale agreements. The VAR
program was terminated in connection with the sale of AMR and
EmCare in February 2005 and employees and executives will earn
no further rights.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>10.</B></TD>
    <TD>
    <B>Commitments and Contingencies</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Lease Commitments</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company leases various facilities and equipment under
operating lease agreements. Rental expense incurred under these
leases was $12.4&nbsp;million, $27.9&nbsp;million,
$7.2&nbsp;million and $23.2&nbsp;million for the five months
ended January&nbsp;31, 2005, the year ended August&nbsp;31,
2004, the three months ended August&nbsp;31, 2003 and the nine
months ended May&nbsp;31, 2003, respectively, and was
$32.4&nbsp;million in fiscal 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Company leases certain vehicles under capital
leases. Assets under capital lease are capitalized using
inherent interest rates at the inception of each lease. Capital
leases are collateralized by the leased vehicles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Future commitments under capital and operating leases for
vehicle, premises, equipment and other recurring commitments are
as follows (the balances below include fair value adjustments as
described in note&nbsp;2):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Operating</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Capital</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Leases&nbsp;&#38;</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Leases</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year ending January&nbsp;31,</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,558</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,335</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(948</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,242</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,785</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,810</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,659</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>101,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less imputed interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(500</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,530</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other commitments consisting of dispatch and responder fees
total $5,362, $1,133, $991, $989, $2,912 and $243 for the years
ending January&nbsp;31, 2006, 2007, 2008, 2009, 2010 and
thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is subject to the Medicare and Medicaid fraud and
abuse laws which prohibit, among other things, any false claims,
or any bribe, kick-back or rebate in return for the referral of
Medicare and Medicaid patients. Violation of these prohibitions
may result in civil and criminal penalties and exclusion
</DIV>

<P align="center" style="font-size: 10pt;">F-24
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
from participation in the Medicare and Medicaid programs.
Management has implemented policies and procedures that
management believes will assure that the Company is in
substantial compliance with these laws. From time to time, we
receive requests for information from government agencies
pursuant to their regulatory or investigational authority. Such
requests can include subpoenas or demand letters for documents
to assist the government in audits or investigations. The
Company is cooperating with the government agencies conducting
these investigations and is providing requested information to
the government agencies. Other than the investigations described
below, management believes that the outcome of any of these
investigations would not have a material adverse effect on the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the first quarter of fiscal 2004, AMR was advised by the
U.S.&nbsp;Department of Justice (&#147;DOJ&#148;) that it was
investigating certain of AMR&#146;s business practices. The
specific practices at issue were (1)&nbsp;whether ambulance
transports involving Medicare eligible patients complied with
the &#147;medical necessity&#148; requirement imposed by
Medicare regulations, (2) whether patient signatures, when
required, were properly obtained from Medicare eligible
patients, and (3)&nbsp;whether discounts in violation of the
federal Anti-Kickback Statute were provided by AMR in exchange
for referrals involving Medicare eligible patients. In
connection with the third issue, the government has alleged that
certain of AMR&#146;s&nbsp;hospital and nursing home contracts
in effect in Texas, primarily certain contracts in effect in
1996 and 1997, contained discounts in violation of the federal
Anti-Kickback Statute. The government recently has provided the
Company with an analysis of the investigation conducted in
connection with this contract issue, and invited the Company to
respond. The Company is considering the government&#146;s
analysis and intends to provide its views, as requested. The
government may also be investigating whether AMR&#146;s
contracts with health facilities in Oregon and other
jurisdictions violate the Anti-Kickback Statute. At this time,
it is not possible to predict the ultimate conclusion of these
investigations, nor is it possible to estimate possible
financial exposure, if any, to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From August 1998 until August 2000, American Medical Response
West (&#147;AMR West&#148;), a subsidiary of AMR, received six
subpoenas duces tecum from the United States Attorney&#146;s
Office. These subpoenas related to billing matters for emergency
transports during the periods January&nbsp;1, 1995 to
December&nbsp;31, 1999. Pursuant to a settlement agreement with
the United States Attorney&#146;s Office, AMR West paid
$3.5&nbsp;million in 2004 and entered into a five-year agreement
with the Department of Health and Human Services covering
various administrative processes and procedures. AMR reserved
for these matters in periods prior to the statements of
operations presented herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 1999, the DOJ began an investigation of the billing
processes of Regional Emergency Services L.P., or RES, a
subsidiary of AMR, and one of RES&#146;&nbsp;hospital clients.
The DOJ alleged violations by the companies of the False Claims
Act based on the absence of certificates of medical necessity
and other non-compliant billing practices from October 1992 to
May 2002. Pursuant to a settlement agreement to resolve these
allegations, including settlement of claims in Texas described
below, in April&nbsp;2004 AMR paid $5.0&nbsp;million of a total
$20.0 million settlement amount, with the balance paid by the
hospital. AMR reserved for these matters in periods prior to the
statements of operations presented herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;9, 2002, AMR received a subpoena duces tecum from
the Office of Inspector General for the United States Department
of Health and Human Services. The subpoena required AMR to
produce a broad range of documents relating to RES contracts in
Texas, Georgia and Colorado for the period from January 1993
through May 2002. The Texas claims were resolved pursuant to the
settlement agreement described above. The government
investigations in Georgia and Colorado are continuing; it is not
currently possible to estimate the financial exposure, if any,
to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;12, 2005, the Company received a letter and draft
Audit Report from the Office of Inspector General for the United
States Department of Health and Human Services, or OIG,
requesting the Company&#146;s
</DIV>

<P align="center" style="font-size: 10pt;">F-25

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
response to its draft findings that the Company&#146;s
Massachusetts subsidiary received substantial overpayments from
Medicare for services performed between July&nbsp;1, 2002 and
December&nbsp;31, 2002. The draft findings state that some of
these services did not meet Medicare medical necessity and
reimbursement requirements. The Company disagrees with the
OIG&#146;s finding and is in the process of responding to the
draft Audit Report. If the Company is unsuccessful in
challenging the OIG&#146;s draft findings, and in any
administrative appeals to which the Company may be entitled
following the release of a final Audit Report, the Company may
be required to make a substantial repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Letters of Credit</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;31, 2005 and August&nbsp;31, 2004 and 2003, AMR
had $23,297, $8,212 and $9,112, respectively, in outstanding
letters of credit. At January&nbsp;31, 2005 and August&nbsp;31,
2004 and 2003, Laidlaw also had issued letters of credit on
behalf of AMR for $1,000, $23,328 and $28,185, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other Legal Matters</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare has been named as a defendant in a collective action
lawsuit brought by a number of nurse practitioners and physician
assistants under the federal Fair Labor Standards Act. The
plaintiffs are seeking to recover overtime pay for the hours
they worked in excess of 40 in a workweek and reclassification
as non-exempt employees. Certain of the plaintiffs brought a
related action under California state law. EmCare has entered
into a settlement of the California state law claims for
$1.5&nbsp;million. EmCare reserved the amount of this settlement
in fiscal 2004 and it was included as a component of selling,
general and administrative expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Guarantees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon emergence from Chapter&nbsp;11, Laidlaw established a new
senior secured credit facility (the &#147;Facility&#148;). The
Facility is guaranteed by Laidlaw and certain Laidlaw
subsidiaries, including AMR and EmCare. In addition, the
Facility is secured by the assets of Laidlaw and certain Laidlaw
subsidiaries, including AMR and EmCare, except for certain
assets of the Company contractually excluded from the
securitization. Under the terms of the Facility, Laidlaw is
required to meet certain financial covenants, including a fixed
charge coverage ratio, leverage ratio, interest coverage ratio,
net tangible asset ratio and maximum senior secured leverage
ratio, as well as certain non-financial covenants. As of
January&nbsp;31, 2005, Laidlaw was in compliance with all
covenants and the outstanding balance under the Facility and
issued letters of credit aggregated $597.3&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of emergence from Chapter&nbsp;11, Laidlaw also
issued unsecured senior notes. These notes are also guaranteed
by Laidlaw and certain Laidlaw subsidiaries, including AMR and
EmCare. The outstanding balance under the notes at
January&nbsp;31, 2005 aggregated $406&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the sale discussed in note&nbsp;17, AMR and
EmCare have been released from these guarantees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Income Tax Matters</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The respective tax authorities, in the normal course, audit
previous tax filings. It is not possible at this time to predict
the final outcome of these audits or establish a reasonable
estimate of possible additional taxes owing, if any.
</DIV>

<P align="center" style="font-size: 10pt;">F-26
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 21pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>11.</B></TD>
    <TD>
    <B>Related Party</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Allocation of Costs from Laidlaw</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laidlaw charges AMR and EmCare for the estimated cost of certain
functions that are managed by Laidlaw and can reasonably be
attributed directly to the operations of the Company. The
charges to the Company are based on management&#146;s estimate
of such services specifically used by the Company. Where
determinations based on specific usage alone have been
impracticable, other methods and criteria were used that Laidlaw
management believes are reasonable. Such allocations are not
intended to represent the costs that would be or would have been
incurred if the Company were an independent business.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of Laidlaw&#146;s combined equity and the Laidlaw
payable included in the balance sheet represents a net balance
as a result of various transactions between the Company and
Laidlaw. There are no terms of settlement associated with the
account balance. The balance is primarily the result of the
Company&#146;s participation in Laidlaw&#146;s central cash
management program, wherein all the subsidiaries&#146; cash
receipts are remitted to Laidlaw and all cash disbursements are
funded by Laidlaw. Other transactions include certain direct
obligations administered by Laidlaw, as well as the
Company&#146;s share of the current portion of the Laidlaw
consolidated federal and state income tax liability and various
other administrative expenses allocated by Laidlaw. As a result,
obligations for these matters are not reflected on the
accompanying balance sheet. Self-insurance obligations and
related deposits administered by Laidlaw are reflected on the
accompanying balance sheet.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laidlaw charges or cost allocations included in the accompanying
combined statements of operations include the following:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocated insurance expense (income)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,505</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,522</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,094</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Direct insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,350</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,400</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reorganization costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,761</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>403</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,585</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in insurance expense are allocations of charges and
credits made to AMR related to the operating costs and
investment activities of Laidlaw&#146;s captive insurance
company. These allocations also include changes in actuarial
estimates of insurance reserves for fiscal year 2001 and prior
years&#146; claims estimates. For fiscal year 2002 and 2003, AMR
obtained insurance coverage from outside parties, rather than
through Laidlaw. In fiscal 2004, AMR returned to the Laidlaw
insurance program for workers compensation, auto and general
liability. EmCare&#146;s participation in the Laidlaw insurance
program is limited to directors&#146; and officers, and general
liability insurance which is allocated as a component of Laidlaw
fees and compensation charges.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management costs have been calculated using a formula based upon
the Company&#146;s share of Laidlaw&#146;s consolidated revenue
and represent Laidlaw&#146;s general and administrative costs
incurred for the benefit of the
</DIV>

<P align="center" style="font-size: 10pt;">F-27

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Company. Fiscal 2004 management costs include $4.1&nbsp;million
of charges related to incentive plans for management of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the nine months ended May&nbsp;31, 2003 and fiscal year
2002, Laidlaw charged the Company additional costs incurred by
Laidlaw as a result of its reorganization of $3.7&nbsp;million
and $8.8&nbsp;million, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest expense has been recorded by the Company based on an
average intercompany balance and applicable interest rates
(prime + 2%). During fiscal 2002 and for the nine months ended
May&nbsp;31, 2003, Laidlaw, as a result of its bankruptcy,
suspended interest on purchase acquisition debt pushed down to
AMR.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;1, 2004, AMR declared a $200&nbsp;million dividend
payable to Laidlaw. The dividend has been recorded as an
increase in the Laidlaw payable account on the balance sheet and
as a decrease to combined equity. There are no specific
repayment terms related to the Laidlaw payable account which has
been included as a component of equity on the accompanying
combined balance sheets and combined statements of changes in
equity.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;31, 2005, Laidlaw maintained deposits of
$16.4&nbsp;million for collateral on behalf of AMR supporting
performance bonds held by a related party. AMR&#146;s interest
in the collateral is included in other long-term assets. As
described in note&nbsp;12, Laidlaw also maintains
insurance-related deposits on behalf of AMR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company transfers surplus funds to Laidlaw as necessary and,
as described above, bears the cost of various allocated
expenses. The Company&#146;s operating results, cash flows and
financial position may significantly differ from those that
would have been achieved in the absence of the Company&#146;s
relationship with Laidlaw.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>12.</B></TD>
    <TD>
    <B>Insurance</B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insurance reserves are established for automobile, workers
compensation, general liability and professional liability
claims utilizing policies with both fully-insured and
self-insured components. In those instances where the Company
has obtained third-party insurance coverage, either directly
through an independent outside party or through participation in
a Laidlaw administered program, the Company normally retains
liability for the first $1 to $2&nbsp;million of the loss.
Insurance reserves cover known claims and incidents within the
level of Company retention that may result in the assertion of
additional claims, as well as claims from unknown incidents that
may be asserted arising from activities through January&nbsp;31,
2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company establishes reserves for claims based upon an
assessment of actual claims and claims incurred but not
reported. The reserves are established based on consultation
with third-party independent actuaries using actuarial
principles and assumptions that consider a number of factors,
including historical claim payment patterns (including legal
costs) and changes in case reserves and the assumed rate of
inflation in health care costs and property damage repairs. All
claims arising and not settled before June&nbsp;1, 2003 were
recorded at estimated fair value as of the fresh-start date.
Claims, other than auto and general liability claims, that arose
after June&nbsp;1, 2003 are discounted at a rate commensurate
with the interest rate on monetary assets that essentially are
risk free and have a maturity comparable to the underlying
liabilities. Auto and general
</DIV>


<P align="center" style="font-size: 10pt;">F-28

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
liability claims that arose after June&nbsp;1, 2003 are not
discounted. The table below summarizes the non-health and
welfare insurance reserves included in the accompanying combined
balance sheets.
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accrued</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Long-Term</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>January&nbsp;31, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Automobile</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,558</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,612</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Workers compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,190</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General/ Professional liability</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>97,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123,580</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>41,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>143,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>184,382</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accrued</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Long-Term</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>August&nbsp;31, 2004</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Automobile</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,894</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Workers compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,309</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General/ Professional liability</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118,361</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>36,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>138,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>174,564</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accrued</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Long-term</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR>
    <TD align="left" nowrap><B>August&nbsp;31, 2003</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Liabilities</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Automobile</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,089</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Workers compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,022</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General/ Professional liability</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>88,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,106</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>119,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>147,217</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain insurance programs also require the Company to maintain
deposits with third-party insurers, trustees or with Laidlaw to
cover future claims costs and are included in other assets in
the combined balance sheets. Investments supporting insurance
programs are comprised principally of government securities and
investment grade securities and are presented as restricted
assets in the combined balance sheets. These investments are
designated as available-for-sale and reported at fair value.
Investment income/loss earned on these investments is reported
as a component of insurance expense in the combined statement of
operations. The following table summarizes these deposits and
restricted investments:
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>939</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted marketable securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>201</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term deposits (included in other current assets)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,997</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term deposits with Laidlaw (included in other current
    assets)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted long-term investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,608</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term deposits (included in other long-term assets)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,626</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term deposits with Laidlaw (included in other long-term
    assets)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total insurance deposits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>123,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>121,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>85,371</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-29

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provisions for insurance expense included in the combined
statement of operations includes annual provisions determined in
consultation with Company actuaries, premiums paid to
third-party insurers net of retrospective policy adjustments,
interest accretion and earnings/loss on investments. Fiscal 2004
expense was reduced by a $3.8&nbsp;million experience refund
received during the year.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>13.</B></TD>
    <TD>
    <B>Supplemental Cash Flow Information</B></TD>
</TR>

</TABLE>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash paid during the period for interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>436</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,278</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Finance and investing activities not requiring the use of cash:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend to Laidlaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acquisition of equipment through capital leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,320</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reduction of deferred tax asset valuation allowance through:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reduction of ambulance service contracts and other intangibles</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>124,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reduction of associated deferred tax asset</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,606</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>14.</B></TD>
    <TD>
    <B>Segment Information</B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is organized around two separately managed business
units: healthcare transportation services and emergency
management services, which have been identified as operating
segments. The healthcare transportation services reportable
segment focuses on providing a full range of medical
transportation services from basic patient transit to the most
advanced emergency care and pre-hospital assistance. The
emergency management services reportable segment provides
outsourced business services to hospitals primarily for
emergency departments, urgent care centers and for certain
inpatient departments. The Chief Executive Officer has been
identified as the chief operating decision maker (CODM)&nbsp;for
purposes of SFAS&nbsp;No.&nbsp;131 &#147;Disclosures about
Segments of an Enterprise and Related Information&#148;
(SFAS&nbsp;131), as he assesses the performance of the business
units and decides how to allocate resources to the business
units. Pre-tax income from continuing operations before
interest, taxes and depreciation and amortization (&#147;Segment
EBITDA&#148;) is the measure of profit and loss that the CODM
uses to assess performance and make decisions. Pre-tax income
from continuing operations represents net revenue less direct
operating expenses incurred
</DIV>


<P align="center" style="font-size: 10pt;">F-30
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
within the operating segments. The accounting policies for
reported segments are the same as for the Company as a whole
(see note&nbsp;2).
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor Company&nbsp;&#151;</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nine Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>May&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>August&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Healthcare Transportation Services</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>455,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,054,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>255,807</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>751,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>984,451</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,941</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(189,624</TD>
    <TD align="left" valign="bottom" nowrap>)(1)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total identifiable assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>645,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>628,635</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>605,268</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638,495</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>894,943</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,581</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,670</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Emergency Management Services</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>241,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>549,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,654</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>351,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>431,335</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,217</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,847</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total identifiable assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>338,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>309,478</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>303,136</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>498</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,448</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>696,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,604,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>384,461</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,103,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,415,786</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,158</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(172,777</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total identifiable assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>983,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>949,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>914,746</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>941,631</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,058,075</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,079</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,768</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,118</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reconciliation of EBITDA to Net Income (Loss)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,158</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(172,777</TD>
    <TD align="left" valign="bottom" nowrap>)(1)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,808</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52,739</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,560</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(32,144</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(67,183</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,644</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(908</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,418</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,140</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start accounting adjustments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,278</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,764</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,633</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(829</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative effect of a change in accounting principle</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(223,721</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(148,391</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(247,383</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Includes an impairment loss of $262,780.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Total assets of the Company at June&nbsp;1, 2003 after fair
    value adjustments.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">F-31
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>15.</B></TD>
    <TD>
    <B>Valuation and Qualifying Accounts</B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Allowances for</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Contractual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Valuation Allowance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Discounts and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>for Deferred Tax</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Uncompensated Care</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Assets</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at August&nbsp;31, 2001 (Predecessor)&nbsp;&#151;
    restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>618,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>309,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>928,146</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,387,940</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,394,323</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reductions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,391,191</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,964</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,396,155</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at August&nbsp;31, 2002 (Predecessor)&nbsp;&#151;
    restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>615,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>310,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>926,314</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,216,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,219,875</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reductions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,158,932</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(157,942</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,316,874</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at May&nbsp;31, 2003 (Predecessor)&nbsp;&#151; restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>673,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>155,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>829,315</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Fresh-start balance at June&nbsp;1, 2003&nbsp;&#151; restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>673,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>155,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>829,315</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>451,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>451,362</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reductions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(429,708</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(429,708</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at August&nbsp;31, 2003&nbsp;&#151; restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>695,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>850,969</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,019,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,019,502</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reductions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,887,111</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(155,952</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,043,063</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at August&nbsp;31, 2004&nbsp;&#151; restated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>827,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>827,408</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>948,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>948,125</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reductions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(865,502</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(865,502</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at January&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>910,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>910,031</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>16.</B></TD>
    <TD>
    <B>Prior Period Results (unaudited)</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have included below an unaudited combined statement of
operations and comprehensive income for the five months ended
January&nbsp;31, 2004 and an unaudited combined statement of
cash flows for the five months ended January&nbsp;31, 2004 for
comparison purposes only to the audited statements included
herein.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="5" align="center" valign="top">
    <B>Combined Statement of Operations</B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>667,506</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>461,923</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90,828</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,393</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,016</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-32

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,831</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,137</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,403</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,097</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,558</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="8" align="center" valign="top">
    <B>Combined Statement of Cash Flows</B></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Operating Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,539</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net income to net cash provided by
    operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,079</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss on disposal of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>309</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain on restricted investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,020</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets/liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(33,822</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,123</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable and accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Investing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,225</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of restricted cash and investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,585</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale of restricted investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,107</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net change in deposits and other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,147</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,767</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Financing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments of capital lease obligations and other debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,784</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in bank overdrafts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,216</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(184</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in other non-current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,501</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, beginning of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,641</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, end of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,856</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-33
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>American Medical Response, Inc.&nbsp;&#38; EmCare Holdings
Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(The Healthcare Transportation and Emergency Management
Services</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Businesses of Laidlaw International, Inc.)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Combined Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>17.</B></TD>
    <TD>
    <B>Subsequent Event</B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;6, 2004, Laidlaw announced it had entered into
definitive agreements to sell 100% of the capital stock of AMR
and EmCare to Onex Partners LP, an affiliate of Onex
Corporation. Completion of the transaction occurred
February&nbsp;10, 2005 with an effective date after the close of
business on January&nbsp;31, 2005. Emergency Medical Services
L.P. was formed as the entity which ultimately acquired American
Medical Response, Inc. and EmCare Holdings Inc. from Laidlaw
International, Inc. The purchase price was $828.8&nbsp;million,
subject to working capital and other purchase price adjustments.
</DIV>


<P align="center" style="font-size: 10pt;">F-34
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consolidated/Combined Financial Statements</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>June&nbsp;30, 2005</B>
</DIV>

<P align="center" style="font-size: 10pt;">F-35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='206'></A>
</DIV>

<!-- link1 "Balance Sheets" -->


<DIV align="center" style="font-size: 10pt;">
<B>Balance Sheets</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unaudited</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Combined</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(dollars in</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(dollars in</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>thousands)</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>ASSETS</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,631</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,785</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,846</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted marketable securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,011</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,473</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346,491</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>369,767</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Parts and supplies inventory</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,404</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,499</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34,684</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,135</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,774</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,092</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,514</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>520,443</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant, and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>130,061</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,766</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,542</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,075</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,848</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>202,469</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restricted long-term investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,734</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,810</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,474</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,379</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,947</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>983,510</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="9" style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>LIABILITIES AND EQUITY</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47,906</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>55,818</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189,425</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>171,645</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,204</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,846</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>246,535</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233,309</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>596,720</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,651</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,437</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>146,273</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>992,692</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385,233</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>202,042</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw investment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>356,550</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Partnership equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219,429</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(315</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>230,860</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>598,277</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="9" style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liabilities and equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,223,552</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>983,510</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='207'></A>
</DIV>

<!-- link1 "Unaudited Statements of Operations and Comprehensive Income (in thousands, except per unit amounts)" -->


<DIV align="center" style="font-size: 10pt;">
<B>Unaudited Statements of Operations and Comprehensive
Income</B>
</DIV>



<DIV align="center" style="font-size: 10pt;">
<B>(in thousands, except per unit amounts)</B>
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
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    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Combined</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>445,021</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>663,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>399,975</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>502,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307,308</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>464,610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,364</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>102,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,250</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,490</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Insurance expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,427</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,865</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,498</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,805</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Laidlaw fees and compensation charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,862</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,136</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,160</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Restructuring charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,402</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,429</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,646</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,073</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,870</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,368</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income, net of tax Unrealized holding gains
    (losses) during the period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>636</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(493</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,118</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,685</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,456</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income per share&#151;basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income per share&#151;diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average shares&#151;basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average shares&#151;diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>


<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-37
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='209'></A>
</DIV>

<!-- link1 "Unaudited Statements of Cash Flows" -->

<DIV align="center" style="font-size: 10pt;">
<B>Unaudited Statements of Cash Flows</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>(in thousands)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Combined</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Operating Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net income to net cash provided by
    operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,991</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,958</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gain (loss) on disposal of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(400</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(208</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(456</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,831</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets/liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade and other accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,276</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,106</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,546</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(789</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable and accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,679</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,047</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,703</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81,269</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Investing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EMS purchase of AMR and EmCare</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(828,775</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,052</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,387</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale of property, plant and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>456</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>518</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of restricted cash and investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(27,103</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(43,535</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from sale and maturity of restricted investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,066</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,595</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net change in deposits and other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,827</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,688</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(875,235</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(24,121</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash Flows from Financing Activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Borrowings under new senior secured credit facility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>350,000</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from issuance of senior subordinated notes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Borrowings under new revolving credit facility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,200</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of partnership equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>221,155</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financing costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,122</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments of capital lease obligations and other debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,499</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,956</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments of revolving credit facility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(20,200</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in bank overdrafts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,091</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(353</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made to Laidlaw</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49,734</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase (decrease) in other non-current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,823</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by (used in) financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>797,266</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,043</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,734</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,105</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, beginning of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,631</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,856</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents, end of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>31,365</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,961</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash paid for:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,457</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,878</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,709</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these financial
statements.
</DIV>

<P align="center" style="font-size: 10pt;">F-38
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='210'></A>
</DIV>

<!-- link1 "Notes to Unaudited Financial Statements" -->


<DIV align="center" style="font-size: 10pt;">
<B>Notes to Unaudited Financial Statements</B>
</DIV>


<DIV align="center" style="font-size: 10pt;">
<B>(dollars in thousands)</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>General</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Basis of Presentation of Financial Statements</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accompanying unaudited, interim consolidated financial
statements of Emergency Medical Services L.P. (&#147;EMS&#148;
or the &#147;Company&#148;) reflect all adjustments of a normal,
recurring nature that are, in the opinion of management,
necessary for a fair presentation of results for these interim
periods but do not include all of the information and note
disclosures required by accounting principles generally accepted
in the United States (&#147;GAAP&#148;) for complete financial
statements. The results of operations for the five months and
three months ended June&nbsp;30, 2005 are not necessarily
indicative of the results that may be expected for the
eleven-month period ending December&nbsp;31, 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Emergency Medical Services L.P. acquired American Medical
Response, Inc. and EmCare Holdings Inc. from Laidlaw
International, Inc. on February&nbsp;10, 2005 with an effective
transaction date after the close of business January&nbsp;31,
2005. The purchase price was $828.8&nbsp;million, subject to
working capital and other purchase adjustments. The Company
currently is completing its allocation of purchase price, but
goodwill associated with the transaction is expected to be
between approximately $265 and $275&nbsp;million. To finance the
acquisition, we entered into a new $450&nbsp;million senior
secured credit facility and issued senior subordinated notes for
gross proceeds of $250&nbsp;million (see note&nbsp;8). We also
issued approximately 22.1&nbsp;million limited partnership units
for $221&nbsp;million. For this reason, the financial statements
for periods prior to February&nbsp;1, 2005
(&#147;Predecessor&#148;) may not be comparable to the financial
statements for periods from and including February&nbsp;1, 2005
(&#147;Successor&#148;).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the estimated fair value of the
assets acquired and liabilities assumed at the date of
acquisition. The Company is in the process of obtaining
third-party valuations of certain intangible assets acquired and
liabilities assumed, and is evaluating the carryover of tax
attributes from the Predecessor; accordingly, the allocation of
the purchase price is subject to adjustment.
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>476,757</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property, plant&nbsp;&#38; equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>128,766</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89,850</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>267,474</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>253,740</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,216,587</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>233,144</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>620,183</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>144,381</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total liabilities assumed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>997,708</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets acquired</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>218,879</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets include $0.6&nbsp;million of radio frequency
licenses, $0.3&nbsp;million of covenants not to compete and
$89.0&nbsp;million for customer relationships. Covenants not to
compete and customer relationships are subject to amortization
and have a weighted average useful life of approximately
7&nbsp;years.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The $267.5&nbsp;million of goodwill currently has been
preliminarily assigned to AMR and EmCare in the amounts of
$122.9&nbsp;million and $144.5&nbsp;million, respectively, based
on the sales agreements and valuations, and is not subject to
amortization. EmCare goodwill is deductible for tax purposes.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pro forma net revenue, income from operations and net income for
the five months ended June&nbsp;30, 2004, when adjusted for the
acquisition described above, would be $663.9&nbsp;million,
$20.4&nbsp;million and $1.0&nbsp;million, respectively.
</DIV>


<P align="center" style="font-size: 10pt;">F-39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is a party to a management agreement with a
wholly-owned subsidiary of Onex Corporation, its principal
equityholder. In exchange for an annual management fee of
$1.0&nbsp;million, the Onex subsidiary provides us with
corporate finance and strategic planning consulting services.
For the five months ended June&nbsp;30, 2005, we expensed
$0.4&nbsp;million in fees pursuant to this agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Predecessor companies had a fiscal year ending
August&nbsp;31. EMS adopted a fiscal year end of
December&nbsp;31. Accordingly, the financial statements
presented herein include the five-month period beginning the
effective date of acquisition and ending June&nbsp;30, 2005 and
the three-month period ending June&nbsp;30, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of financial statements in conformity with GAAP
requires management to make certain estimates and assumptions
that affect the amounts reported in the consolidated and
combined financial statements and accompanying notes. Actual
results may differ from those estimates. Estimates are used for,
but not limited to, the establishment of, allowances for
contractual discounts and uncompensated care, reserves for
insurance related liabilities, taxes and contingencies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>Summary of Significant Accounting Policies</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Consolidation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited consolidated financial statements include all
wholly-owned subsidiaries of EMS, including American Medical
Response, Inc. (&#147;AMR&#148;) and EmCare Holdings Inc.
(&#147;EmCare&#148;) and their respective subsidiaries.
Intercompany transactions and balances have been eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Combination</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited combined financial statements for the five months
and three months ended June&nbsp;30, 2004 include the accounts
of AMR and EmCare (combined, the &#147;Predecessor&#148;). AMR
and EmCare were indirect, wholly-owned subsidiaries of Laidlaw
International, Inc. (&#147;Laidlaw&#148;). All significant
intracompany transactions have been eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Recent Accounting Pronouncements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the Financial Accounting Standards Board
(&#147;FASB&#148;) issued Statement No.&nbsp;123 (revised
2004),&#147;<I>Share-Based Payment</I>&#148;. This Statement is
a revision of FASB Statement No.&nbsp;123, &#147;<I>Accounting
for Stock-Based Compensation</I>&#148; and is effective as of
the beginning of the first interim or annual reporting period
that begins after June&nbsp;15, 2005. The Statement requires
public companies to measure the cost of employee services
received in exchange for an award of equity instruments based on
the grant-date fair value of the award. The Company currently is
evaluating the impact that the adoption of this Statement will
have on its financial statements, including the alternative
transition methods.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>Equity-based Compensation</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Company&#146;s Equity Option Plan approved in February
2005, key employees have been granted options to purchase
partnership units of the Company. The options allow the grantee
to purchase partnership units at $10&nbsp;per unit (subject to
appropriate adjustment upon a recapitalization or similar
event). The grants vest ratably over a period of 4&nbsp;years
and, in addition, certain performance measures must be met for
50% of each grant to become exercisable. The Company has adopted
FASB&nbsp;Statement No.&nbsp;123, <I>&#147;Accounting for
Stock-Based Compensation&#148;</I>. This Statement requires
companies to measure the cost of employee services received in
exchange for an award of equity instruments based on the
grant-date fair value of the award. The Company recorded a
charge of $300 for the five months ended June&nbsp;30, 2005
associated with the grant of these options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Black-Scholes option pricing model was used to estimate fair
values as of the date of grant using 0% volatility, risk free
interest rates ranging from 3.95% to 4.20%, 0% dividend yield
and expected terms of 3.5 and 5 years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company granted 2,287,980&nbsp;options from the inception of
the plan through June&nbsp;30, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">F-40
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>Accrued Liabilities</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accrued liabilities were as follows at June&nbsp;30, 2005 and
January&nbsp;31, 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Successor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued wages and benefits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,864</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued paid time off</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,409</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,141</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of self-insurance reserve</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,856</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,283</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued restructuring</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>475</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,118</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current portion of compliance and legal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,282</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,607</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued billing and collection fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,794</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,522</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued incentive compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,796</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,802</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,124</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,825</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,941</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>189,425</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>171,645</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>Commitments and Contingencies</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Services</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is subject to the Medicare and Medicaid fraud and
abuse laws which prohibit, among other things, any false claims,
or any bribe, kick-back or rebate in return for the referral of
Medicare and Medicaid patients. Violation of these prohibitions
may result in civil and criminal penalties and exclusion from
participation in the Medicare and Medicaid programs. Management
has implemented policies and procedures that management believes
will assure that the Company is in substantial compliance with
these laws. From time to time, we receive requests for
information from government agencies pursuant to their
regulatory or investigational authority. Such requests can
include subpoenas or demand letters for documents to assist the
government in audits or investigations. The Company is
cooperating with the government agencies conducting these
investigations and is providing requested information to the
government agencies. Other than the investigations described
below, management believes that the outcome of any of these
investigations would not have a material adverse effect on the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the first quarter of fiscal 2004, AMR was advised by the
U.S.&nbsp;Department of Justice that it was investigating
certain of AMR&#146;s business practices. The specific practices
at issue are (1)&nbsp;whether ambulance transports involving
Medicare eligible patients complied with the &#147;medically
necessary&#148; requirement imposed by Medicare regulations,
(2)&nbsp;whether patient signatures, when required, were
properly obtained from Medicare eligible patients, and
(3)&nbsp;whether discounts in violation of the federal
Anti-Kickback Statute were provided by AMR in exchange for
referrals involving Medicare eligible patients. In connection
with the third issue, the government has alleged that certain of
our hospital and nursing home contracts in effect in Texas,
primarily certain contracts in effect in 1996 and 1997,
contained discounts in violation of the federal Anti-Kickback
Statute. The government recently has provided the Company with
an analysis of the investigation conducted in connection with
this contract issue, and invited the Company to respond. The
Company is considering the government&#146;s analysis and
intends to provide its views, as requested. The government may
also be investigating whether AMR&#146;s contracts with health
facilities in Oregon and other jurisdictions violate the
Anti-Kickback Statute. At this juncture, it is not possible to
predict the ultimate conclusion of these investigations, nor is
it possible to estimate possible financial exposure, if any, to
the Company.
</DIV>

<P align="center" style="font-size: 10pt;">F-41
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;9, 2002, AMR received a subpoena duces tecum from
the Office of Inspector General for the United States Department
of Health and Human Services (&#147;HHS&#148;). The subpoena
requested copies of documents for the period from January 1993
through May 2002. The subpoena required AMR to produce a broad
range of documents relating to Regional Emergency Services&#146;
contracts in Texas, Georgia and Colorado. The claims in Texas
have been resolved. However, the government investigations in
Georgia and Colorado are continuing and it is not possible at
this time to estimate the financial exposure, if any, to the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EmCare has been named a defendant in a collective action lawsuit
brought by a number of nurse practitioners and physician
assistants under the federal Fair Labor Standards Act. The
plaintiffs are seeking to recover overtime pay for the hours
they worked in excess of 40 in a workweek and reclassification
as non-exempt employees. Certain of the plaintiffs brought a
related action under California state law. EmCare has entered
into a settlement of the California state law claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;12, 2005, the Company received a letter and draft
Audit Report from the Office of Inspector General for the United
States Department of Health and Human Services, or OIG,
requesting the Company&#146;s response to its draft findings
that the Company&#146;s Massachusetts subsidiary received
substantial overpayments from Medicare for services performed
between July&nbsp;1, 2002 and December&nbsp;31, 2002. The draft
findings state that some of these services did not meet Medicare
medical necessity and reimbursement requirements. The Company
disagrees with the OIG&#146;s finding and is in the process of
responding to the draft Audit Report. If the Company is
unsuccessful in challenging the OIG&#146;s draft findings, and
in any administrative appeals to which the Company may be
entitled following the release of a final Audit Report, the
Company may be required to make a substantial repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Income Tax Matters</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The respective tax authorities, in the normal course, audit
previous tax filings. It is not possible at this time to predict
the final outcome of these audits or establish a reasonable
estimate of possible additional taxes owing, if any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the acquisition of AMR and EmCare, a
section&nbsp;338(h)(10) election was made for EmCare which
eliminated $85&nbsp;million of deferred tax assets and
stepped-up EmCare&#146;s tax basis to fair value. Differences
between book and tax depreciation and amortization for these
assets will create future deferred tax assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMR HoldCo, Inc. and EmCare HoldCo, Inc. are commonly owned by a
partnership, Emergency Medical Services&nbsp;L.P., and therefore
are required to file two separate consolidated tax returns. The
disclosed tax amounts relate to the corporate income taxes of
these two corporate consolidated groups combined.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.</B></TD>
    <TD>
    <B>Insurance</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insurance reserves are established for automobile, workers
compensation, general liability and professional liability
claims utilizing policies with both fully-insured and
self-insured components. This includes use of an off-shore
captive insurance program for certain professional liability
(malpractice)&nbsp;programs for EmCare. In those instances where
the Company has obtained third-party insurance coverage, either
directly through an independent outside party or through
participation in a Laidlaw-administered program, the Company
normally retains liability for the first $1 to $2&nbsp;million
of the loss. Insurance reserves cover known claims and incidents
within the level of Company retention that may result in the
assertion of additional claims, as well as claims from unknown
incidents that may be asserted arising from activities through
the balance sheet dates.
</DIV>

<P align="center" style="font-size: 10pt;">F-42

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company establishes reserves for claims based upon an
assessment of actual claims and claims incurred but not
reported. The reserves are established based on consultation
with third-party independent actuaries using actuarial
principles and assumptions that consider a number of factors,
including historical claim payment patterns (including legal
costs) and changes in case reserves and the assumed rate of
inflation in healthcare costs and property damage repairs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain insurance programs also require the Company to maintain
deposits with third-party insurers, trustees or with Laidlaw to
cover future claims costs, and these deposits are included as
assets in the accompanying consolidated balance sheets.
Investments supporting insurance programs are comprised
principally of government securities and investment grade
securities and are presented as restricted assets in the
combined balance sheets. These investments are designated as
available-for-sale and reported at fair value. Investment
income/loss earned on these investments is reported as a
component of insurance expense in the consolidated/combined
statements of operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>Segment Information</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Operating segments are defined by SFAS&nbsp;No.&nbsp;131,
<I>Disclosures about Segments of an Enterprise and Related
Information</I>, as components of an enterprise about which
separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance. The
operating segments are managed separately because each operating
segment represents a strategic business unit providing
healthcare transportation services or emergency management
services.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Five</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Months</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Healthcare Transportation Services</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>469,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>284,694</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>434,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>259,713</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,440</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,676</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,506</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,891</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Emergency Management Services</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>261,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>160,327</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>229,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,098</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,755</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,913</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>790</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,230</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>731,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>445,021</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>663,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>399,975</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Segment EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,538</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,589</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital expenditures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,296</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,121</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reconciliation of EBITDA to Net Income</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EBITDA</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,538</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,589</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(23,988</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,136</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,958</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,160</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,646</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,073</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Realized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(52</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest and other income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>81</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,821</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,831</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,794</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,049</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,574</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">F-43
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>


<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>Debt</B></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;10, 2005, the Company issued $250&nbsp;million
of senior subordinated unsecured notes and executed a
$450&nbsp;million senior secured credit facility agreement.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior subordinated notes have a fixed interest rate of 10%,
payable semi-annually, and mature in February 2015.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior secured credit facility consists of a
$350&nbsp;million senior secured term loan and a
$100&nbsp;million revolving credit facility commitment, each
collateralized by a pledge of 100% of the capital stock of the
Company and its direct and indirect domestic subsidiaries and
65% of the capital stock of any direct foreign subsidiaries, and
a security interest in substantially all tangible and intangible
assets of EMS and its subsidiaries. The term loan matures in
February 2012 and requires quarterly principal payments of $875
commencing May 2005. The revolving credit facility, which is
limited by outstanding letter of credit obligations, requires
principal and interest to be paid at maturity in February 2011.
The revolving credit facility is also subject to an annual
commitment fee of 0.5% on unused commitments. Under the terms of
the agreement, the Company may select between various interest
rate arrangements based on LIBOR or the Prime Rate plus
additional basis points within a range of 2.0% to 3.0%,
determined by reference to a leverage ratio. At June&nbsp;30,
2005, net of letters of credit outstanding of
$24.3&nbsp;million, the maximum available under the revolving
credit facility was $75.7&nbsp;million. No amounts were
outstanding under the revolving credit facility at June&nbsp;30,
2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior secured credit facility agreement contains various
customary operating and financial covenants. The more
restrictive of these covenants limit the Company&#146;s and its
subsidiaries ability to create liens on assets; make certain
investments, loans, guarantees or advances; incur additional
indebtedness or issue capital stock; engage in mergers,
acquisitions or consolidations; dispose of assets; pay
dividends, repurchase equity interests or make other restricted
payments; change the business conducted by the Company; engage
in transactions with affiliates; and repay certain indebtedness,
including the senior unsecured notes, or amend or otherwise
modify agreements governing the subordinated indebtedness. The
financial maintenance covenants establish a maximum leverage
ratio, a maximum senior leverage ratio, a minimum fixed charge
coverage ratio and an annual capital expenditure limit. The
Company is in compliance with its borrowing agreement covenants
as of June&nbsp;30, 2005.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following is a summary of the Company&#146;s borrowings as of
the respective balance sheet dates:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Successor</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Predecessor</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Senior subordinated notes due 2015</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Senior secured term loan due 2012 (5.67% at June&nbsp;30, 2005)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>349,125</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,808</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,110</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes due at various dates from 2005 to 2022 with interest rates
    from 6% to 10%</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>991</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,387</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total long-term debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>605,924</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,497</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less current maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,204</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,846</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term debt, less current maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>596,720</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,651</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">F-44

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>Emergency Medical Services L.P.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notes to Unaudited Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate maturities of debt are as follows:
</DIV>



<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="83%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ended June&nbsp;30,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,204</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,291</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,638</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,547</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,688</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>581,556</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>605,924</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.&nbsp;</B></TD>
    <TD>
    <B>Subsequent Event</B></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On July&nbsp;28, 2005, the Company&#146;s board of directors
authorized the filing of a registration statement on
Form&nbsp;S-1 in connection with a proposed initial public
offering of the Company&#146;s equity. The Company currently
anticipates that, in connection with a public offering, it will
effect a reorganization pursuant to which the Company becomes a
consolidated subsidiary of a newly-formed Delaware corporation
and that corporation, to be named Emergency Medical Services
Corporation, will issue common stock in the offering.
</DIV>


<P align="center" style="font-size: 10pt;">F-45
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 0pt;">
<FONT style="font-size: 10pt">
________________________________________________________________________________
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</FONT>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT face="helvetica,arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="y10746y1074600.gif" alt="(EMERGENCY MEDICAL SERVICES CORPORATION LOGO)">
</DIV>

<DIV align="center" style="font-size: 18pt;">
<B><FONT face="helvetica,arial">EMERGENCY MEDICAL SERVICES
CORPORATION</FONT></B>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT face="helvetica,arial">Class&nbsp;A Common
Stock</FONT></B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Prospectus
</DIV>

<DIV align="center" style="font-size: 10pt;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 37%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT face="helvetica,arial">Banc of America Securities
LLC</FONT></B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B><FONT face="helvetica,arial">JPMorgan</FONT></B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B><FONT face="helvetica,arial">CIBC World Markets</FONT></B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B><FONT face="helvetica,arial">Credit Suisse First
Boston</FONT></B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B><FONT face="helvetica,arial">Scotia Capital</FONT></B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B><FONT face="helvetica,arial">Utendahl</FONT></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005, all dealers that buy, sell or trade the class&nbsp;A
common stock may be required to deliver a prospectus, regardless
of whether they are participating in this offering. This is in
addition to the dealers&#146; obligation to deliver a prospectus
when acting as underwriters and with respect to their unsold
allotments or subscriptions.
</DIV>

<DIV align="left" style="font-size: 1pt; margin-top: 30pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='124'></A>
</DIV>

<!-- link1 "" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Not Required in Prospectus</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;13.</B></TD>
    <TD>
    <B><I>Other Expenses of Issuance and Distribution</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the costs and expenses, other than
underwriting discounts and commissions, payable in connection
with the sale and distribution of the class&nbsp;A common stock
being registered. All of these expenses will be paid by us. All
amounts except the SEC registration fee, the NASD filing fee and
the NYSE&nbsp;fee are estimated.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Securities and Exchange Commission registration fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,304</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NASD filing fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,750</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NYSE listing fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Blue Sky fees and expenses (including attorneys&#146; fees and
    expenses)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounting fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Printing costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfer agent and registrar fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Miscellaneous fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    To be provided by amendment</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;14.</B></TD>
    <TD>
    <B><I>Indemnification of Directors and Officers</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>General Obligations Law</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will be incorporated under the laws of the State of Delaware.
Under Section&nbsp;145 of the Delaware General Corporation Law,
the DGCL, a corporation may indemnify its directors, officers,
employees and agents and its former directors, officers,
employees and agents and those who serve, at the
corporation&#146;s request, in such capacities with another
enterprise, against expenses, including attorneys&#146; fees, as
well as judgments, fines and settlements in nonderivative
lawsuits, actually and reasonably incurred in connection with
the defense of any action, suit or proceeding in which they or
any of them were or are made parties or are threatened to be
made parties by reason of their serving or having served in such
capacity. The DGCL provides, however, that such person must have
acted in good faith and in a manner such person reasonably
believed to be in, or not opposed to, the best interests of the
corporation and, in the case of a criminal action, such person
must have had no reasonable cause to believe his or her conduct
was unlawful. In addition, the DGCL does not permit
indemnification in an action or suit by or in the right of the
corporation, where such person has been adjudged liable to the
corporation, unless, and only to the extent that, a court
determines that such person fairly and reasonably is entitled to
indemnity for costs the court deems proper in light of liability
adjudication. Indemnity is mandatory to the extent a claim,
issue or matter has been successfully defended.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Certificate of Incorporation and By-Laws</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation will provide that none of our
directors shall be personally liable for breach of fiduciary
duty as a director. Any repeal or modification of that provision
shall not adversely affect any right or protection, or any
limitation of the liability of, any of our directors existing
at, or arising out of facts or incidents occurring prior to, the
effective date of such repeal or modification. Both our
certificate of incorporation and our by-laws will provide for
the indemnification of our directors and officers to the fullest
extent permitted by the DGCL.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Indemnification Agreements</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, we have entered into indemnification agreements
with certain of our directors and officers which may, in certain
cases, be broader than the specific indemnification provisions
contained under current
</DIV>

<P align="center" style="font-size: 10pt;">II-1
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
applicable law. The indemnification agreements may require us,
among other things, to indemnify such officers and directors
against certain liabilities that may arise by reason of their
status or service as directors, officers or employees of the
company and to advance the expenses incurred by such parties as
a result of any threatened claims or proceedings brought against
them as to which they could be indemnified.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Liability Insurance</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our directors and officers are covered by insurance policies
maintained by us against certain liabilities for actions taken
in their capacities as such, including liabilities under the
Securities Act of 1933, or the Securities Act. Insofar as
indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Underwriting Agreement</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Underwriting Agreement (to be filed as Exhibit&nbsp;1.1 to
the Registration Statement) provides for the indemnification of
our directors and officers in certain circumstances against
certain liabilities, including liabilities arising under the
Securities Act.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;15.</B></TD>
    <TD>
    <B><I>Recent Sales of Unregistered Securities</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;10, 2005, we issued 21,500,020 class&nbsp;A
units representing limited partnership interests of Emergency
Medical Services&nbsp;L.P. to seven accredited investors in
reliance upon the exemption provided by Rule&nbsp;506 of the
Securities Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February&nbsp;10, 2005, we issued 485,500 class&nbsp;B units
representing limited partnership interests of Emergency Medical
Services&nbsp;L.P. to members of senior management in reliance
upon the exemption provided by Rule&nbsp;506 of the Securities
Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, effective as of February&nbsp;10, 2005 we granted
to members of senior management options to purchase an aggregate
of 2,287,979 class&nbsp;B units representing limited partnership
interests of Emergency Medical Services&nbsp;L.P. The options
vest 25%&nbsp;per year, with one-half of the options also
subject to achieving certain performance targets. These options
were issued in reliance upon the exemption provided by
Rule&nbsp;506 of the Securities Act. See
&#147;Management&nbsp;&#151; Equity Plans&nbsp;&#151; Equity
Option Plan.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;10, 2005, we issued 75,000 class&nbsp;B units
representing limited partnership interests of Emergency Medical
Services&nbsp;L.P. to one of our directors in reliance upon the
exemption provided by Rule&nbsp;506 of the Securities Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;22, 2005, we issued 25,000 class&nbsp;B units
representing limited partnership membership interests of
Emergency Medical Services&nbsp;L.P. to one of our directors in
reliance upon the exemption provided by Rule&nbsp;506 of the
Securities Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;30, 2005, we issued 25,000 class&nbsp;B units
representing limited partnership interests of Emergency Medical
Services&nbsp;L.P. to one of our directors in reliance upon the
exemption provided by Rule&nbsp;506 of the Securities Act.
</DIV>


<P align="center" style="font-size: 10pt;">II-2

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 2005, we granted to certain members of our board of
directors and senior management options to purchase an aggregate
of 49,500 class&nbsp;B units representing limited partnership
units of Emergency Medical Services L.P.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 2005, we issued 134,050&nbsp;class&nbsp;B units
representing limited partnership interests of Emergency Medical
Services&nbsp;L.P. to employees of our subsidiaries pursuant to
our equity purchase plan in reliance upon the exemption provided
by Rule&nbsp;701 the Securities Act. The issuance of these units
to employees in certain states is subject to our making
regulatory filings and/or our receipt of regulatory approval.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 2005, we issued 21,000&nbsp;class&nbsp;B units
representing limited partnership interests of Emergency Medical
Services&nbsp;L.P. to affiliated physicians, physician
assistants and nurse practitioners in reliance upon the
exemption provided by Rule&nbsp;506 the Securities Act.
</DIV>


<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16.<I>&nbsp;</I></B></TD>
    <TD>
    <B><I>Exhibits and Financial Data Schedules</I></B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</B>
</DIV>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Underwriting Agreement*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Lock-Up Agreement*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Stock Purchase Agreement, dated as of December&nbsp;6, 2004, by
    and among Laidlaw International, Inc., Laidlaw Medical Holdings,
    Inc. and Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to Stock Purchase Agreement, dated February&nbsp;10,
    2005, by and among Laidlaw International,&nbsp;Inc., Laidlaw
    Medical Holdings,&nbsp;Inc. and Emergency Medical Services
    Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Stock Purchase Agreement, dated as of December&nbsp;6, 2004, by
    and among Laidlaw International, Inc., Laidlaw Medical Holdings,
    Inc. and Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to Stock Purchase Agreement, dated as of
    February&nbsp;10, 2005, by and among Laidlaw International,
    Inc., Laidlaw Medical Holdings, Inc. and Emergency Medical
    Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter, dated March&nbsp;25, 2005, to AMR Holdco, Inc. from
    Laidlaw Medical Holdings, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Amended and Restated Certificate of Incorporation of
    Emergency Medical Services Corporation*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Amended and Restated By-Laws of Emergency Medical
    Services Corporation*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certificate of Formation of Emergency Medical Services&nbsp;L.P.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Agreement of Limited Partnership of Emergency Medical Services
    L.P., dated February&nbsp;10, 2005, by and among Emergency
    Medical Services Corporation and the persons listed on
    Schedule&nbsp;A thereto</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Class&nbsp;A Common Stock Certificate*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Class&nbsp;B Common Stock Certificate*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Investor Equityholders Agreement, dated February&nbsp;10, 2005,
    by and among Emergency Medical Services&nbsp;L.P., Onex
    Partners&nbsp;LP and the equityholders listed on the signature
    pages thereto</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Equityholders Agreement, dated as of February&nbsp;10, 2005, by
    and among Emergency Medical Services&nbsp;L.P., Onex
    Partners&nbsp;LP and the equityholders listed on the signature
    pages thereto*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Registration Agreement, dated February&nbsp;10, 2005, by and
    among Emergency Medical Services&nbsp;L.P. and the persons
    listed on Schedule&nbsp;A thereto</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indenture, dated February&nbsp;10, 2005, by and among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., the guarantors named therein
    and U.S.&nbsp;Bank Trust&nbsp;National Association as trustee</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Supplemental Indenture, dated April&nbsp;15, 2005, by and among
    AMR Brockton L.L.C., AMR HoldCo, Inc., EmCare HoldCo, Inc., the
    guarantors named therein and U.S.&nbsp;Bank Trust&nbsp;National
    Association as trustee</TD>
</TR>

</TABLE>
</CENTER>


<P align="center" style="font-size: 10pt;">II-3
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Registration Rights Agreement, dated as of February&nbsp;10,
    2005, by and among AMR HoldCo, Inc., EmCare HoldCo, Inc., the
    guarantors named therein, Banc of America Securities LLC and
    J.P.&nbsp;Morgan Securities Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Voting and Exchange Trust Agreement, dated as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2005, among Emergency Medical Services Corporation, Onex
    Corporation and the LP exchangeable unitholders whose names are
    set forth on Schedule I*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Support Agreement, dated as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2005, among Emergency Medical Services Corporation, Emergency
    Medical Services L.P. and the LP exchangeable unitholders whose
    names are set forth on Schedule&nbsp;I*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Opinion of Kaye Scholer LLP with respect to legality of
    securities being registered*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated December&nbsp;6, 2004, between
    William A. Sanger and Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated as of February&nbsp;10, 2005,
    between Don S. Harvey and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated as of February&nbsp;10, 2005,
    between Randel G. Owen and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated as of February&nbsp;10, 2005,
    between Todd Zimmerman and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated as of April&nbsp;19, 2005, by and
    between Emergency Medical Services L.P. and Dighton Packard,
    M.D., and assignment to Emergency Medical Services Corporation.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Emergency Medical Services L.P. Equity Option Plan</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Emergency Medical Services L.P. Equity Purchase Plan</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement, dated February&nbsp;10, 2005, by and among
    Onex Partners Manager LP, AMR HoldCo, Inc. and EmCare HoldCo,
    Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase Agreement, dated January&nbsp;27, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., the Registrant, the
    guarantors party thereto, Banc of America LLC Securities and
    J.P.&nbsp;Morgan Securities Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Credit Agreement, dated as of February&nbsp;10, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., Emergency Medical Services
    L.P., the guarantors party thereto, Bank of America, N.A. and
    the other lenders party thereto</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment No.&nbsp;1, dated March&nbsp;29, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Emergency Medical Services L.P.,
    the guarantors and the lenders party thereto, to the Credit
    Agreement dated as of February&nbsp;10, 2005, among AMR HoldCo,
    Inc., EmCare HoldCo, Inc., Emergency Medical Services L.P., the
    guarantors party thereto, Bankc of America, N.A. and the other
    lenders party thereto</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement, dated as of February&nbsp;10, 2005, made by
    AMR HoldCo, Inc., EmCare HoldCo., Inc., the guarantors party
    thereto, in favor of Bank of America, N.A.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>11</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Statement regarding computation of earnings per share*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>21</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Subsidiaries of Emergency Medical Services L.P.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of PriceWaterhouseCoopers LLP</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Kaye Scholer LLP (included in Exhibit&nbsp;5.1)*</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Powers of Attorney of the directors of Emergency Medical
    Services L.P. (included in the signature page to the
    registration statement)</TD>
</TR>

</TABLE>
</CENTER>


<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    To be filed by amendment</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Data Schedule</B>
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;17.</B></TD>
    <TD>
    <B><I>Undertakings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrant hereby undertakes as specified in the
underwriting agreement to provide to the underwriters at closing
certificates in such denominations and registered in such names
as required by the underwriters to permit prompt delivery to
each purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the
</DIV>

<P align="center" style="font-size: 10pt;">II-4

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining any
    liability under the Securities Act, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule&nbsp;430A and contained in a
    form of prospectus filed by the registrant pursuant to
    Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of determining
    any liability under the Securities Act, each post-effective
    amendment that contains a form of prospectus shall be deemed to
    be a new registration statement relating to the securities
    offered therein, and the offering of such securities at that
    time shall be deemed to be the initial bona fide offering
    thereof.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">II-5
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act, Emergency
Medical Services&nbsp;L.P. has duly caused this registration
statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Greenwood Village, State of
Colorado, on August 2, 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B>EMERGENCY MEDICAL SERVICES L.P.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="4%"></TD>
    <TD width="56%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    Emergency Medical Services Corporation, <BR>
     its General Partner</TD>
</TR>

<TR>
    <TD style="font-size: 48pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ <FONT style="font-variant:SMALL-CAPS">William A. Sanger
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    William A. Sanger</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="center">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>POWER OF ATTORNEY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
KNOW ALL PERSON BY THESE PRESENTS that each individual whose
signature appears below constitute and appoints William A.
Sanger and Randel G. Owen, and each of them, his or her true and
lawful attorneys-in-fact and agents, with full power of
substitution and resubstitution, for him or her and in his or
her name, place and stead, in any and all capacities (including
his or her capacity as a director and/or officer), to sign any
and all amendments (including post-effective amendments) to this
Registration Statement, and to sign any registration statement
for the same offering covered by the Registration Statement that
is to be effective upon filing pursuant to Rule&nbsp;462(b)
promulgated under the Securities Act, and all post-effective
amendments thereto, and to file the same, will all exhibits
thereto, and all other documents in connection therewith, with
the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as
fully to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or either of them, or his, her or
their substitute or substitutes, may lawfully do or cause to be
done or by virtue hereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
* * *
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act, this
Registration Statement on Form&nbsp;S-1 and Power of Attorney
has been signed by the following persons in the capacities
indicated for Emergency Medical Services Corporation, as general
partner of Emergency Medical Services&nbsp;L.P., and on the date
indicated.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">William A Sanger<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>William
    A. Sanger</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chairman, Chief Executive Officer and Director (Principal
    Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August 2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">Randel G. Owen<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>Randel
    G. Owen</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chief Financial Officer (Principal Financial and Accounting
    Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August 2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">Robert M. Le Blanc<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>Robert
    M. Le Blanc</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August 2, 2005</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">II-6
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">Steven B. Epstein<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>Steven
    B. Epstein</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">Don S. Harvey<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>Don
    S. Harvey</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">James T. Kelly<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>James
    T. Kelly</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August&nbsp;2, 2005</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ <FONT style="font-variant:SMALL-CAPS">Michael L. Smith<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT>Michael
    L. Smith</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    August&nbsp;2, 2005</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">II-7
</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "y10746sv1.htm", "description": "FORM S-1", "secsgml_size_bytes": 2304180}]
{"company-data": {"conformed-name": "Emergency Medical Services CORP", "cik": "0001334544", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-127115", "film-number": "05992483"}, "business-address": {"street1": "6200 SOUTH SYRACUSE WAY, SUITE 200", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111", "phone": "(303) 495-1200"}, "mail-address": {"street1": "6200 SOUTH SYRACUSE WAY, SUITE 200", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111"}}
FORM S-1
Table of Contents
As filed with the Securities and Exchange Commission on
August 2, 2005
Registration
No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
EMERGENCY MEDICAL SERVICES L.P.*
(Exact Name of Registrant as Specified in its Charter)
Delaware
4119, 8011 and 8741
20-2076535
(State or Other Jurisdiction of
Incorporation or Organization)
(Primary Standard Industrial
Classification Code No.)
6200 S. Syracuse Way
Greenwood Village, Colorado 80111
(303) 495-1200
(I.R.S. Employer
Identification No.)
(Address, including zip code, and telephone number, including
    area code, of registrant's principal executive offices)
William A. Sanger
Chief Executive Officer
Emergency Medical Services Corporation
6200 S. Syracuse Way
Greenwood Village, Colorado 80111
(303) 495-1200
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies To:
Lynn Toby Fisher, Esq.
Joel I. Greenberg, Esq.
Kaye Scholer LLP
425 Park Avenue
New York, New York 10022
(212) 836-8000
Todd Zimmerman, Esq.
General Counsel
Emergency Medical Services Corporation
6200 S. Syracuse Way
Greenwood Village, Colorado 80111
(303) 495-1200
James J. Clark, Esq.
Noah B. Newitz, Esq.
Cahill Gordon & Reindel LLP
80 Pine Street
New York, New York 10005
(212) 701-3000
Approximate date of commencement of proposed sale to
public:
As soon as practicable after this Registration
Statement becomes effective.
If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, check the
following
box.
o
If this form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering.
o
If this form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.
o
If this form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.
o
If delivery of the prospectus is expected to be made pursuant to
Rule 434, check the following
box.
o
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Title Of Each Class Of
Amount To Be
Offering Price
Aggregate Offering
Amount Of
Securities To Be Registered
Registered(1)
Per Share(2)
Price(2)
Registration Fee
Class A Common Stock, par value $0.01 per share
shares
$172,500,000
$20,304
(1)
Includes shares that the underwriters have the option to
    purchase solely to cover over-allotments, if any.
(2)
Estimated solely for the purpose of calculating the registration
    fee pursuant to Rule 457(o) of the Securities Act of 1933,
    as amended.
*
Pursuant to a reorganization effected immediately prior to the
    offering, Emergency Medical Services L.P. will become a
    consolidated subsidiary of a newly-formed holding company to be
    named Emergency Medical Services Corporation, which will become
    the successor registrant.
The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until this Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
Table of Contents
The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not
permitted.
SUBJECT TO COMPLETION,
DATED                     ,
2005
Prospectus
Shares
Emergency Medical Services
Corporation
Class A Common
Stock
Emergency Medical Services Corporation is
offering                      shares
of class A common stock in an underwritten offering. This
is our initial public offering, and no public market currently
exists for our class A common stock.
We intend to apply to have our class A common stock
approved for listing on the New York Stock Exchange under the
symbol "EMS". We anticipate that the initial public
offering price will be between
$          and
$           per
share.
Investing in our class A common stock involves a high
degree of risk. See "Risk Factors" beginning on
page 10.
Per Share
Total
Offering price
$
$
Underwriting discounts and commissions
$
$
Proceeds to Emergency Medical Services Corporation, before
    expenses
$
$
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
Certain of our existing stockholders have granted the
underwriters an option to purchase up
to                     additional
shares of our class A common stock to cover
over-allotments, if any. We will not receive any proceeds from
the sale of shares of our class A common stock by the
selling stockholders. The underwriters can exercise this right
at any time within 30 days from the date of this
prospectus. The underwriters expect to deliver the shares of
class A common stock to our investors on or
about                     ,
2005.
Joint Book—Running Managers
Banc of America Securities LLC
JPMorgan
CIBC World Markets
Credit Suisse First Boston
Scotia Capital
Utendahl
,
2005
You should rely only on the information contained in this
prospectus. We have not, and the underwriters have not,
authorized anyone to provide you with different information. We
are not making an offer to sell these securities in any
jurisdiction where the offer or sale is not permitted. You
should assume that the information in this prospectus is
accurate on the date on the front cover of this prospectus only.
Our business, financial condition, results of operations and
prospects may have changed since that date.
TABLE OF CONTENTS
Page
Summary
1
Risk Factors
10
Cautionary Statements Regarding
    Forward-Looking Statements
31
Formation of Holding Company
32
Use of Proceeds
33
Capitalization
34
Dilution
35
Dividend Policy
36
Unaudited Pro Forma Consolidated Financial
    Data
37
Selected Combined and Consolidated
    Financial Information and Other Data
43
Management's Discussion and Analysis
    of Financial Condition and Results of Operations
45
Industry
67
Business
69
Management
101
Principal and Selling Stockholders
110
Description of Capital Stock
113
Certain Relationships and Related Party
    Transactions
121
Material U.S. Federal Income Tax
    Considerations
125
Shares Eligible for Future Sale
129
Underwriting
131
Legal Matters
137
Experts
137
Where You Can Find More Information
137
Index to Combined and Consolidated
    Financial Statements
F-1
STOCK PURCHASE AGREEMENT
AMENDMENT TO STOCK PURCHASE AGREEMENT
STOCK PURCHASE AGREEMENT
AMENDMENT TO STOCK PURCHASE AGREEMENT
LETTER
CERTIFICATE OF FORMATION
AGREEMENT OF LIMITED PARTNERSHIP
INVESTOR EQUITYHOLDERS AGREEMENT
REGISTRATION AGREEMENT
INDENTURE
SUPPLEMENTAL INDENTURE
REGISTRATION RIGHTS AGREEMENT
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
EQUITY OPTION PLAN
EQUITY PURCHASE PLAN
MANAGEMENT AGREEMENT
PURCHASE AGREEMENT
CREDIT AGREEMENT
AMENDMENT #1 TO CREDIT AGREEMENT
SECURITY AGREEMENT
SUBSIDIARIES
CONSENT OF PRICEWATERHOUSECOOPERS LLP
i
Table of Contents
ABOUT THIS PROSPECTUS
Unless the context otherwise indicates or requires, as used in
this prospectus, references to:
•
"we," "us," "our," the
    "company" or "Emergency Medical Services"
    refer to Emergency Medical Services Corporation and its
    subsidiaries, including its predecessors and after giving effect
    to our formation as a holding company, in which Emergency
    Medical Services L.P. will become a consolidated subsidiary of
    Emergency Medical Services Corporation and the general partner
    of Emergency Medical Services L.P. (formerly known as Emergency
    Medical Services Corporation) will become our wholly-owned
    subsidiary,
•
"AMR" refers to American Medical Response, Inc. and
    its subsidiaries,
•
"EmCare" refers to EmCare Holdings Inc. and its
    subsidiaries, and includes its affiliated physician groups and
    managed companies,
•
"EMS L.P." refers to Emergency Medical Services L.P.,
    currently the top-tier holding company of AMR and EmCare and
    which, after giving effect to our formation as a holding
    company, will be our consolidated subsidiary,
•
"LP exchangeable units" refers to the limited
    partnership units of EMS L.P. which are exchangeable at any
    time, at our option or the option of the holder, on a
    one-for-one basis for our class B common stock,
•
"acquisition" refers to our acquisition of AMR and
    EmCare effective as of the close of business on January 31,
    2005, and the related financing transactions,
•
"net revenue" refers to our revenue net of provisions
    for contractual discounts and estimated uncompensated care, and
    "our net revenue" or "total net revenue"
    refer to our net revenue on a consolidated or combined basis,
    and therefore includes the net revenue of AMR and EmCare for the
    relevant period,
•
"our physicians" and "our healthcare
    professionals" includes physicians, nurse practitioners and
    physician assistants employed by, or contracted with, our
    affiliated physician groups to provide services under our EmCare
    hospital contracts,
•
our market share is calculated based on our net revenue, for
    AMR, and the number of our contracts, for EmCare, and is derived
    from third party data, in the case of AMR, and our own market
    surveys, in the case of EmCare, and
•
"Onex entities" refers to Onex Partners LP, Onex
    Corporation and their respective partners and affiliates that
    beneficially own our class B common stock, and
    "Onex" refers to Onex Corporation and its affiliates,
    including Onex Partners LP.
FINANCIAL INFORMATION
In connection with the acquisition, we changed our fiscal
year-end from August 31 to December 31. Accordingly,
our current fiscal year will be an 11-month period beginning
February 1, 2005, the effective date of our acquisition of
AMR and EmCare. Prior to the acquisition, we reported our
financial information on a fiscal year ending on August 31.
In this prospectus, "fiscal year" or
"fiscal" followed by the year 2004 or earlier refers
to the twelve months ending August 31 of that year. For
example, the fiscal year ended August 31, 2004 is referred
to as "fiscal 2004." In addition, as a result of the
acquisition, and as described further in our financial
statements and notes thereto included elsewhere in this
prospectus, we include as a reporting period our pre-acquisition
five-month period ended January 31, 2005.
INDUSTRY AND MARKET DATA
The market data and other statistical information used
throughout this prospectus are based on independent industry
publications, government publications, reports by market
research firms or other published independent sources. Some data
are also based on our good faith estimates, which are derived
from our review of internal surveys, as well as the independent
sources listed above. Although we believe these sources are
reliable, we have not independently verified the information and
cannot guarantee its accuracy and completeness. None of the
independent industry publications used in this prospectus were
prepared on our or our affiliates' behalf and none of the
sources cited in this prospectus consented to the inclusion of
any data from its reports, nor have we sought their consent.
ii
Table of Contents
SUMMARY
This summary highlights selected information contained
elsewhere in this prospectus and does not contain all of the
information you need to consider in making your investment
decision. This summary is qualified in its entirety by the more
detailed information and the combined and consolidated financial
statements and notes thereto appearing elsewhere in this
prospectus. You should read carefully this entire prospectus and
should consider, among other things, the matters set forth in
the section entitled "Risk Factors" before deciding
whether to invest in our common stock.
Company Overview
Emergency Medical Services Corporation is a leading provider of
emergency medical services in the United States. We operate our
business and market our services under the AMR and EmCare
brands. AMR is the leading provider of ambulance services in the
United States. EmCare is the leading provider of outsourced
emergency department staffing and related management services in
the United States. Approximately 86% of our fiscal 2004 net
revenue was generated under exclusive contracts. During fiscal
2004, we provided emergency medical services to approximately
9 million patients in more than 2,000 communities
nationwide. For the fiscal year ended August 31, 2004, we
generated net revenue of $1.6 billion, of which AMR and
EmCare represented approximately 66% and 34%, respectively.
AMR.
Over its 50 years of operating history, AMR has
developed the largest network of ambulance services in the
United States. AMR has an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7 million patients in
34 states. AMR has approximately 2,550 contracts with
communities, government agencies, healthcare providers and
insurers to provide ambulance transport services. AMR's
broad geographic footprint enables us to contract on a national
and regional basis with managed care and insurance companies.
AMR has made significant investments in technology, customer
service programs, employee training and risk mitigation programs
to deliver a compelling value proposition to our customers. We
believe this has resulted in our improvement in contract
retention, from 81% in fiscal 2001 to what we believe is our
industry-leading contract retention rate of 99% in fiscal 2004.
For fiscal 2004, approximately 57% of AMR's net revenue was
generated from emergency 911 ambulance services, 32% from
non-emergency ambulance services and the balance generated from
the provision of training, dispatch centers and other services
to communities and public safety agencies.
EmCare.
Over its 33 years of operating history,
EmCare has become the largest provider of outsourced emergency
department staffing and related management services to
healthcare facilities. EmCare has a 6% share of the total
emergency department services market and a 9% share of the
outsourced emergency department services market. In addition,
EmCare has become one of the leading providers of hospitalist
services, the staffing of physicians that specialize in the care
of acutely ill patients in an inpatient setting. During fiscal
2004, EmCare had approximately 5.3 million patient visits
in 38 states. EmCare has 329 exclusive contracts with
hospitals and independent physician groups to provide emergency
department, hospitalist and radiology staffing, management and
other administrative services. We believe that EmCare's
successful physician recruitment and retention, high level of
customer service and advanced risk management programs have
resulted in our improvement in contract retention, from 74% in
fiscal 2001 to what we believe is an industry-leading contract
retention rate of 91% in fiscal 2004.
Emergency Medical Services Industry
We operate in the ambulance and emergency department services
markets, two large and growing segments of the emergency medical
services market. Most communities are required by law to provide
emergency ambulance services and most hospitals are required to
provide emergency department services. Given that emergency
medical services are a core component of the patient care
continuum, we believe that expenditures for emergency medical
services will continue to correlate closely with growth in the
U.S. hospital market. We believe that growth in our
emergency medical services markets will also be driven by an
increase in outsourcing for these services and increased federal
funding for disaster preparedness and response.
1
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Ambulance Services
Ambulance services encompass both 911 emergency response and
non-emergency transport services. We believe the ambulance
services market represents annual expenditures of approximately
$12 billion. The ambulance services market is highly
fragmented, with more than 14,000 private, public and
not-for-profit service providers accounting for an estimated
36 million ambulance transports in 2004. There are a
limited number of regional ambulance providers and we are one of
only two national ambulance providers. Given demographic trends,
the total number of ambulance transports is expected to continue
to grow at a steady rate of 1% to 2% per year.
Due to increased demand for technology-enhanced and data-driven
providers, cost-effectiveness of services, improved patient
outcomes and emergency preparedness and response, we believe
that the current trend by communities and hospitals to outsource
ambulance services will contribute to growth for private
providers. According to the Journal of Emergency Medical
Services, the percentage of emergency medical transportation
services delivered by private ambulance providers in the
nation's 200 largest cities increased from 34% in 1999 to
39% in 2003. Furthermore, we expect private providers to benefit
as hospitals continue to outsource more of their ambulance
services due to changes in reimbursement rates and increased use
of outpatient services.
Emergency Department Services
We believe the physician reimbursement component of the
emergency department services market represents annual
expenditures of approximately $10 billion. There are
approximately 4,700 hospitals in the United States that operate
emergency departments, of which approximately 67% outsource
their physician staffing and management for this department. The
market for outsourced emergency department staffing and related
management services is highly fragmented, with more than
800 national, regional and local providers. We believe we
are one of only five national providers.
Between 1993 and 2003, the total number of patient visits to
hospital emergency departments increased from 90.3 million
to 113.9 million, an increase of 26%. At the same time, the
number of hospital emergency departments declined 12%. As a
result, the average number of patient visits per hospital
emergency department increased substantially during that period.
We believe these trends are resulting in an increased focus by
hospitals on their emergency departments. As the per hospital
demand for emergency department visits continues to increase, we
believe that more hospitals will turn to well-established
providers, such as EmCare, which have a demonstrated track
record of improving productivity and efficiency while providing
high quality care.
Competitive Strengths
We believe the following competitive strengths position our
company to capitalize on the favorable trends occurring within
the healthcare industry and the emergency medical services
markets.
Leading, Established Provider of Emergency Medical
Services.
We are a leading provider of emergency medical
services in the United States. AMR is the leading provider of
ambulance services, with net revenue approximately twice that of
our only national competitor. During fiscal 2004, AMR treated
and transported approximately 3.7 million patients in
34 states. We believe that EmCare is the leading provider
of outsourced staffing and related management services to
emergency departments, with 32% more emergency department
staffing contracts than our principal national competitor.
EmCare's 4,500 affiliated physicians provide services to
over 300 client hospitals, including many of the top 100
hospitals in the United States. EmCare is also one of the
leading providers of hospitalist services. We believe our track
record of consistently meeting or exceeding our customers'
service expectations, coupled with our ability to leverage our
infrastructure and technology to drive increased productivity
and efficiency, have contributed to our ability to retain
existing and win new contracts.
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Significant Scale and Geographic Presence.
We believe our
significant scale and broad geographic presence provide a
competitive advantage over local and regional providers in most
areas, including our:
•
Ability to recruit and retain quality personnel.
We are
    able to recruit and retain clinical and support employees by
    providing attractive compensation packages, comprehensive
    training programs, risk mitigation strategies, career
    development and greater breadth of job transferability. This
    lowers our costs associated with employee turnover and increases
    customer and patient satisfaction.
•
National contracting and preferred provider
    relationships.
We are able to enter into national and
    regional contracts with managed care organizations and insurance
    companies. We have an exclusive provider contract with one of
    the largest managed care organizations, and we have preferred
    provider status with several healthcare systems and
    many managed care organizations.
•
Cost efficiencies and broad program offering.
Our
    investments in technology may be too costly for certain
    providers to replicate, and provide us with several competitive
    advantages, including: (i) operating cost efficiencies,
    (ii) scalability and (iii) the capability to provide
    broad, high quality service offerings to our customers at
    competitive rates. In addition, our technology, including
    electronic patient records, and our expertise in providing both
    pre-hospital and hospital-based emergency care uniquely
    positions us to respond to community demand for enhanced
    coordination among their emergency service providers.
Long-Term Relationships with Existing Customers.
We
believe our long-term, well-established relationships with
communities and healthcare facilities enhance our ability to
retain existing customers and win new contracts. AMR and EmCare
have maintained relationships with their ten largest customers
for an average of 34 and 12 years, respectively, and during
that time have continually demonstrated an ability to meet and
exceed contractual commitments. As a result, we believe we are
in an advantageous position at the time of contract renewal when
a community or hospital is faced with a decision whether to
retain its existing provider or explore other alternatives. We
believe our industry-leading contract retention rates reflect
our ability to deliver on our service commitments to our
customers over extended time periods.
Strong Financial Performance.
When we compete for new
business, one of the key factors our potential customers
evaluate is financial stability. As a result, we believe our
track record of strong financial performance provides us with a
competitive advantage over our competitors. We believe our
ability to demonstrate consistently strong financial performance
will continue to differentiate our company and provide a
competitive advantage in winning new contracts and renewing
existing contracts.
Focus on Risk Management.
Considered one of the leading
programs of its kind in the emergency department industry,
EmCare's risk management initiatives are enhanced by the
use of our professional liability claims database. We analyze
this data to demonstrate claim trends on a national, hospital,
physician and procedure level, helping to manage and mitigate
risk exposure. AMR's risk/ safety program is aimed at
reducing worker injuries through training and improved
equipment, and increasing vehicle safety through the use of
technology. Over the last three years, our workers compensation,
auto, general and professional liability claims per 100,000
ambulance transports decreased 8.4% at AMR and our professional
liability claims per 100,000 emergency department visits
decreased 14.0% at EmCare.
Investment in Core Technologies.
We utilize technology as
a means to enhance quality, reduce the cost of our service
offerings, more effectively manage risk and improve our
profitability. For example:
•
We believe AMR is the largest user of ambulance electronic
    patient care records, or e-PCR. Our proprietary system enables
    us to eliminate the use of manual patient records by replacing
    them with electronic records, which we expect will improve chart
    documentation and reduce costs.
•
AMR utilizes proprietary software, Millennium, to determine the
    appropriate level of transportation services to be dispatched
    and track response times and other data for hospitals. Our
    initial implementation of these technologies has improved our
    ability to capture revenue, decrease our billing costs and bid
    more effectively for 911 contracts.
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Table of Contents
•
EmCare has developed proprietary physician recruitment software
    that has enhanced our recruitment efficiency and improved our
    physician retention rate.
•
At EmCare, we track risk exposure trends through what we believe
    is one of the largest emergency department risk databases,
    allowing us to assess, develop and implement targeted risk
    intervention programs.
Proven and Committed Management Team.
We are led by an
experienced senior management team with an average of
21 years of experience in the healthcare industry. Our
Chairman and Chief Executive Officer, William Sanger, has over
30 years of experience within the healthcare services
industry, with leadership roles in multi-system hospitals,
ambulatory care facilities, post-acute service facilities,
physician management companies and insurance entities. Since
Mr. Sanger joined us in 2001, our senior management team
has been successful in growing the market share of our
businesses, managing changes in reimbursement policy, reducing
professional liability risk and improving the profitability of
our operations.
Business Strategy
We intend to leverage Emergency Medical Services'
competitive strengths to pursue our business strategy:
Increase Revenue from Existing Customers.
We believe our
long track record of delivering excellent service and quality
patient care, as well as the breadth of our services, creates
opportunities for us to increase revenue from our existing
customer base. We continue to implement innovative programs that
increase facility capacity and patient throughput, establish
site specific service level commitments and transport
coordination to increase non-emergency transports, and broaden
product and service offerings to our customers.
Grow Our Customer Base.
We believe we have a unique
competency in the treatment, management and billing of episodic
care. We believe our long operating history, significant scope
and scale, strong brand recognition and leading market position
provide us with new and expanded opportunities to grow our
customer base. We continue to generate new revenue and client
growth through targeted geographic sales and marketing programs,
pursuing new outsourcing opportunities for emergency department,
hospitalist, radiology and ambulance services and expanding our
public/private ambulance partnerships with local fire
departments. We are also evaluating opportunities that leverage
our core businesses, such as managing health-related
transportation logistics.
Pursue Select Acquisition Opportunities.
The emergency
medical services industry is highly fragmented, with only a few
large national providers, and presents opportunities for
consolidation. We plan to pursue select acquisitions in our core
businesses, including acquisitions to enhance our presence in
existing markets and our entry into new geographic markets. We
will also explore the acquisition of complementary businesses,
such as radiology, hospitalist and managed health-related
transportation services and seek opportunities to expand the
scope of services in which we can leverage our core competencies.
Utilize Technology to Differentiate Our Services and Improve
Operating Efficiencies.
We intend to continue to invest in
technologies that broaden our services in the marketplace,
improve patient care, enhance our billing efficiencies and
increase our profitability. We believe that the complexities of
the healthcare industry and customer demand for broader, more
cost-effective service offerings will continue to benefit those
providers that remain at the forefront of technological
innovation.
Continued Focus on Risk Management.
Through our risk
management and quality assurance staffs, technology platform and
well-trained medical personnel, we will continue to conduct
aggressive risk management programs for loss prevention and
early intervention. We will continue to develop and utilize
clinical "fail safes" and use technology in our
ambulances to reduce vehicular incidents.
Implement Cost Rationalization Initiatives.
We will
continue to rationalize our cost structure by aligning
compensation with productivity, developing risk management
initiatives that are focused on mitigating risk exposures, and
eliminating costs in our national and regional corporate support
structure. Since the acquisition, we have completed our
preliminary analysis of certain of our support areas, including
4
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accounting, legal, information services and human resources, and
have begun to implement initiatives to increase productivity and
achieve further economies of scale across the company.
Company History
AMR and EmCare have more than 50 years and 33 years,
respectively, of operating history. From 1997, they were
wholly-owned subsidiaries of Laidlaw International, Inc. In
February 2005, AMR and EmCare were purchased from Laidlaw by an
investor group led by Onex Partners LP and Onex Corporation and
including members of our management.
Our Equity Investor
Onex Partners LP is a $1.7 billion private equity fund
established in 2003 by Onex Corporation. Onex Partners provides
committed capital for Onex-sponsored acquisitions. Onex
Corporation is a diversified company with annual consolidated
revenues of approximately $14 billion and 110,000
employees. Onex' subordinate voting shares are listed and
traded on the Toronto Stock Exchange under the symbol
"OCX.SV". Onex is one of Canada's largest
companies with global operations in service, manufacturing and
technology industries. Onex' healthcare investments include
Magellan Health Services, Inc., Res-Care Inc. and Center for
Diagnostic Imaging, Inc. Other Onex operating companies include
Celestica Inc., ClientLogic Corporation, Spirit AeroSystems,
Inc., Cineplex Galaxy LP, J.L. French Automotive Castings,
Inc., Cosmetic Essence, Inc., Performance Logistics Group, Inc.
and Radian Communication Services Corporation.
Prior to the completion of this offering, Onex owns beneficially
an aggregate of approximately 97% of our common stock. See
"Principal and Selling Stockholders."
Risk Factors
Investing in our class A common stock involves risks. You
should refer to the section entitled "Risk Factors"
for a discussion of certain risks you should consider before
deciding whether to invest in our class A common stock.
Executive Offices
Our principal executive offices are located at
6200 S. Syracuse Way, Suite 200, Greenwood
Village, Colorado 80111 and our telephone number at that address
is (303) 495-1200. Our website address is
www.emsc.net
. The website addresses for our business
segments are
www.amr.net
and
www.emcare.com.
Information contained on these websites is not part of this
prospectus and is not incorporated in this prospectus by
reference.
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Table of Contents
The Offering
Class A common stock offered by us
shares
Over-allotment shares of class A common stock offered by
    the selling stockholders
shares
Common stock outstanding after this offering
shares
    of class A common stock
shares
    of class B common stock
Use of proceeds
We intend to use approximately
    $           million
    of the net proceeds from this offering to repay debt under our
    senior secured credit facility, and the balance for general
    corporate purposes. See "Use of Proceeds."
Proposed NYSE symbol
"EMS"
The number of shares of our common stock outstanding after this
    offering is based on
    the                      units
    of EMS L.P. outstanding as
    of                     ,
    2005, and gives effect to the exchange of all LP exchangeable
    units for our class B common stock. See "Formation of
    Holding Company." We will also have outstanding
    one share of class B special voting stock through
    which the holders of LP exchangeable units may exercise
    voting rights with respect to Emergency Medical Services as
    though they held the same number of shares of our class B
    common stock. See "Description of Capital Stock —
    LP Exchangeable Units and Class B Special Voting
    Stock." The number of shares of our common stock to be
    outstanding after this offering
    excludes                      shares
    of class A common stock issuable upon the exercise of
    options. See "Management — Equity
    Plans — Equity Option Plan."
Except as otherwise indicated, all of the information presented
    in this prospectus assumes the following:
•
our formation as a holding company named Emergency Medical
    Services Corporation, the contribution to us of the general
    partner interest in EMS L.P., and the contribution to us of
    certain partnership units of EMS L.P. in exchange for shares of
    our class A common stock, as described under
    "Formation of Holding Company",
•
the
    anticipated      -for-     stock
    split based upon an assumed initial public offering price of
    $           per
    share, which is the mid-point of the range set forth in the
    cover page of this prospectus,
•
the exchange of all LP exchangeable units for shares of our
    class B common stock, and
•
no exercise of the underwriters' over-allotment option.
6
Table of Contents
Summary of Historical Combined, Consolidated and Pro Forma
Consolidated Financial Information and Other Data
The summary combined financial data of AMR and EmCare for the
year ended August 31, 2002 (Predecessor —
Pre-Laidlaw Bankruptcy), the nine months ended May 31, 2003
(Predecessor — Pre-Laidlaw Bankruptcy), and as of and
for the three months ended August 31, 2003
(Predecessor — Post-Laidlaw Bankruptcy), the year
ended August 31, 2004 (Predecessor — Post-Laidlaw
Bankruptcy) and the five months ended January 31, 2005
(Predecessor — Post-Laidlaw Bankruptcy) are derived
from our audited combined historical financial statements
included in this prospectus. As a result of a correction to
AMR's method of calculating its accounts receivable
allowances, we determined that the allowances were understated
at various balance sheet dates. The audited combined financial
statements included in this prospectus are restated to correct
this error. There were no adjustments necessary to income
subsequent to May 31, 2003.
The summary combined historical financial data for the five
months ended January 31, 2004 (Predecessor —
Post-Laidlaw Bankruptcy) and the three months and five months
ended June 30, 2004 (Predecessor — Post-Laidlaw
Bankruptcy) are derived from the unaudited combined historical
financial statements included in this prospectus. The summary
consolidated financial data for the three months and five months
ended June 30, 2005 (Successor) are derived from the
unaudited consolidated historical financial statements included
elsewhere in this prospectus. The interim financial statements
include, in the opinion of management, all adjustments,
consisting of normal accruals, necessary for a fair presentation
of the information for those periods. The results of operations
for the interim periods may not be indicative of results that
may be expected for the full fiscal year.
The summary pro forma consolidated financial information and
other data for the year ended August 31, 2004, the five
months ended January 31, 2005 and the five months ended
June 30, 2005 reflect the acquisition of AMR and EmCare by
Emergency Medical Services and the completion of this offering,
and should be read in conjunction with our unaudited pro forma
consolidated financial statements included elsewhere in this
prospectus which, with respect to statement of operations data,
give effect to the acquisition and this offering as if they
occurred as of September 1, 2003, September 1, 2004
and February 1, 2005, respectively, and with respect to
balance sheet data, give effect to this offering as if it
occurred as of June 30, 2005. The unaudited pro forma
consolidated financial information is presented for
informational purposes only and does not purport to represent
what our results of operations would have been if the
acquisition and this offering had occurred as of the dates
indicated or what such results will be for future periods.
You should read the summary information in conjunction with
"Selected Combined and Consolidated Financial Information
and Other Data," "Unaudited Pro Forma Consolidated
Financial Data," "Management's Discussion and
Analysis of Financial Condition and Results of Operations"
and the combined and consolidated financial statements and
related notes included in this prospectus.
7
Table of Contents
Predecessor (Pre-Acquisition)
(Pre-Laidlaw
Bankruptcy)
Successor (Post-
As Restated
(Post-Laidlaw Bankruptcy)
Acquisition)
Unaudited Pro Forma
Nine
Three
Three
Five
Three
Five
Five
Five
Year
Months
Months
Year
Five Months Ended
Months
Months
Months
Months
Year
Months
Months
Ended
Ended
Ended
Ended
January 31,
Ended
Ended
Ended
Ended
Ended
Ended
Ended
August 31,
May 31,
August 31,
August 31,
June 30,
June 30,
June 30,
June 30,
August 31,
January 31,
June 30,
2002
2003
2003
2004
2004
2005
2004
2004
2005
2005
2004
2005
2005
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Statement of Operations Data:
Net revenue
$
1,415,786
$
1,103,335
$
384,461
$
1,604,598
$
667,506
$
696,179
$
399,975
$
663,880
$
445,021
$
731,410
$
1,604,598
$
696,179
$
731,410
Compensation and benefits
960,590
757,183
264,604
1,117,890
461,923
481,305
280,364
464,610
307,308
502,998
1,117,890
481,305
502,998
Operating expenses
219,321
163,447
55,212
218,277
90,828
94,882
53,490
91,661
63,250
102,170
218,277
94,882
102,170
Insurance expense
66,479
69,576
34,671
80,255
40,393
39,002
22,865
36,865
22,427
39,334
80,255
39,002
39,334
Selling, general and administrative expenses
61,455
37,867
12,017
47,899
22,016
21,635
12,805
19,269
14,498
23,179
47,899
21,635
23,179
Laidlaw fees and compensation charges
5,400
4,050
1,350
15,449
6,436
19,857
3,862
6,436
—
—
15,449
19,857
—
Depreciation and amortization expenses
67,183
32,144
12,560
52,739
22,079
18,808
13,160
21,958
14,136
23,988
55,873
23,232
23,988
Impairment losses
262,780
—
—
—
—
—
—
—
—
—
—
—
—
Restructuring charges
3,777
1,288
1,449
2,115
—
—
—
1,381
—
—
2,115
—
—
Laidlaw reorganization charges
8,761
3,650
—
—
—
—
—
—
—
—
—
—
—
Income (loss) from operations
(239,960
)
34,130
2,598
69,974
23,831
20,690
13,429
21,700
23,402
39,741
66,840
16,266
39,741
Interest expense
(6,418
)
(4,691
)
(908
)
(9,961
)
(4,137
)
(5,644
)
(3,073
)
(3,541
)
(13,646
)
(21,584
)
Realized gain (loss) on investments
—
—
90
(1,140
)
—
—
—
(52
)
33
(6
)
(1,140
)
—
(6
)
Interest and other income
369
304
22
240
1,403
714
12
48
81
94
240
94
Fresh-start accounting adjustments(1)
—
46,416
—
—
—
—
—
—
—
—
—
—
—
Income (loss) before income taxes and cumulative change in
    accounting principle
(246,009
)
76,159
1,802
59,113
21,097
15,760
10,368
18,155
9,870
18,245
Income tax expense
(1,374
)
(829
)
(8,633
)
(21,764
)
(8,558
)
(6,278
)
(4,794
)
(7,831
)
(3,821
)
(7,178
)
Income (loss) before cumulative effect of a change in accounting
    principle
(247,383
)
75,330
(6,831
)
37,349
12,539
9,482
5,574
10,324
6,049
11,067
Cumulative effect of a change in accounting principle(2)
—
(223,721
)
—
—
—
—
—
—
—
—
—
—
—
Net income (loss)
$
(247,383
)
$
(148,391
)
$
(6,831
)
$
37,349
$
12,539
$
9,482
$
5,574
$
10,324
$
6,049
$
11,067
$
$
$
Predecessor (Pre-Acquisition)
(Pre-Laidlaw
Successor
Bankruptcy)
(Post-
As Restated
(Post-Laidlaw Bankruptcy)
Acquisition)
Nine
Three
Five
Five
Year
Months
Months
Year
Five Months Ended
Months
Months
Ended
Ended
Ended
Ended
January 31,
Ended
Ended
August 31,
May 31,
August 31,
August 31,
June 30,
June 30,
2002
2003
2003
2004
2004
2005
2004
2005
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Other Financial Data:
Cash flow provided by (used in):
Operating activities
$
156,544
$
58,769
$
30,009
$
127,679
$
17,483
$
15,966
$
81,269
$
94,703
Investing activities
(57,347
)
(98,835
)
(15,136
)
(81,516
)
(11,767
)
(21,667
)
(24,121
)
(875,235
)
Financing activities
(36,066
)
(8,060
)
(47,222
)
(47,328
)
(5,501
)
10,856
(54,043
)
797,266
Capital expenditures
57,438
(3)
34,768
18,079
42,787
14,225
14,045
17,387
20,052
EBITDA(4)
$
90,003
$
66,274
$
15,158
$
122,713
$
45,910
$
39,498
$
43,658
$
63,729
EBITDA, as adjusted(4)
$
59,355
$
51,475
$
63,729
As of June 30, 2005
Consolidated
Pro Forma
Balance Sheet Data:
Cash and cash equivalents
$
31,365
$
31,365
Total assets
1,223,552
1,223,552
Long-term debt and capital lease obligations, including current
    maturities
605,924
Partners'/ Stockholders' equity
$
230,860
$
(1)
See note 1 to our combined financial statements with
    respect to our fresh-start financial reporting.
(2)
Reflects an impairment of goodwill recorded in connection with
    the adoption of SFAS No. 142.
(3)
Includes $26.3 million financed through capital leases.
(4)
EBITDA represents net income (loss) before interest expense,
    net, income tax expense, depreciation and amortization expense,
    fresh-start accounting adjustments, cumulative effect of a
    change in accounting principle, impairment losses and realized
    (gain) loss on investments. Adjusted EBITDA represents
    EBITDA adjusted to remove the effect of the Laidlaw allocations
    of management fees and compensation charges, insurance expenses
    and rebates and reorganization costs. Management routinely
    calculates and communicates EBITDA and adjusted EBITDA and
    believes that they are useful to investors because they are
    commonly used as analytical indicators within the healthcare
    industry to evaluate operational performance, allocate resources
    and measure leverage capacity and ability to service debt. In
    addition, adjusted EBITDA is used as a measure for various
    financial covenants in our senior secured credit facility, and
    we use adjusted EBITDA as a measure for incentive
8
Table of Contents
compensation purposes. EBITDA and
    adjusted EBITDA should not be considered as a measure of
    financial performance under generally accepted accounting
    principles, or GAAP, and the items excluded from EBITDA and
    adjusted EBITDA are significant components in understanding and
    assessing financial performance. EBITDA and adjusted EBITDA
    should not be considered in isolation or as an alternative to
    net income, cash flows generated by operating, investing or
    financing activities or other financial statement data presented
    in the combined and consolidated financial statements as an
    indicator of financial performance or liquidity. EBITDA and
    adjusted EBITDA, as presented, may not be comparable to
    similarly titled measures of other companies.
The following table reconciles net income (loss) to EBITDA:
Predecessor (Pre-Acquisition)
(Pre-Laidlaw
Bankruptcy)
Successor
As Restated
(Post-Laidlaw Bankruptcy)
(Post-Acquisition)
Unaudited Pro Forma
Nine
Three
Three
Five
Three
Five
Five
Five
Year
Months
Months
Year
Five Months Ended
Months
Months
Months
Months
Year
Months
Months
Ended
Ended
Ended
Ended
January 31,
Ended
Ended
Ended
Ended
Ended
Ended
Ended
August 31,
May 31,
August 31,
August 31,
June 30,
June 30,
June 30,
June 30,
August 31,
January 31,
June 30,
2002
2003
2003
2004
2004
2005
2004
2004
2005
2005
2004
2005
2005
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Combined/ Consolidated Results:
Net income (loss)
$
(247,383
)
$
(148,391
)
$
(6,831
)
$
37,349
$
12,539
$
9,482
$
5,574
$
10,324
$
6,049
$
11,067
$
$
$
Add:
Cumulative effect of a change in accounting principle
—
223,721
—
—
—
—
—
—
—
—
Income tax expense
1,374
829
8,633
21,764
8,558
6,278
4,794
7,831
3,821
7,178
Fresh-start accounting adjustments
—
(46,416
)
—
—
—
—
—
—
—
—
Interest expense, net
6,049
4,387
886
9,721
2,734
4,930
3,061
3,493
13,565
21,490
Realized (gain) loss on investments
—
—
(90
)
1,140
—
—
—
52
(33
)
6
Impairment losses
262,780
—
—
—
—
—
—
—
—
—
Depreciation and amortization expenses
67,183
32,144
12,560
52,739
22,079
18,808
13,160
21,958
14,136
23,988
EBITDA(a)
$
90,003
$
66,274
$
15,158
$
122,713
$
45,910
$
39,498
$
26,589
$
43,658
$
37,538
$
63,729
$
$
$
(a)
EBITDA for periods presented includes Laidlaw's allocation
    to us of fees and compensation charges, insurance expenses and
    rebates and reorganization costs. Laidlaw's allocations to
    us of fees and compensation charges and of reorganization costs
    are based on allocations among all of Laidlaw's business
    units based on revenues, plus an additional amount allocated to
    us in respect of a one-time compensation expense related to the
    changes in the enterprise values of AMR and EmCare.
    Laidlaw's allocation to us of insurance expense and rebates
    is based on an allocation of investment income of Laidlaw's
    captive insurance subsidiary among all of Laidlaw's
    business units based on revenues, and an allocation of claims
    among Laidlaw's business units based on each business
    unit's claims experience. We do not believe that
    Laidlaw's allocation of these expenses and rebates are
    predictive of expenses and rebates we expect to incur as a
    stand-alone company in respect of management services or for
    comparable stand-alone insurance costs. Laidlaw's
    allocation of these expenses and rebates for the historical
    periods presented were as follows:
Predecessor (Pre-Acquisition)
(Pre-Laidlaw
Bankruptcy)
(Post-Laidlaw Bankruptcy)
Nine
Three
Three
Five
Year
Months
Months
Year
Five Months Ended
Months
Months
Ended
Ended
Ended
Ended
January 31,
Ended
Ended
August 31,
May 31,
August 31,
August 31,
June 30,
June 30,
2002
2003
2003
2004
2004
2005
2004
2004
(unaudited)
(unaudited)
(dollars in thousands)
Laidlaw insurance expense (rebate)(1)
$
(8,094
)
$
3,058
$
11,522
$
(4,505
)
$
—
$
—
$
—
$
—
Laidlaw fees and compensation charges
5,400
4,050
1,350
15,449
(2)
6,436
19,857
(3)
3,862
6,436
Laidlaw reorganization costs
8,761
3,650
—
—
—
—
—
—
Total Laidlaw allocated expense
$
6,067
$
10,758
$
12,872
$
10,944
$
6,436
$
19,857
$
3,862
$
6,436
(1)
Included in "Insurance expense" in our combined
    statements of operations.
(2)
Includes compensation charges of $4.1 million.
We estimate that the costs we will incur in respect of
    management services and other costs as a stand-alone company
    will total approximately $4.0 million a year. See note
    (1) to the unaudited pro forma consolidated statement of
    operations for the five months ended January 31, 2005
    and the year ended August 31, 2004 in "Unaudited Pro
    Forma Consolidated Financial Data."
(3)
Includes compensation charges of $15.4 million.
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RISK FACTORS
An investment in our class A common stock involves a high
degree of risk. You should carefully consider the factors
described below in addition to the other information set forth
in this prospectus before deciding whether to make an investment
in our class A common stock. The risk and uncertainties
described below are not the only ones we face. Additional risks
and uncertainties not presently known to us or that we currently
believe to be immaterial may also materially and adversely
affect our business operations. Any of the following risks could
materially adversely affect our business, financial condition or
results of operations. In such case, you may lose all or part of
your original investment.
Risk Factors Related to Our Business
We could be subject to lawsuits for which we are not fully
    insured or reserved, and our insurance reserves are subject to
    inherent uncertainties.
In recent years, physicians, hospitals and other participants in
the healthcare industry have become subject to an increasing
number of lawsuits alleging medical malpractice and related
legal theories such as negligent hiring, supervision and
credentialing. Similarly, ambulance transport services may
result in lawsuits concerning vehicle collisions and personal
injuries, patient care incidents and employee job-related
injuries. Some of these lawsuits may involve large claim amounts
and substantial defense costs.
EmCare procures professional liability insurance coverage for
most of its affiliated medical professionals and professional
and corporate entities. Beginning January 1, 2002, this
insurance coverage has been provided by affiliates of CNA
Insurance Company, which then reinsure the entire program,
primarily through EmCare's wholly-owned subsidiary, EMCA
Insurance Company, Ltd., or EMCA. Workers compensation coverage
for EmCare's employees and applicable affiliated medical
professionals is provided under a similar structure for the
period. From September 1, 2004 to the closing date of the
acquisition, AMR obtained insurance coverage for losses with
respect to workers compensation, auto and general liability
claims through Laidlaw's captive insurance company. AMR
currently has a self-insurance program fronted by an unrelated
third party. AMR retains the risk of loss under this coverage.
Under these insurance programs, we establish reserves, using
actuarial estimates, for all losses covered under the policies.
Our liability to pay for EmCare's insurance program losses
is collateralized by funds held through EMCA and, to the extent
these losses exceed the collateral and assets of EMCA or the
limits of our insurance policies, will have to be funded by us.
Should our AMR losses with respect to such claims exceed the
collateral held by Laidlaw in connection with our self-insurance
program or the limits of our insurance policies, we will have to
fund such amounts. See "Business — American
Medical Response — Insurance" and
"— EmCare — Insurance."
Our reserves for losses and related expenses represent estimates
involving actuarial and statistical projections, at a given
point in time, of our expectations of the ultimate resolution
and administration costs of losses we have incurred in respect
of our liability risks. Insurance reserves inherently are
subject to uncertainty. Our reserves are based on historical
claims, demographic factors, industry trends, severity and
exposure factors and other actuarial assumptions calculated by
an independent actuary firm. The independent actuary firm
performs studies of projected ultimate losses on an annual basis
and provides quarterly updates to those projections. We use
these actuarial estimates to determine appropriate reserves. Our
reserves could be significantly affected if current and future
occurrences differ from historical claim trends and
expectations. While we monitor claims closely when we estimate
reserves, the complexity of the claims and the wide range of
potential outcomes may hamper timely adjustments to the
assumptions we use in these estimates. Actual losses and related
expenses may deviate, individually and in the aggregate, from
the reserve estimates reflected in our financial statements. If
we determine that our estimated reserves are inadequate, we will
be required to increase reserves at the time of the
determination, which would result in a reduction in our net
income in the period in which the deficiency is determined. See
"— We may become involved in litigation which
could harm the value of our business,"
"Management's Discussion and Analysis of Financial
Condition and Results of Operations — Critical
Accounting Policies — Claims Liability and
Professional Liability Reserves" and note 12 of the
notes to our combined financial statements included elsewhere in
this prospectus.
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Table of Contents
Some of our insurance coverage, for periods prior to the
initiation of our self-insurance programs as well as portions of
our current insurance coverage, is through various third party
insurers. To the extent we hold policies to cover certain groups
of claims, but either did not buy an extended reporting period
policy, where applicable, or the issuing insurance company is no
longer viable, we may be responsible for losses attributable to
such claims. Furthermore, for our losses that are insured or
reinsured through commercial insurance companies, we are subject
to the "credit risk" of those insurance companies.
While we believe our commercial insurance company providers
currently are creditworthy, there can be no assurance that such
insurance companies will remain so in the future.
We are subject to the financial risks associated with our
    fee-for-service contracts which could decrease our revenue,
    including changes in transport and patient volume, mix of
    insured and uninsured patients and patients covered by
    government-sponsored healthcare programs and third party
    reimbursement rates.
We derive our revenue through three primary types of
arrangements — flat fee or standby arrangements,
fee-for-service arrangements, and fee-for-service arrangements
combined with a subsidy or administrative fee. Both AMR and
EmCare have flat fee contracts with customers, including
government agencies, managed care companies and hospitals, in
which we bill the customer for services provided, we are paid a
negotiated amount, and the customer is responsible for seeking
reimbursement from third party payors.
In our fee-for-service arrangements, we, or our affiliated
physicians, collect the fees for transports and physician
services. Our fee-for-service revenue may be supplemented by our
customers in the form of a subsidy or administrative fee. Under
these arrangements, we assume the financial risks related to
changes in the mix of insured and uninsured patients and
patients covered by government-sponsored healthcare programs,
third party reimbursement rates and changes in transports and
patient volume. We are subject to these risks because, under our
fee-for-service arrangements, our revenue decreases if a smaller
number of patients require transport or receive physician
services or we are not fully reimbursed for services rendered.
See "— Risk Factors Related to Healthcare
Regulation — Changes in the rates or methods of third
party reimbursements may adversely affect our operations."
In addition, fee-for-service contracts have less favorable cash
flow characteristics in the start-up phase than traditional
flat-rate contracts due to longer collection periods.
Our fee-for-service contractual arrangements also involve a
credit risk related to services provided to uninsured
individuals. This risk is exacerbated in 911 emergency response
transport and hospital emergency department physician staffing
because the law requires communities to provide 911 emergency
response services and hospital emergency departments to treat
all patients presenting to the emergency department seeking care
for an emergency medical condition regardless of their ability
to pay. We believe uninsured patients are more likely to seek
care at hospital emergency departments because they frequently
do not have a primary care physician with whom to consult. We
collect a smaller portion of our fees for services rendered to
uninsured patients than for services rendered to insured
patients.
We may not be able to successfully recruit and retain
    physicians and other healthcare professionals with the
    qualifications and attributes desired by us and our customers,
    and our non-compete agreements and other restrictive covenants
    involving physicians may not be enforceable.
Our ability to recruit and retain affiliated physicians and
other healthcare professionals significantly affects our
performance under our contracts. In the recent past, our
customer hospitals have increasingly demanded a greater degree
of specialized skills, training and experience in the healthcare
professionals providing services under their contracts with us.
This decreases the number of healthcare professionals who may be
permitted to staff our contracts. Moreover, because of the scope
of the geographic and demographic diversity of the hospitals and
other facilities with which we contract, we must recruit
healthcare professionals, and particularly physicians, to staff
a broad spectrum of contracts. We have had difficulty in the
past recruiting physicians to staff contracts in some regions of
the country and at some less economically advantaged hospitals.
Moreover, we compete with other entities to recruit and retain
qualified physicians and other healthcare professionals to
deliver clinical services. Our future success depends on our
ability to recruit and retain healthcare professionals to
maintain and expand our operations.
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We have contracts with physicians and professional corporations
in many states. Some of these contracts, as well as our
contracts with hospitals, include provisions preventing these
physicians and professional corporations from competing with us
both during and after the term of our relationship with them.
The law governing non-compete agreements and other forms of
restrictive covenants varies from state to state. Some states
are reluctant to strictly enforce non-compete agreements and
restrictive covenants applicable to physicians. There can be no
assurance that our non-compete agreements related to affiliated
physicians and professional corporations will not be
successfully challenged as unenforceable in certain states. In
such event, we would be unable to prevent former affiliated
physicians and professional corporations from competing with us,
potentially resulting in the loss of some of our hospital
contracts.
We are required to make significant capital expenditures
    for our ambulance services business in order to remain
    competitive.
Our capital expenditure requirements primarily relate to
maintaining and upgrading our vehicle fleet and medical
equipment to serve our customers and remain competitive. The
aging of our vehicle fleet requires us to make regular capital
expenditures to maintain our current level of service. In
addition, changing competitive conditions or the emergence of
any significant advances in medical technology could require us
to invest significant capital in additional equipment or
capacity in order to remain competitive. If we are unable to
fund any such investment or otherwise fail to invest in new
vehicles or medical equipment, our business, financial condition
or results of operations could be materially and adversely
affected.
We depend on our senior management and may not be able to
    retain those employees or recruit additional qualified
    personnel.
We depend on our senior management. The loss of services of any
of the members of our senior management could adversely affect
our business until a suitable replacement can be found. There
may be a limited number of persons with the requisite skills to
serve in these positions, and we cannot assure you that we would
be able to identify or employ such qualified personnel on
acceptable terms.
We must perform on our own services that Laidlaw
    previously performed for us, and we are subject to financial
    reporting and other requirements for which our accounting and
    other management systems and resources may not be
    adequate.
Laidlaw historically has provided various services to AMR and
EmCare, including income tax accounting, preparation of tax
returns, certain risk management, compliance and insurance
coverage services, cash management, certain benefit plan
administration and internal audit. Moreover, as subsidiaries of
a public company, AMR and EmCare have not themselves been
subject to the reporting and other requirements of the
Securities Exchange Act of 1934, or the Exchange Act. In
connection with this offering, we will become subject to
reporting and other obligations under the Exchange Act. We are
working with our independent legal, accounting and financial
advisors to identify those areas in which changes should be made
to our financial and management control systems to manage our
growth and our obligations as a public company. These areas
include corporate governance, corporate control, internal audit,
disclosure controls and procedures and financial reporting and
accounting systems. These reporting and other obligations will,
together with the impact of performing services previously
provided to us by Laidlaw, place significant demands on our
management, administrative and operational resources, including
accounting resources.
We anticipate that we will need to hire additional tax,
accounting and finance staff. We are reviewing the adequacy of
our systems, financial and management controls, and reporting
systems and procedures, and we intend to make any necessary
changes. We believe these replacement services will result in
total annual stand-alone selling, general and administrative,
compensation and benefits and insurance expense of approximately
$4.0 million in fiscal 2005, including a management fee we
will pay to Onex. We believe this represents our full
incremental stand-alone expense, and compares to the
pre-acquisition fees and compensation charges of
$15.4 million we paid Laidlaw in fiscal 2004 and
$19.9 million for the five months ended January 31,
2005. We cannot assure you that our estimate is accurate or that
our separation from Laidlaw will progress smoothly, either of
which could adversely impact our results. Moreover, our
stand-alone expenses may
12
Table of Contents
increase. If we are unable to upgrade our financial and
management controls, reporting systems and procedures in a
timely and effective fashion, we may not be able to satisfy our
obligations as a public company on a timely basis.
Our revenue would be adversely affected if we lose
    existing contracts.
A significant portion of our growth historically has resulted
from increases in the number of emergency and non-emergency
transports, and the number of patient visits and fees for
services, we provide under existing contracts and the addition
of new contracts. Substantially all of our fiscal 2004 net
revenue was generated under contracts, including exclusive
contracts that accounted for approximately 86% of our fiscal
2004 net revenue. Our contracts with hospitals generally
have terms of three years and the term of our contracts with
communities to provide 911 services generally ranges from three
to five years. Most of our contracts are terminable by either of
the parties upon notice of as little as 30 days. Any of our
contracts may not be renewed or, if renewed, may contain terms
that are not as favorable to us as our current contracts. We
cannot assure you that we will be successful in retaining our
existing contracts or that any loss of contracts would not have
a material adverse effect on our business, financial condition
and results of operations.
During the contract period, we may determine that a contract is
no longer favorable and may pursue options to modify or
terminate the contract. Factors contributing to such a
determination could include weaker than expected transport or
patient visit volume, geographical issues adversely affecting
ambulance response times, and delays in implementing technology
upgrades. We face certain risks in attempting to terminate
unfavorable contacts prior to their expiration due to the risk
of forfeiting performance bonds and the potential adverse
political and public relations consequences. If we are unable to
terminate or amend unfavorable contracts, we could experience a
material adverse effect on our business, financial condition and
results of operations.
We may not accurately assess the costs we will incur under
    new contracts.
Our new contracts increasingly involve a competitive bidding
process. When we obtain new contracts, we must accurately assess
the costs we will incur in providing services in order to
realize adequate profit margins and otherwise meet our financial
and strategic objectives. Increasing pressures from healthcare
payors to restrict or reduce reimbursement rates at a time when
the costs of providing medical services continue to increase
make assessing the costs associated with the pricing of new
contracts, as well as maintenance of existing contracts, more
difficult. In addition, integrating new contracts, particularly
those in new geographic locations, could prove more costly, and
could require more management time, than we anticipate. Our
failure to accurately predict costs or to negotiate an adequate
profit margin could have a material adverse effect on our
business, financial condition and results of operations.
The high level of competition in our segments of the
    market for emergency medical services could adversely affect our
    contract and revenue base.
AMR.
The market for providing ambulance transport
services to municipalities, other healthcare providers and third
party payors is highly competitive. Competition is based
primarily on:
•
pricing,
•
the ability to improve customer service, such as on-time
    performance and efficient call intake,
•
the ability to recruit, train and motivate employees,
    particularly ambulance crews who have direct contact with
    patients and healthcare personnel, and
•
billing and reimbursement expertise.
In providing ambulance transport services, we compete with
governmental entities (including cities and fire districts),
hospitals, local and volunteer private providers, and with
several large national and regional providers, such as Rural/
Metro Corporation, Southwest Ambulance and Acadian Ambulance. In
many communities, our most important competitors are the local
fire departments, which in many cases have acted
13
Table of Contents
traditionally as the first response providers during
emergencies, and have been able to expand their scope of
services to include emergency ambulance transport and do not
wish to give up their franchises to a private competitor.
EmCare.
The market for providing outsourced physician
staffing and related management services to hospitals and
clinics is highly competitive. Competition for outsourced
physician and other healthcare staffing and management service
contracts is based primarily on:
•
the ability to recruit and retain qualified physicians,
•
the ability to improve department productivity and patient
    satisfaction while reducing overall costs,
•
the ability to integrate the emergency department with other
    hospital departments and to provide value added services,
•
billing and reimbursement expertise,
•
a reputation for compliance with state and federal regulations,
•
the breadth of staffing and management services offered, and
•
financial stability, demonstrating an ability to pay providers
    in a timely manner and provide professional liability insurance.
Such competition could adversely affect our ability to obtain
new contracts, retain existing contracts and increase or
maintain profit margins. We compete with both national and
regional enterprises such as Team Health, Sterling Healthcare,
The Schumacher Group and National Emergency Services Healthcare
Group, some of which may have greater financial and other
resources available to them, greater access to physicians and/or
greater access to potential customers. We also compete against
local physician groups and self-operated hospital emergency
departments for satisfying staffing and scheduling needs.
Our business depends on numerous complex information
    systems, and any failure to successfully maintain these systems
    or implement new systems could materially harm our
    operations.
Our businesses depend on complex, integrated information systems
and standardized procedures for operational and financial
information and our billing operations. We may not be able to
enhance existing information systems or implement new
information systems where necessary. Furthermore, we may
experience unanticipated delays, complications and expenses in
implementing, integrating and operating our systems. In
addition, our information systems may require modifications,
improvements or replacements that may require substantial
expenditures and may require interruptions in operations during
periods of implementation. Implementation of these systems is
further subject to the availability of information technology
and skilled personnel to assist us in creating and implementing
the systems. We also use the development and implementation of
sophisticated and specialized technology to differentiate our
services from our competitors and improve our profitability. The
failure to successfully implement and maintain operational,
financial and billing information systems could have a material
adverse effect on our business, financial condition and results
of operations.
If we fail to implement our business strategy, our
    business, financial condition and results of operations could be
    materially and adversely affected.
Our future financial performance and success are dependent in
large part upon our ability to implement our business strategy
successfully. Our business strategy envisions several
initiatives, including increasing revenue from existing
customers, growing our customer base, pursuing select
acquisitions, implementing cost rationalization initiatives,
focusing on risk mitigation and utilizing technology to
differentiate our services and improve profitability. We may not
be able to implement our business strategy successfully or
achieve the anticipated benefits of our business plan. If we are
unable to do so, our long-term growth and profitability may be
adversely affected. Even if we are able to implement some or all
of the initiatives of our business plan successfully, our
operating results may not improve to the extent we anticipate,
or at all.
14
Table of Contents
Implementation of our business strategy could also be affected
by a number of factors beyond our control, such as increased
competition, legal developments, government regulation, general
economic conditions or increased operating costs or expenses. In
addition, to the extent we have misjudged the nature and extent
of industry trends or our competition, we may have difficulty in
achieving our strategic objectives. Any failure to implement our
business strategy successfully may adversely affect our
business, financial condition and results of operations and thus
our ability to service our debt. In addition, we may decide to
alter or discontinue certain aspects of our business strategy at
any time.
Our ability to obtain adequate bonding coverage could be
    adversely affected by our high leverage.
Our emergency ambulance transport service business is highly
dependent on our ability to obtain performance bond coverage
sufficient to meet bid requirements imposed by existing and
potential customers. In connection with the acquisition, Laidlaw
has agreed to provide to us any cash collateral required to
support the performance bonds in effect at the closing, and for
a three-year period to pay any bond premiums in excess of rates
in effect at the time of closing. We cannot assure you that we
will have access to adequate bonding capacity to meet new
contract requirements, or to obtain substitute performance bonds
for existing bonds at the end of the 3-year period, or that such
bonding will be available on terms acceptable to us. If adequate
bonding is not available, or if the terms of the bonding are too
onerous, there would be a material adverse effect on our
business, financial condition and results of operations.
A successful challenge by tax authorities to our treatment
    of certain physicians as independent contractors could require
    us to pay past taxes and penalties.
As of June 30, 2005, we contracted with approximately
1,115 physicians as independent contractors to fulfill our
contractual obligations to customers. Because we treat them as
independent contractors rather than as employees, we do not
(i) withhold federal or state income or other employment
related taxes from the compensation that we pay to them,
(ii) make federal or state unemployment tax or Federal
Insurance Contributions Act payments (except as described
below), (iii) provide workers compensation insurance with
respect to such affiliated physicians (except in states that
require us to do so even for independent contractors), or
(iv) allow them to participate in benefits and retirement
programs available to employed physicians. Our contracts with
our independent contractor physicians obligate these physicians
to pay these taxes and other costs. Whether these physicians are
properly classified as independent contractors depends upon the
facts and circumstances of our relationship with them. It is
possible that the nature of our relationship with these
physicians would support a challenge to our classification of
them. If such a challenge by federal or state taxing authorities
were successful, and the physicians at issue were instead
treated as employees, we could be adversely affected and liable
for past taxes and penalties to the extent that the physicians
did not fulfill their contractual obligations to pay those
taxes. Under current federal tax law, however, even if our
treatment were successfully challenged, if our current treatment
were found to be consistent with a long-standing practice of a
significant segment of our industry and we meet certain other
requirements, it is possible (but not certain) that our
treatment of the physicians would qualify under a "safe
harbor" and, consequently, we would be protected from the
imposition of past taxes and penalties. In the recent past,
however, there have been proposals to eliminate the safe harbor
and similar proposals could be made in the future.
We may become involved in litigation which could harm the
    value of our business.
In the normal course of our business, we are involved in
lawsuits, claims, audits and investigations, including those
arising out of services provided, personal injury claims,
professional liability claims, our billing and marketing
practices, employment disputes and contractual claims. The
outcome of these matters could have a material adverse effect on
our financial position or results of operations. We do not
believe that any such claims that have been asserted are likely
to have such an effect. However, we may become subject to future
lawsuits, claims, audits and investigations that could result in
substantial costs and divert our attention and resources. In
addition, since our current growth strategy includes
acquisitions, among other things, we may become exposed to legal
claims for the activities of an acquired business prior to the
acquisition.
15
Table of Contents
We may make acquisitions which could divert the attention
    of management and which may not be integrated successfully into
    our existing business.
We may pursue acquisitions to increase our market penetration,
enter new geographic markets and expand the scope of services we
provide. We cannot assure you that we will identify suitable
acquisition candidates, that acquisitions will be completed on
acceptable terms or that we will be able to integrate
successfully the operations of any acquired business into our
existing business. The acquisitions could be of significant size
and involve operations in multiple jurisdictions. The
acquisition and integration of another business would divert
management attention from other business activities. This
diversion, together with other difficulties we may encounter in
integrating an acquired business, could have a material adverse
effect on our business, financial condition and results of
operations. In addition, we may borrow money or issue capital
stock to finance acquisitions. Such borrowings might not be
available on terms as favorable to us as our current borrowing
terms and may increase our leverage, and the issuance of capital
stock could dilute the interests of our stockholders.
If Laidlaw is unwilling or unable to satisfy any
    indemnification claims made by us pursuant to the purchase
    agreements relating to the acquisition of AMR and EmCare, we
    will be forced to satisfy such claims ourselves.
Laidlaw has agreed to indemnify us for certain claims or legal
actions brought against us arising out of the operations of AMR
and EmCare prior to the closing date of the acquisition. If we
make a claim against Laidlaw, and Laidlaw is unwilling or unable
to satisfy such claim, we would be required to satisfy the claim
ourselves and, as a result, our financial condition may be
adversely affected.
Many of our employees are represented by labor unions and
    any work stoppage could adversely affect our business.
Approximately 48% of AMR's employees are represented by 41
collective bargaining agreements with 40 different union locals.
Twelve of these collective bargaining agreements, representing
approximately 1,850 employees, are subject to renegotiation in
2005 and 14 agreements, representing approximately 4,000
employees, are subject to renegotiation in 2006. Although we
believe our relations with our employees are good, we cannot
assure you that we will be able to negotiate a satisfactory
renewal of these collective bargaining agreements or that our
employee relations will remain stable.
Risk Factors Related to Healthcare Regulation
We conduct business in a heavily regulated industry and if
    we fail to comply with these laws and government regulations, we
    could incur penalties or be required to make significant changes
    to our operations.
We are subject to extensive regulation at both the federal and
state levels for those states in which we conduct our business.
The laws that directly or indirectly affect our ability to
operate our business include the following:
•
federal laws (including the federal False Claims Act) that
    prohibit entities and individuals from knowingly or recklessly
    making claims to Medicare, Medicaid and other government
    programs, as well as third party payors, that contain false or
    fraudulent information,
•
a provision of the Social Security Act, commonly referred to as
    the "Anti-Kickback Statute," that prohibits the
    knowing and willful offering, payment, solicitation or receipt
    of any bribe, kickback, rebate or other remuneration, in cash or
    in kind, in return for the referral or recommendation of
    patients for items and services covered, in whole or in part, by
    federal healthcare programs, such as Medicare and Medicaid,
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•
a provision of the Omnibus Budget Reconciliation Act of 1993,
    commonly referred to as the Stark Law, that, subject to limited
    exceptions, prohibits physicians from referring Medicare or
    Medicaid patients to an entity for the provision of certain
    "designated health services" if the physician or a
    member of such physician's immediate family has a direct or
    indirect financial relationship (including a compensation
    arrangement) with the entity,
•
a provision of the Social Security Act that imposes criminal
    penalties on healthcare providers who fail to disclose or refund
    known overpayments,
•
similar state law provisions pertaining to anti-kickback,
    self-referral and false claims issues which typically are not
    limited to relationships with federal payors,
•
provisions of the Health Insurance Portability and
    Accountability Act of 1996 that prohibit knowingly and willfully
    executing a scheme or artifice to defraud any healthcare benefit
    program or falsifying, concealing or covering up a material fact
    or making any material false, fictitious or fraudulent statement
    in connection with the delivery of or payment for healthcare
    benefits, items or services,
•
state laws that prohibit general business corporations from
    practicing medicine, controlling physicians' medical
    decisions or engaging in some practices such as splitting fees
    with physicians,
•
federal and state laws that prohibit providers from billing and
    receiving payment from Medicare and Medicaid for services unless
    the services are medically necessary, adequately and accurately
    documented, and billed using codes that accurately reflect the
    type and level of services rendered,
•
federal and state laws that require ambulance companies to bill
    health facilities, rather than the Medicare or Medicaid program,
    for certain services rendered to the health facilities'
    Medicare and Medicaid patients,
•
federal and state laws that require ambulance companies to
    obtain certification of medical necessity from the ordering
    physician, or to meet certain alternative requirements, as a
    condition of payment for certain non-emergency transports,
•
federal and state laws and policies that require healthcare
    providers to enroll in the Medicare and Medicaid programs, to
    report certain changes in their operations to the agencies that
    administer these programs and, in some cases, to reenroll in
    these programs when changes in direct or indirect ownership
    occur,
•
federal and state laws pertaining to the provision of services
    by nurse practitioners and physician assistants in the emergency
    department and urgent care settings, physician supervision of
    those services, and reimbursement requirements that may be
    dependent on the manner in which the services are provided and
    documented,
•
federal laws that impose civil administrative sanctions for,
    among other violations, inappropriate billing of services to
    federally funded healthcare programs, inappropriately reducing
    hospital care lengths of stay for such patients, and employing
    individuals who are excluded from participation in federally
    funded healthcare programs,
•
reassignment of payment rules that prohibit certain types of
    billing and collection practices in connection with claims
    payable by the Medicare programs and some other payors,
•
federal laws, such as the Emergency Medical Treatment and Active
    Labor Act of 1986, that require the hospital and emergency
    department or urgent care center physicians to provide screening
    and stabilization to any patient presenting to the emergency
    department or urgent care center seeking care for an emergency
    medical condition regardless of the patient's ability to
    pay, and similar state laws,
•
provisions of the federal Health Insurance Portability and
    Accountability Act of 1996 limiting how healthcare providers may
    use and disclose individually identifiable health information
    and the security measures taken in connection with that
    information and related systems, as well as similar state laws,
    and
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•
federal and state laws governing ambulance transport services,
    including the licensing or certification of ambulance service
    providers, training and certification of medical personnel, the
    scope of services that may be provided by medical personnel, the
    geographic boundaries within which services may be provided,
    staffing requirements, medical control, medical procedures,
    communications systems, vehicles and equipment.
If our operations are found to be in violation of any of the
laws and regulations described in this risk factor or the other
governmental regulations which govern our activities, we may be
subject to the applicable penalty associated with the violation,
including civil and criminal penalties, exclusion from federal
healthcare programs, damages, fines and the curtailment of our
operations. Any material penalties, damages, fines or
curtailment of our operations, individually or in the aggregate,
would adversely affect our ability to operate our business and
our financial results. The risk of our being found in violation
of these laws and regulations is increased by the fact that many
of them have not been fully interpreted by the regulatory
authorities or the courts, and their provisions are sometimes
open to a variety of interpretations. Any action against us for
violation of these laws or regulations, even if we successfully
defend against it, could cause us to incur significant legal
expenses and divert our management's attention from the
operation of our business.
In addition, laws and regulations governing the provision of
healthcare services may change significantly in the future. We
monitor these developments and modify our operations from time
to time where we perceive a need to do so in response to
regulatory changes. However, we cannot assure you that any new
healthcare laws or regulations will not materially adversely
affect our business. We cannot assure you that a review of our
business by judicial, law enforcement, or regulatory authorities
will not result in a determination that could adversely affect
our operations or that healthcare regulation will not change in
a way that may have a material adverse effect on our business,
financial condition or results of operations.
Changes in the rates or methods of third party
    reimbursements may adversely affect our operations.
We derive a majority of our revenue from direct billings to
patients and third party payors such as Medicare, Medicaid and
private health insurance companies. As a result, any changes in
the rates or methods of reimbursement for the services we
provide could have a significant adverse impact on our revenue
and financial results.
Government funding for healthcare programs is subject to
statutory and regulatory changes, administrative rulings,
interpretations of policy and determinations by intermediaries
and governmental funding restrictions, all of which could
materially impact program coverage and reimbursements for both
ambulance and physician services. In recent years, Congress
consistently has attempted to curb federal spending on such
programs. For example, with respect to our ambulance services,
in 1997, as part of the Balanced Budget Act of 1997, or BBA,
Congress provided that the Centers for Medicare and Medicaid
Services, or CMS, was to establish a national fee schedule for
payment of ambulance services that would, among other things,
control increases in expenditures under Part B of the
Medicare program, establish definitions for ambulance services
that link payments to the type of services furnished, consider
appropriate regional and operational differences and consider
adjustments to account for inflation, among other provisions.
On April 1, 2002, the Medicare Ambulance Fee
Schedule Final Rule became effective. The Final Rule
categorizes seven levels of ground ambulance services, ranging
from basic life support to specialty care transport, and two
categories of air ambulance services, and called for a five-year
phase-in period to allow time for providers to adjust to the new
payment rates. The national fee schedule was to be phased in at
20-percent increments each year, with payments being made at
100 percent of the national fee schedule in 2006 and
thereafter.
However, with the passage of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003, or the Medicare
Modernization Act, modifications were made to amounts payable to
providers under the ambulance fee schedule. Effective
July 1, 2004 until January 1, 2010, a regional fee
schedule component of reimbursement is being blended with the
national fee schedule. In addition, the new legislation provides
other temporary payment increases to ambulance providers. It is
possible that the implementing agency may
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interpret this provision differently than expected. We estimate
that the impact of the BBA ambulance service rate decreases, as
modified by the provisions of the Medicare Modernization Act
resulted in a decrease in AMR's net revenue for fiscal 2003
and fiscal 2004 of approximately $20 million and
$11 million, respectively, will result in an increase in
AMR's net revenue of approximately $13 million in
calendar 2005, and will result in a decrease in AMR's net
revenue of approximately $17 million in 2006 and in
continuing decreases thereafter to 2010. Although we have been
able to substantially mitigate the phased-in reductions of the
BBA through additional fee and subsidy increases, we cannot
assure you that we will be able to continue to do so, and the
rate decreases could have a material adverse effect on our
results of operations. We cannot predict whether Congress may
make further refinements and technical corrections to the law or
pass a new cost containment statute in a manner and in a form
that could adversely impact our business.
One of the changes made by Final Rule was to require ambulance
providers to "accept assignment" from Medicare and
Medicare HMOs. Medicare HMOs are private insurance companies
which operate managed care plans that enroll Medicare
beneficiaries who elect to enroll in a plan in lieu of regular
Medicare coverage. When a provider accepts assignment, it agrees
to accept the rate established by Medicare as payment in full
for services covered by Medicare or the Medicare HMO and to
write off the balance of its charges. Prior to the
implementation of the Final Rule, ambulance providers were not
required to accept assignment and could obtain payment from
Medicare patients or Medicare HMOs for the provider's full
charges, which typically are higher than the Medicare rate. When
the requirement to accept assignment became effective on
April 1, 2002, many Medicare HMOs continued to pay
ambulance providers their full charges, even though they could
have paid them the Medicare rate. Many Medicare HMOs
subsequently have taken the position that the amount paid to
such providers in excess of the Medicare rate constituted an
overpayment that must be refunded by the provider. We have
received such refund demands from some Medicare HMOs and, in
order to minimize litigation costs, have agreed to partial
repayment of amounts received from the plans in excess of the
Medicare rate. We have no reason to believe that additional HMOs
will make such demands, but we cannot assure you that there will
be no further demands.
In addition, state and local government regulations or
administrative policies regulate rate structures in some states
in which we conduct ambulance transport services. In certain
service areas in which we are the exclusive provider of
services, the community sets the rates for emergency ambulance
services pursuant to a master contract and establishes the rates
for general ambulance services that we are permitted to charge.
We may be unable to receive ambulance service rate increases on
a timely basis where rates are regulated, or to establish or
maintain satisfactory rate structures where rates are not
regulated.
Medicare pays for all physician services based upon a national
fee schedule. The rate formula may result in significant yearly
fluctuations in fee schedule updates, which may be unrelated to
changes in the actual cost of providing physician services.
Unless Congress takes additional action in the future to modify
or reform the mechanism by which the physician fee schedule
conversion factor update is undertaken in the future,
significant reductions in Medicare reimbursement could occur,
and these reductions could have a material adverse effect on our
business, financial condition or results of operations. We
currently expect that the fee schedule update will provide for a
4.5% decrease to physician rates effective January 1, 2006,
which would result in a decrease in EmCare's 2006 net
revenue of approximately $5.7 million.
We believe that regulatory trends in cost containment will
continue. We cannot assure you that we will be able to offset
reduced operating margins through cost reductions, increased
volume, the introduction of additional procedures or otherwise.
In addition, we cannot assure you that the federal government
will not impose reductions in the Medicare ambulance fee
schedule or physician fee schedules in the future. Any such
reductions could have a material adverse effect on our business,
financial condition or results of operations.
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If current or future regulation forces us to restructure
    our operations, including our arrangements with physicians,
    professional corporations and hospitals, we may incur additional
    costs, lose contracts and suffer a reduction in net revenue
    under existing contracts, and we may need to refinance our debt
    or obtain debt holder consent.
Legislators have introduced and may introduce in the future
numerous proposals into the Congress and state legislatures
relating to healthcare reform in response to various healthcare
issues. We cannot assure you as to the ultimate content, timing
or effect of any healthcare reform legislation, nor is it
possible at this time to estimate the impact of potential
legislation. Further, although we attempt to exercise care in
structuring our arrangements with physicians, professional
corporations and hospitals in order to comply in all material
respects with applicable law, we cannot assure you that:
(1) government officials charged with responsibility for
enforcing those laws will not assert that we, or transactions
into which we have entered, violate those laws or
(2) government entities or courts will ultimately interpret
those laws in a manner consistent with our interpretation.
There is a risk that state authorities may find that our
relationships with physicians violate corporate practice of
medicine and fee-splitting prohibitions. These laws prohibit the
practice of medicine by corporations and are intended to prevent
unlicensed persons from interfering with or inappropriately
influencing the physician's professional judgment and the
sharing of professional services income with non-professional or
business interests. Activities other than those directly related
to the delivery of health care may be considered an element of
the practice of medicine in many states. Under the corporate
practice of medicine restrictions of certain states, decisions
and activities such as scheduling, contracting, setting fee
levels and the hiring and management of non-clinical personnel
may implicate the corporate practice of medicine restrictions.
While we believe that a physician may consult with unlicensed
persons in making these business or management decisions, in
states that have corporate practice prohibitions, the physician
must retain the ultimate responsibility for, or approval of,
those decisions. In some states, management contracts with
physicians or professional corporations under which the
management company is compensated based on the net or gross
income of the physicians or professional corporations may
implicate state fee-splitting prohibitions. From time to time,
including recently, we have been involved in litigation in which
private litigants have raised these issues. Although we have
structured our relationships with physicians and hospitals in an
effort to comply with the various state corporate practice of
medicine doctrines and fee-splitting rules, these relationships
may be subject to adverse judicial or administrative
interpretations.
In addition to the regulations referred to above, aspects of our
operations are also subject to state and federal statutes and
regulations governing workplace health and safety and, to a
small extent, the disposal of medical waste by AMR. Changes in
these laws may have a material adverse effect on our operations.
Medicare statutes and regulations govern the manner in which we
deliver services which are eligible for payment and the manner
in which we bill for such services. These laws are subject to
constant change, and such changes can, and often do, have a
material adverse effect on our costs of providing services or
the revenue we derive from performing such services.
Although they may not have the force of law, we, our
practitioners and our customers are subject to ethical
guidelines and operating standards of professional and trade
associations and private accreditation commissions such as the
American Medical Association, the Joint Commission on
Accreditation of Healthcare Organizations and the Commission on
Accreditation of Ambulance Services. Compliance with these
guidelines and standards is often required by our contracts with
our customers or to maintain our reputation. These standards and
guidelines are subject to change from time to time and any such
changes may require us to restructure our operations or incur
additional expense.
Accordingly, changes in existing laws and regulations, adverse
judicial or administrative interpretations of these laws and
regulations or enactment of new legislation or regulations could
force us to restructure our relationships with physicians,
professional corporations and hospitals, or to restructure our
operations. This could cause our operating costs to increase
significantly. A restructuring could also result in a loss of
contracts or a reduction in revenue under existing contracts.
Moreover, if we are required to modify our structure and
organization to comply with these laws, our financing agreements
may prohibit such modifications and require us to obtain the
consent of the holders of such debt or require the refinancing
of such debt.
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We depend heavily on reimbursement by third party payors,
    and delays and uncertainties in the reimbursement process could
    have a negative impact on our net revenue and cash flow.
For fiscal 2004, we received approximately 96.0% of our net
revenue from third party payors such as Medicare, Medicaid,
private insurers, managed care organizations and hospitals,
including approximately 27.3% from Medicare and 5.2% from
Medicaid.
Third party payors continue their efforts to control
expenditures for healthcare, including proposals to revise
coverage and reimbursement policies. Due to the nature of our
business and our participation in the Medicare, Medicaid and
private reimbursement programs, we are involved from time to
time in regulatory reviews, audits or investigations by
governmental agencies and private payors of our business
practices, including assessments of our compliance with billing,
coding and documentation requirements. We may be required to
repay these agencies or private payors if a finding is made that
we were incorrectly reimbursed, or we may be subjected to
pre-payment reviews, which can be time-consuming and result in
non-payment or delayed payment for the services we provide. We
have been subject to a number of such reviews and audits that
have related to a variety of billing, coding and documentation
issues. We cannot assure you that there is not potential
exposure with respect to these issues. Any delays and
uncertainties in the reimbursement process could adversely
affect our level of accounts receivable, increase the overall
cost of collection, and result in recoupments or refund demands.
This would affect revenue we already received, and could
adversely affect our working capital and cause us to incur
additional borrowing costs.
Additional factors that could complicate our billing and
collections from third party payors include:
•
disputes between payors as to which party is responsible for
    payment,
•
variation in coverage for similar services among various payors,
•
the difficulty of adhering to specific compliance requirements,
    diagnosis coding and various other procedures mandated by
    responsible parties, and
•
failure to obtain proper physician credentialing and
    documentation in order to bill various commercial and
    governmental payors.
We are subject to comprehensive and complex rules and
regulations that govern our licensing and certification, and the
manner in which we bill and are paid for our services, and the
failure to comply with these rules, or allegations that we have
failed to do so, can result in civil or criminal sanctions,
including exclusion from federal and state healthcare
programs.
We and our affiliated physicians are subject to various federal,
state and local licensing and certification laws and regulations
and accreditation standards and other laws, relating to, among
other things, the adequacy of medical care, equipment, personnel
and operating policies and procedures. We are also subject to
periodic inspection by governmental and other authorities to
assure continued compliance with the various standards necessary
for licensing and accreditations.
In certain jurisdictions, changes in our ownership structure
require pre-or post-notification to governmental licensing and
certification agencies. Relevant laws and regulations may also
require re-application and approval to maintain or renew our
operating authorities or require formal application and approval
to continue providing services under certain government
contracts. For example, in connection with our acquisition of
AMR from Laidlaw, two of our subsidiaries were required to apply
for state and local ambulance operating authority in New York.
Similarly, the change in corporate structure and ownership in
connection with this offering may require us to give notice and
make applications for authority in various jurisdictions. The
relevant laws and regulations are complex, and we are pursuing
the steps we believe we must take to retain or obtain all
requisite operating authorities.
In order to receive payment from Medicare, Medicaid and certain
other government programs, healthcare providers are required to
enroll in these programs by completing complex enrollment
applications. Certain government programs, including Medicare
and Medicaid programs, require notice or re-enrollment when
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certain ownership changes occur. Generally, in jurisdictions
where we are required to obtain a new licensing authority, we
may also be required to re-enroll in that jurisdiction's
government payor program. If the payor requires us to complete
the re-enrollment process prior to submitting reimbursement
requests, we may be delayed in payment, receive refund requests
or be subject to recoupment for services we provide in the
interim. The change in ownership effected by the acquisition
from Laidlaw has required us to re-enroll in one jurisdiction,
and reimbursement from the relevant government program is likely
to be deferred for several months. This will affect our cash
flow, but will not affect our net revenue. We do not expect the
impact of this deferral to be material to us, but it is possible
that other jurisdictions will similarly require us to re-enroll.
Compliance with these change in ownership requirements is
complicated by the fact that they differ from jurisdiction to
jurisdiction, and in some cases are not uniformly applied or
interpreted even within the same jurisdiction. Failure to comply
with these enrollment and reporting requirements can lead not
only to delays in payment and refund requests, but in extreme
cases can give rise to civil or criminal penalties in connection
with prior changes in our operations and ownership structure.
While we have made reasonable efforts to substantially comply
with these requirements in connection with prior changes in our
operations and ownership structure, and will do so in connection
with this offering, we cannot assure you that the agencies that
administer these programs will not find that we have failed to
comply in some material respects.
The public and private payors that pay for our services
typically have differing and complex forms of billing
requirements that we must meet in order to receive payment for
services rendered. Reimbursement to us is conditioned typically
on our providing the correct procedure and diagnostic codes and
properly documenting the services themselves, including the
level of service provided, and the medical necessity for the
services. Incorrect or incomplete documentation and billing
information could result in non-payment for services rendered or
lead to allegations of billing fraud. This can lead to civil and
criminal penalties, including exclusion from government
healthcare programs such as Medicare and Medicaid. In addition,
third party payors may disallow, in whole or in part, requests
for reimbursement based on determinations that certain amounts
are not reimbursable under applicable coverage rules, they were
for services provided that were not medically necessary, there
was a lack of sufficient supporting documentation, or for a
number of other reasons.
In addition, the Medicare program generally prohibits the
reassignment of Medicare payments due to a physician or other
healthcare provider to any other person or entity unless the
billing arrangement between that physician or other healthcare
provider and the other person or entity falls within an
enumerated exception to the Medicare reassignment prohibition.
Historically, there was no exception that allowed us to receive
directly Medicare payments related to the services of
independent contractor physicians. However, the Medicare
Modernization Act amended the Medicare reassignment statute as
of December 8, 2003 and now permits our independent
contractor physicians to reassign their Medicare receivables to
us under certain circumstances. While we seek to comply
substantially with applicable Medicare reassignment regulations,
we cannot assure you that government authorities would find that
we comply in all respects with these regulations.
Under the Medicare prospective payment system, or PPS,
applicable to skilled nursing facilities, or SNFs, beginning in
1999, SNFs are financially responsible for some ancillary
services, including certain ambulance transports, or PPS
transports, rendered to certain of their Medicare patients.
Ambulance companies must bill the SNF, rather than Medicare, for
PPS transports, but may bill Medicare for other covered
transports provided to the SNF's Medicare patients.
Ambulance companies are responsible for obtaining sufficient
information from the SNF to determine which transports are PPS
transports and which ones may be billed to Medicare. The Office
of Inspector General of the Department of Health and Human
Services, or OIG, has issued two industry-wide audit reports
indicating that, in many cases, SNFs do not provide, or
ambulance companies and other ancillary service providers do not
obtain, sufficient information to make this determination
accurately. As a result, the OIG asserts that some PPS
transports that should have been billed by ambulance providers
to SNFs have been improperly billed to Medicare. The OIG has
recommended that Medicare recoup the amounts paid to ancillary
service providers, including ambulance companies, for such
services. Although we believe AMR currently has procedures in
place to correctly identify and bill for PPS
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transports, we cannot assure you that AMR will not be subject to
such recoupments and other possible penalties.
Medicare regulations require that providers obtain the signature
of the patient or, if the patient is unable to provide a
signature, the signature of a representative, prior to
submitting a claim for payment from Medicare. An exception
exists for situations where it is not reasonably possible to do
so, provided that the reason for the exception is clearly
documented. This requirement historically has been difficult for
ambulance companies and other emergency medical services
providers to meet, because even when the patient is competent,
the exigency of the situation often makes it impracticable to
obtain a signature. Although we believe AMR currently has
procedures in place to assure that these signature requirements
are met, we cannot assure you that enforcement agencies will not
find that we have failed to comply with these requirements.
Medicare regulations permit ambulance transport providers to
subcontract with other organizations for paramedic services.
Generally, only the transport provider may bill Medicare, and
the paramedic services subcontractor must receive any payment to
which it is entitled from that provider. Based on these rules,
in some jurisdictions we have established "paramedic
intercept" arrangements in which we may provide paramedic
services to a municipal or volunteer transport provider. We
previously entered into a settlement agreement with the United
States government arising from allegations that we improperly
billed Medicare for a small number of transports for which we
performed paramedic intercept services, even though we were not
the transport provider. Although we believe AMR currently has
procedures in place to assure that we do not bill Medicare for
paramedic intercept services we provide, we cannot assure you
that enforcement agencies will not find that we have failed to
comply with these requirements.
EmCare utilizes physician assistants and nurse practitioners,
sometimes referred to collectively as "midlevel
practitioners," to provide care under the supervision of
our physicians. State and federal laws require that such
supervision be performed and documented using specific
procedures. For example, in some states some or all of the
midlevel practitioner's chart entries must be
countersigned. Under applicable Medicare rules, the midlevel
practitioner's services are reimbursed at a rate equal to
85% of the physician fee schedule amount and we do not bill
separately for the supervising physician's services.
However, when a midlevel practitioner assists a physician who is
directly and personally involved in the patient's care, we
often bill for the services of the physician at the full
physician fee schedule rates and do not bill separately for the
midlevel practitioner's services. We believe our billing
and documentation practices related to our use of midlevel
practitioners comply with applicable state and federal laws, but
we cannot assure you that enforcement authorities will not find
that our practices violate such laws.
When our services are covered by multiple third party payors,
such as a primary and a secondary payor, financial
responsibility must be allocated among the multiple payors in a
process known as "coordination of benefits", or COB.
The rules governing COB are complex, particularly when one of
the payors is Medicare or another government program. Under
these rules, in some cases Medicare or other government payors
can be billed as a "secondary payor" only after
recourse to a primary payor (
e.g.
, a liability insurer)
has been exhausted. In some instances, multiple payors may
reimburse us an amount which, in the aggregate, exceeds the
amount to which we are entitled. In such cases, we are obligated
to process a refund. If we improperly bill Medicare or other
government payors as the primary payor when that program should
be billed as the secondary payor, or if we fail to process a
refund when required, we may be subject to civil or criminal
penalties. Although we believe we currently have procedures in
place to assure that we comply with applicable COB rules, and
that we process refunds when we receive overpayments, we cannot
assure you that payors or enforcement agencies will not find
that we have violated these requirements.
In the event any of our billing and collection practices,
including but not limited to those described above, violate
applicable laws, we could be subject to refund demands and
recoupments. If our violations are deemed to be willing, knowing
or reckless, we may be subject to civil and criminal penalties
under the False Claims Act or other statutes, including
exclusion from federal and state healthcare programs. To the
extent that the complexity associated with billing for our
services causes delays in our cash collections, we assume the
financial risk of increased carrying costs associated with the
aging of our accounts receivable as well as
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increased potential for bad debts which could have a material
adverse effect on our revenue, provision for uncompensated care
and cash flow.
Providers in the healthcare industry, such as our
companies, are the subject of federal and state
investigations.
Both federal and state government agencies have continued civil
and criminal enforcement efforts as part of numerous ongoing
investigations of healthcare companies, and their executives and
managers. Although there are a number of civil and criminal
statutes that can be applied to healthcare providers, a
significant number of these investigations involve the federal
False Claims Act. These investigations can be initiated not only
by the government but also by a private party asserting direct
knowledge of fraud. These "qui tam" whistleblower
lawsuits may be initiated against any person or entity alleging
such person or entity has knowingly or recklessly presented, or
caused to be presented, a false or fraudulent request for
payment from the federal government, or has made a false
statement or used a false record to get a claim approved.
Penalties for False Claims Act violations include fines ranging
from $5,500 to $11,000 for each false claim, plus up to three
times the amount of damages sustained by the federal government.
A False Claims Act violation may provide the basis for exclusion
from the federally-funded healthcare programs. In addition, some
states have adopted similar insurance fraud, whistleblower and
false claims provisions.
The government and a number of courts have taken the position
that claims presented in violation of the various statutes,
including the federal Anti-Kickback Statute and the Stark Law,
can be considered a violation of the federal False Claims Act
based on the contention that a provider impliedly certifies
compliance with all applicable laws, regulations and other rules
when submitting claims for reimbursement.
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority, and are subject to investigation by
such agencies. We review such requests and notices and attempt
to take appropriate action. We have been subject to certain
requests for information and investigations in the past, are
currently subject to certain requests and are likely to be
subject to such requests for information and investigations in
the future, which could result in significant penalties. See
"Business — American Medical Response —
Legal Matters" for a description of certain business
practices currently being investigated by the
U.S. Department of Justice.
If we fail to comply with the terms of our settlement
agreements with the government, we could be subject to
additional litigation or other governmental actions which could
be harmful to our business.
In the last five years, we have entered into four settlement
agreements with the United States government. In June 2002, one
of our subsidiaries, AMR of Massachusetts, entered into a
settlement agreement with the United States government to
resolve a number of allegations, including allegations related
to billing and documentation practices. In addition to a
monetary settlement, AMR of Massachusetts agreed to enter into a
three year Corporate Integrity Agreement, or CIA, with the
U.S. Department of Health and Human Services, or HHS. In
July 2004, our subsidiary, American Medical Response West, also
entered into a settlement agreement with the United States
government in connection with billing matters related to
emergency transports and specialized services pursuant to which
it paid a $3.5 million fine and agreed to enter into a five
year CIA with HHS. As part of these CIAs, we, AMR of
Massachusetts and AMR West, are required to establish and
maintain a compliance program which includes, among other
elements, the appointment of a compliance officer and committee,
claims review by an independent review organization and
reporting of overpayments and other "reportable
events." In February 2003, our subsidiary, AMR of South
Dakota, entered into a settlement agreement with the United
States government to resolve allegations that it incorrectly
billed for transports performed by other providers when an AMR
paramedic accompanied the patient during transport, and that it
billed for certain non-emergency transports using emergency
codes. We paid $141,000 to settle such allegations. We did not
enter into a CIA with respect to this settlement. In addition,
in August 2004, AMR entered into a settlement agreement with the
United States government on behalf of a subsidiary, Regional
Emergency Services LP, or RES, to resolve allegations of
violations of the False Claims Act by RES and a hospital system
based on the absence of certificates of medical necessity and
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other non-compliant billing practices. Pursuant to that
settlement agreement, we paid a $5.0 million allocation of
the total $20.0 million settlement amount, with the balance
paid by the hospital system. We did not enter into a CIA with
respect to this settlement. The Department of Justice currently
is investigating whether RES engaged in similar alleged conduct
in connection with certain other hospital contracts in Colorado
and Georgia. We cannot assure you that the compliance program
initiated by us has or will prevent any repetition of the issues
that were the subject of these settlement agreements, or that
the government will not raise similar allegations in other
jurisdictions or for other periods of time. See
"Business — Regulatory Matters —
Corporate Compliance Program and Corporate Integrity
Obligations."
If we fail or if we are accused of failing to comply with the
terms of the settlements and the CIAs, we may be subject to
additional litigation or other governmental actions, including
being excluded from participating in the Medicare program and
other federal and state healthcare programs, which could have a
material adverse effect on our business, financial condition or
results of operations.
We could be required to sever relationships with our
affiliated physician groups in order to comply with antitrust
laws.
Our contracts with physicians include contracts with physicians
organized as separate legal professional entities (
e.g.
,
professional medical corporations) and as individuals. Antitrust
laws may deem each such physician/practice to be separate, both
from EmCare and from each other and, accordingly, each such
physician/practice is subject to a wide range of laws that
prohibit anti-competitive conduct between or among separate
legal entities or individuals. A review or action by regulatory
authorities or the courts could force us to terminate or modify
our contractual relationships with physicians and affiliated
medical groups or revise them in a manner that could be
materially adverse to our business. Since we derive a
significant portion of our revenue from these relationships, our
net revenue could decrease substantially. Moreover, if any
review or action by regulatory authorities required us to modify
our structure and organization to comply with such action or
review, the indenture and/or our senior secured credit facility
may not permit such modifications, thereby requiring us to
obtain the consent of the holders of such debt or requiring the
refinancing of such debt.
If we are unable to effectively adapt to changes in the
healthcare industry, our business may be harmed.
Political, economic and regulatory influences are subjecting the
healthcare industry in the United States to fundamental change.
We anticipate that Congress and state legislatures may continue
to review and assess alternative healthcare delivery and payment
systems and may in the future propose and adopt legislation
effecting fundamental changes in the healthcare delivery system.
Congress and state legislatures have adopted and may further
consider statutory changes affecting healthcare reform. We
cannot assure you as to the ultimate content, timing or effect
of any healthcare reform legislation, nor is it possible at this
time to estimate the impact of potential legislation. Further,
it is possible that future legislation enacted by Congress or
state legislatures could adversely affect our business or could
change the operating environment of our targeted customers. It
is possible that the changes to the Medicare or other government
program reimbursements may serve as precedent to possible
changes in other payor's reimbursement policies in a manner
adverse to us. Similarly, changes in private payor
reimbursements could lead to adverse changes in Medicare and
other government payor programs which could have a material
adverse effect on our business, financial condition or results
of operations.
If we fail to successfully comply with applicable
regulations regarding security and privacy of healthcare
information, we could suffer penalties, be required to make
significant changes to our operations and our cash flows could
be negatively affected.
The Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996, or HIPAA,
required HHS to adopt standards to protect the security and
privacy of health related information. All healthcare providers
were required to be compliant with the new federal privacy
requirements enacted by HHS no later than April 14, 2003.
The HIPAA privacy requirements contain detailed requirements
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regarding the use and disclosure of individually identifiable
health information. In addition to enacting the foregoing
privacy requirements, HHS issued a final rule creating security
requirements for healthcare providers and other covered entities
on February 20, 2003. The final security rule requires
covered entities to meet specified standards by April 25,
2005. The security standards contained in the final rule do not
require the use of specific technologies (
e.g.
, no
specific hardware or software is required), but instead require
healthcare providers and other covered entities to comply with
certain minimum security procedures in order to protect data
integrity, confidentiality and availability. We believe we have
taken reasonable steps to comply with these standards.
HIPAA also required HHS to adopt national standards establishing
electronic transaction standards that all healthcare providers
must use when submitting or receiving certain healthcare
transactions electronically. Although these standards were to
become effective October 2002, Congress extended the compliance
deadline until October 2003 for organizations, such as ours,
that submitted a request for an extension. We believe we have
taken reasonable measures to comply with these standards.
If we are found to not have complied with the HIPAA requirements
discussed above, we could be subject to civil and/or criminal
penalties that could have a material effect on our business,
financial condition or results of operations.
Risk Factors Related to our Capital Structure
The interests of our controlling stockholder may conflict
with your interests.
Following this offering, the Onex entities will own all of our
outstanding LP exchangeable units, which are exchangeable at any
time, at our option or the option of the holder, for our
class B common stock. Our class A common stock has one
vote per share, while our class B common stock has ten
votes per share on all matters to be voted on by our
stockholders. Prior to the exchange for class B common
stock, the holders of the LP exchangeable units will be able to
exercise the same voting rights with respect to Emergency
Medical Services as they would have after the exchange through a
share of class B special voting stock. As a result, after
this offering, the Onex entities will
control      % of the combined voting
power of our outstanding common stock. Accordingly, Onex will
exercise a controlling influence over our business and affairs
and will have the power to determine all matters submitted to a
vote of our stockholders, including the election of directors
and approval of significant corporate transactions such as
amendments to our certificate of incorporation, mergers and the
sale of all or substantially all of our assets. Onex could cause
corporate actions to be taken even if the interests of Onex
conflict with the interests of our other stockholders. This
concentration of voting power could have the effect of deterring
or preventing a change in control of Emergency Medical Services
that might otherwise be beneficial to our stockholders. Gerald
W. Schwartz, the Chairman, President and Chief Executive Officer
of Onex Corporation, owns shares representing a majority of the
voting rights of the shares of Onex Corporation. See
"Principal and Selling Stockholders" and
"Description of Capital Stock."
Our substantial indebtedness could adversely affect our
financial condition and our ability to operate our
business.
We have a substantial amount of debt. At June 30, 2005, we
had total debt of $605.9 million, including
$349.1 million of borrowings under our senior secured
credit facility, $250.0 million of our senior subordinated
notes and $5.8 million of capital lease obligations, and we
had $24.3 million of letters of credit outstanding. In
addition, subject to restrictions in the indenture governing our
notes and the credit agreement governing our senior secured
credit facility, we may incur additional debt.
Our substantial debt could have important consequences to you,
including the following:
•
it may be difficult for us to satisfy our obligations, including
    debt service requirements under our outstanding debt,
•
our ability to obtain additional financing for working capital,
    capital expenditures, debt service requirements or other general
    corporate purposes may be impaired,
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•
we must use a significant portion of our cash flow for payments
    on our debt, which will reduce the funds available to us for
    other purposes,
•
we are more vulnerable to economic downturns and adverse
    industry conditions and our flexibility to plan for, or react
    to, changes in our business or industry is more limited,
•
our ability to capitalize on business opportunities and to react
    to competitive pressures, as compared to our competitors, may be
    compromised due to our high level of debt, and
•
our ability to borrow additional funds or to refinance debt may
    be limited.
Furthermore, all of our debt under our senior secured credit
facility bears interest at variable rates. If these rates were
to increase significantly, our ability to borrow additional
funds may be reduced and the risks related to our substantial
debt would intensify.
Servicing our debt will require a significant amount of
cash. Our ability to generate sufficient cash depends on
numerous factors beyond our control, and we may be unable to
generate sufficient cash flow to service our debt
obligations.
Our business may not generate sufficient cash flow from
operating activities. Our ability to make payments on and to
refinance our debt and to fund planned capital expenditures will
depend on our ability to generate cash in the future. To some
extent, this is subject to general economic, financial,
competitive, legislative, regulatory and other factors that are
beyond our control. Lower net revenues, or higher provision for
uncollectibles, generally will reduce our cash flow.
If we are unable to generate sufficient cash flow to service our
debt and meet our other commitments, we may need to refinance
all or a portion of our debt, sell material assets or operations
or raise additional debt or equity capital. We cannot assure you
that we could effect any of these actions on a timely basis, on
commercially reasonable terms or at all, or that these actions
would be sufficient to meet our capital requirements. In
addition, the terms of our existing or future debt agreements
may restrict us from effecting any of these alternatives.
Restrictive covenants in our senior secured credit
facility and the indenture governing our senior subordinated
notes may restrict our ability to pursue our business
strategies.
Our senior secured credit facility and the indenture governing
our senior subordinated notes limit our ability, among other
things, to:
•
incur additional debt or issue certain preferred stock,
•
pay dividends or make distributions to our stockholders,
•
repurchase or redeem our capital,
•
make investments,
•
incur liens,
•
make capital expenditures,
•
enter into transactions with our stockholders and affiliates,
•
sell certain assets,
•
acquire the assets of, or merge or consolidate with, other
    companies, and
•
incur restrictions on the ability of our subsidiaries to make
    distributions or transfer assets to us.
Our ability to comply with these covenants may be affected by
events beyond our control, and any material deviations from our
forecasts could require us to seek waivers or amendments of
covenants, alternative sources of financing or reductions in
expenditures. We cannot assure you that such waivers, amendments
or alternative financings could be obtained, or, if obtained,
would be on terms acceptable to us.
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In addition, the credit agreement governing our senior secured
credit facility requires us to meet certain financial ratios and
restricts our ability to make capital expenditures or prepay
certain other debt. We may not be able to maintain these ratios,
and the restrictions could limit our ability to plan for or
react to market conditions or meet extraordinary capital needs
or otherwise restrict corporate activities.
If a breach of any covenant or restriction contained in our
financing agreements results in an event of default, those
lenders could discontinue lending, accelerate the related debt
(which would accelerate other debt) and declare all borrowings
outstanding thereunder to be due and payable. In addition, the
lenders could terminate any commitments they had made to supply
us with additional funds. In the event of an acceleration of our
debt, we may not have or be able to obtain sufficient funds to
make any accelerated debt payments.
Our obligations under our senior secured credit facility
are secured by substantially all of our assets.
Our obligations under our senior secured credit facility are
secured by liens on substantially all of our assets, and the
guarantees of our subsidiaries under our senior secured credit
facility are secured by liens on substantially all of those
subsidiaries' assets. If we become insolvent or are
liquidated, or if payment under our senior secured credit
facility or of other secured obligations are accelerated, the
lenders under our senior secured credit facility or the obligees
with respect to the other secured obligations will be entitled
to exercise the remedies available to a secured lender under
applicable law and the applicable agreements and instruments,
including the right to foreclose on all of our assets.
Accordingly, you could lose all or a part of your investment in
our common stock.
Risk Factors Related to this Offering
Prior to this offering, there has been no public market for our
class A common stock. An active trading market for our
class A common stock may not develop or be sustained after
the offering. The lack of a public market may impair the value
of your shares and your ability to sell your shares at any time
you wish to sell them.
Our stock price may be volatile and you may not be able to
sell your shares at or above the offering price.
The initial public offering price for our shares of class A
common stock will be determined by negotiations between the
representatives of the underwriters and us. This price may not
reflect the market price of our class A common stock
following this offering. You may be unable to resell the
class A common stock you buy at or above the initial public
offering price.
The stock markets in general have experienced extreme
volatility, often unrelated to the operating performance of
particular companies. Broad market fluctuations may adversely
affect the trading price of our class A common stock.
Price fluctuations in our class A common stock could result
from general market and economic conditions and a variety of
other factors, including:
•
actual or anticipated fluctuations in our operating results,
•
changes in healthcare pricing or reimbursement policies,
•
our competitors' announcements of significant contracts,
    acquisitions or strategic investments,
•
changes in our growth rates or our competitors' growth
    rates,
•
the timing or results of regulatory submissions or actions with
    respect to our business,
•
our inability to raise additional capital,
•
conditions of the healthcare industry or in the financial
    markets or economic conditions in general, and
•
changes in stock market analyst recommendations regarding our
    class A common stock, other comparable companies or the
    healthcare industry generally.
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You will experience immediate and substantial dilution in
the net tangible book value of your class A common
stock.
Based on our actual book value, the value of the shares of
class A common stock you purchase in this offering
immediately will be less than the offering price you paid. This
reduction in the value of your equity is known as dilution. This
dilution occurs in large part because our initial investors paid
less than the initial public offering price when they purchased
their shares. If you purchase class A common stock in this
offering, you will incur immediate dilution of
$           per
share, based on an assumed initial public offering price of
$           per
share.
If a significant number of shares of our class A
common stock are sold into the market following this offering,
the market price of our class A common stock could
significantly decline, even if our business is doing
well.
Sales of a substantial number of shares of our class A
common stock in the public market after this offering could
adversely affect the prevailing market price of our class A
common stock.
Upon completion of this offering, we will
have                      shares
of class A common stock
and                      LP
exchangeable units outstanding. Of these securities,
the                      shares
of class A common stock offered pursuant to this offering
will be freely tradable without restriction or further
registration under federal securities laws, except to the extent
shares are purchased in the offering by our affiliates.
The                      shares
of class A common stock owned by our officers and directors
and
the                      shares
of class B common stock issuable on exchange of the
LP exchangeable units and any class A common stock
held by our affiliates, as that term is defined in the
Securities Act of 1933, are "restricted securities"
under the Securities Act. Restricted securities may not be sold
in the public market unless the sale is registered under the
Securities Act or an exemption from registration is available.
In connection with this offering, we, each of our directors and
executive officers and the Onex entities have entered into
lock-up agreements that prevent the sale of shares of our common
stock for up to 180 days after the date of this prospectus.
Following the expiration of the lock-up period, the Onex
entities will have the right, subject to certain conditions, to
require us to register the sale of these shares under the
federal securities laws. If this right is exercised, holders of
all shares subject to the registration rights agreement will be
entitled to participate in such registration. By exercising
their registration rights, and selling a large number of shares,
these holders could cause the prevailing market price of our
class A common stock to decline.
Approximately            million
shares of our common stock will be subject to our registration
rights agreement upon completion of this offering. See
"Shares Eligible for Future Sale" and
"Description of Capital Stock — Registration
Agreement." Commencing February 10, 2006,
substantially all of these shares of common stock will also be
eligible for sale in the public market, subject to the volume,
notice of sale, manner of sale and other restrictions of
Rule 144 promulgated under the Securities Act.
Approximately                      shares
of our class A common that we issued pursuant to
Rule 701 under the Securities Act will be eligible for sale
in the public market 180 days after the date of this
prospectus. See "Description of Capital Stock —
Equityholders Agreements."
If a trading market develops for our class A common stock,
our employees, officers and directors may elect to sell their
shares of our class A common stock or exercise their stock
options in order to sell the stock underlying their options in
the market. Sales of a substantial number of shares of our
class A common stock in the public market after this
offering could depress the market price of our class A
common stock and impair our ability to raise capital through the
sale of additional equity securities.
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Our certificate of incorporation and our by-laws contain
provisions that could discourage another company from acquiring
us and may prevent attempts by our stockholders to replace or
remove our current management.
Provisions of our certificate of incorporation and our by-laws
may discourage, delay or prevent a merger or acquisition that
stockholders may consider favorable, including transactions in
which you might otherwise receive a premium for your shares. In
addition, these provisions may frustrate or prevent any attempts
by our stockholders to replace or remove our current management
by making it more difficult for stockholders to replace or
remove our current board of directors. These provisions include:
•
providing for a classified board of directors with staggered
    terms,
•
providing for multi-vote shares of common stock which, upon
    exchange of LP exchangeable units, will be owned by the Onex
    entities,
•
establishing advance notice requirements for nominations for
    election to the board of directors or for proposing matters that
    can be acted on by stockholders at stockholder meetings, and
•
the authority of the board of directors to issue, without
    stockholder approval, up
    to                      shares
    of preferred stock with such terms as the board of directors may
    determine and an
    additional                      shares
    of common stock.
See "Description of Capital Stock."
We are a "controlled company" within the meaning
of the New York Stock Exchange rules and, as a result, will
qualify for, and intend to rely on, exemptions from certain
corporate governance requirements.
Because the Onex entities will own more than 50% of the combined
voting power of our common stock after the completion of this
offering, we will be deemed a "controlled company"
under the rules of the New York Stock Exchange, or the NYSE. As
a result, we will qualify for, and intend to rely upon, the
"controlled company" exception to the board of
directors and committee composition requirements under the rules
of the NYSE. Pursuant to this exception, we will be exempt from
rules that would otherwise require that our board of directors
be comprised of a majority of "independent directors,"
and that our compensation committee and corporate governance and
nominating committee be comprised solely of "independent
directors" (as defined under the rules of the NYSE), so
long as the Onex entities continue to own more than 50% of the
combined voting power of our common stock. Upon completion of
this offering, our board of directors will be comprised of six
persons, of which one will be a representative from Onex and two
will be current executive officers and, therefore, will not be
"independent." See "Management —
Composition of the Board of Directors after this Offering"
and "— Committees of the Board of Directors."
We do not intend to pay cash dividends.
We do not intend to pay cash dividends on our common stock. We
currently intend to retain all available funds and any future
earnings for use in the operation and expansion of our business
and do not anticipate paying any cash dividends in the
foreseeable future. In addition, the terms of our current, as
well as any future, financing agreements may preclude us from
paying any dividends. As a result, capital appreciation, if any,
of our common stock will be your sole source of potential gain
for the foreseeable future.
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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains "forward-looking statements."
Forward-looking statements give our current expectations or
forecasts of future events. Forward-looking statements generally
can be identified by the use of forward-looking terminology such
as "may," "will," "expect,"
"intend," "estimate,"
"anticipate," "believe,"
"project," or "continue," or other similar
words. These statements reflect management's current views
with respect to future events and are subject to risks and
uncertainties, both known and unknown. Our actual results may
vary materially from those anticipated in forward-looking
statements. We caution investors not to place undue reliance on
any forward-looking statements.
Important factors that could cause actual results to differ
materially from forward-looking statements include, but are not
limited to:
•
the impact on our revenue of changes in transport volume, mix of
    insured and uninsured patients, and third party reimbursement
    rates,
•
the adequacy of our insurance coverage and insurance reserves,
•
potential penalties or changes to our operations if we fail to
    comply with extensive and complex government regulation of our
    industry,
•
our ability to recruit and retain qualified physicians and other
    healthcare professionals, and enforce our non-compete agreements
    with our physicians,
•
the effect of changes in rates or methods of third party
    reimbursement,
•
our ability to generate cash flow to service our debt
    obligations,
•
the cost of capital expenditures to maintain and upgrade our
    vehicle fleet and medical equipment,
•
the loss of services of one or more members of our senior
    management team,
•
the outcome of government investigations of certain of our
    business practices,
•
our ability to successfully restructure our operations to comply
    with future changes in government regulation,
•
our ability to perform services previously performed for us by
    Laidlaw,
•
the loss of existing contracts and the accuracy of our
    assessment of costs under new contracts,
•
the high level competition in our industry,
•
our ability to maintain or implement complex information systems,
•
our ability to implement our business strategy,
•
our ability to obtain adequate bonding coverage, and
•
our ability to successfully integrate strategic acquisitions.
These factors are not exhaustive, and new factors may emerge or
changes to the foregoing factors may occur that could impact our
business. Except to the extent required by law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future
events or otherwise.
You should review carefully the sections captioned "Risk
Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations"
in this prospectus for a more complete discussion of these and
other factors that may affect our business. We note that the
safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995 does not apply
to statements made in connection with an initial public offering.
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FORMATION OF HOLDING COMPANY
Emergency Medical Services is a newly formed Delaware
corporation that is issuing class A common stock in this
offering. Immediately prior to the completion of this offering,
we intend to complete a reorganization in which EMS L.P., our
top-tier holding company prior to the reorganization, will
become a consolidated subsidiary of Emergency Medical Services
and the general partner of EMS L.P. will become a wholly-owned
subsidiary of Emergency Medical Services. The reorganization
will not affect our operations, which we will continue to
conduct through our operating subsidiaries.
We will take the following steps concurrently to effect the
reorganization:
•
The holders of the capital stock of the sole general partner of
    EMS L.P. will contribute that capital stock to us in
    exchange for shares of class A common stock,
•
The holders of class B units of EMS L.P. will contribute
    their units to us in exchange for shares of our class A
    common stock,
•
The class A units of EMS L.P. will be designated as LP
    exchangeable units,
•
We will issue one share of class B special voting stock to
    Onex Corporation as trustee to hold for the benefit of the LP
    exchangeable unitholders, and
•
We will amend our certificate of incorporation to effect
    a                     -for-                    stock
    split.
The shares sold in this offering will be class A common
stock of Emergency Medical Services. The Onex entities'
ownership of the LP exchangeable units will entitle them to
acquire from us all of the class B common stock of
Emergency Medical Services.
The LP exchangeable units will be exchangeable at any time, at
our option or the option of the holder, for shares of
class B common stock on a one-for-one basis, and the
LP exchangeable units will be substantially equivalent
economically to class B common stock. Shares of
class A common stock and shares of class B common
stock will be identical except with respect to voting rights and
except that each share of class B common stock may be
converted into a share of class A common stock at any time
at the option of the holder. On every matter properly submitted
to stockholders for their vote, each share of class A
common stock will be entitled to one vote, each share of
class B common stock will be entitled to ten votes,
reducing to one vote per share under certain limited
circumstances, and the one share of class B special voting
stock will be entitled to a number of votes equal to the number
of votes that could be cast if all of the then outstanding LP
exchangeable units were exchanged for class B common stock.
See "Description of Capital Stock — Common
Stock" and "— LP Exchangeable Units and
Class B Special Voting Stock."
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USE OF PROCEEDS
We estimate that our net proceeds from the sale
of                      shares
of class A common stock in this offering will be
approximately
$           million,
based on an assumed initial public offering price of
$           per
share, the midpoint of the range on the cover of this
prospectus, and after deducting underwriting discounts and
commissions and estimated offering expenses payable by us. We
will not receive any of the proceeds from the sale of shares by
the selling stockholders if the underwriters exercise their
over-allotment option.
We intend to use the net proceeds as follows:
•
approximately
    $           million
    to repay debt outstanding under our senior secured credit
    facility, and
•
the balance for working capital, capital expenditures and other
    general corporate purposes.
On February 10, 2005, we entered into a $450.0 million
senior secured credit agreement, comprised of a
$100.0 million revolving credit facility and a
$350.0 million term loan. We borrowed the full amount of
the term loan and $20.2 million under the revolving credit
facility to fund our acquisition of AMR and EmCare, including
the payment of related fees and expenses, and we have used
balances outstanding from time to time under the revolving
credit facility for working capital purposes. As of
June 30, 2005, we had no borrowings outstanding under the
revolving credit facility and we had approximately $75.7 million
of availability under that facility, net of outstanding letters
of credit of $24.3 million. Commitments under our revolving
credit facility terminate on February 10, 2010. We intend
to repay
$           million
of the term loan and any amount outstanding under the revolving
credit facility with the proceeds of this offering. The term
loan and the revolving credit facility bear interest at variable
rates (5.63% at June 30, 2005). The revolving credit
facility matures on February 10, 2011 and the term loan
matures on February 10, 2012.
See "Management's Discussion and Analysis of Financial
Condition and Results of Operations — Liquidity and
Capital Resources — Debt Facilities" for
additional information regarding our outstanding debt.
33
Table of Contents
CAPITALIZATION
The following table sets forth as of June 30, 2005:
•
our consolidated capitalization on an actual basis,
•
our consolidated capitalization on a pro forma basis to give
    effect to our reorganization as a holding company and
    the                     -for-                    stock
    split to be effected immediately prior to this offering, and
•
our consolidated capitalization on a pro forma, as adjusted,
    basis to give effect to the sale
    of                      shares
    of class A common stock by us in this offering at an
    assumed initial public offering price of
    $           per
    share, and the application of those proceeds as described in
    "Use of Proceeds."
You should read this table together with our unaudited
consolidated pro forma financial information included elsewhere
in this prospectus. For additional information regarding our
outstanding debt, see "Management's Discussion and
Analysis of Financial Condition and Results of
Operations — Liquidity and Capital
Resources — Debt Facilities."
As of June 30, 2005
Pro Forma,
Actual
Pro Forma
as Adjusted
(dollars in millions)
(unaudited)
Long-term debt, including current portion:
Revolving credit facility(1)
$
—
$
—
$
—
Term loan
349.1
349.1
Capital leases and other debt
6.8
6.8
6.8
Total senior debt
355.9
355.9
Senior subordinated notes
250.0
250.0
250.0
Total debt
$
605.9
$
605.9
$
Partners' equity
219.4
219.4
—
Stockholders' equity
Preferred stock, $0.01 par value per
    share,            shares
    authorized; no shares issued and outstanding
—
—
—
Class A common stock, $0.01 par value per
    share,            shares
    authorized;            shares
    issued and outstanding pro
    forma;            shares
    issued and outstanding pro forma, as adjusted
Class B common stock, $0.01 par value per
    share,            shares
    authorized; no shares issued and outstanding
—
—
—
LP exchangeable units,       units
    issued and outstanding pro forma and as adjusted
Additional paid-in capital
Retained earnings
Total equity
Total capitalization
$
$
$
(1)
The revolving credit facility provides for availability of
    borrowings and issuances of letters of credit for up to
    $100.0 million. As of June 30, 2005, we had
    $75.7 million of availability under the revolving credit
    facility, net of $24.3 million of letters of credit
    outstanding.
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DILUTION
If you invest in our class A common stock, your interest
will be diluted immediately to the extent of the difference
between the public offering price per share of our class A
common stock and the pro forma net tangible book value per share
of our common stock after this offering.
As of June 30, 2005, our net tangible book value,
determined on a pro forma basis as described below, was
$           million,
or
$           per
share of class A common stock and class B common stock
(together, our common stock). Pro forma net tangible book value
represents the amount of our total assets (excluding intangible
assets), less our total liabilities, divided, in the case of net
tangible book value per share, by the pro forma number of shares
outstanding giving effect to our reorganization into a holding
company and
the                     -for-                    stock
split that we expect to effect in connection with this offering.
After giving effect to our sale
of                      shares
of class A common stock in this offering, based on an
assumed initial public offering price of
$           per
share, and after deducting underwriting discounts and
commissions and estimated offering expenses payable by us, our
adjusted pro forma net tangible book value at June 30, 2005
would have been approximately
$           million,
or
$           per
share of our common stock. This represents an immediate increase
in pro forma net tangible book value of
$           per
share to our existing stockholders and an immediate net tangible
book value dilution of
$           per
share to new investors purchasing shares in this offering. The
following table illustrates this dilution:
Assumed initial public offering price per share
$
Pro forma net tangible book value per share at June 30, 2005
$
Increase in pro forma net tangible book value per share
    attributable to new investors
Pro forma adjusted net tangible book value per share after this
    offering
Dilution per share to new investors
$
The following table summarizes, as of June 30, 2005, as
adjusted to give effect to this offering, the differences
between the number of shares of our common stock purchased from
us, the total consideration paid to us and the average price per
share paid by our existing stockholders and by the new investors
purchasing common stock in this offering. The calculation is
based on an assumed initial public offering price of
$           per
share, before deducting underwriting discounts and commissions
and estimated offering expenses payable by us.
Shares Purchased
Total Consideration
Average Price
Number
Percent
Amount
Percent
Per Share
Existing stockholders
%
$
%
$
New investors
$
$
Total
100
%
$
100
%
If the underwriters exercise their over-allotment option in
full, our existing stockholders would own
approximately      % of the total
number of shares of our common stock outstanding after this
offering.
The preceding discussion and tables include the shares of our
class B common stock issuable on exchange of our
LP exchangeable units and
exclude                      shares
of our class A common stock issuable upon the exercise of
outstanding stock options at an exercise price of
$           per
share
and                      shares
of our class A common stock reserved for issuance under our
equity option plan. To the extent that all outstanding options
are exercised, your investment will be further diluted by an
addition
$0.0                    per
share, and our existing stockholders would own
approximately      % of the total
number of shares of our common stock outstanding after this
offering. In addition, we may choose to raise additional capital
due to market conditions or strategic considerations even if we
believe we have sufficient funds for our current or future
operating plans. To the extent additional capital is raised
through the sale of equity or convertible debt securities, the
issuance of these securities could result in further dilution to
our stockholders.
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Table of Contents
DIVIDEND POLICY
We currently intend to retain any future earnings to support our
operations and to fund the development and growth of our
business. In addition, the payment of dividends by us to holders
of our common stock is limited by our senior secured credit
facility. Our future dividend policy will depend on the
requirements of financing agreements to which we may be a party.
We do not intend to pay cash dividends on our common stock in
the foreseeable future. Any future determination to pay
dividends will be at the discretion of our board of directors
and will depend upon, among other factors, our results of
operations, financial condition, capital requirements and
contractual restrictions.
36
Table of Contents
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
The following pro forma consolidated financial statements
present Emergency Medical Services' financial position and
results of operations resulting from the acquisition, the sale
of         shares of
class A common stock pursuant to this offering and the
application of the proceeds therefrom as described in "Use
of Proceeds." AMR and EmCare combined are the predecessor
entity of Emergency Medical Services for the periods prior to
the acquisition.
The unaudited pro forma consolidated financial statements
include:
•
the pro forma consolidated balance sheet as of June 30,
    2005, assuming this offering occurred on June 30, 2005 and
    the proceeds were applied as described in "Use of
    Proceeds,"
•
the pro forma consolidated statement of operations for the five
    months ended June 30, 2005, assuming this offering occurred
    on February 1, 2005 and the proceeds were applied as
    described in "Use of Proceeds."
•
the pro forma consolidated statement of operations for the five
    months ended January 31, 2005, assuming the transactions
    described below occurred as of September 1, 2004, and
•
the pro forma consolidated statement of operations for the year
    ended August 31, 2004, assuming the transactions described
    below occurred as of September 1, 2003,
The unaudited pro forma consolidated financial information is
presented for informational purposes only and does not purport
to represent our financial condition or our results of
operations had the acquisition and this offering occurred on or
as of the dates noted above or to project the results for any
future date or period. In the opinion of management, all
adjustments have been made that are necessary to present fairly
the unaudited pro forma consolidated financial information.
The unaudited pro forma consolidated financial statements for
periods prior to the acquisition are based on the historical
combined financial statements of AMR and EmCare, as predecessor
to Emergency Medical Services, included elsewhere in this
prospectus, adjusted to give pro forma effect to the following
transactions, all of which are deemed to have occurred
concurrently:
•
the acquisition, including:
•
issuance of equity by Emergency Medical Services for aggregate
    contributions of $219.2 million,
•
our senior secured credit facility, consisting of:
•
a revolving credit facility of $100.0 million, of which we
    borrowed approximately $20.2 million at the closing date of
    the acquisition and had outstanding $24.3 million of
    letters of credit, and
•
a term loan of $350.0 million, all of which was borrowed on
    the closing date,
•
the issuance and sale of $250.0 million in aggregate
    principal amount of our senior subordinated notes,
•
our purchase of all of the outstanding common stock of AMR and
    EmCare, and
•
the payment of related fees and expenses related to the
    acquisition.
The unaudited pro forma consolidated financial statements for
all periods are adjusted to give pro forma effect to the
following, which are deemed to have occurred concurrently:
•
our formation as a holding company, with EMS L.P. and its
    general partner as subsidiaries, the issuance of common stock to
    our equityholders (including the issuance of our class B
    common stock upon exchange for LP exchangeable units) and
    the           -for-          stock
    split, and
•
the sale of
    the         shares of
    class A common stock offered hereby and the application of
    the proceeds therefrom as described in "Use of
    Proceeds."
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Table of Contents
The unaudited pro forma consolidated financial statements are
based on the estimates and assumptions set forth in the notes to
these statements that management believes are reasonable. These
estimates include an allocation of fair value to identifiable
intangible assets other than goodwill, and the resulting excess
of the purchase price over the carrying value of the net assets
acquired is recorded as goodwill. The pro forma adjustments
reflected in the following financial statements are based on
management's preliminary assessment of the fair value of
the tangible and intangible assets we acquired and liabilities
we assumed in the acquisition. The final purchase price
allocation will be performed when an independent appraisal of
certain assets acquired and liabilities assumed is finalized. We
expect that the final purchase price allocation may reflect
differences from our estimated amounts, as follows:
•
the fair value of our finite life contract intangible asset,
•
the fair value adjustment for favorable or unfavorable leases,
•
the fair value adjustment for property and equipment,
•
changes in the excess purchase price allocated to
    goodwill, and
•
changes in the fair value of other liabilities assumed and
    incurred as part of the acquisition.
The unaudited pro forma consolidated financial statements should
be read in conjunction with our historical financial statements
and related notes and other financial information included
elsewhere in this prospectus, including "Risk Factors"
and "Management's Discussion and Analysis of Financial
Condition and Results of Operations."
38
Table of Contents
Emergency Medical Services Corporation
Unaudited Pro Forma Consolidated Balance Sheet
June 30, 2005
Pro Forma Equity
Offering
Pro
Actual
Adjustments
Forma
(dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
31,365
$
—
$
31,365
Restricted cash and cash equivalents
12,785
—
12,785
Restricted marketable securities
1,011
—
1,011
Trade and other accounts receivable, net
346,491
—
346,491
Parts and supplies inventory
18,404
—
18,404
Other current assets
34,684
—
34,684
Current deferred tax assets
19,774
—
19,774
Total current assets
464,514
—
464,514
Non-current assets:
Property, plant and equipment, net
130,061
—
130,061
Intangible assets, net
84,542
—
84,542
Non-current deferred tax assets
119,848
—
119,848
Restricted long-term investments
57,734
—
57,734
Goodwill
267,474
—
267,474
Other long-term assets
99,379
(1)
Total assets
$
1,223,552
$
$
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
47,906
$
—
$
47,906
Accrued liabilities
189,425
—
189,425
Current portion of long-term debt
9,204
—
9,204
Total current liabilities
246,535
—
246,535
Other long-term debt
596,720
(2)
Other long-term liabilities
149,437
—
149,437
Total liabilities
992,692
Equity
Partnership equity
219,429
(219,429
)(3)
—
Class A common stock
—
(3)
Class B common stock
—
—
—
LP exchangeable units
—
(3)
Retained earnings
11,067
(1)
Comprehensive income (loss)
364
—
364
Total equity
230,860
Total liabilities and equity
$
1,223,552
$
$
(1)
To record the write-off of certain deferred financing costs
    associated with the portion of our senior secured credit
    facility we will pay down with the net proceeds of this offering.
(2)
To record the pay-down of our senior secured credit facility
    with the net proceeds of this offering.
(3)
To record (a) our formation as a holding company, with
    EMS L.P. and its general partner as subsidiaries, the
    (b) issuance of class A common stock to certain of our
    existing equityholders and the designation of the remaining
    partnership units as LP exchangeable units, exchangeable for our
    class B common stock and (c) net proceeds from this
    offering.
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Table of Contents
Emergency Medical Services Corporation
Unaudited Pro Forma Consolidated Statement of Operations
For the five months ended June 30, 2005
Pro Forma Equity
Offering
Consolidated
Adjustments
Pro Forma
(dollars in thousands)
Net revenue
$
731,410
$
—
$
731,410
Compensation and benefits
502,998
—
502,998
Operating expenses
102,170
—
102,170
Insurance expense
39,334
—
39,334
Selling, general and administrative expenses
23,179
—
23,179
Laidlaw fees and compensation charges
—
—
—
Depreciation and amortization expenses
23,988
—
23,988
Income from operations
39,741
—
39,741
Interest expense
(21,584
)
(1)
Realized loss on investments
(6
)
—
(6
)
Interest and other income
94
—
94
Income before income taxes
18,245
Income tax expense
(7,178
)
(2)
Net income (loss)
$
11,067
$
$
Net income (loss) per share:
Basic
$
Diluted
$
Weighted average shares — basic
Weighted average shares — diluted
(1)
To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.
(2)
To adjust income tax expense to reflect the reduction of
    interest expense, at an effective tax rate of 40%.
40
Table of Contents
Emergency Medical Services Corporation
Unaudited Pro Forma Consolidated Statement of Operations
For the five months ended January 31, 2005
AMR and
Pro Forma
Pro Forma
EmCare
Acquisition
Equity Offering
Combined
Adjustments
Adjustments
Pro Forma
(dollars in thousands)
Net revenue
$
696,179
$
—
$
—
$
696,179
Compensation and benefits
481,305
—
—
481,305
Operating expenses
94,882
—
—
94,882
Insurance expense
39,002
—
—
39,002
Selling, general and administrative expenses
21,635
—
—
21,635
Laidlaw fees and compensation charges
19,857
—
—
19,857
(1)
Depreciation and amortization expenses
18,808
4,424
(2)
—
23,232
Restructuring charges
—
—
—
—
Income (loss) from operations
20,690
(4,424
)
—
16,266
Interest expense
(5,644
)
5,254
(3)
—
(19,408
)(4)(5)
(6)
Interest and other income
714
—
—
714
Income (loss) before income taxes
15,760
(18,578
)
Income tax expense
(6,278
)
7,500
(7)
(7)
Net income (loss)
$
9,482
$
(11,078
)
$
$
Net income (loss) per share:
Basic
$
Diluted
$
Weighted average shares — basic
Weighted average shares — diluted
(1)
Represents certain Laidlaw fees and compensation charges,
    primarily relating to a compensation charge associated with the
    increase in the enterprise values of AMR and EmCare. Our
    estimated replacement costs for certain functions are not
    recorded on the face of this pro forma statement of operations
    because we do not have a contract for each element of these
    costs. We will be required to replace certain functions and
    costs previously provided to us by Laidlaw and which comprise
    Laidlaw fees and compensation charges. Our estimate of these
    costs on an annual basis ($1.67 million for a five-month
    period) are:
Compensation and benefits costs for personnel providing internal
    audit and tax services
$
1,100
Directors and officers insurance
500
Selling, general and administrative expenses for external audit
    fees, treasury services and other costs
1,400
Sponsor management fee
1,000
$
4,000
(2)
AMR and EmCare combined amortization expense includes
    amortization (over a 7-year period) of the finite life
    intangible assets of $89.0 million based on the preliminary
    value of identifiable intangible assets determined by an
    independent valuation group.
(3)
To eliminate interest expense charged on the Laidlaw payable.
(4)
To record amortization on $18.1 million of deferred
    financing costs associated with our acquisition-related
    borrowings, utilizing a weighted average maturity of eight years
    on an effective yield basis.
(5)
To record interest expense on our acquisition-related
    borrowings, assuming a weighted average interest rate of 7.14%.
(6)
To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.
(7)
To adjust income tax expense to reflect the adjustments
    identified in notes (2) through (6), at an effective tax
    rate of 40%.
41
Table of Contents
Emergency Medical Services Corporation
Unaudited Pro Forma Consolidated Statement of Operations
For the year ended August 31, 2004
AMR and
Pro Forma
Pro Forma
EmCare
Acquisition
Equity Offering
Combined
Adjustments
Adjustments
Pro Forma
(dollars in thousands)
Net revenue
$
1,604,598
$
—
$
—
$
1,604,598
Compensation and benefits
1,117,890
—
—
1,117,890
Operating expenses
218,277
—
—
218,277
Insurance expense
80,255
—
—
80,255
Selling, general and administrative expenses
47,899
—
—
47,899
Laidlaw fees and compensation charges
15,449
—
—
15,449
(1)
Depreciation and amortization expenses
52,739
3,134
(2)
—
55,873
Restructuring charges
2,115
—
—
2,115
Income (loss) from operations
69,974
(3,134
)
—
66,840
Interest expense
(9,961
)
6,223
(3)
(46,528
) (4)(5)
(6)
Realized gain (loss) on investments
(1,140
)
—
—
(1,140
)
Early debt retirement costs
—
—
—
—
Interest and other income
240
—
—
240
Income (loss) before income taxes
59,113
(43,439
)
Income tax expense
(21,764
)
17,375
(7)
(7)
Net income (loss)
$
37,349
$
(26,064
)
$
$
Net income (loss) per share:
Basic
$
Diluted
$
(1)
Represents certain Laidlaw fees and compensation charges,
    primarily relating to a compensation charge associated with the
    increase in the enterprise values of AMR and EmCare. Our
    estimated replacement costs for certain functions, are not
    recorded on the face of this pro forma statement of operations
    because we do not have a contract for each element of these
    costs. We will be required to replace certain functions and
    costs previously provided to us by Laidlaw and which comprise
    Laidlaw fees and compensation charges. Our estimate of these
    costs on an annual basis are:
Compensation and benefits costs for personnel providing internal
    audit and tax services
$
1,100
Directors and officers insurance
500
Selling, general and administrative expenses for external audit
    fees, treasury services and other costs
1,400
Sponsor management fee
1,000
$
4,000
(2)
AMR and EmCare combined amortization expense includes
    amortization (over a 7-year period) of the finite life
    intangible assets of $89.0 million based on the value of
    identifiable intangible assets by an independent valuation group.
(3)
To eliminate interest expense charged on the Laidlaw payable.
(4)
To record amortization on $18.1 million of deferred
    financing costs associated with our acquisition-related
    borrowings, utilizing a weighted average maturity of eight years
    on an effective yield basis.
(5)
To record interest expense on our acquisition-related
    borrowings, assuming a weighted average interest rate of 7.14%.
(6)
To record reduction of interest expense on our senior secured
    credit facility as a result of the pay-down with net proceeds of
    this offering.
(7)
To adjust income tax expense to reflect the adjustments
    identified in notes (2) through (6), at an effective tax
    rate of 40%.
42
Table of Contents
SELECTED COMBINED AND CONSOLIDATED FINANCIAL INFORMATION AND
OTHER DATA
The following table sets forth our selected combined or
consolidated financial data for each of the periods indicated.
Financial data for the year ended August 31, 2002
(Predecessor — Pre-Laidlaw Bankruptcy), nine months
ended May 31, 2003 (Predecessor — Pre-Laidlaw
Bankruptcy), as of and for the three months ended
August 31, 2003 (Predecessor — Post-Laidlaw
bankruptcy), the year ended August 31, 2004
(Predecessor — Post-Laidlaw Bankruptcy) and the five
months ended January 31, 2005 (Predecessor —
Post-Laidlaw Bankruptcy) are derived from our audited combined
financial statements included in this prospectus. As a result of
a correction to AMR's method of calculating its accounts
receivable allowances, we determined that the allowances were
understated at various balance sheet dates. The audited combined
financial statements included in this prospectus are restated to
correct this error. There were no adjustments necessary to
income subsequent to May 31, 2003. Financial data as of and
for the five months ended January 31, 2004
(Predecessor — Post-Laidlaw Bankruptcy) and the three
months and five months ended June 30, 2004
(Predecessor — Post-Laidlaw Bankruptcy) are derived
from our unaudited combined financial statements included in
this prospectus. Financial data as of and for the three months
and five months ended June 30, 2005 are derived from our
unaudited consolidated financial statements. Interim results are
not necessarily indicative of the results to be expected for the
entire fiscal year. You should read the information presented
below in conjunction with "Capitalization,"
"Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our combined and
consolidated financial statements and related notes contained
elsewhere in this prospectus.
The comparability of our selected historical financial data has
been affected by a number of significant events and
transactions. As we discuss more fully in
Note 1 — "Fresh-Start Accounting" of
the notes to our audited combined financial statements,
AMR's and EmCare's former parent, Laidlaw, and certain
of its affiliates filed voluntary petitions for reorganization
under Chapter 11 of the U.S. Bankruptcy Code. Although
subsidiaries of Laidlaw, neither AMR nor EmCare was included in
the bankruptcy filing. Laidlaw emerged from bankruptcy
protection in June 2003. Laidlaw applied fresh-start accounting
as of June 1, 2003 to AMR and EmCare and pushed down to us
our share of the fresh-start accounting adjustments. As a result
of the fresh-start change in the basis of accounting for our
underlying assets and liabilities, our results of operations and
cash flows have been separated as pre-June 1, 2003 and
post-May 31, 2003.
Effective as of January 31, 2005, we acquired EmCare and
AMR from Laidlaw, and in connection with the acquisition, we
changed our fiscal year to December 31 from August 31.
For all periods prior to the acquisition, the AMR and EmCare
businesses formerly owned by Laidlaw are referred to as the
"Predecessor." For all periods from and subsequent to
the acquisition, the business is referred to as the
"Successor." As a result of the acquisition, we
include as a reporting period of the Predecessor our
pre-acquisition period ended January 31, 2005.
43
Table of Contents
Predecessor (Pre-Acquisition)
Pre-Laidlaw Bankruptcy
Successor (Post-
As Restated
Post-Laidlaw Bankruptcy
Acquisition)
Nine
Three
Three
Five
Three
Five
Months
Months
Five Months
Months
Months
Months
Months
Year Ended August 31,
Ended
Ended
Year Ended
Ended January 31,
Ended
Ended
Ended
Ended
May 31,
August 31,
August 31,
June 30,
June 30,
June 30,
June 30,
2000(1)
2001(2)
2002
2003
2003
2004
2004
2005
2004
2004
2005
2005
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Statement of Operations Data:
Net revenue
$
1,355,978
$
1,386,136
$
1,415,786
$
1,103,335
$
384,461
$
1,604,598
$
667,506
$
696,179
$
399,975
$
663,880
$
445,021
$
731,410
Compensation and benefits
980,731
967,330
960,590
757,183
264,604
1,117,890
461,923
481,305
280,364
464,610
307,308
502,998
Operating expenses
201,853
216,019
219,321
163,447
55,212
218,277
90,828
94,882
53,490
91,661
63,250
102,170
Insurance expense
78,079
117,374
66,479
69,576
34,671
80,255
40,393
39,002
22,865
36,865
22,427
39,334
Selling, general and administrative expenses
59,404
53,017
61,455
37,867
12,017
47,899
22,016
21,635
12,805
19,269
14,498
23,179
Laidlaw fees and compensation charges
7,320
7,260
5,400
4,050
1,350
15,449
6,436
19,857
3,862
6,436
—
—
Depreciation and amortization expense
99,957
66,286
67,183
32,144
12,560
52,739
22,079
18,808
13,160
21,958
14,136
23,988
Impairment losses
1,183,681
—
262,780
—
—
—
—
—
—
—
—
—
Restructuring charges
1,826
—
3,777
1,288
1,449
2,115
—
—
—
1,381
—
—
Laidlaw reorganization charges
—
9,198
8,761
3,650
—
—
—
—
—
—
—
—
Income (loss) from operations
$
(1,256,873
)
$
(50,348
)
$
(239,960
)
$
34,130
$
2,598
$
69,974
$
23,831
$
20,690
$
13,429
$
21,700
$
23,402
$
39,741
Interest expense
(95,087
)
(66,181
)
(6,418
)
(4,691
)
(908
)
(9,961
)
(4,137
)
(5,644
)
(3,073
)
(3,541
)
(13,646
)
(21,584
)
Realized gain (loss) on investments
—
—
—
—
90
(1,140
)
—
—
—
(52
)
33
(6
)
Interest and other income
86
222
369
304
22
240
1,403
714
12
48
81
94
Fresh-start accounting adjustments(3)
—
—
—
46,416
—
—
—
—
—
—
—
—
Income (loss) before income taxes and cumulative effect of
    change in accounting principle
(1,351,874
)
(116,307
)
(246,009
)
76,159
1,802
59,113
21,097
15,760
10,368
18,155
9,870
18,245
Income tax expense
(54,639
)
17,538
(1,374
)
(829
)
(8,633
)
(21,764
)
(8,558
)
(6,278
)
(4,794
)
(7,831
)
(3,821
)
(7,178
)
Income (loss) before cumulative effect of change in accounting
    principle
(1,406,513
)
(98,769
)
(247,383
)
75,330
(6,831
)
37,349
12,539
9,482
5,574
10,324
6,049
11,067
Cumulative effect of a change in accounting principle
(5,288
)
—
—
(223,721
)(4)
—
—
—
—
—
—
—
—
Net income (loss)
$
(1,411,801
)
$
(98,769
)
$
(247,383
)
$
(148,391
)
$
(6,831
)
$
37,349
$
12,539
$
9,482
$
5,574
$
10,324
$
6,049
$
11,067
Other Financial Data:
Cash flows provided by (used in):
Operating activities
$
30,133
$
28,044
$
156,544
$
58,769
$
30,009
$
127,679
$
17,483
$
15,966
$
81,269
$
94,703
Investing activities
(40,983
)
(36,442
)
(57,347
)
(98,835
)
(15,136
)
(81,516
)
(11,767
)
(21,667
)
(24,121
)
(875,235
)
Financing activities
22,402
11,376
(36,066
)
(8,060
)
(47,222
)
(47,328
)
(5,501
)
10,856
(54,043
)
797,266
Capital expenditures
$
37,698
$
39,347
$
57,438
(5)
$
34,768
$
18,079
$
42,787
$
14,225
$
14,045
$
17,387
20,052
As of
June 30, 2005
(dollars in
thousands)
Balance Sheet Data:
Cash and cash equivalents
$
31,365
Total assets
1,223,552
Long-term debt and capital lease obligations, including current
    maturities
605,924
Partners' equity
230,860
(1)
Represents the combination of the audited financial statements
    of AMR and the unaudited financial statements of EmCare for the
    year ended August 31, 2000.
(2)
Represents the combination of the audited financial statements
    of AMR and EmCare for the year ended August 31, 2001.
(3)
See note 1 to our combined financial statements with
    respect to our fresh-start financial reporting.
(4)
Reflects an impairment of goodwill recorded in connection with
    the adoption of SFAS No. 142.
(5)
Includes $26.3 million financed through capital leases.
44
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion of our financial
condition and results of operations with the audited combined
financial statements, the notes to the audited combined
financial statements and the "Selected Combined and
Consolidated Financial Information and Other Data"
appearing elsewhere in this prospectus. The following covers
periods before the closing of the acquisition. Accordingly, the
discussion and analysis of historical periods do not reflect the
impact the acquisition will have on us. In addition, this
discussion contains forward-looking statements and involves
numerous risks and uncertainties, including, but not limited to,
those described in the "Risk Factors" section of this
prospectus. Our results may differ materially from those
anticipated in any forward-looking statements.
Company Overview
We are a leading provider of emergency medical services in the
United States. We operate our business and market our services
under the AMR and EmCare brands. AMR is the leading provider of
ambulance transport services in the United States. EmCare is the
leading provider of outsourced emergency department staffing and
management services in the United States. Approximately 86% of
our fiscal 2004 net revenue was generated under exclusive
contracts. During fiscal 2004, we treated and transported
approximately 9 million patients in more than 2,050
communities nationwide. For the fiscal year ended
August 31, 2004, we generated net revenue of
$1.6 billion, of which AMR and EmCare represented
approximately 66% and 34%, respectively. Over the past two
fiscal years, we increased our net revenue and EBITDA
organically at compound annual growth rates, or CAGRs, of 6.5%
and 14.7%, respectively.
American Medical Response
Over its 50 years of operating history, AMR has developed
the largest network of ambulance transport services in the
United States. AMR has an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7 million patients in
34 states. AMR has approximately 2,550 contracts with
communities, government agencies, healthcare providers and
insurers to provide ambulance services. AMR's broad
geographic footprint enables us to contract on a national and
regional basis with managed care and insurance companies. AMR
has made significant investments in technology, customer service
plans, employee training and risk mitigation programs to deliver
a compelling value proposition to our customers, which we
believe has led to industry-leading contract retention rates.
For fiscal 2004, approximately 57% of AMR's net revenue was
generated from emergency 911 ambulance transport services.
Non-emergency ambulance transport services, including critical
care transfer, wheelchair transports and other interfacility
transports, or IFTs, accounted for 32% of AMR's net revenue
for the same period, with the balance generated from the
provision of training, dispatch centers and other services to
communities and public safety agencies. For fiscal 2004, AMR
generated net revenue of $1,054.8 million.
EmCare
Over its 33 years of operating history, EmCare has become
the largest provider of outsourced emergency department staffing
and related management services to healthcare facilities. EmCare
has a 6% share of the total emergency department services market
and a 9% share of the outsourced emergency department services
market. In addition, EmCare has become one of the leading
providers of hospitalist services, with hospitalist-related net
revenue increasing from $7.2 million in fiscal 2001 to
$23.5 million in fiscal 2004. A hospitalist is a physician
who specializes in the care of acutely ill patients in an
in-patient setting. During fiscal 2004, EmCare had approximately
5.3 million patient visits in 38 states.
EmCare primarily provides emergency department staffing and
related management services to healthcare facilities. EmCare
recruits and hires or subcontracts with physicians and other
healthcare professionals, who then provide professional services
within the healthcare facilities with which we contract. We also
provide
45
Table of Contents
billing and collection, risk management and other administrative
services to our healthcare professionals and to independent
physicians. EmCare has 329 contracts with hospitals and
independent physician groups to provide emergency department,
hospitalist and radiology staffing, and related management and
other administrative services. We believe that EmCare's
successful physician recruitment and retention, high level of
customer service and advanced risk management programs have
resulted in high contract retention rates and continued growth
in new customers. For the year ended August 31, 2004,
EmCare generated net revenue of $549.8 million.
Key Factors and Measures We Use to Evaluate Our Business
The key factors and measures we use to evaluate our business
focus on the number of patients we treat and transport and the
costs we incur to provide the necessary care and transportation
for each of our patients.
We evaluate our revenue net of provisions for contractual payor
discounts and provisions for uncompensated care. Medicaid,
Medicare and certain other payors receive discounts from our
standard charges, which we refer to as contractual discounts. In
addition, individuals we treat and transport may be personally
responsible for a deductible or co-pay under their third party
payor coverage, and most of our contracts require us to treat
and transport patients who have no insurance or other third
party payor coverage. Due to the uncertainty regarding
collectibility of charges associated with services we provide to
these patients, which we refer to as uncompensated care, our net
revenue recognition is based on expected cash collections. Our
net revenue is gross billings after provisions for contractual
discounts and estimated uncompensated care. The table below
summarizes our approximate payor mix as a percentage of both net
revenue and total transports and patient visits for fiscal years
2003 and 2004.
Percentage of
Percentage of Total
Net Revenue
Transports and Visits
Year Ended August 31,
Year Ended August 31,
2003
2004
2003
2004
Medicare
27.4
%
27.3
%
25.5
%
25.8
%
Medicaid
5.3
5.2
11.8
12.3
Commercial insurance and managed care
47.3
47.7
42.2
41.4
Self-pay
4.7
4.0
20.5
20.5
Subsidies and fees
15.3
15.8
0.0
0.0
Total
100.0
%
100.0
%
100.0
%
100.0
%
In addition to continually monitoring our payor mix, we also
analyze the following key factors and measures in each of our
business segments:
AMR
Approximately 89% of AMR's fiscal 2004 net revenue was
transport revenue derived from the treatment and transportation
of patients based on billings to third party payors and
healthcare facilities. The balance of AMR's net revenue is
derived from direct billings to communities and government
agencies for the provision of training, dispatch center and
other services. AMR's measures for transport net revenue
include:
•
Transports.
We utilize transport data, including the
    number and types of transports, to evaluate net revenue and as
    the basis by which we measure certain costs of the business. We
    segregate transports into two main categories —
    ambulance transports (including emergency, as well as
    non-emergency critical care and other interfacility transports)
    and wheelchair transports — due to the significant
    differences in reimbursement and the associated costs of
    providing ambulance and wheelchair transports. As a result of
    these differences, in certain analyses we weight our transport
    numbers according to category in an effort to better measure net
    revenue and costs.
•
Net revenue per transport.
Net revenue per transport
    reflects the expected net revenue for each transport based on
    gross billings less all estimated provisions for contractual
    discounts and
46
Table of Contents
uncompensated care. In order to better understand the trends
    across business segments and in our transport rates, we analyze
    our net revenue per transport based on weighted transports to
    reflect the differences in our transportation mix.
The costs we incur in our AMR business segment consist primarily
of compensation and benefits for ambulance crews and support
personnel, direct and indirect operating costs to provide
transportation services, and costs related to accident and
insurance claims. AMR's key cost measures include:
•
Unit hours and cost per unit hour.
Our measurement of a
    unit hour is based on a fully staffed ambulance or wheelchair
    van for one operating hour. We use unit hours and cost per unit
    hour to measure compensation-related costs and the efficiency of
    our deployed resources. We monitor unit hours and cost per unit
    hour on a combined basis, as well as on a segregated basis
    between ambulance and wheelchair transports.
•
Operating costs per transport.
Operating costs per
    transport is comprised of certain direct operating costs,
    including vehicle operating costs, medical supplies and other
    transport-related costs, but excluding compensation-related
    costs. Monitoring operating costs per transport allows us to
    better evaluate cost trends and operating practices of our
    regional and local management teams.
•
Accident and insurance claims.
We monitor the number and
    magnitude of all accident and insurance claims in order to
    measure the effectiveness of our risk management programs.
    Depending on the type of claim (workers compensation, auto,
    general or professional liability), we monitor our performance
    by utilizing various bases of measurement, such as net revenue,
    miles driven, number of vehicles operated, compensation dollars,
    and number of transports.
We estimate that the impact of the Balanced Budget Act of 1997,
or BBA, ambulance service rate decreases, as modified by the
phase-in provisions of the Medicare Modernization Act, resulted
in a decrease in AMR's net revenue for fiscal 2003 and
fiscal 2004 of approximately $20 million and
$11 million, respectively, will result in an increase in
AMR's net revenue of approximately $13 million in
calendar 2005, and will result in a decrease in AMR's net
revenue of approximately $17 million in 2006 and continuing
decreases thereafter to 2010. Although we have been able to
substantially mitigate the phased-in reductions of the BBA
through additional fee and subsidy increases, we may not be able
to continue to do so.
EmCare
Of EmCare's fiscal 2004 net revenue, approximately 75% was
generated from billings to third party payors for emergency
department staffing, hospitalist and radiology services and
approximately 25% was generated by payments for other management
services to independent physician groups and hospitals. Our net
revenue derived from hospital contracts is based on billings to
third party payors for patient encounters and from billings to
hospitals for professional services. EmCare's key net
revenue measures are:
•
Number of contracts.
This reflects the number of
    contractual relationships we have for outsourced emergency
    department staffing and related management services, hospitalist
    services and other management services. We analyze the change in
    our number of contracts from period to period based on "net
    new contracts," which is the difference between total new
    contracts and contracts that have terminated.
•
Revenue per patient visit.
This reflects the expected net
    revenue for each patient encounter based on gross billings less
    all estimated provisions for contractual discounts and
    uncompensated care. Net revenue per patient encounter also
    includes net revenue from billings to third party payors and
    hospitals.
The costs incurred in our EmCare business segment consist
primarily of compensation and benefits for physicians and other
professional providers, professional liability costs, and
contract and other support costs. EmCare's key cost
measures include:
•
Provider compensation per patient visit.
Provider
    compensation per patient visit includes all compensation and
    benefit costs for all professional providers, including
    physicians, physician assistants
47
Table of Contents
and nurse practitioners, during each patient encounter.
    Providers include all full-time, part-time and independently
    contracted providers. Analyzing provider compensation per
    patient visit enables us to monitor our most significant cost in
    performing under our contracts.
•
Professional liability costs.
These costs include
    provisions for estimated losses for actual claims, and claims
    likely to be incurred in the period, within our self-insurance
    limits based on our past loss experience, as well as actual
    direct costs, including investigation and defense costs, claims
    payments, reinsurance costs and other costs related to provider
    professional liability.
•
Contract and other support costs.
This includes the cost
    of all support functions, including billing and collections,
    regional and national support costs and other contract costs.
Medicare pays for all physicians' services based upon a
national fee schedule. The rate formula may result in
significant yearly fluctuations which may be unrelated to
changes in the actual cost of providing physician services.
Initially, the physician fee schedule update for 2004 called for
a payment decrease of 4.5%. Subsequently, Congress authorized a
1.5% increase that negated the planned rate cuts, and also
provided a 1.5% rate increase for 2005. We currently expect that
the fee schedule will provide for a 4.5% decrease to physician
rates effective January 1, 2006, which would result in a
decrease in EmCare's 2006 net revenue of approximately
$5.7 million.
Results of Operations
Basis of Presentation
As we discuss more fully in Note 1 —
"Fresh-Start Accounting" of the notes to our audited
combined financial statements, AMR's and EmCare's
former parent, Laidlaw, and certain of its affiliates filed
voluntary petitions for reorganization under Chapter 11 of
the U.S. Bankruptcy Code. Although subsidiaries of Laidlaw,
neither AMR nor EmCare was included in the bankruptcy filing.
Laidlaw emerged from bankruptcy protection in June 2003. Laidlaw
applied push-down accounting as of June 1, 2003 to AMR and
EmCare and allocated to us our share of the fresh-start
accounting adjustments. For financial statement purposes, for
periods prior to February 1, 2005, AMR and EmCare combined
are our Predecessor. As a result of the application of push-down
accounting and the fresh-start change in the basis of accounting
for our underlying assets and liabilities, our results of
operations and cash flows have been separated further as
pre-June 1, 2003 (referred to as the
Predecessor — Pre-Laidlaw Bankruptcy) and
post-May 31, 2003 and pre-February 1, 2005 (referred
to as the Predecessor — Post-Laidlaw Bankruptcy).
Effective as of January 31, 2005, we acquired EmCare and
AMR from Laidlaw and in connection with the acquisition we
changed our fiscal year to December 31 from August 31.
For all periods prior to the acquisition, the AMR and EmCare
businesses formerly owned by Laidlaw are referred to as the
"Predecessor." For all periods subsequent to the
acquisition, the business is referred to as the
"Successor." As a result of the acquisition, we
include as a reporting period of the Predecessor our
pre-acquisition period ended January 31, 2005.
We have made no comparisons for our financial results or cash
flows and other liquidity measures for the
Predecessor — Post-Laidlaw Bankruptcy's three
months ended August 31, 2003 or for the
Predecessor — Post-Laidlaw Bankruptcy's financial
results or cash flows and other liquidity measures for the nine
months ended May 31, 2003. As the length of these periods
is significantly different from the length of any corresponding
comparative periods, these results are not comparable in
absolute dollar terms.
However, to facilitate the identification of certain business
trends, we compare the financial results and cash flows for the
year ended August 31, 2004 for the Predecessor —
Post-Laidlaw Bankruptcy to:
•
the combined financial results and cash flows for the year ended
    August 31, 2003, which represents the financial results and
    cash flows for the Predecessor — Post-Laidlaw
    Bankruptcy for the three months ended August 31, 2003 and
    the financial results and cash flows for the
    Predecessor — Pre-Laidlaw Bankruptcy for the nine
    months ended May 31, 2003, and
•
our Predecessor — Pre-Laidlaw Bankruptcy's
    financial results for the year ended August 31, 2002.
48
Table of Contents
The combined year ended August 31, 2003 presented below
does not comply with SOP 90-7, which calls for separate
reporting for the Predecessor — Post-Laidlaw
Bankruptcy and the Predecessor — Pre-Laidlaw
Bankruptcy. Additionally, for the reasons described in
Note 1 and due to other non-recurring adjustments, the
Predecessor — Pre-Laidlaw Bankruptcy's financial
statements for the periods prior to Laidlaw's emergence
from bankruptcy may not be comparable to our
Predecessor — Post-Laidlaw Bankruptcy's financial
statements and results of operations which are for periods after
Laidlaw's emergence from bankruptcy. Investors should,
therefore, review this material with caution and should not rely
solely on the information concerning the Predecessor —
Pre-Laidlaw Bankruptcy or the combined financial results for the
year ended August 31, 2003 as being indicative of our
future results or as providing an accurate comparison of
financial performance from period to period.
The following table presents, for the periods indicated,
information expressed as a percentage of net revenue. This
information has been derived from our audited combined
statements of operations, which include both our AMR and our
EmCare business segments, for the years ended August 31,
2002, 2003 and 2004 and the five months ended January 31,
2005, respectively, from our unaudited combined statements of
operations for the five months ended January 31, 2004 and
the three months and five months ended June 30, 2004,
respectively, and from our unaudited consolidated statements of
operations for the three months and five months ended
June 30, 2005.
49
Table of Contents
Combined and Consolidated Results of Operations and as a
Percentage of Net Revenue
Predecessor
Successor
Year Ended August 31,
Five Months
Three Months
Five Months
Three Months
Five Months
Ended
Ended
Ended
Ended
Ended
As Restated
January 31,
June 30,
June 30,
June 30,
June 30,
2002
2003
2004
2004
2005
2004
2004
2005
2005
(unaudited)
(unaudited)
(unaudited)
Net revenue
$
1,415,786
$
1,487,796
$
1,604,598
$
667,506
$
696,179
$
399,975
$
663,880
$
445,021
$
731,410
Compensation and benefits
960,590
1,021,787
1,117,890
461,923
481,305
280,364
464,610
307,308
502,998
Operating expenses
219,321
218,659
218,277
90,828
94,882
53,490
91,661
63,250
102,170
Insurance expense
66,479
104,247
80,255
40,393
39,002
22,865
36,865
22,427
39,334
Selling, general and administrative expenses
61,455
49,884
47,899
22,016
21,635
12,805
19,269
14,498
23,179
Laidlaw fees and compensation charges(1)
5,400
5,400
15,449
6,436
19,857
3,862
6,436
—
—
Depreciation and amortization expenses
67,183
44,704
52,739
22,079
18,808
13,160
21,958
14,136
23,988
Impairment losses
262,780
—
—
—
—
—
—
—
—
Restructuring charges
3,777
2,737
2,115
—
—
—
1,381
—
—
Laidlaw reorganization costs
8,761
3,650
—
—
—
—
—
—
—
Income (loss) from operations
(239,960
)
36,728
69,974
23,831
20,690
13,429
21,700
23,402
39,741
Interest expense
(6,418
)
(5,599
)
(9,961
)
(4,137
)
(5,644
)
(3,073
)
(3,541
)
(13,646
)
(21,584
)
Realized gain (loss) on investments
—
90
(1,140
)
—
—
—
(52
)
33
(6
)
Interest and other income
369
326
240
1,403
714
12
48
81
94
Fresh-start accounting adjustments
—
46,416
—
—
—
—
—
—
—
Income tax expense
(1,374
)
(9,462
)
(21,764
)
(8,558
)
(6,278
)
(4,794
)
(7,831
)
(3,821
)
(7,178
)
Net income
$
(247,383
)
$
68,499
$
37,349
$
12,539
$
9,482
$
5,574
$
10,324
$
6,049
$
11,067
(1)
Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR and
    EmCare by Laidlaw pursuant to a formula based upon each
    company's share of Laidlaw's consolidated revenue.
Predecessor
Successor
Year Ended August 31,
Five Months
Three Months
Five Months
Three Months
Five Months
Ended
Ended
Ended
Ended
Ended
As Restated
January 31,
June 30,
June 30,
June 30,
June 30,
2002
2003
2004
2004
2005
2004
2004
2005
2005
(unaudited)
(unaudited)
(unaudited)
Net revenue
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Compensation and benefits
67.8
68.7
69.7
69.2
69.1
70.1
70.0
69.1
68.8
Operating expenses
15.5
14.7
13.6
13.6
13.6
13.4
13.8
14.2
14.0
Insurance expense
4.7
7.0
5.0
6.1
5.6
5.7
5.6
5.0
5.4
Selling, general and administrative expenses
4.3
3.4
3.0
3.3
3.1
3.2
2.9
3.3
3.2
Laidlaw fees and compensation charges(1)
0.4
0.4
1.0
1.0
2.9
1.0
1.0
—
—
Depreciation and amortization expense
4.7
3.0
3.3
3.3
2.7
3.3
3.3
3.1
3.3
Impairment losses
27.4
—
—
—
—
—
—
—
—
Restructuring charges
0.3
0.2
0.1
—
—
—
0.2
—
—
Laidlaw reorganization costs
0.6
0.2
—
—
—
—
—
—
—
Income (loss) from operations
(16.9
)%
2.5
%
4.4
%
3.6
%
3.0
%
3.4
%
3.3
%
5.3
%
5.4
%
(1)
Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR and
    EmCare by Laidlaw pursuant to a formula based upon each
    company's share of Laidlaw's consolidated revenue.
50
Table of Contents
AMR
Predecessor
Year Ended August 31,
Five Months Ended January 31,
Successor
As Restated
Three
Five
Three
Five
Months
Months
Months
Months
% of
% of
% of
% of
% of
Ended
% of
Ended
% of
Ended
% of
Ended
% of
Net
Net
Net
Net
Net
June 30,
Net
June 30,
Net
June 30,
Net
June 30,
Net
2002
Revenue
2003
Revenue
2004
Revenue
2004
Revenue
2005
Revenue
2004
Revenue
2004
Revenue
2005
Revenue
2005
Revenue
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Net revenue
$
984,451
100.0
%
$
1,007,151
100.0
%
$
1,054,800
100.0
%
$
441,956
100.0
%
$
455,059
100.0
%
$
259,713
100.0
%
$
434,294
100.0
%
$
284,694
100.0
%
$
469,804
100.0
%
Compensation and benefits
627,818
63.8
647,255
64.3
687,221
65.2
287,736
65.1
289,733
63.7
169,914
65.4
282,869
65.1
180,765
63.5
296,139
63.0
Operating expenses
195,335
19.8
195,105
19.4
194,398
18.4
80,277
18.2
83,910
18.4
47,676
18.4
81,827
18.8
56,138
19.7
91,282
19.4
Insurance expense
36,079
3.7
67,409
6.7
44,272
4.2
22,669
5.1
22,437
4.9
12,380
4.8
19,504
4.5
11,798
4.1
20,937
4.5
Selling, general and administrative expenses
44,686
4.5
35,078
3.5
32,217
3.1
16,175
3.7
15,721
3.5
7,812
3.0
12,052
2.8
10,553
3.7
16,202
3.4
Laidlaw fees and compensation charges(1)
3,600
0.4
3,600
0.4
9,020
0.9
3,758
0.9
9,399
2.1
2,255
0.9
3,758
0.9
—
—
Depreciation and amortization expense
62,223
6.3
39,273
3.9
43,629
4.1
18,278
4.1
16,394
3.6
10,849
4.2
18,127
4.2
11,490
4.0
19,465
4.1
Impairment losses
262,780
26.7
—
—
—
—
—
—
—
—
—
Restructuring charges
3,777
0.4
2,737
0.3
2,115
0.2
—
—
—
1,381
0.3
—
—
Income (loss) from operations
$
(251,847
)
(25.6
)%
$
16,694
1.7
%
$
41,928
4.0
%
$
13,063
3.0
%
$
17,465
3.8
%
$
8,827
3.4
%
$
14,776
3.4
%
$
13,950
4.9
%
$
25,779
5.5
%
(1)
Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to AMR by
    Laidlaw pursuant to a formula based upon AMR's share of
    Laidlaw's consolidated revenue.
EmCare
Predecessor
Year Ended August 31,
Five Months Ended January 31,
Successor
Three
Five
Three
Five
Months
Months
Months
Months
% of
% of
% of
% of
% of
Ended
% of
Ended
% of
Ended
% of
Ended
% of
Net
Net
Net
Net
Net
June 30,
Net
June 30,
Net
June 30,
Net
June 30,
Net
2002
Revenue
2003
Revenue
2004
Revenue
2004
Revenue
2005
Revenue
2004
Revenue
2004
Revenue
2005
Revenue
2005
Revenue
(unaudited)
(unaudited)
(unaudited)
(dollars in thousands)
Net revenue
$
431,335
100.0
%
$
480,645
100.0
%
$
549,798
100.0
%
$
225,550
100.0
%
$
241,120
100.0
%
$
140,262
100.0
%
$
229,586
100.0
%
$
160,327
100.0
%
$
261,606
100.0
%
Compensation and benefits
332,772
77.1
374,532
77.9
430,669
78.3
174,187
77.2
191,572
79.5
110,450
78.7
181,741
79.2
126,543
78.9
206,859
79.1
Operating expenses
23,986
5.6
23,554
4.9
23,879
4.3
10,551
4.7
10,972
4.6
5,814
4.1
9,834
4.3
7,112
4.4
10,888
4.2
Insurance expense
30,400
7.0
36,838
7.7
35,983
6.5
17,724
7.9
16,565
6.9
10,485
7.5
17,361
7.6
10,629
6.6
18,397
7.0
Selling, general and administrative expenses
16,769
3.9
14,806
3.1
15,682
2.9
5,841
2.6
5,914
2.5
4,993
3.6
7,217
3.1
3,945
2.5
6,977
2.7
Laidlaw fees and compensation charges(1)
1,800
0.4
1,800
0.4
6,429
1.2
2,678
1.2
10,458
4.3
1,607
1.1
2,678
1.2
—
—
Depreciation and amortization expense
4,960
1.1
5,431
1.1
9,110
1.7
3,801
1.7
2,414
1.0
2,311
1.6
3,831
1.7
2,646
1.7
4,523
1.7
Impairment losses
—
—
—
—
—
—
—
—
—
Laidlaw reorganization costs
8,761
2.0
3,650
0.8
—
—
—
—
—
—
—
Income (loss) from operations
$
11,887
2.8
%
$
20,034
4.2
%
$
28,046
5.1
%
$
10,768
4.8
%
$
3,225
1.3
%
$
4,602
3.3
%
$
6,924
3.0
%
$
9,452
5.9
%
$
13,962
5.3
%
(1)
Amounts include specifically allocated compensation costs and
    the Laidlaw fees and compensation charges allocated to EmCare by
    Laidlaw pursuant to a formula based upon EmCare's share of
    Laidlaw's consolidated revenue.
51
Table of Contents
Five months ended June 30, 2005 (Successor) compared
to the five months ended June 30, 2004 (Predecessor)
Interest expense.
Interest expense for the five months
ended June 30, 2005 was $21.6 million compared to
$3.5 million for the five months ended June 30, 2004.
The $18.1 million increase relates to the additional debt
incurred as part of the acquisition of AMR and EmCare by EMS L.P.
Income tax expense.
Income tax expense for the five
months ended June 30, 2005 was $7.2 million compared
to $7.8 million for the five months ended June 30,
2004. The $0.6 million decrease relates primarily to the
additional interest expense recorded during the 2005 period.
AMR
Net revenue.
Net revenue for the five months ended
June 30, 2005 was $469.8 million, an increase of
$35.5 million, or 8.2%, from $434.3 million for the
five months ended June 30, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 7.2%. The increase in net
revenue per weighted transport was the result of rate increases
in several of our operating markets and Medicare rate increases
under the Medicare Modernization Act. In addition, we had a net
increase of approximately 10,800 weighted transports. Our total
increase in weighted transports of 55,300 was offset by a
decrease of approximately 44,500 weighted transports and
$8.9 million in net revenue for the five months ended
June 30, 2005 as a result of exiting the Pinellas County,
Florida market in September 2004.
Compensation and benefits.
Compensation and benefits
costs for the five months ended June 30, 2005 were
$296.1 million, or 63.0% of net revenue, compared to
$282.9 million, or 65.1% of net revenue, for the five
months ended June 30, 2004. Total unit hours increased
period over period by approximately 19,800 due to the increase
in ambulance transport volume. In addition, ambulance crew wages
per ambulance unit hour increased by 5.0%, which increased
compensation costs by $7.7 million. The ambulance crew
wages per ambulance unit hour increase resulted principally from
annual salary increases. Benefits costs increased
$2.8 million due to increased health benefit claim costs
and health insurance premiums. The exit from the Pinellas
County, Florida market decreased ambulance unit hours by 97,400
and compensation and benefits costs by $6.7 million in 2005
compared to 2004.
Operating expenses.
Operating expenses for the five
months ended June 30, 2005 were $91.3 million, or
19.4% of net revenue, compared to $81.8 million, or 18.8%
of net revenue, for the five months ended June 30, 2004.
The change is due primarily to additional fuel and vehicle
repair costs of approximately $3.1 million and an increase
in external services of $1.9 million. Costs for external
services grew as a result of increased ambulance transport
volumes and professional fees of $1.2 million, primarily
related to post-acquisition consulting fees. Other operating
costs, including medical supplies, occupancy, telecommunications
and other expenses, increased by approximately
$3.3 million, but remained flat as a percentage of net
revenue compared to the prior period.
Insurance expense.
Insurance expense for the five months
ended June 30, 2005 was $20.9 million, or 4.5% of net
revenue, compared to $19.5 million, or 4.5% of net revenue,
for the same period in 2004. The five months ended June 30,
2005 and 2004 included comparable reductions of reserves based
on favorable development of claims costs and reserve estimates.
Selling, general and administrative.
Selling, general and
administrative expense for the five months ended June 30,
2005 was $16.2 million, or 3.4% of net revenue, compared to
$12.1 million, or 2.8% of net revenue, for the five months
ended June 30, 2004. The five months ended June 30,
2004 includes a one-time reversal of an accrued liability of
$1.8 million and payroll tax refunds related to prior
periods of $2.0 million.
Laidlaw fees and compensation charges.
AMR did not incur
Laidlaw fees and compensation charges for the five months ended
June 30, 2005 as it was no longer a subsidiary of Laidlaw
International, Inc. For the five months ended June 30,
2004, these fees and charges were $3.8 million, or 0.9% of
net revenue. Costs incurred to date to replace the services
previously performed by Laidlaw are included in the statement of
operations for the five months ended June 30, 2005.
52
Table of Contents
Restructuring charges.
AMR did not incur restructuring
charges during the five months ended June 30, 2005.
Restructuring charges of $1.4 million recorded during the
five months ended June 30, 2004 relate to a reduction in
the number of operating regions. Oversight of the affected
operations was shifted to the remaining regional management
teams.
Depreciation and amortization.
Depreciation and
amortization expense for the five months ended June 30,
2005 was $19.5 million, or 4.1% of net revenue, compared to
$18.1 million, or 4.2% of net revenue, for the five months
ended June 30, 2004.
EmCare
Net revenue.
Net revenue for the five months ended
June 30, 2005 was $261.6 million, an increase of
$32.0 million, or 13.9%, from $229.6 million for the
five months ended June 30, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following June 30,
2004, we added 27 net new contracts which accounted for a net
revenue increase of $22.4 million for the five months ended
June 30, 2005. Net revenue under our "same store"
contracts (contracts in existence for the entirety of both
fiscal periods) increased $14.2 million in the five months
ended June 30, 2005 due to a 4.4% increase in patient
encounters offset by a 2.1% decrease in net revenue per patient
encounter.
Compensation and benefits.
Compensation and benefits
costs for the five months ended June 30, 2005 were
$206.9 million, or 79.1% of net revenue, compared to
$181.7 million, or 79.2% of net revenue, for the five
months ended June 30, 2004. Compensation and benefits costs
increased $13.7 million from net new contract additions. Of
the remaining $11.5 million increase in such costs,
$10.2 million was attributable to an increase in provider
compensation costs related primarily to an increase in patient
encounters, and $1.3 million was attributable to an
increase in billing support personnel and regional support
personnel for net new contract additions.
Operating expenses.
Operating expenses for the five
months ended June 30, 2005 were $10.9 million, or 4.2%
of net revenue, compared to $9.8 million, or 4.3% of net
revenue, for the five months ended June 30, 2004. Operating
expenses increased due to net new contract additions but
remained consistent as a percentage of net revenue.
Insurance expense.
Professional liability insurance
expense for the five months ended June 30, 2005 was
$18.4 million, or 7.0% of net revenue, compared to
$17.4 million, or 7.6% of net revenue, for the five months
ended June 30, 2004. The decrease as a percent of revenue
is due to continued favorable improvement in ultimate claims
costs.
Selling, general and administrative.
Selling, general and
administrative expense for the five months ended June 30,
2005 was $7.0 million, or 2.7% of net revenue, compared to
$7.2 million, or 3.1% of net revenue, for the five months
ended June 30, 2004. The $0.2 million decrease in
selling, general and administrative expense includes a decrease
of $1.1 million related to the Laidlaw long-term incentive
compensation plan which is no longer in effect, offset by
$0.9 million of legal fees and settlements, Onex management
fees and D&O insurance coverage.
Laidlaw fees and compensation charges.
EmCare did not
incur Laidlaw fees and compensation charges for the five months
ended June 30, 2005 as it was no longer a subsidiary of
Laidlaw International, Inc. For the five months ended
June 30, 2004, these fees and charges were
$2.7 million, or 1.2% of net revenue. Costs incurred to
date to replace the services previously performed by Laidlaw are
included in the statement of operations for the five months
ended June 30, 2005.
Depreciation and amortization.
Depreciation and
amortization expense for the five months ended June 30,
2005 was $4.5 million, or 1.7% of net revenue, compared to
$3.8 million, or 1.7% of net revenue, for the five months
ended June 30, 2004.
53
Table of Contents
Three months ended June 30, 2005 (Successor) compared
to the three months ended June 30, 2004
(Predecessor)
Interest expense.
Interest expense for the three months
ended June 30, 2005 was $13.6 million compared to
$3.1 million for the three months ended June 30, 2004.
The $10.5 million increase relates to the additional debt
incurred as part of the acquisition of AMR and EmCare by EMS L.P.
Income tax expense.
Income tax expense for the three
months ended June 30, 2005 was $3.8 million compared
to $4.8 million for the three months ended June 30,
2004. The $1.0 million decrease relates primarily to the
additional interest expense recorded during the 2005 period.
AMR
Net revenue.
Net revenue for the three months ended
June 30, 2005 was $284.7 million, an increase of
$25.0 million, or 9.6%, from $259.7 million for the
three months ended June 30, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 7.9%. The increase in net
revenue per weighted transport was the result of rate increases
in several of our operating markets and Medicare rate increases
under the Medicare Modernization Act. In addition, we had a net
increase of approximately 11,700 weighted transports. Our total
increase in weighted transports of 38,000 was offset by a
decrease of approximately 26,300 weighted transports and
$5.2 million in net revenue for the three months ended
June 30, 2005 as a result of exiting the Pinellas County,
Florida market in late September 2004.
Compensation and benefits.
Compensation and benefits
costs for the three months ended June 30, 2005 were
$180.8 million, or 63.5% of net revenue, compared to
$169.9 million, or 65.4% of net revenue, for the three
months ended June 30, 2004. Total unit hours increased
period over period by approximately 47,400, due to the increase
in ambulance transport volume. In addition, ambulance crew wages
per ambulance unit hour increased by approximately 4.7%, which
increased compensation costs by $4.4 million. The ambulance
crew wages per ambulance unit hour increase resulted principally
from annual salary increases. Benefits costs increased
$1.5 million due to rising costs of health insurance
premiums and increased health benefit claims. The exit from the
Pinellas County, Florida market decreased ambulance unit hours
by 57,400 and compensation and benefits costs by $3.9 million.
Operating expenses.
Operating expenses for the three
months ended June 30, 2005 were $56.1 million, or
19.7% of net revenue, compared to $47.7 million, or 18.4%
of net revenue, for the three months ended June 30, 2004.
The change is due primarily to additional fuel and vehicle
repair costs of approximately $2.2 million, and increases
in medical supplies, external services and professional fees of
$1.1 million, $1.8 million and $1.4 million,
respectively. External services increased due to contract
changes, increased ambulance transport volumes and professional
fees related to post-acquisition consulting fees. Other
operating costs, including occupancy, telecommunications and
other expenses, increased by approximately $1.9 million,
but remained relatively flat as a percentage of net revenue
compared to the prior period.
Insurance expense.
Insurance expense for the three months
ended June 30, 2005 was $11.8 million, or 4.1% of net
revenue, compared to $12.4 million, or 4.8% of net revenue,
for the same period in 2004. The three months ended
June 30, 2005 included a $2.2 million reduction of
reserves based on favorable development of claims costs and
reserve estimates.
Selling, general and administrative.
Selling, general and
administrative expense for the three months ended June 30,
2005 was $10.6 million, or 3.7% of net revenue, compared to
$7.8 million, or 3.0% of net revenue, for the three months
ended June 30, 2004. The three months ended June 30,
2004 includes payroll tax refunds related to prior periods of
approximately $2.0 million.
Laidlaw fees and compensation charges.
AMR did not incur
Laidlaw fees and compensation charges for the three months ended
June 30, 2005 as it was no longer a subsidiary of Laidlaw
International, Inc. For the three months ended June 30,
2004, these fees and charges were $2.3 million, or 0.9% of
net revenue. Costs incurred to date to replace the services
previously performed by Laidlaw are included in the statement of
operations for the three months ended June 30, 2005.
54
Table of Contents
Depreciation and amortization.
Depreciation and
amortization expense for the three months ended June 30,
2005 was $11.5 million, or 4.0% of net revenue, compared to
$10.8 million, or 4.2% of net revenue, for the three months
ended June 30, 2004.
EmCare
Net revenue.
Net revenue for the three months ended
June 30, 2005 was $160.3 million, an increase of
$20.0 million, or 14.3%, from $140.3 million for the
three months ended June 30, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following June 30,
2004, we added 27 net new contracts which accounted for a net
revenue increase of $15.6 million for the three months
ended June 30, 2005. Net revenue under our "same
store" contracts (contracts in existence for the entirety
of both fiscal periods) increased $7.9 million in the three
months ended June 30, 2005 due to a 3.7% increase in
patient encounters and a 2.3% increase in net revenue per
patient encounter.
Compensation and benefits.
Compensation and benefits
costs for the three months ended June 30, 2005 were
$126.5 million, or 78.9% of net revenue, compared to
$110.5 million, or 78.7% of net revenue, for the three
months ended June 30, 2004. Compensation and benefits costs
increased $9.1 million from net new contract additions. Of
the remaining $6.9 million increase in such costs,
$6.5 million was attributable to an increase in provider
compensation costs related to an increase in patient encounters,
and $0.4 million was attributable to an increase in billing
support personnel and regional support personnel for net new
contract additions.
Operating expenses.
Operating expenses for the three
months ended June 30, 2005 were $7.1 million, or 4.4%
of net revenue, compared to $5.8 million, or 4.1% of net
revenue, for the three months ended June 30, 2004.
Operating expenses, as a percentage of net revenue, increased
slightly due to higher collection fees incurred by our billing
operation.
Insurance expense.
Professional liability insurance
expense for the three months ended June 30, 2005 was
$10.6 million, or 6.6% of net revenue, compared to
$10.5 million, or 7.5% of net revenue, for the three months
ended June 30, 2004. The decrease as a percent of revenue
is due to continued favorable improvement in ultimate claims
costs.
Selling, general and administrative.
Selling, general and
administrative expense for the three months ended June 30,
2005 was $3.9 million, or 2.5% of net revenue, compared to
$5.0 million, or 3.6% of net revenue, for the three months
ended June 30, 2004. The $1.1 million decrease in
selling, general and administrative expense is related to a
Laidlaw administered long-term incentive compensation plan which
is no longer in effect.
Laidlaw fees and compensation charges.
EmCare did not
incur Laidlaw fees and compensation charges for the three months
ended June 30, 2005 as it was no longer a subsidiary of
Laidlaw International, Inc. For the three months ended
June 30, 2004, these fees and charges were
$1.6 million, or 1.1% of net revenue. Costs incurred to
date to replace the services previously performed by Laidlaw are
included in the statement of operations for the three months
ended June 30, 2005.
Depreciation and amortization.
Depreciation and
amortization expense for the three months ended June 30,
2005 was $2.6 million, or 1.7% of net revenue, compared to
$2.3 million, or 1.6% of net revenue, for the three months
ended June 30, 2004.
Five months ended January 31, 2005 (Successor)
compared to the five months ended January 31, 2004
(Predecessor)
Interest expense.
Interest expense for the five months
ended January 31, 2005 was $5.6 million compared to
$4.1 million for the five months ended January 31,
2004. The $1.5 million difference relates to an increase in
the amount owed to Laidlaw during the five months ended
January 31, 2005 compared to the same period in 2004.
55
Table of Contents
Income tax expense.
Income tax expense for the five
months ended January 31, 2005 was $6.3 million
compared to $8.6 million for the five months ended
January 31, 2004. The $2.3 million decrease relates
primarily to additional interest expense and added costs
incurred by AMR and EmCare as a result of the acquisition.
AMR
Net revenue.
Net revenue for the five months ended
January 31, 2005 was $455.1 million, an increase of
$13.1 million, or 3.0%, from $442.0 million for the
five months ended January 31, 2004. The increase in net
revenue was due primarily to an increase in our net revenue per
weighted transport of approximately 6%, offset by approximately
38,700 fewer weighted transports, including a 30,220 ambulance
transport decrease. The decrease in ambulance transports was due
primarily to exiting the Pinellas County, Florida market in late
September 2004, which accounted for a decrease of approximately
35,000 ambulance transports and $6.2 million in net revenue
for the five months ended January 31, 2005.
Compensation and benefits.
Compensation and benefits
costs for the five months ended January 31, 2005 were
$289.7 million, or 63.7% of net revenue, compared to
$287.7 million, or 65.1% of net revenue, for the five
months ended January 31, 2004. Total unit hours decreased
period over period by 100,800 primarily as a result of the exit
from the Pinellas County, Florida market, which decreased
ambulance unit hours by 79,800 and compensation and benefits
costs by $5.3 million. The decrease in total unit hours was
offset by an increase in our ambulance crew wages per ambulance
unit hour of 6.6%, which increased compensation costs by
$10.1 million. The ambulance crew wages per ambulance unit
hour increase resulted principally from annual salary increases.
Benefits costs decreased $1.7 million due to our shift of
employees previously covered under premium-based health
insurance plans to self-insured health plans.
Operating expenses.
Operating expenses for the five
months ended January 31, 2005 were $83.9 million, or
18.4% of net revenue, compared to $80.3 million, or 18.2%
of net revenue, for the five months ended January 31, 2004.
This $3.6 million increase was due primarily to higher fuel
costs, which were 2.0% of net revenue for the five months ended
January 31, 2005, compared to 1.6% of net revenue for the
same period in 2004.
Insurance expense.
Insurance expense for the five months
ended January 31, 2005 was $22.4 million, or 4.9% of
net revenue, compared to $22.7 million, or 5.1% of net
revenue, for the same period in 2004. This $0.3 million
decrease was primarily a result of improvements in ultimate
claims costs.
Selling, general and administrative.
Selling, general and
administrative expense for the five months ended
January 31, 2005 was $15.7 million, or 3.5% of net
revenue, compared to $16.2 million, or 3.7% of net revenue,
for the five months ended January 31, 2004. The
$0.5 million decrease in selling, general and
administrative expense related primarily to deferred
compensation expense recorded as part of management incentive
programs that were implemented by Laidlaw during fiscal 2004 and
which were expensed as a component of Laidlaw fees and
compensation charges in 2005.
Laidlaw fees and compensation charges.
Laidlaw fees and
compensation charges for the five months ended January 31,
2005 were $9.4 million, or 2.1% of net revenue, compared to
$3.8 million, or 0.9% of net revenue, for the five months
ended January 31, 2004. This $5.6 million increase was
primarily due to charges related to senior management incentive
plans expensed as part of the sale to Onex and additional
Laidlaw overhead costs allocated to AMR during the five months
ended January 31, 2005.
Depreciation and amortization.
Depreciation and
amortization expense for the five months ended January 31,
2005 was $16.4 million, or 3.6% of net revenue, compared to
$18.3 million, or 4.1% of net revenue, for the five months
ended January 31, 2004. The $1.9 million decrease
resulted from the elimination of the contract intangible asset
recorded in fiscal 2003 as part of our fresh-start accounting
adjustments. As this asset was eliminated in the fourth quarter
of fiscal 2004, no amortization expense was recorded for this
intangible asset in the five months ended January 31, 2005.
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EmCare
Net revenue.
Net revenue for the five months ended
January 31, 2005 was $241.1 million, an increase of
$15.5 million, or 6.9%, from $225.6 million for the
five months ended January 31, 2004. The increase was due
primarily to an increase in net new hospital contracts and net
revenue increases in existing contracts. Following
January 31, 2004, we added 33 net new contracts which
accounted for a net revenue increase of $19.1 million for
the five months ended January 31, 2005. Net revenue under
our "same store" contracts (contracts in existence for
the entirety of both fiscal periods) increased $3.6 million
in the five months ended January 31, 2005 due to a 2.4%
increase in patient visits and a 3.7% increase in net revenue
per patient visit.
Compensation and benefits.
Compensation and benefits
costs for the five months ended January 31, 2005 were
$191.6 million, or 79.5% of net revenue, compared to
$174.2 million, or 77.2% of net revenue, for the five
months ended January 31, 2004. Compensation and benefits
costs increased $9.0 million from net new contract
additions. Of the remaining $8.4 million increase in such
costs, $8.0 million was attributable to an increase in
provider compensation costs related primarily to an increase in
patient visits, and $0.4 million was attributable to an
increase in billing support personnel and regional support
personnel for net new contract additions.
Operating expenses.
Operating expenses for the five
months ended January 31, 2005 were $11.0 million, or
4.6% of net revenue, compared to $10.6 million, or 4.7% of
net revenue, for the five months ended January 31, 2004.
Operating expenses, as a percentage of net revenue, decreased
due to our leveraging of fixed billing and other fixed contract
costs.
Insurance expense.
Professional liability insurance
expense for the five months ended January 31, 2005 was
$16.6 million, or 6.9% of net revenue, compared to
$17.7 million, or 7.9% of net revenue, for the five months
ended January 31, 2004. Insurance expense, as a percentage
of net revenue, decreased due to an improvement in expected
ultimate claims costs.
Selling, general and administrative.
Selling, general and
administrative expense for the five months ended
January 31, 2005 was $5.9 million, or 2.5% of net
revenue, compared to $5.8 million, or 2.6% of net revenue,
for the five months ended January 31, 2004.
Laidlaw fees and compensation charges.
Laidlaw fees and
compensation charges for the five months ended January 31,
2005 was $10.5 million, or 4.3% of net revenue, compared to
$2.7 million, or 1.2% of net revenue, for the five months
ended January 31, 2004. This $7.8 million increase was
primarily due to charges related to senior management incentive
plans expensed as part of the sale to Onex and additional
Laidlaw overhead costs allocated to EmCare during the five
months ended January 31, 2005.
Depreciation and amortization.
Depreciation and
amortization expense for the five months ended January 31,
2005 was $2.4 million, or 1.0% of net revenue, compared to
$3.8 million, or 1.7% of net revenue, for the five months
ended January 31, 2004. The $1.4 million decrease was
the result of the elimination of the contract intangible asset
recorded in fiscal 2003 as part of our fresh-start accounting
adjustments. As this asset was eliminated in the fourth quarter
of fiscal 2004, no amortization expense was recorded for this
intangible asset in the five months ended January 31, 2005.
Year ended August 31, 2004 compared to the year ended
August 31, 2003
AMR
Interest expense.
Interest expense for the year ended
August 31, 2004 was $10.0 million compared to
$5.6 million for the year ended August 31, 2003. The
increase is a result of Laidlaw suspending certain related party
interest charges during the Laidlaw bankruptcy in 2003.
Income tax expense.
Income tax expense for the year ended
August 31, 2004 was $21.8 million compared to
$9.5 million for the year ended August 31, 2003. The
$12.3 million increase is a result of the release of full
valuation allowances on all deferred tax assets for the 2003
period in connection with Laidlaw's exit from bankruptcy.
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Net revenue.
Net revenue for the year ended
August 31, 2004 was $1,054.8 million, an increase of
$47.6 million, or 4.7%, from $1,007.2 million for the
year ended August 31, 2003. The increase was due primarily
to an increase in weighted transports of 65,800, or 2.3%,
resulting in a net revenue increase of $22.9 million. The
balance of the increase resulted from rate increases in several
of our markets that offset Medicare rate reductions in effect
prior to the July 1, 2004 effective date of the Medicare
Modernization Act, together increasing our net revenue per
weighted transport by 2.4%, or $24.7 million.
Compensation and benefits.
Compensation and benefits
costs for the year ended August 31, 2004 were
$687.2 million, or 65.2% of net revenue, compared to
$647.3 million, or 64.3%, for the year ended
August 31, 2003. The increase of $39.9 million
includes an increase in ambulance unit hours of 242,200, or
2.5%, associated with the increase in weighted transports,
totaling $8.9 million of compensation-related costs.
Ambulance salaries per unit hour increased 3.5%, or
$12.6 million. In fiscal 2004 we expanded our sales and
marketing team and our senior management, resulting in
$3.7 million of compensation and benefits costs. Our health
insurance costs and other employee benefits also increased year
over year by $11.0 million.
Operating expenses.
Operating expenses for the year ended
August 31, 2004 were $194.4 million, or 18.4% of net
revenue, compared to $195.1 million, or 19.4% of net
revenue, for the year ended August 31, 2003. These expenses
decreased primarily as a result of improvements in
telecommunications contract rates, totaling $0.6 million,
and a reduction in medical supplies expense, totaling
$0.6 million, from improved purchasing contracts and more
efficient inventory management. These decreases were offset in
part by increases in vehicle operating costs, totaling
$0.6 million, resulting primarily from higher fuel costs
incurred in late fiscal 2004.
Insurance expense.
Insurance expense for the year ended
August 31, 2004 was $44.3 million, or 4.2% of net
revenue, compared to $67.4 million, or 6.7% of net revenue,
for the year ended August 31, 2003. This decrease of
$23.1 million primarily relates to insurance expense
recorded in fiscal 2003 of $14.6 million resulting from
increases in actuarially-computed estimates of costs required to
settle prior years' claims. In fiscal 2004, we recorded a
reduction of insurance expense of $4.5 million due to
favorable developments with respect to these claims. We funded
these claims through Laidlaw's captive insurance program.
Excluding these adjustments, insurance expense decreased
$4.0 million from fiscal 2003 to fiscal 2004 as a result of
improvements in ultimate claims costs. Management implemented a
number of additional risk mitigation programs at the beginning
of fiscal 2003 that we believe positively impacted claims costs
in fiscal 2004.
Selling, general and administrative.
Selling, general and
administrative expense for the year ended August 31, 2004
was $32.2 million, or 3.1% of net revenue, compared to
$35.1 million, or 3.5% of net revenue, for the year ended
August 31, 2003. This decrease of $2.9 million relates
primarily to a one-time expense reduction to eliminate a
contingent liability of $1.8 million.
Laidlaw fees and compensation charges.
Laidlaw fees and
compensation charges for the year ended August 31, 2004
increased from $3.6 million, or 0.4% of net revenue, to
$9.0 million, or 0.9% of net revenue, from the year ended
August 31, 2003. The $5.4 million increase was due to
charges related to senior management incentive plans and
additional Laidlaw overhead costs allocated to AMR.
Depreciation and amortization.
Depreciation and
amortization expense for the year ended August 31, 2004 was
$43.6 million, or 4.1% of net revenue, compared to
$39.3 million, or 3.9% of net revenue, for the year ended
August 31, 2003. The $4.3 million increase includes
$3.3 million attributable to amortization of a contract
intangible asset recorded as part of our fresh-start accounting
adjustments. The balance of the increase is related primarily to
vehicle acquisitions made in late fiscal 2003 and fiscal 2004.
Restructuring charges.
Restructuring charges were
$2.1 million, or 0.2% of net revenue, for the year ended
August 31, 2004, a decrease from $2.7 million, or 0.3%
of net revenue, for the year ended August 31, 2003. Fiscal
2003 restructuring charges included severance-related costs for
several members of senior management who were replaced during
the year and costs incurred in restructuring and consolidating
our billing offices. In fiscal 2004, we reduced the number of
operating regions and shifted the oversight of the affected
operations to the remaining regional management teams.
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EmCare
Net revenue.
Net revenue for the year ended
August 31, 2004 was $549.8 million, an increase of
$69.2 million, or 14.4%, from $480.6 million for the
year ended August 31, 2003. The increase was due primarily
to an increase in net new hospital contracts and net revenue
increases in existing contracts. During fiscal 2004, we added
35 net new contracts (58 new contracts, including 50 new
emergency department contracts and 8 new hospitalist contracts,
offset by 23 contract terminations), for a net revenue increase
of $21.6 million. Net revenue increased $23.6 million
as a result of the net impact of contract additions and
terminations in fiscal 2003. "Same store" net revenue
increased $24.0 million due to a 4.5% increase in patient
visits and an increase of 1.1% in net revenue per patient visit.
Compensation and benefits.
Compensation and benefits
costs for the year ended August 31, 2004 were
$430.7 million, or 78.3% of net revenue, compared to
$374.5 million, or 77.9% of net revenue, for the year ended
August 31, 2003. The $56.2 million increase was
related primarily to the increase in net new contracts in fiscal
2003 and 2004. "Same store" contract compensation and
benefits costs increased $12.8 million as a result of
increased net revenue per visit and an increase in volume of
patient visits, as a number of our contracts include
productivity-based compensation plans.
Operating expenses.
Operating expenses for the year ended
August 31, 2004 were $23.9 million, or 4.3% of net
revenue, compared to $23.6 million, or 4.9% of net revenue,
for the year ended August 31, 2003. Operating expenses
decreased as a percent of net revenue from 4.9% in fiscal 2003
to 4.3% in fiscal 2004 due to our leveraging of fixed billing
and other contract costs.
Insurance expense.
Professional liability insurance
expense for the year ended August 31, 2004 was
$36.0 million, or 6.5% of net revenue, compared to
$36.8 million, or 7.7% of net revenue, for the year ended
August 31, 2003. The reduction as a percent of net revenue
represents a combination of improved investment returns, changes
in actuarial estimates of costs required to settle prior
years' claims and a reduction in the estimate of ultimate
claims costs.
Selling, general and administrative.
Selling, general and
administrative expense for the year ended August 31, 2004
was $15.7 million, or 2.9% of net revenue, compared to
$14.8 million, or 3.1% of net revenue, for the year ended
August 31, 2003. The $0.9 million increase in selling,
general and administrative expense includes $0.6 million of
deferred compensation expense recorded as part of management
incentive programs during fiscal 2004 that were terminated in
connection with the acquisition and additional support costs
required for net new contracts.
Laidlaw fees and compensation charges.
Laidlaw fees and
compensation charges for the year ended August 31, 2004
were $6.4 million, or 1.2% of net revenue, compared to
$1.8 million, or 0.4% of net revenue, for the year ended
August 31, 2003. The increase was due to charges related to
senior management incentive plans and additional Laidlaw
overhead costs allocated to EmCare.
Depreciation and amortization.
Depreciation and
amortization expense for the year ended August 31, 2004 was
$9.1 million, or 1.7% of net revenue, compared to
$5.4 million, or 1.1% of net revenue, for the year ended
August 31, 2003. The increase of $3.7 million was due
to amortization of a contract intangible asset recorded as part
of our fresh-start accounting adjustments.
Laidlaw reorganization costs.
There were no allocated
reorganization costs in fiscal 2004. Laidlaw reorganization
costs for the year ended August 31, 2003 were
$3.7 million, or 0.8% of net revenue. These costs were
allocated to EmCare by Laidlaw and reflect costs borne by
Laidlaw during its Chapter 11 restructuring.
Year ended August 31, 2003 compared to the year ended
August 31, 2002
Interest expense.
Interest expense for the year ended
August 31, 2003 was $5.6 million compared to
$6.4 million for the year ended August 31, 2002. The
decrease of $0.8 million is due to higher interest costs on
vehicle capital leases in fiscal 2002.
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Income tax expense.
Income tax expense for the year ended
August 31, 2003 was $9.5 million compared to
$1.4 million for the year ended August 31, 2002. The
$8.1 million increase is due to increased income from
operations during fiscal 2003.
AMR
Net revenue.
Net revenue for the year ended
August 31, 2003 was $1,007.2 million, an increase of
$22.7 million, or 2.3%, from $984.5 million for the
same period in 2002. The increase for fiscal 2003 is due
primarily to rate increases we negotiated with several
communities and payors during fiscal 2003, partially in response
to Medicare rate reductions beginning in April 2002. Our rate
per weighted transport increased 2.9%, resulting in a
$28.4 million increase in net revenue. This increase was
offset, in part, by a decrease in weighted transports of 16,900,
or 0.6%, resulting in a $5.7 million decrease in net
revenue, due principally to fewer non-emergency transports.
Compensation and benefits.
Compensation and benefits
costs for the year ended August 31, 2003 were
$647.3 million, or 64.3% of net revenue, compared to
$627.8 million, or 63.8% of net revenue, for the year ended
August 31, 2002. The $19.5 million increase relates
primarily to ambulance crew wage per unit hour increases of
approximately 2.9%, or $9.8 million, in addition to an
increase in unit hours of approximately 90,900, or 0.9%,
resulting in a $2.5 million increase. Benefits also
increased $3.6 million from period to period as a result of
rising health insurance premium costs.
Operating expenses.
Operating expenses for the year ended
August 31, 2003 were $195.1 million, or 19.4% of net
revenue, compared to $195.3 million, or 19.8% of net
revenue, for the year ended August 31, 2002. The
$0.2 million decrease was a result of a $3.1 million
decrease in occupancy costs from consolidating certain regional
facilities and a $6.1 million decrease in professional
services from legal costs incurred in fiscal 2002 for
compliance-related matters, offset in part by a
$6.5 million increase in external provider costs. The
increase in external provider costs resulted principally from a
significant expansion in our national and regional relationships
with managed care and insurance providers and the resulting
costs we incurred to subcontract certain transports to local
ambulance providers.
Insurance expense.
Insurance expense for the year ended
August 31, 2003 was $67.4 million, or 6.7% of net
revenue, compared to $36.1 million, or 3.7% of net revenue,
for the year ended August 31, 2002. In fiscal 2003, we
recorded $14.6 million of expense related to reserve
adjustments resulting from increases in actuarially-computed
estimates of costs required to settle prior years' claims.
We funded these claims through Laidlaw's captive insurance
program. In fiscal 2002, we recorded a reduction of insurance
expense of $8.1 million related to the favorable
development of claims reserves on insurance liabilities prior to
fiscal 2002. Excluding these adjustments, the $8.6 million
increase in insurance expense related to increasing premium and
claims costs associated with our workers compensation, and auto,
general and professional liability programs.
Selling, general and administrative.
Selling, general and
administrative expense for the year ended August 31, 2003
was $35.1 million, or 3.5% of net revenue, compared to
$44.7 million, or 4.5% of net revenue, for the year ended
August 31, 2002. The $9.6 million reduction in
selling, general and administrative expense from fiscal 2002 to
fiscal 2003 is the result of severance recorded in fiscal 2002
to replace certain members of management, totaling
$3.7 million, associated costs to close operations,
totaling $0.9 million, and compliance-related penalties of
approximately $1.9 million incurred in fiscal 2002. In
fiscal 2003, we recorded a one-time reduction of selling,
general and administrative expense relating to the release of
$1.2 million in accrued liabilities and a reduction to
expense related to payroll tax refunds of $0.6 million.
Depreciation and amortization.
Depreciation and
amortization expense for the year ended August 31, 2003 was
$39.3 million, or 3.9% of net revenue, compared to
$62.2 million, or 6.3% of net revenue, for the year ended
August 31, 2002. The decrease of $22.9 million
includes $21.3 million attributable to the
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amortization of goodwill. Beginning in fiscal 2003, this
intangible asset was no longer amortized, but evaluated annually
for impairment under applicable accounting guidance.
Impairment losses.
In fiscal 2002, we recorded an
impairment charge of $262.8 million or 26.7% of net
revenue, on long-lived assets based on the evaluation at that
time that future operating cash flows would not be sufficient to
recover the carrying value of certain long-lived assets,
primarily goodwill.
Restructuring charges.
Restructuring charges were
$2.7 million, or 0.3% of net revenue, in the year ended
August 31, 2003, a decrease from $3.8 million, or 0.4%
of net revenue, in the year ended August 31, 2002. Fiscal
2003 restructuring charges included severance-related costs for
several members of senior management who were replaced during
the year and costs incurred in restructuring and consolidating
our billing offices. In fiscal 2002, AMR reduced the number of
operating regions, exited certain facilities, and shifted the
oversight of the impacted operations to the remaining regional
management teams.
EmCare
Net revenue.
Net revenue for the year ended
August 31, 2003 was $480.6 million, an increase of
$49.3 million, or 11.4%, from $431.3 million for the
year ended August 31, 2002. The increase was due primarily
to an increase in net new hospital contracts and net revenue
increases in existing contracts. During fiscal 2003, we added
27 net new contracts (55 new contracts, including 48 new
emergency department contracts and 7 new hospitalist contracts,
offset by 28 contract terminations), for a net revenue increase
of $30.4 million. Net revenue increased $3.9 million
as a result of the net impact of 2002 contract additions and
terminations. "Same store" net revenue increased
$15.0 million due to a 2.0% increase in patient visits and
a 1.8% increase in net revenue per patient visit.
Compensation and benefits.
Compensation and benefits
costs for the year ended August 31, 2003 were
$374.5 million, or 77.9% of net revenue, compared to
$332.8 million, or 77.1% of net revenue, for the year ended
August 31, 2002. These costs increased $23.2 million
as a result of net new contracts in 2003. "Same store"
contract compensation and benefits costs increased
$11.0 million as a result of increased volume of patient
visits and increased net revenue per visit, as a number of our
contracts include productivity-based compensation plans.
Operating expenses.
Operating expenses for the year ended
August 31, 2003 were $23.6 million, or 4.9% of net
revenue, compared to $24.0 million, or 5.6% of net revenue,
for the year ended August 31, 2002. Operating expenses
decreased as a percent of net revenue due to our leveraging of
fixed billing and other contract costs.
Insurance expense.
Professional liability insurance
expense for the year ended August 31, 2003 was
$36.8 million, or 7.7% of net revenue, compared to
$30.4 million, or 7.0% of net revenue, for the year ended
August 31, 2002 due to an increase in expected ultimate
losses.
Selling, general and administrative.
Selling, general and
administrative expense for the year ended August 31, 2003
was $14.8 million, or 3.1% of net revenue, compared to
$16.8 million, or 3.9% of net revenue, for the year ended
August 31, 2002. The $2.0 million decrease was a
result of reduced management contract costs, as contracted
management costs were converted to employee costs in fiscal 2003.
Depreciation and amortization.
Depreciation and
amortization expense for the year ended August 31, 2003 was
$5.4 million, or 1.1% of net revenue, compared to
$5.0 million, or 1.1% of net revenue, for the year ended
August 31, 2002. The $0.4 million increase was due to
additional billing technology investments completed at the end
of fiscal 2002.
Laidlaw reorganization costs.
Allocated reorganization
costs for the year ended August 31, 2003 were
$3.7 million, or 0.8% of net revenue, compared to
$8.8 million, or 2.0% of net revenue, for the year ended
August 31, 2002. These costs were allocated to EmCare by
Laidlaw and reflect costs borne by Laidlaw during its
Chapter 11 restructuring.
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Liquidity and Capital Resources
Our primary sources of liquidity are cash flow provided by our
operating activities and, prior to the acquisition, related
party advances from Laidlaw. We are now using our revolving
senior secured credit facility, described below, to supplement
our cash flow provided by our operating activities. Our
liquidity needs are primarily to fund our working capital
requirements, capital expenditures related to the acquisition of
vehicles and medical equipment, technology-related assets and
insurance-related deposits.
For the five months ended June 30, 2005 and 2004, we
generated cash flow from operating activities of
$94.7 million and $81.3 million, respectively. For the
five months ended June 30, 2005, we had net income of
$11.1 million, compared to $10.3 million for the same
period in 2004. Operating cash flow from changes in working
capital for the five months ended June 30, 2005 increased
$18.1 million from the same period in 2004, primarily
reflecting improved collections on accounts receivable,
partially offset by a reduction in accrued compensation
liability.
Net cash used in investing activities was $875.2 million
for the five months ended June 30, 2005, compared to
$24.1 million for the same period in 2004. The
$851.1 million increase was attributable principally to our
net cash outflow to fund the acquisition of AMR and EmCare.
For the five months ended June 30, 2005, net cash provided
by financing activities was $797.3 million, compared to net
cash used in financing activities of $54.0 million for the
five months ended June 30, 2004. The increase in net cash
provided by financing activities relates primarily to borrowings
received from our senior secured credit facility and senior
subordinated notes. Net cash used in financing activities
included financing costs of $20.1 million and repayments of
debt, including capital lease and senior secured credit facility
obligations totaling $23.7 million.
For the five months ended January 31, 2005 and 2004, we
generated cash flow from operating activities of
$16.0 million and $17.5 million, respectively.
Operating cash flow from changes in working capital for the five
months ended January 31, 2005 increased $7.4 million
from the same period in 2004, primarily reflecting improved
collections on accounts receivables.
Net cash used in investing activities was $21.7 million for
the five months ended January 31, 2005, compared to
$11.8 million for the same period in 2004. The
$9.9 million increase was attributable principally to our
net cash outflow to fund insurance-related deposits in our
EmCare business segment. The balance resulted primarily from the
purchase of new ambulance vehicles and certain medical equipment.
For the five months ended January 31, 2005, net cash
provided by financing activities was $10.9 million compared
to net cash used in financing activities of $5.5 million
for the five months ended January 31, 2004. Net cash used
in financing activities relates primarily to borrowings received
from Laidlaw and payments on our capital lease obligations.
During fiscal 2004, our operating activities generated
$127.7 million in cash flow compared to $88.8 million
in fiscal 2003, an increase of $38.9 million. Operating
cash flow from changes in working capital for fiscal 2004
increased $2.9 million compared to fiscal 2003. The balance
of the change in cash flow provided by operating activities was
attributable principally to an increase in net income, which
includes increases in depreciation and amortization expense and
changes in deferred taxes.
Net cash used in investing activities was $81.5 million and
$114.0 million during fiscal years 2004 and 2003,
respectively. In fiscal 2004, we spent $42.8 million on
property and equipment, of which $20.4 million related to
the acquisition of vehicles, and medical and communications
equipment, technology-related acquisition and leasehold
improvements accounted for $22.4 million. Our
$22.5 million net decrease in insurance-related deposits
and investments, which consist of restricted cash and cash
equivalents, short-term deposits, marketable securities and
long-term investments, resulted from a reduction in cash
outflows to fund certain insurance-related programs consistent
with improved claims development trends. This increase was
principally to support our increase in claims liabilities and
professional liability reserves. In fiscal 2003, we spent
$52.8 million on property and equipment, of which
$29.1 million was related to the acquisition of
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vehicles, and medical and communications equipment,
technology-related acquisition and leasehold improvements
accounted for $23.8 million.
Net cash used in financing activities was $47.3 million and
$55.3 million during fiscal years 2004 and 2003,
respectively. In fiscal 2004, we made payments to Laidlaw of
$31.1 million and made mandatory debt repayments of
$8.7 million. Our bank overdrafts also decreased in fiscal
2004 by $4.5 million. In fiscal 2003, we made payments to
Laidlaw of $58.8 million and made mandatory debt repayments
of $8.2 million. Bank overdrafts also increased
$7.9 million during the year ended August 31, 2003.
Certain government programs, including Medicare and Medicaid
programs, require notice or re-enrollment when certain ownership
changes occur. If the payor requires us to complete the
re-enrollment process prior to submitting reimbursement
requests, we may be delayed in payment, receive refund requests
or be subject to recoupment for services we provide in the
interim. The change in ownership effected by the acquisition
from Laidlaw has required us to re-enroll in one jurisdiction,
and reimbursement from the relevant government program is likely
to be deferred for several months. This will affect our cash
flow, but will not affect our net revenue. We do not expect the
impact of this deferral to be material to us.
We expect to continue to fund the liquidity requirements of our
business principally with cash from operations and amounts
available under the revolving credit portion of our senior
secured credit facility. We have available to us, upon
compliance with customary conditions, $100.0 million under
the revolving credit facility, less any letters of credit
outstanding. Outstanding letters of credit at June 30, 2005
were $24.3 million.
Debt Facilities
The acquisition resulted in a significant increase in the level
of our outstanding debt. We have a $450.0 million senior
secured credit facility bearing interest at variable rates at
specified margins above either the agent bank's alternate
base rate or its LIBOR rate. The senior secured credit facility
consists of a $100.0 million, six-year revolving credit
facility and a $350.0 million, seven-year term loan. We
borrowed the full amount of the term loan, and
$20.2 million under the revolving credit facility, on
February 10, 2005 to fund the acquisition of AMR and EmCare
and pay related fees and expenses. On February 10, 2005, we
also issued $250.0 million principal amount of
10% senior subordinated notes due 2015. We used the net
proceeds of this notes issuance to fund the acquisition.
Our $350.0 million term loan initially carried interest at
the alternate base rate, plus a margin of 1.75%, or the LIBOR
rate, plus a margin of 2.75%. We refinanced this term loan on
March 29, 2005 for a term loan with identical terms except
that the margins were reduced by 0.25%. The term loan is subject
to quarterly amortization of principal (in quarterly
installments), with 1% of the aggregate principal payable in
each of the first six years, with the remaining balance due in
the final year. We intend to use
$        million of the
proceeds of this offering to prepay
$        million of the
term loan. Our $100.0 million revolving credit facility
initially bears interest at the alternate base rate, plus a
margin of 1.75%, or the LIBOR rate, plus a margin of 2.75%. At
June 30, 2005, we had no amounts outstanding under the
revolving credit portion of our senior secured credit facility
and letters of credit outstanding totaling $24.3 million.
We have a conditional right under our senior secured credit
facility to request new or existing lenders to provide up to an
additional $100 million of term debt (in $20 million
increments).
All amounts borrowed under our senior secured credit facility
are secured by, among other things:
•
substantially all present and future shares of the capital stock
    of AMR HoldCo, Inc. and EmCare HoldCo, Inc., our wholly-owned
    subsidiaries which are the co-borrowers, and each of their
    present and future domestic subsidiaries and 65% of the capital
    stock of controlled foreign corporations;
•
substantially all present and future intercompany debt of the
    co-borrowers and each guarantor; and
•
substantially all of the present and future property and assets,
    real and personal, of the co-borrowers and each guarantor.
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The agreements governing our senior secured credit facility
contains customary affirmative and negative covenants,
including, among other things, restrictions on indebtedness,
liens, mergers and consolidations, sales of assets, loans,
acquisitions, joint ventures, restricted payments, transactions
with affiliates, dividends and other payment restrictions
affecting subsidiaries, a change in control of the company and
other matters customarily restricted in such agreements. The
agreement governing our senior secured credit facility also
contains financial covenants, including a maximum total leverage
ratio, maximum senior leverage ratio and a minimum fixed charge
coverage ratio.
The indenture governing our senior subordinated notes contains a
number of covenants that, among other things, restrict our
ability and the ability of our subsidiaries, subject to certain
exceptions, to sell assets, incur additional debt or issue
preferred stock, repay other debt, pay dividends and
distributions or repurchase our capital stock, create liens on
assets, make investments, loans or advances, make certain
acquisitions, engage in mergers or consolidations and engage in
certain transactions with affiliates.
Quantitative and Qualitative Disclosures about Market Risk
As of June 30, 2005, we had $605.9 million of debt, of
which $349.1 million was variable rate debt under our
senior secured credit facility and the balance was fixed rate
debt, including the $250.0 million aggregate principal
amount of our senior subordinated notes. An increase or decrease
in interest rates will affect our interest costs. For
comparative purposes, for every 0.125% change in interest rates,
our interest costs on our senior secured credit facility will
change by approximately $0.44 million per year based on our
outstanding indebtedness at June 30, 2005.
Off-Balance Sheet Arrangements
We do not have any relationships with unconsolidated entities or
financial partnerships, such as entities often referred to as
structured finance or special purpose entities, established for
the purpose of facilitating off-balance sheet arrangements or
other contractually narrow or limited purposes. Accordingly, we
are not materially exposed to any financing, liquidity, market
or credit risk that could arise if we had engaged in such
relationships.
Tabular Disclosure of Contractual Obligations and Other
Commitments
The following tables reflect a summary of obligations and
commitments outstanding as of June 30, 2005, including our
borrowings under our senior secured credit facility and our
senior subordinated notes.
Payments Due by Period
Less than
More than
1 Year
1-3 Years
3-5 Years
5 Years
Total
(in thousands)
Contractual cash obligations:
Long-term debt(1)
$
118
$
588
$
235
$
50
$
991
Senior secured credit facility(2)
3,500
7,000
7,000
331,625
349,125
Capital lease obligations (principal)
5,530
2,580
—
—
8,110
Capital lease obligations (interest)
497
3
—
—
500
Senior subordinated notes
—
—
—
250,000
250,000
Interest on debt(3)
35,881
71,205
70,395
131,192
308,673
Operating lease obligations
26,400
34,577
19,595
20,659
101,231
Subtotal
71,926
115,953
97,225
733,526
1,018,630
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Amount of Commitment Expiration Per Period
Less than
More than
1 Year
1-3 Years
3-5 Years
5 Years
Total
(in thousands)
Other commitments:
Guarantees of surety bonds
32,022
310
—
2,850
35,182
Letters of credit(4)
500
—
—
23,797
24,297
Subtotal
32,522
310
—
26,647
59,479
Total obligations and commitments
$
104,448
$
116,263
$
97,225
$
760,173
$
1,078,109
(1)
Excludes capital lease obligations.
(2)
Excludes interest on our senior secured credit facility and
    senior subordinated notes.
(3)
Interest on our floating rate debt was calculated for all years
    using the effective rate as of June 30, 2005 of 5.63%.
(4)
Evergreen renewals are deemed to have expiration dates in excess
    of 5 years.
We have one capital lease relating to approximately 450
ambulances. The term of the lease extends to August 2007.
Critical Accounting Policies
The preparation of financial statements requires management to
make estimates and assumptions relating to the reporting of
results of operations, financial condition and related
disclosure of contingent assets and liabilities at the date of
the financial statements. Actual results may differ from those
estimates under different assumptions or conditions. The
following are our most critical accounting policies, which are
those that require management's most difficult, subjective
and complex judgments, requiring the need to make estimates
about the effect of matters that are inherently uncertain and
may change in subsequent periods.
Claims Liability and Professional Liability
Reserves
We are self-insured up to certain limits for costs associated
with workers compensation claims, automobile, professional
liability claims and general business liabilities. Reserves are
established for estimates of the loss that we will ultimately
incur on claims that have been reported but not paid and claims
that have been incurred but not reported. These reserves are
based upon actuarial valuations that are prepared by our outside
actuaries. The actuarial valuations consider a number of
factors, including historical claim payment patterns and changes
in case reserves, the assumed rate of increase in healthcare
costs and property damage repairs. Historical experience and
recent trends in the historical experience are the most
significant factors in the determination of these reserves. We
believe the use of actuarial methods to account for these
reserves provides a consistent and effective way to measure
these subjective accruals. However, given the magnitude of the
claims involved and the length of time until the ultimate cost
is known, the use of any estimation technique in this area is
inherently sensitive. Accordingly, our recorded reserves could
differ from our ultimate costs related to these claims due to
changes in our accident reporting, claims payment and settlement
practices or claims reserve practices, as well as differences
between assumed and future cost increases.
Revenue Recognition
A significant portion of our revenue is derived from Medicare,
Medicaid and private insurance payors that receive discounts
from our standard charges (referred to as contractual
provisions). Additionally, we are also subject to collection
risk for services provided to uninsured patients or for the
deductible or co-pay portion of services for insured patients
(referred to as uncompensated care). We record our healthcare
services revenue net of estimated provisions for the contractual
allowances and uncompensated care.
Healthcare reimbursement is complex and may involve lengthy
delays. Third party payors are continuing their efforts to
control expenditures for healthcare and may disallow, in whole
or in part, claims for reimbursement based on determinations
that certain amounts are not reimbursable under plan coverage,
were for services provided that were not determined medically
necessary, or insufficient supporting information was provided.
In addition, multiple payors with different requirements can be
involved with each claim.
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Management utilizes sophisticated information systems and
financial models to estimate the provisions for contractual
allowances and uncompensated care. The estimate for contractual
allowances is determined on a payor-specific basis and is
predominantly based on prior collection experience, adjusted as
needed for known changes in reimbursement rates and recent
changes in payor mix and patient acuity factors. The estimate
for uncompensated care is based principally on historical
collection rates, write-off percentages and accounts receivable
agings. These estimates are analyzed continually and updated by
management by monitoring reimbursement rate trends from
governmental and private insurance payors, recent trends in
collections from self-pay patients, the ultimate cash collection
patterns from all payors, accounts receivable aging trends,
operating statistics and ratios, and the overall trends in
accounts receivable write-offs.
The evaluation of these factors, as well as the interpretation
of governmental regulations and private insurance contract
provisions, involves complex, subjective judgments. As a result
of the inherent complexity of these calculations, our actual
revenues and net income, and our accounts receivable, could vary
from the amounts reported.
Income Tax Valuation Allowance
We have significant net deferred tax assets resulting from net
operating losses, or NOLs, and interest deduction carryforwards
and other deductible temporary differences that will reduce
taxable income in future periods. Statement of Financial
Accounting Standards No. 109 "Accounting for Income
Taxes" requires that a valuation allowance be established
when it is "more likely than not" that all or a
portion of net deferred tax assets will not be realized. A
review of all available positive and negative evidence needs to
be considered, including expected reversals of significant
deductible temporary differences, a company's recent
financial performance, the market environment in which a company
operates, tax planning strategies and the length of the NOL and
interest deduction carryforward periods. Furthermore, the weight
given to the potential effect of negative and positive evidence
should be commensurate with the extent to which it can be
objectively verified. We routinely monitor the reliability of
our deferred tax assets. Changes in management's assessment
of recoverability could result in additions to the valuation
allowance, and such additions could be significant.
Contingencies
As discussed in note 10 — Commitments and
Contingencies of notes to our combined financial statements,
management may not be able to make a reasonable estimate of
liabilities that result from the final resolution of certain
contingencies disclosed. Further assessments of the potential
liability will be made as additional information becomes
available. Management currently does not believe that these
matters will have a material adverse effect on our consolidated
financial position. It is possible, however, that results of
operations could be materially affected by changes in
management's assumptions relating to these matters or the
actual final resolution of these proceedings.
Intangible Assets
Definite life intangible assets are subject to impairment
reviews when evidence or triggering events suggest that an
impairment may have occurred. Should such triggering events
occur that cause us to review our definite life intangibles and
the fair value of our definite life intangible asset proves to
be less than our unamortized carrying amount, we would take a
charge to earnings for the decline. Should factors affecting the
value of our definite life intangibles change significantly,
such as declining contract retention rates or reduced
contractual cash flows, we may need to record an impairment
charge in amounts that are significant to our financial
statements.
Goodwill
Goodwill is not amortized and is required to be tested annually
for impairment, or more frequently if changes in circumstances,
such as an adverse change to our business environment, cause us
to believe that goodwill may be impaired. Goodwill is allocated
at the reporting unit level. If the fair value of the reporting
unit falls below the book value of the reporting unit at an
impairment assessment date, an impairment charge would be
recorded.
Should our business environment or other factors change, our
goodwill may become impaired and may result in charges to our
income statement that are material.
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INDUSTRY
According to the Centers for Medicare and Medicaid Services, or
CMS, national healthcare spending increased 7.3% to $1.7
trillion in 2003, and increased 8.6% in 2002. This represents
faster growth than the overall economy, which grew 4.8% and 3.4%
during 2003 and 2002, respectively, as measured by the growth of
the gross domestic product.
Hospital care represents the largest individual segment of the
healthcare industry, accounting for an estimated 30.8% of total
healthcare spending in 2003. Hospital care expenditures
increased 5.1% to $511 billion in 2003. CMS estimates that
hospital care expenditures will increase to approximately
$934 billion by 2013, representing a CAGR of 6.1% from
2003. The aging population and longer life expectancy are
increasing demand for healthcare services in the United States,
and hospitals are expected to be among the principal
beneficiaries.
Emergency Medical Services Industry
We operate in the ambulance and emergency department services
markets, two large and growing segments of the emergency medical
services market. By law, most communities are required to
provide emergency ambulance services and most hospitals are
required to provide emergency department services. It is
estimated that 43% of all hospital admissions in 2003 originated
from the emergency department. Given that emergency medical
services are a core component of the patient care continuum, we
believe that expenditures for emergency medical services will
continue to correlate closely to growth in the
U.S. hospital market. We believe that the following key
factors will continue to drive growth in our emergency medical
services markets:
•
Increase in outsourcing.
Communities, government agencies
    and healthcare facilities are under significant pressure both to
    improve the quality and to reduce the cost of care. The
    outsourcing of certain medical services has become a preferred
    means to alleviate these pressures.
•
From 2000 to 2003, we believe outsourced emergency department
    services increased from 55% to 65% of total emergency department
    services.
•
From 1999 to 2003, the percentage of emergency medical
    transportation services supplied by private ambulance providers
    increased from 34% to 39% in the country's largest
    200 cities.
•
Favorable demographics.
The growth and aging of the
    population will be a significant demand driver for healthcare
    services, and we believe it will result in an increase in
    ambulance transports, emergency department visits and hospital
    admissions.
•
The U.S. Census Bureau estimates that the number of
    Americans over 65 will increase to 39 million by 2010 from
    31 million in 1990. It is also expected that Americans over
    the age of 65 will increase from one in eight Americans in 2000
    to one in five by 2030.
•
A 2003 CDC Emergency Department Summary noted that patients aged
    65 or over represent 38% of patients delivered to emergency
    departments by ambulance. Emergency department visits for
    persons aged 65 or over increased to 17.5 million in 2003,
    a 26% increase from 1993.
•
Increased federal funding for disaster preparedness and other
    federal programs.
The United States government has increased
    its focus on our nation's ability to respond quickly and
    effectively to emergencies, including both terrorist attacks and
    natural disasters. Federal programs, such as Homeland Security,
    FEMA and funding for services for undocumented aliens, have made
    increased funding available which is aimed directly at emergency
    services, including ambulance providers and emergency physician
    services.
Ambulance Services
We believe the ambulance services market represents annual
expenditures of approximately $12 billion. The ambulance
services market is highly fragmented, with more than 14,000
private, public and not-for-profit
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service providers accounting for an estimated 36 million
ambulance transports in 2004. There are a limited number of
regional ambulance providers and we are one of only two national
ambulance providers.
Ambulance services encompass both 911 emergency response and
non-emergency transport services, including critical care
transfers, wheelchair transports and other inter-facility
transports. Emergency response services include the dispatch of
ambulances equipped with life support equipment and staffed with
paramedics and/or emergency medical technicians, or EMTs, to
provide immediate medical care to injured or ill patients.
Non-emergency services utilize paramedics and EMTs to transport
patients between healthcare facilities or between facilities and
patient residences. Given demographic trends, the total number
of ambulance transports is expected to continue to grow at a
steady rate of 1% to 2% per year.
911 emergency response services are provided primarily under
long-term contracts with communities and government agencies. In
2003, approximately 54% of 911 ambulance services were
provided principally by government agencies and fire
departments, with private providers representing approximately
42% of 911 services. Non-emergency services generally are
provided pursuant to non-exclusive contracts with healthcare
facilities, managed care and insurance companies. Usage tends to
be controlled by the facility discharge planners, nurses and
physicians who are responsible for requesting transport
services. Non-emergency services are provided primarily by
private ambulance companies. Quality of service, dependability
and name recognition are critical factors in winning
non-emergency business.
Due to increased demand for technology-enhanced and data-driven
providers, cost-effectiveness of services, improved patient
outcomes and emergency preparedness and response, we believe
that the current trend by communities and hospitals to outsource
ambulance services will contribute to growth for private
providers. According to the Journal of Emergency Medical
Services, the percentage of emergency medical transportation
services delivered by private ambulance providers in the
nation's 200 largest cities increased from 34% in 1999 to
39% in 2003. Furthermore, we expect private providers to benefit
as hospitals continue to outsource more of their ambulance
services due to changes in reimbursement rates and increased use
of outpatient services.
Emergency Department Services
We believe the physician reimbursement component of the
emergency department services market represents annual
expenditures of approximately $10 billion. There are
approximately 4,700 hospitals in the United States that
operate emergency departments, of which approximately 67% of
these hospitals outsource their physician staffing and
management for this department. The market for outsourced
emergency department staffing and related management services is
highly fragmented, with more than 800 national, regional
and local providers. We believe we are one of only five national
providers.
Between 1993 and 2003, the total number of patient visits to
hospital emergency departments increased from 90.3 million
to 113.9 million, an increase of 26%. At the same time, the
number of hospital emergency departments declined 12%. As a
result, the average number of patient visits per hospital
emergency department increased substantially during that period.
We believe these trends are resulting in an increased focus by
hospitals on their emergency departments. As the per hospital
demand for emergency department visits continues to increase, we
believe that more hospitals will turn to well-established
providers, such as EmCare, which have a demonstrated track
record of improving productivity and efficiency while providing
high quality care.
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BUSINESS
Company Overview
Emergency Medical Services Corporation is a leading provider of
emergency medical services in the United States. We operate our
business and market our services under the AMR and EmCare
brands. AMR is the leading provider of ambulance services in the
United States. EmCare is the leading provider of outsourced
emergency department staffing and related management services in
the United States. Approximately 86% of our fiscal 2004 net
revenue was generated under exclusive contracts. During fiscal
2004, we provided emergency medical services to approximately
9 million patients in more than 2,000 communities
nationwide. For the fiscal year ended August 31, 2004, we
generated net revenue of $1.6 billion, of which AMR and
EmCare represented 66% and 34%, respectively.
We offer a broad range of essential emergency medical services
through our two business segments:
AMR
EmCare
Core Services:
• Pre- and post-hospital medical transportation
• Hospital-based medical care
• Emergency ("911") ambulance transports
• Emergency department staffing and related management
• Non-emergency ambulance
services
transports
• Hospitalist services
Customers:
• Communities
• Hospitals
• Government agencies
• Independent physician groups
• Healthcare facilities
• Attending medical staff
• Insurers
National Market Position:
• #1 provider of ambulance transports
• #1 provider of outsourced emergency department
    services
• 8% share of total ambulance market
• 6% share of emergency department services market
• 21% of private provider ambulance market
• 9% of outsourced emergency department services market
Number of Contracts:
At June 30, 2005
• 153 "911" contracts
• 329 hospital contracts
• 2,400 non-emergency transport contracts
Volume:
For fiscal 2004
• 3.7 million transports
• 5.3 million patient visits
Competitive Strengths
We believe the following competitive strengths position our
company to capitalize on the favorable trends occurring within
the healthcare industry and the emergency medical services
markets.
Leading, Established Provider of Emergency Medical
Services.
We are a leading provider of emergency medical
services in the United States. AMR is the leading provider of
ambulance services, with net revenue approximately twice that of
our only national competitor. During fiscal 2004, AMR treated
and transported approximately 3.7 million patients in
34 states. AMR has made significant investments in
technology, which we believe delivers a compelling value
proposition to our customers. We believe that EmCare is the
leading provider of outsourced staffing and related management
services to emergency departments, with 32% more emergency
department staffing contracts than our principal national
competitor. EmCare's 4,500 affiliated physicians provide
services to over 300 client hospitals in 39 states,
including many of the top 100 hospitals in the United States.
Our client hospitals range from high volume urban hospital
emergency department to lower volume community facilities.
EmCare is also one of the leading providers of hospitalist
services. We
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believe our track record of consistently meeting or exceeding
our customers' service expectations, coupled with our
ability to leverage our infrastructure and technology to drive
increased productivity and efficiency, have contributed to our
ability to retain existing and win new contracts.
Significant Scale and Geographic Presence.
We believe our
significant scale and broad geographic presence provide a
competitive advantage over local and regional providers in most
areas, including:
•
Ability to recruit and retain quality personnel.
We are
    able to recruit and retain clinical and support employees by
    providing attractive compensation packages, comprehensive
    training programs, risk mitigation strategies, career
    development and greater breadth of job transferability. This
    lowers our costs associated with employee turnover and increases
    customer and patient satisfaction.
•
One of the keys to our success has been our ability to recruit
    and retain high quality medical personnel. AMR has a competitive
    advantage in recruiting quality medical personnel through our
    in-house paramedic training institute, which we believe is the
    largest in the United States. EmCare has developed proprietary
    software that allows us to identify physicians, based on
    multiple characteristics, matching the specific needs of our
    customers. We provide continuing education to our affiliated
    medical professionals through EMEDS, our in-house Emergency
    Medical Education Systems.
•
We believe our 79% and 94% retention rates in fiscal 2004 for
    full-time medical personnel at AMR and EmCare, respectively, are
    among the highest in the emergency medical services segments in
    which they compete. We believe that successfully recruiting and
    retaining highly qualified clinicians and healthcare
    professionals improves the overall experience and outcomes for
    our customers and patients while significantly reducing our
    operating costs.
•
National contracting and preferred provider
    relationships.
We are able to enter into national and
    regional contracts with managed care organizations and insurance
    companies. We have an exclusive provider contract with one of
    the largest managed care organizations, and we have preferred
    provider status with several healthcare systems and many managed
    care organizations.
•
Cost efficiencies and broad program offering.
Our
    investments in technology may be too costly for certain
    providers to replicate, and provide us with several competitive
    advantages, including: (i) operating cost efficiencies,
    (ii) scalability and (iii) the capability to provide
    broad, high quality service offerings to our customers at
    competitive rates. In addition, our technology, including
    electronic patient records, and our expertise in providing both
    pre-hospital and hospital-based emergency care uniquely
    positions us to respond to community demand for enhanced
    coordination among their emergency service providers.
Long-Term Relationships with Existing Customers.
We
believe our long-term, well-established relationships with
communities and healthcare facilities enhance our ability to
retain existing customers and win new contracts. AMR and EmCare
have maintained relationships with their ten largest customers
for an average of 34 and 12 years, respectively, and during
that time have continually demonstrated an ability to meet and
exceed contractual commitments. As a result, we believe we are
in an advantageous position at the time of contract renewal when
a community or hospital is faced with a decision whether to
retain its existing provider or explore other alternatives. We
believe our industry-leading contract retention rates during
fiscal 2004 reflect our ability to deliver on our service
commitments to our customers over extended time periods.
Strong Financial Performance.
When we compete for new
business, one of the key factors our potential customers
evaluate is financial stability. As a result, we believe our
track record of strong financial performance provides us with a
competitive advantage over our competitors. We believe the
quality and breadth of our service offerings has allowed us to
increase our net revenue at a faster rate than the market for
emergency medical services. We believe our ability to
demonstrate consistently strong financial performance will
continue to differentiate our company and provide a competitive
advantage in winning new contracts and renewing existing
contracts.
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Focus on Risk Management.
Considered one of the leading
programs of its kind in the emergency department industry,
EmCare's risk management initiatives are enhanced by the
use of our professional liability claims database. We analyze
this data to demonstrate claim trends on a national, hospital,
physician and procedure level, helping to manage and mitigate
risk exposure. AMR's risk/ safety program is aimed at
reducing worker injuries through training and improved
equipment, and increasing vehicle safety through the use of
technology. Over the last three years, our workers compensation,
auto, general and professional liability claims per 100,000
ambulance transports decreased 8.4% at AMR and our professional
liability claims per 100,000 emergency department visits
decreased 14.0% at EmCare.
Investment in Core Technologies.
We utilize technology as
a means to enhance the quality, reduce the cost of our service
offerings, more effectively manage risk and improve our
profitability. For example:
•
We believe AMR is the largest user of ambulance electronic
    patient care records, or e-PCR. Our proprietary system enables
    us to eliminate the use of manual patient records by replacing
    them with electronic records, which we expect will reduce both
    chart errors and costs.
•
AMR utilizes proprietary software, Millennium, to determine the
    appropriate level of transportation services to be dispatched
    and track response times and other data for hospitals. Our
    initial implementation of these technologies has improved our
    ability to capture revenue, decrease our billing costs and bid
    more effectively for 911 contracts.
•
EmCare has developed proprietary physician recruitment software
    that has enhanced our recruitment efficiency and improved our
    physician retention rate.
•
At EmCare, we track risk exposure trends through what we believe
    is one of the largest emergency department risk databases,
    allowing us to assess, develop and implement targeted risk
    intervention programs.
Proven and Committed Management Team.
We are led by an
experienced senior management team with an average of
21 years of experience in the healthcare industry. Our
Chairman and Chief Executive Officer, William Sanger, has over
30 years of experience within the healthcare services
industry, with leadership roles in multi-system hospitals,
ambulatory care facilities, post-acute service facilities,
physician management companies and insurance entities. Since
Mr. Sanger joined us in 2001, our senior management team
has been successful in growing the market share of our
businesses, managing changes in reimbursement policy, reducing
professional liability risk and improving the profitability of
our operations.
Business Strategy
We intend to leverage our competitive strengths to pursue our
business strategy:
Increase Revenue from Existing Customers.
We believe our
long track record of delivering excellent service and quality
patient care, as well as the breadth of our services, creates
opportunities for us to increase revenue from our existing
customer base. We have established strategies aimed at assisting
communities and facilities to manage their cost of emergency
medical services. Some of our initiatives with existing
customers include:
•
Implementing innovative productivity-enhancing programs
•
At EmCare, we have developed and implemented programs, such as
    "fast track" and advanced triage protocols, to improve
    throughput and wait times, thereby improving patient
    satisfaction and reducing the number of patients who leave
    without being seen.
•
At AMR, we have developed and implemented innovative programs to
    improve our productivity through decreased "drop" and
    "on scene" time. For example, we have recently
    established transition units at several hospitals to hold and
    monitor discharged patients awaiting transport, thereby
    increasing our productivity while accelerating inpatient bed
    availability and overall hospital throughput.
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•
Continuing to broaden product and service offerings to our
    customers
•
In 2002, we began marketing hospitalist services. Since that
    time, our hospitalist services revenue increased at a CAGR of
    48.3% from $7.2 million to $23.5 million in fiscal
    2004. Approximately fifty percent of our hospitalist contracts
    are with our emergency department customers.
•
At certain facilities, AMR provides a dedicated on-site
    non-emergency transport coordinator during times of peak demand
    to increase efficiency and ensure appropriate utilization of all
    medical transportation service levels.
Grow Our Customer Base.
We believe we have a unique
competency in the treatment, management and billing of episodic
care. We believe our long operating history, significant scope
and scale, strong brand recognition and leading market position
provide us with new and expanded opportunities to grow our
customer base. We continue to generate new revenue and client
growth through:
•
Targeted geographic sales and marketing programs,
•
Pursuing new outsourcing opportunities for emergency department,
    hospitalist, radiology and ambulance services,
•
Expanding our public/private ambulance partnerships with local
    fire departments,
•
Evaluating opportunities that leverage our core businesses,
    including our communications center infrastructure, to manage
    health-related transportation logistics.
EmCare was awarded 52 new contracts with net revenue of
$79.0 million in 2003 and 58 new contracts with net revenue
of $79.4 million in 2004. AMR was awarded 109 new contracts
with net revenue of $17.1 million in 2003 and 60 new
contracts with net revenue of $12.2 million in 2004.
Pursue Select Acquisition Opportunities.
The emergency
medical services industry is highly fragmented, with only a few
large national providers, and presents opportunities for
consolidation. We plan to pursue select acquisitions in our core
businesses, including acquisitions to enhance our presence in
existing markets and our entry into new geographic markets. We
will also explore the acquisition of complementary businesses,
such as radiology, hospitalist and managed transportation
services and seek opportunities to expand the scope of services
in which we can leverage our core competencies.
Utilize Technology to Differentiate Our Services and Improve
Operating Efficiencies.
We intend to continue to invest in
technologies that broaden our services in the marketplace,
improve patient care, enhance our billing efficiencies and
increase our profitability. We believe that the complexities of
the healthcare industry and customer demand for broader, more
cost-effective service offerings will continue to benefit those
providers that remain at the forefront of technological
innovation. The following outlines certain technologies we
utilize:
•
System Status Management (SSM):
Enables AMR to use
    current incident data to position our vehicles efficiently,
    minimizing response time while maximizing asset utilization. We
    currently utilize SSM in all communities in which we operate
    under contracts to provide 911 emergency ambulance services. We
    believe we are one of only a few ambulance services providers
    that have begun to implement "real-time" SSM
    technology.
•
Electronic patient care record (e-PCR):
Where
    implemented, allows AMR to capture billable revenue, decrease
    our billing costs and optimize reimbursement. In addition, our
    proprietary e-PCR enables us to shorten our billing cycle and
    reduce risk by utilizing defined clinical and rules-based
    protocols to capture patient information electronically.
•
Millennium software:
Millennium, our proprietary
    software, allows us greater flexibility in meeting our
    customers' needs. This rules-based software program
    integrates medical protocol, managed care criteria and other
    detailed data prescribed by our customers, enabling AMR to
    efficiently dispatch appropriate transport and more effectively
    track response time.
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•
EmSource:
EmSource, our proprietary physician recruitment
    system, enables EmCare to more effectively recruit physicians
    who meet the needs of our customers. The system consists of a
    database of approximately 800,000 physicians that is updated
    weekly to provide the most current physician contact available.
•
EmBillz:
EmBillz, our proprietary coding, billing and
    accounts receivable management system, enables EmCare to more
    effectively process more than five million emergency department
    visits each year.
Continued Focus on Risk Management.
Through our risk
management and quality assurance staffs, technology platform and
well-trained medical personnel, we will continue to conduct
aggressive risk management programs for loss prevention and
early intervention. We will continue to develop and utilize
clinical "fail safes" and use technology in our
ambulances to reduce vehicular incidents.
Implement Cost Rationalization Initiatives.
We will
continue to rationalize our cost structure by aligning
compensation with productivity, developing risk management
initiatives that are focused on mitigating risk exposures, and
eliminating costs in our national and regional corporate support
structure. Since the acquisition, we have completed our
preliminary analysis of certain of our support areas, including
accounting, legal, information services and human resources, and
have begun to implement initiatives to increase productivity and
achieve further economies of scale across the company.
Company History
AMR and EmCare have more than 50 years and 33 years,
respectively, of operating history. Since 1997, both companies
have been wholly-owned subsidiaries of Laidlaw International,
Inc. In February 2005, AMR and EmCare were purchased from
Laidlaw by an investor group led by Onex Partners LP and Onex
Corporation and including our management.
Business Segments
We operate our business and market our services under our two
business segments: AMR and EmCare. We provide ambulance
transport services in 34 states and the District of
Columbia and provide services to emergency department and
hospitalist programs in 39 states.
We believe that our operational structure enhances service
delivery and maintains favorable executive contact with key
contract decision-makers and community leaders. Each region
provides operational support and management of our local
business operating sites and facilities. Our regional management
is responsible for growing the business in the region,
overseeing key community and facility relationships, managing
labor and employee relations and providing regional support
activities to our operating sites.
We provide strategic planning, centralized financial support,
payroll administration, legal services, human resources,
coordinated marketing and purchasing efforts and risk management
through our National Resource Center. We also support our
operating sites with integrated information systems and
standardized procedures that enable us to efficiently manage the
billing and collections processes.
The following is a detailed business description for our two
business segments.
American Medical
Response
American Medical Response, Inc., or AMR, is the leading provider
of ambulance services in the United States. AMR and our
predecessor companies have a long history in emergency medical
services, having provided services to some communities for more
than 50 years. We have an 8% share of the total ambulance
services market and a 21% share of the private provider
ambulance market. During fiscal 2004, AMR treated and
transported approximately 3.7 million patients in
34 states utilizing more than 4,200 vehicles that operated
out of more than 200 sites. AMR has approximately 2,550
contracts with communities, government agencies, healthcare
providers and insurers to provide ambulance transport services.
AMR's broad geographic footprint enables us to contract on
a national and regional basis with managed care and insurance
companies.
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AMR has made significant investments in technology, customer
service programs, employee training and risk mitigation programs
to deliver a compelling value proposition to our customers,
which has led to what we believe is our industry-leading
contract retention rate of 99% in fiscal year 2004 and
significant new contract wins.
For fiscal 2004, approximately 57% of AMR's net revenue was
generated from emergency 911 ambulance services, which include
treating and stabilizing patients, transporting the patient to a
hospital or other healthcare facility and providing attendant
medical care en-route. Non-emergency ambulance services,
including critical care transfer, wheelchair transports and
other interfacility transports, or IFTs, accounted for 32% of
AMR's net revenue for the same period, with the balance
generated from the provision of training, dispatch centers and
other services to communities and public safety agencies. For
the fiscal year ended August 31, 2004, AMR generated net
revenue of $1.1 billion.
We have been instrumental in the development of protocols and
policies applicable to the emergency services industry. We
believe our key business competencies in communications and
logistics management and our partnerships with local fire
departments, which represented approximately 21% of AMR's
net revenue in fiscal 2004, enable us to operate profitably in
both large and small communities and position us to continue our
growth organically.
We provide substantially all of our ambulance services under our
AMR brand name. We operate under other names when required to do
so by local statute or contractual agreement.
Services
We provide a full range of emergency and non-emergency ambulance
transport and related services, which include:
Emergency Response Services (911).
We provide emergency
    response services primarily under long-term exclusive contracts
    with communities and hospitals. Our contracts typically
    stipulate that we must respond to 911 calls in the designated
    area within a specified response time. We utilize two types of
    ambulance units — Advanced Life Support, or ALS, units
    and Basic Life Support, or BLS, units. ALS units, which are
    staffed by two paramedics or one paramedic and an emergency
    medical technician, or EMT, are equipped with high-acuity life
    support equipment such as cardiac monitors, defibrillators and
    oxygen delivery systems, and carry pharmaceutical and medical
    supplies. BLS units are usually staffed by two EMTs and are
    outfitted with medical supplies and equipment necessary to
    administer first aid and basic medical treatment. The decision
    to dispatch an ALS or BLS unit is determined by our contractual
    requirements, as well as by the nature of the medical situation.
Under certain of our 911 emergency response contracts, we are
    the first responder to an emergency scene. However, under most
    of our 911 contracts, the local fire department is the first
    responder. In these situations, the fire department typically
    begins stabilization of the patient. Upon our arrival, we
    continue stabilization through the provision of attendant
    medical care and transport the patient to the closest
    appropriate healthcare facility. In certain communities where
    the fire department historically has been responsible for both
    first response and emergency services, we seek to develop
    public/private partnerships with fire departments rather than
    compete with them to provide the emergency service. These
    partnerships emphasize collaboration with the fire departments
    and afford us the opportunity to provide 911 emergency services
    in communities that, for a variety of reasons, may not otherwise
    have outsourced this service to a private provider. In most
    instances, the provision of emergency services under our
    partnerships closely resembles that of our most common 911
    contracts described above. What differentiates the
    public/private partnerships is the level of contractually
    negotiated collaboration and coordination between AMR and the
    fire department. As an example, in several of our public/private
    partnerships, we utilize a fire department-employed paramedic
    when we transport the patient and subsequently reimburse the
    fire department for its employee's time. These partnerships
    benefit both parties — they create a new revenue
    source for the fire department while relieving it of the
    complexities associated with the emergency transport business,
    and they enable us to provide emergency response services in
    communities that may not otherwise have outsourced this service.
    In addition, the
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public/private partnerships lower our costs by reducing the
    number of full-time paramedics we would otherwise require. We
    estimate that these public/private partnerships represented
    approximately 20% of AMR's net revenue in fiscal 2004.
Non-Emergency Transport Services.
With non-emergency
    services, we provide transportation to patients requiring
    ambulance or wheelchair transport with varying degrees of
    medical care needs between healthcare facilities or between
    healthcare facilities and their homes. Unlike emergency response
    services, which typically are provided by communities or private
    providers under exclusive or semi-exclusive contracts,
    non-emergency transportation usually involves multiple contract
    providers at a given facility, with one or more of the
    competitors designated as the "preferred" provider.
    Non-emergency transport business generally is awarded by a
    healthcare facility, such as a hospital or nursing home, or a
    healthcare payor, such as an HMO, managed care organization or
    insurance company.
Non-emergency transport services include: (i) critical care
    transport, (ii) wheelchair and stretcher-car transports,
    and (iii) other IFTs.
•
Critical care transports are provided to medically unstable
    patients (such as cardiac patients and neonatal patients) who
    require critical care while being transported between healthcare
    facilities. Critical care services differ from ALS services in
    that the ambulance may be equipped with additional medical
    equipment and may be staffed by one of our medical specialists
    or by an employee of a healthcare facility to attend to a
    patient's specific medical needs.
•
Wheelchair and stretcher-car transports are non-medical
    transportation provided to handicapped and certain
    non-ambulatory persons in some service areas. In providing this
    service, we use vans that contain hydraulic wheelchair lifts or
    ramps operated by drivers who generally are trained in
    cardiopulmonary resuscitation, or CPR.
•
Other IFTs, that require advanced or basic levels of medical
    supervision during transfer, may be provided when a home-bound
    patient requires examination or treatment at a healthcare
    facility or when a hospital inpatient requires tests or
    treatments (such as magnetic resonance imaging, or MRI, testing,
    CAT scans, dialysis or chemotherapy treatment) available at
    another facility. We use ALS or BLS ambulance units to provide
    general ambulance services depending on the patient's needs.
Other Services.
In addition to our 911 emergency and
    non-emergency ambulance services, we provide the following
    services:
•
Dispatch Services.
Our dispatch centers manage our own
    calls and, in certain communities, also manage dispatch centers
    for public safety agencies, such as police and fire departments,
    aeromedical transport programs and others.
•
Event Medical Services.
We provide medical stand-by
    support for concerts, athletic events, parades, conventions,
    international conferences and VIP appearances in conjunction
    with local and federal law enforcement and fire protection
    agencies. We have contracts to provide stand-by support for
    numerous sports franchises, such as the Oakland Raiders, Oakland
    Athletics, Detroit Lions and Los Angeles Dodgers, as well as for
    various NASCAR events, Hollywood production studios and other
    specialty events.
•
Managed Transportation Services.
Managed care
    organizations and insurance companies contract with us to manage
    various of their medical transportation-related needs, including
    call-taking and scheduling, management of a network of
    transportation providers and billing and reporting through our
    e-PCR system.
•
Paramedic Training.
We own and operate Northern
    California Training Institute, or NCTI, the largest paramedic
    training school in the United States and the only accredited
    institution of its size, with over 500 graduates each year.
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Medical Personnel and Quality Assurance
Approximately 76% of our 18,000 employees have daily contact
with patients, including approximately 5,100 paramedics, 7,500
EMTs and 200 nurses. Paramedics and EMTs must be state-certified
to transport patients and perform emergency care services.
Certification as an EMT requires completion of a minimum of
140 hours of training in a program designated by the United
States Department of Transportation, such as those offered at
our training institute, NCTI. Once this program is completed,
state-certified EMTs are then eligible to participate in a
state-certified paramedic training program. The average
paramedic program involves over 1,000 hours of academic
training in advanced life support and assessment skills.
Local physician advisory boards develop medical protocols to be
followed by paramedics and EMTs in a service area. In addition,
instructions are conveyed on a case-by-case basis through direct
communications between the ambulance crew and hospital emergency
room physicians during the administration of advanced life
support procedures. Both paramedics and EMTs must complete
continuing education programs and, in some cases, state
supervised refresher training examinations to maintain their
certifications.
We maintain a commitment to provide high quality pre- and
post-hospital emergency medical care. In each location in which
we provide services, a medical director, who usually is a
physician associated with a hospital we serve, monitors
adherence to medical protocol and conducts periodic audits of
the care provided. In addition, we hold retrospective care
audits with our employees to evaluate compliance with medical
and performance standards.
Our commitment to quality is reflected in the fact that 15 of
our dispatch centers across the country are accredited by the
Commission on Accreditation of Ambulance Services, or CAAS,
representing 16% of the total CAAS accredited agencies. CAAS is
a joint program between the American Ambulance Association and
the American College of Emergency Physicians. The accreditation
process is voluntary and evaluates numerous qualitative factors
in the delivery of services. We believe communities and managed
care providers increasingly will consider accreditation as one
of the criteria in awarding contracts.
Billing and Collections
Our internal patient billing services, or PBS, offices located
across the United States invoice and collect for our services.
We receive payment from the following sources:
•
the federal and state governments, primarily under the Medicare
    and Medicaid programs,
•
health maintenance organizations, preferred provider
    organizations and private insurers,
•
individual patients, and
•
community subsidies and fees.
Over the last three fiscal years, our self-pay revenue has
remained stable as a percentage of AMR's net revenue. The
table below presents the approximate percentages of AMR's
net revenue from the following sources:
Percentage of AMR
Net Revenue
Year Ended
August 31,
2002
2003
2004
Medicare
35
%
33
%
33
%
Medicaid
6
6
6
Commercial insurance/managed care
41
44
45
Self-pay
6
6
5
Subsidies/fees
12
11
11
Total net revenue
100
%
100
%
100
%
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We have substantial experience in processing claims to third
party payors and employ a billing staff trained in third party
coverage and reimbursement procedures. Our integrated billing
and collection systems allow us to tailor the submission of
claims to Medicare, Medicaid and certain other third party
payors and has the capability to electronically submit claims to
the extent third party payors' systems permit. This system
also provides for tracking of accounts receivable and status
pending payment. When collecting from individuals, we sometimes
use an automated dialer that pre-selects and dials accounts
based on their status within the billing and collection cycle,
which we believe improved our collection rate.
Companies in the ambulance services industry maintain
significant provisions for doubtful accounts compared to
companies in other industries. Collection of complete and
accurate patient billing information during an emergency service
call is sometimes difficult, and incomplete information hinders
post-service collection efforts. In addition, we cannot evaluate
the creditworthiness of patients requiring emergency transport
services. Our allowance for doubtful accounts generally is
higher for transports resulting from emergency ambulance calls
than for non-emergency ambulance requests. See "Risk
Factors — Risk Factors Related to Healthcare
Regulation — We depend heavily on reimbursement by
third party payors, and delays and uncertainties in the
reimbursement process could have a negative impact on our net
revenue and cash flow."
State licensing requirements, as well as contracts with
communities and healthcare facilities, typically require us to
provide ambulance services without regard to a patient's
insurance coverage or ability to pay. As a result, we often
receive partial or no compensation for services provided to
patients who are not covered by Medicare, Medicaid or private
insurance. The anticipated level of uncompensated care and
uncollectible accounts is considered in negotiating a
government-paid subsidy to provide for uncompensated care, and
permitted rates under contracts with a community or government
agency.
A significant portion of our ambulance transport revenue is
derived from Medicare payments. The Balanced Budget Act of 1997,
or BBA, modified Medicare reimbursement rates for emergency
transportation with the introduction of a national fee schedule.
The BBA provided for a phase-in of the national fee schedule by
blending the new national fee schedule rates with ambulance
service suppliers' pre-existing "reasonable
charge" reimbursement rates. The BBA provided for this
phase-in period to begin on April 1, 2002, with full
transition to the national fee schedule rates to be effective
January 1, 2006. In some regions, the national fee schedule
would have resulted in a decrease in Medicare reimbursement
rates of approximately 25% by the end of the phase-in period.
Partially in response to the dramatic decrease in rates dictated
by the BBA in some regions, the Medicare Modernization Act
established regional rates, certain of which are higher than the
BBA's national rates, and provided for the blending of the
regional and national rates until January 1, 2010. Other
rate provisions included in the Medicare Modernization Act
provide further temporary mitigation of the impact of the BBA
decreases, including a provision that provides for 1% to 2%
increases for blended rates for the period from January 1,
2004 through December 31, 2006. Because the Medicare
Modernization Act relief is of limited duration, we will
continue to pursue strategies to offset the decreases mandated
by the BBA, including seeking fee and subsidy increases.
We estimate that the impact of the BBA rate decreases for fiscal
2003 and fiscal 2004 on AMR's net revenue was
$20 million and $17 million, respectively. We have
been able to substantially mitigate the phase-in reductions of
the BBA through additional fee and subsidy increases. As a 911
emergency response provider, we are uniquely positioned to
offset changes in reimbursement by requesting increases in the
rates we are permitted to charge for 911 services from the
communities we serve. In response, these communities often
permit us to increase rates for ambulance services from patients
and their third party payors in order to ensure the maintenance
of required community-wide 911 emergency response services.
While these rate increases do not result in higher payments from
Medicare and certain other public or private payors, overall
they increase our revenue.
See "Regulatory Matters — Medicare, Medicaid and
Other Government Program Reimbursement" for additional
information on reimbursement from Medicare, Medicaid and other
government-sponsored programs.
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Contracts
As of June 30, 2005, we had approximately 153 contracts
with communities and government agencies to provide 911
emergency response services. Contracts with communities to
provide emergency transport services are typically exclusive,
three to five years in length and generally are obtained through
a competitive bidding process. In some instances where we are
the existing provider, communities elect to renegotiate existing
contracts rather than initiate new bidding processes. Our 911
contracts often contain options for earned extensions or
evergreen provisions. We have improved our contract retention
rate to 99% for fiscal 2004 compared to 81% in fiscal 2001. In
fiscal 2004, our top ten 911 contracts accounted for
approximately $243.3 million, or 23.1% of AMR's net
revenue. We have served these ten customers on a continual basis
for an average of 34 years.
Our 911 emergency response contracts typically specify maximum
fees we may charge and set forth minimum requirements, such as
response times, staffing levels, types of vehicles and
equipment, quality assurance and insurance coverage. Communities
and government agencies may also require us to provide a
performance bond or other assurances of financial
responsibility. The rates we are permitted to charge for
services under a contract for emergency ambulance services and
the amount of the subsidy, if any, we receive from a community
or government agency depend in large part on the nature of the
services we provide, payor mix and performance requirements.
We have approximately 2,400 contracts to provide non-emergency
ambulance services with hospitals, nursing homes and other
healthcare facilities that require a stable and reliable source
of medical transportation for their patients. These contracts
typically designate us as the preferred ambulance service
provider of non-emergency ambulance services to those facilities
and permit us to charge a base fee, mileage reimbursement, and
additional fees for the use of particular medical equipment and
supplies. We also provide a significant portion of our
non-emergency transports to facilities and organizations in
competitive markets without specific contracts.
Non-emergency transports often are provided to managed care or
insurance plan members who are stabilized at the closest
available hospital and are then moved to facilities within their
health plan's network. We believe the increased prevalence
of managed care benefits larger ambulance service providers,
which can service a higher percentage of a managed care
provider's members. This allows the managed care provider
to reduce its number of vendors, thus reducing administrative
costs and allowing it to negotiate more favorable rates with
healthcare facilities. Our scale and broad geographic footprint
enable us to contract on a national and regional basis with
managed care and insurance companies. We have multi-year
contracts with large healthcare networks and insurers including
Kaiser, Aetna, Healthnet, Cigna and SummaCare.
We believe that communities, government agencies, healthcare
facilities, managed care companies and insurers consider the
quality of care, historical response time performance and total
cost to be among the most important factors in awarding and
renewing contracts.
Dispatch and Communications
Dispatch centers control the deployment and dispatch of
ambulances in response to calls through the use of sophisticated
communications equipment 24 hours a day, seven days a week.
In many operating sites, we communicate with our vehicles over
dedicated radio frequencies licensed by the Federal
Communications Commission. In certain service areas with a large
volume of calls, we analyze data on traffic patterns,
demographics, usage frequency and similar factors with the aid
of System Status Management, or SSM technology, to help
determine optimal ambulance deployment and selection. In
addition to dispatching our own ambulances, we also provide and
staff 52 dispatch centers for communities where we are not an
ambulance service provider. Our dispatch centers are staffed by
EMTs and other experienced personnel who use local medical
protocols to analyze and triage a medical situation and
determine the best mode of transport.
Emergency Transport.
Depending on the emergency medical
dispatch system used in a designated service area, the public
authority that receives 911 emergency medical calls either
dispatches our ambulances
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directly from the public control center or communicates
information regarding the location and type of medical emergency
to our control center which, in turn, dispatches ambulances to
the scene. While the ambulance is en-route to the scene, the
ambulance receives information concerning the patient's
condition prior to the ambulance's arrival at the scene.
Our communication systems allow the ambulance crew to
communicate directly with the destination hospital to alert
hospital medical personnel of the arrival of the patient and the
patient's condition and to receive instructions directly
from emergency room personnel on specific pre-hospital medical
treatment. These systems also facilitate close and direct
coordination with other emergency service providers, such as the
appropriate police and fire departments, that also may be
responding to a call.
Non-Emergency Transport.
Requests for non-emergency
transports typically are made by physicians, nurses, case
managers and hospital discharge coordinators who are interested
primarily in prompt ambulance arrival at the requested pick-up
time. We are also offering on-line, web-enabled transportation
ordering to certain facilities. We use our Millennium software
to track and manage requests for transportation services for
large healthcare facilities and managed care companies.
Management Information Systems
We support our regions with integrated information systems and
standardized procedures that enable us to efficiently manage the
billing and collections processes and financial support
functions. Our recently developed technology solutions provide
information for operations personnel, including real-time
operating statistics, tracking of strategic plan initiatives,
electronic purchasing and inventory management solutions.
We have three management information systems that we believe
have significantly enhanced our operations — our e-PCR
technology, our Millennium call-taking system and our SSM
ambulance positioning system.
e-PCR.
In those operating sites where we have implemented
it, our e-PCR technology, has enhanced the process of capturing
clinical patient data. The electronic record replaces the paper
patient care record and provides the paramedic with clinical
flowcharts to document each assessment and procedure performed.
The technology also integrates patient clinical and demographic
information with billing information, allowing the ambulance
crew to ensure that patient information is updated at the scene.
Billing information can be transmitted electronically while the
ambulance is en-route, thus reducing the billing cycle time and
the cost associated with the manual input of patient care record
information. Our initial implementation of this technology has
improved our ability to capture billable revenue and decrease
our billing costs. We currently employ e-PCR technology on
ruggedized laptops in five of our operating sites and we plan to
implement it in six additional operating sites in fiscal 2005.
This technology currently is available in operating sites that
accounted for approximately 9% of AMR's fiscal 2004
ambulance transports and approximately 12% of AMR's fiscal
2004 net transport revenue. Together with the operating
sites to be added in fiscal 2005, the e-PCR technology would
have accounted for 11% of AMR's fiscal 2004 ambulance
transports and 13% of its fiscal 2004 net transport
revenue. Our per unit e-PCR capital costs continue to decline as
hardware costs decline.
Millennium.
Our proprietary Millennium system is a
call-taking application that tracks and manages requests for
transportation services for large healthcare facilities and
managed care companies. The system is designed to make certain
medical necessity and benefit level determinations prior to
transport. These determinations can be customized to fit an
individual customer's needs. Customers call a single
toll-free telephone number and are routed to the appropriate AMR
call center. The telephone system is integrated into the
Millennium application, which gives the answering agent specific
call information, including customized greetings, patient
information and priority of the call. The system logic verifies
whether the transport is authorized by the health plan. If the
transport is determined to be appropriate, the system then
assigns a response time and level of service based on the
information obtained from the requestor. In fiscal 2004, we
utilized Millennium for approximately 217,000 transactions
resulting in 210,000 transports in the year. We have initiated a
campaign to promote the benefits of this system to other
potential customers.
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SSM.
Our SSM technology enables us to use historical data
on fleet usage patterns to predict where our emergency transport
services are likely to be required. SSM also creates a visual
display of current demand, allowing us to position our ambulance
units more effectively. This flexible deployment allows us to
improve response times and increase asset utilization.
Additionally, we have recently begun to implement
"real-time" SSM. This state-of-the-art SSM technology
will allow us to continuously position our ambulances in
optimized locations, thereby further improving response times
and maximizing asset utilization. We believe our ability to
continue deploying real-time SSM will further differentiate us
from our competitors in terms of both service quality and cost.
Sales and Marketing
Our 100-person sales and marketing team is comprised of two
distinct groups — one focused primarily on contract
retention and the other on generating new sales. Many of our
sales and marketing employees are former paramedics or EMTs who
began their careers in the emergency transportation industry and
are therefore well-qualified to understand the needs of our
customers. Our sales force is incentivized through a
compensation package that includes base salary and significant
bonus potential based on achieving specified performance targets.
We continue to seek expansion in both the geographic markets we
serve and the scope of services we provide in existing markets.
Ownership of the local emergency response contract can be
advantageous to us when bidding for non-emergency business,
because our existing fleet of ambulances and dispatch centers
maintained for emergency response can also be used for
non-emergency business. For the same reason, our ownership of a
successful non-emergency business can be advantageous to us when
trying to unseat an incumbent emergency response operator or to
obtain a contract in a newly privatized market.
Risk Management
We are committed to the safety of our employees and the patients
and communities we serve. Our commitment is manifested in our
World Class Safety Program, which has gained distinction
with the National Safety Council and has served as a benchmark
for other companies. This program consists of two important
goals:
•
To be the leader for safety in the emergency medical services
    industry, and
•
To be recognized as a leader for safety among all industries.
Our World Class Safety Program is built upon five important
components:
•
Selecting highly qualified employees,
•
Providing exemplary safety policies and programs to control
    losses,
•
Effective training and education programs,
•
Accountability of management and employees for safety of the
    operation, and
•
Continuous review of new opportunities and existing programs for
    improvement.
We train and educate all new employees about our safety programs
including, among others, emergency vehicle operations, various
medical protocols, use of equipment and patient focused care and
advocacy. Our safety training also involves continuing education
programs and a monthly safety awareness campaign. We also work
directly with manufacturers to design equipment modifications
that enhance both patient and clinician safety.
Our safety and risk management team develops and executes
strategic planning initiatives focused on mitigating the factors
that drive losses in our operations. We aggressively investigate
and respond to all incidents we believe may result in a claim.
Operations supervisors submit documentation of such incidents to
the third party administrator handling the claim. We have a
dedicated liability unit with our third party administrator
which actively engages with our staff to gain valuable
information for closure of claims.
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Information from the claims database is an important resource
for identifying trends and developing future safety initiatives.
We utilize an on-board monitoring system, RoadSafety, which
measures operator performance against our safe driving
standards. Our operations using RoadSafety have experienced
improved driving behaviors within 90 days of installation.
RoadSafety has been implemented in 49% of our vehicles in the
emergency response markets and is being expanded to 58% of our
emergency fleet in fiscal 2006. We expect to recover the average
cost per vehicle over a period of approximately 24 months
from installation due to reduced vehicle maintenance and repair
expenses.
We estimate that, in fiscal 2004, our costs for vehicle
collisions were 19% lower than in fiscal 2000 and our average
cost per vehicle claim was 37% lower than in fiscal 2000. Over
the same period, we estimate that we reduced patient care
incidents and employee injuries by 8% and 25%, respectively.
Competition
Our predominant competitors are fire departments, with 35% of
the ambulance transport services market. Firefighters have
traditionally acted as the first responders during emergencies,
and in many communities provide emergency medical care and
transport as well. In many communities we have established
public/private partnerships, in which we integrate our transport
services with the first responder services of the local fire
department. We believe these public/private partnerships provide
a model for us to collaborate, rather than compete, with fire
departments to increase the number of communities we serve.
Our largest competitor, Rural/ Metro Corporation, is the only
other national provider of ambulance transport services and
generates less than half of AMR's net revenue. Our other
private provider competitors include Southwest Ambulance in
Arizona and New Mexico, Acadian Ambulance Service in Louisiana
and small, locally owned operators that principally serve the
IFT market.
Insurance
Workers Compensation, Auto and General Liability.
For
periods prior to September 1, 2001, we are fully-insured
for our workers compensation, auto and general liability
programs through Laidlaw's captive insurance program. We
have retained liability for the first $1 million to
$2 million of the loss under these programs since
September 1, 2001. Our self-insurance program, fronted by
ACE American Insurance Co. in fiscal 2002 and 2003 and funded
through Laidlaw's captive insurance program in fiscal 2004
and 2005 to the date of the acquisition, covers the first
$2 million of auto and general liability claims per
occurrence and the first $1 million of workers compensation
claims per occurrence. From the date of the acquisition, our
self-insurance program has been fronted by ACE. Generally, our
umbrella policies covering claims that exceed our deductible
levels have an annual cap of approximately $100 million.
Professional Liability.
For periods prior to
April 15, 2001, we are insured for our professional
liability claims through third party insurers. Since
April 15, 2001, we have a self-insured retention for our
professional liability coverage. The self-insured retention
covers the first $2 million for policy year ending
April 15, 2002, the first $5 million for policy years
ending April 15, 2003 and 2004 and the first
$5.5 million for the policy years ending April 15,
2005 and 2006. In addition, we have umbrella policies with third
party insurers covering claims exceeding these retention levels
with an aggregate cap of $10 million for each separate
policy period.
Property
Vehicle Fleet.
We operate approximately 4,200 vehicles.
Of these, approximately 3,100 are ambulances, 600 are wheelchair
vans and 500 are support vehicles. We own approximately 89% of
our vehicles and lease the balance. We replace ambulances based
upon age and usage, but generally every eight to ten years. The
average age of our existing ambulance fleet is approximately
five years. We primarily use in-house maintenance services to
maintain our fleet. In those operations where our fleet is small
and quality external maintenance services that agree to maintain
our fleet in accordance with AMR standards are available, we
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utilize these maintenance services. We are exploring ways to
decrease our overall capital expenditures for vehicles,
including major refurbishing and overhaul of our vehicles to
extend their useful life.
Facilities.
We lease approximately 55,000 square
feet in an office building at 6200 S. Syracuse Way,
Greenwood Village, Colorado for the AMR and Emergency Medical
Services corporate headquarters. We also lease administrative
facilities and other facilities used principally for ambulance
basing, garaging and maintenance in those areas in which we
provide ambulance services. We own 14 facilities used
principally for administrative services and stationing for our
ambulances. We believe our present facilities are sufficient to
meet our current and projected needs, and that suitable space is
readily available should our need for space increase. Our leases
expire at various dates through 2014.
Environmental Matters
We are subject to federal, state and local laws and regulations
relating to the presence of hazardous materials and pollution
and the protection of the environment, including those governing
emissions to air, discharges to water, storage, treatment and
disposal of wastes, including medical waste, remediation of
contaminated sites, and protection of worker health and safety.
We believe our current operations are in substantial compliance
with all applicable environmental requirements and that we
maintain all material permits required to operate our business.
Certain environmental laws impose strict, and under certain
circumstances joint and several, liability for investigation and
remediation of the release of regulated substances into the
environment. Such liability can be imposed on current or former
owners or operators of contaminated sites, or on persons who
dispose or arrange for disposal of wastes at a contaminated
site. Releases have occurred at a few of the facilities we lease
as a result of historical practices of the owners or former
operators. Based on available information, we do not believe
that any known compliance obligations, releases or
investigations under environmental laws or regulations will have
a material adverse effect on our business, financial position
and results of operations. However, there can be no guarantee
that these releases or newly discovered information, more
stringent enforcement of or changes in environmental
requirements, or our inability to enforce available
indemnification agreements will not result in significant costs.
Employees
At June 30, 2005, we had approximately
18,000 employees, including approximately 5,100 paramedics,
7,500 EMTs, 200 nurses and 5,200 support
personnel. Approximately 48% of our employees are represented by
41 collective bargaining agreements with 40 different
union locals. Twelve of these collective bargaining agreements,
representing approximately 1,850 employees, are subject to
renegotiation in 2005, and 14 agreements, representing
approximately 4,000 employees, are subject to renegotiation
in 2006. We believe we have a good relationship with our
employees. We have reduced our employee turnover to 19.9% in
fiscal 2004, a 44.3% reduction since fiscal 2002. We have never
experienced any union-related work stoppages.
Legal Matters
We are subject to litigation arising in the ordinary course of
our business, including litigation principally relating to
professional liability, auto accident and workers compensation
claims. There can be no assurance that our insurance coverage
will be adequate to cover all liabilities occurring out of such
claims. In the opinion of management, we are not engaged in any
legal proceedings that we expect will have a material adverse
effect on our business, financial condition, cash flows or
results of our operations other than as set forth below.
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority. Such requests can include subpoenas
or demand letters for documents to assist the government in
audits or investigations. We review such requests and notices
and take appropriate action. We have been subject to certain
requests for information and investigations in the past and
could be subject to such requests for information and
investigations in the future.
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We are subject to the Medicare and Medicaid fraud and abuse
laws, which prohibit, among other things, any false claims, or
any bribe, kick-back, rebate or other remuneration, in cash or
in kind, in return for the referral of Medicare and Medicaid
patients. Violation of these prohibitions may result in civil
and criminal penalties and exclusion from participation in the
Medicare and Medicaid programs. We have implemented policies and
procedures that management believes will assure that we are in
substantial compliance with these laws, but we cannot assure you
that the government or a court will not find that some of our
business practices violate these laws.
On May 9, 2002, we received a subpoena from the Office of
Inspector General for the United States Department of Health and
Human Services, or OIG. The subpoena requested copies of
documents for the period from January 1993 through May 2002. The
subpoena required us to produce a broad range of documents
relating to Regional Emergency Services, or RES, contracts in
Texas, Georgia and Colorado. The Department of Justice
ultimately added allegations involving contracts in Texas to its
other claims against RES and a hospital system arising from a
contract between RES and the hospital system in Florida. These
claims, including both Texas and Florida, were settled by RES
and the hospital system for approximately $20.0 million, of
which we were responsible for, and have paid, $5.0 million.
The government investigations in Georgia and Colorado have not
been resolved.
During the first quarter of fiscal 2004, we were advised by the
U.S. Department of Justice that it was investigating
certain business practices at AMR. The specific practices at
issue were (1) whether ambulance transports involving
Medicare eligible patients complied with the "medical
necessity" requirement imposed by Medicare regulations,
(2) whether patient signatures, when required, were
properly obtained from Medicare eligible patients, and
(3) whether discounts in violation of the federal
Anti-Kickback Statute were provided by AMR to hospitals and
nursing homes in exchange for referrals involving Medicare
eligible patients. This investigation has not yet been resolved.
In connection with the third issue, the government has alleged
that certain of our hospital and nursing home contracts in
effect in Texas, primarily certain contracts in effect in 1996
and 1997, contained discounts in violation of the federal
Anti-Kickback Statute. The government recently has provided us
with an analysis of the investigation conducted in connection
with this contract issue, and invited us to respond. We are
considering the government's analysis and intend to provide
our views, as requested. The government may also be
investigating whether our contracts with health facilities in
Oregon and other jurisdictions violate the Anti-Kickback Statute.
On July 12, 2005, we received a letter and draft Audit
Report from the OIG requesting our response to its draft
findings that our Massachusetts subsidiary received substantial
overpayments from Medicare for services performed between
July 1, 2002 and December 31, 2002. The draft findings
state that some of these services did not meet Medicare medical
necessity and reimbursement requirements. We disagree with the
OIG's finding and are in the process of responding to the
draft Audit Report. If we are unsuccessful in challenging the
OIG's draft findings, and in any administrative appeals to
which we may be entitled following the release of a final Audit
Report, we may be required to make a substantial repayment.
EmCare
EmCare is the largest provider of outsourced emergency
department staffing and related management services to
healthcare facilities in the United States. EmCare has a 6%
share of the total emergency department services market and a 9%
share of the outsourced emergency department services market.
During fiscal 2004, EmCare had approximately 5.3 million
patient visits in 39 states. EmCare has 329 exclusive
contracts with hospitals and independent physician groups to
provide emergency department and hospitalist staffing,
management and other administrative services. We believe that
EmCare's successful physician recruitment and retention,
high level of customer service and advanced risk management
programs have resulted in what we believe is our
industry-leading contract retention rate of 91% in fiscal 2004
and new contract wins.
EmCare primarily provides emergency department staffing and
related management services to healthcare facilities. We recruit
and hire or subcontract with physicians and other healthcare
professionals, who then provide professional services to the
hospitals with whom we contract. We also have practice support
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agreements with independent physician groups and hospitals
pursuant to which we provide unbundled management services such
as billing and collection, recruiting, risk management and
certain other administrative services. For the fiscal year ended
August 31, 2004, EmCare generated net revenue of
$549.8 million.
In addition, we have become one of the leading providers of
hospitalist services. A hospitalist is a physician who
specializes in the care of acutely ill patients in an in-patient
setting. While we have provided limited hospitalist services for
the past 10 years, it is only in the last 18 months
that we have focused on expanding this program. We have
increased our hospitalist programs from 8 contracts at
August 31, 2003 to 28 contracts at June 30, 2005,
increasing our net revenue for this program from approximately
$7.2 million in fiscal 2001 to approximately
$23.5 million, or approximately 4% of EmCare's net
revenue, for fiscal 2004. As of June 30, 2005, we
independently contracted with or employed approximately
170 hospitalist physicians.
EmCare was founded in Dallas, Texas in 1972. Initially we grew
by targeting larger hospitals in the Texas marketplace. We then
expanded our presence nationally, primarily through a series of
acquisitions in the 1990s. Throughout our history, EmCare has
enjoyed a strong reputation as a quality provider of emergency
department staffing and related management services.
The range of staffing and related management services we provide
includes:
•
recruiting, scheduling and credentials coordination for clinical
    professionals,
•
support services, such as payroll, insurance coverage,
    continuing education services and management training, and
•
coding, billing and collection of fees for services provided by
    medical professionals.
We are a leading provider of outsourcing services to both market
segments, and have developed specific competencies and operating
groups to address the unique needs of each. In fiscal 2004, the
high volume and medium to low volume segments represented 88%
and 12%, respectively, of our emergency department net revenue.
Services
We provide a full range of outsourced physician staffing and
related management services for emergency department and
hospitalist programs, which include:
Contract Management.
We utilize an integrated approach to
contract management that involves physicians, non-clinical
business experts, operational efficiency specialists and
hospital representatives. Together, the team works to improve
the quality and reduce the cost of care. We believe that our
approach fosters the culture that is necessary to operate
effectively in high stress emergency environments. An on-site
medical director is responsible for the day-to-day oversight of
the operation, including clinical quality, and works closely
with the hospital's management in developing strategic
initiatives and objectives. The regional director of operations,
which is a clinical position, provides systems analysis and
improvement plans. A quality manager develops site-specific
quality improvement programs, and practice improvement staff
focuses on chart documentation and physician utilization
patterns. The regional-based management staff provides support
for these efforts and ensures that each customer's
expectations are identified, that service plans are developed
and executed to meet those expectations, and that the
company's and the customer's financial objectives are
achieved.
Staffing.
We provide a full range of staffing services to
meet the unique needs of each healthcare facility. Our dedicated
clinical teams include qualified, career-oriented physicians and
other healthcare professionals responsible for the delivery of
high quality, cost-effective care. These teams also rely on
managerial personnel, many of whom have clinical experience, who
oversee the administration and operations of the clinical area.
As a result of our staffing services, healthcare facilities can
focus their efforts on improving their core business of
providing healthcare services for their communities rather than
recruiting and managing physicians. Ensuring that each contract
is staffed with the appropriately qualified physicians and that
coverage is provided without any service deficiencies is
critical to the success of the contract. We believe
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that our approach to recruiting, staffing and scheduling
provides us with a unique advantage in achieving these
objectives.
Recruiting.
Many healthcare facilities lack the resources
necessary to identify and attract specialized, career-oriented
physicians. We have committed significant resources to the
development of a proprietary national physician database that we
utilize in our recruiting programs across the country. Our
marketing and recruiting staff continuously updates our database
of more than 800,000 physicians with relevant data to allow us
to match potential physician candidates to specific openings
based upon personal preferences. This targeted recruiting method
increases the success and efficiency of our recruiters, and we
believe significantly increases our physician retention rates.
We actively recruit physicians through various media options
including telemarketing, direct mail, conventions, journal
advertising and our Internet site.
Scheduling.
Our scheduling departments assist our medical
directors in scheduling physicians and other healthcare
professionals in accordance with the coverage model at each
facility. We provide 24-hour service to ensure that unscheduled
shift vacancies, due to situations such as physician illness and
personal emergencies, are filled with alternative coverage.
Payroll Administration and Benefits.
We provide payroll
administration services for the physicians and other healthcare
professionals with whom we contract to provide services at
customer sites. Our clinical employees benefit significantly by
our ability to aggregate physicians to provide professional
liability coverage at lower rates than many hospitals or
physicians could negotiate on a stand-alone basis. Additionally,
healthcare facilities benefit from the elimination of the
overhead costs associated with the administration of payroll
and, where applicable, employee benefits.
Customer Satisfaction Programs.
We design and implement
customized patient satisfaction programs for our hospital
customers. These programs are designed to improve patient
satisfaction through the use of communication, family inclusion
and hospitality techniques. These programs are delivered to the
clinical and non-clinical members of the hospital emergency
department.
Other Services.
We provide a substantial portion of our
services to hospitals through our affiliate physician groups.
Because we have also identified situations in which hospitals
and physicians are interested in receiving stand-alone
management services such as billing and collection, scheduling,
recruitment and risk management, we often unbundle our services
to meet this need. Pursuant to these practice support
agreements, which generally will have a term of one to three
years, we provide these services to independent physician groups
and healthcare facilities. As of August 31, 2004, we had 19
practice support agreements which generated $5.6 million in
net revenue in fiscal 2004, a 33% increase over fiscal 2003. We
are working to commercialize our expertise in staffing and
billing and expect to enter into similar stand-alone practice
support agreements.
Operational Assessments.
We undertake operational
assessments for our hospital customers that include
comprehensive reviews of critical operational matrices,
including turnaround times, triage systems, "left without
being seens," throughput times and operating systems. These
assessments establish baseline values, develop and implement
process improvement programs, and then monitor the success of
the initiatives. This is an ongoing process that we continually
monitor and modify.
Practice Improvement.
We provide ongoing comprehensive
documentation review and training for our affiliated physicians.
We review certain statistical indicators that allow us to
provide specific training to individual physicians regarding
documentation, and we tailor training for broader groups of
physicians as we see trends developing in documentation-related
areas. Our training focuses on the completeness of the medical
record or chart, specific payor requirements, and government
rules and regulations.
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Risk Management
We utilize our risk management department, senior medical
leadership and on-site medical directors to conduct aggressive
risk management and quality assurance programs. We take a
proactive role in promoting early reporting, evaluation and
resolution of incidents that may evolve into claims. Our risk
management function is designed to mitigate risk associated with
the delivery of care and to prevent or minimize costs associated
with medical professional liability claims and includes:
•
Incident Reporting Systems.
We have established a
    comprehensive support system for medical professionals. Our Risk
    Management Hotline provides each physician with the ability to
    discuss medical issues with a peer. In the event of a negative
    patient outcome, the physician may discuss legal and medical
    issues in anticipation of litigation directly with an EmCare
    attorney experienced with medical malpractice issues.
•
Tracking and Trending Claims.
We have an extensive claims
    database developed from our experience in the emergency
    department setting. From this database, we track multiple data
    points on each professional liability claim. We utilize the
    database to identify claim trends and risk factors so that we
    can better target our risk management initiatives. Each year, we
    target the medical conditions associated with our most frequent
    professional liability claims, and provide detailed education to
    assist our affiliated medical professionals in treating these
    medical conditions.
•
Professional Risk Assessment.
We conduct risk assessments
    of our medical professionals. Typically, a risk assessment
    includes a thorough review of professional liability claims
    against the professional, assessment of issues raised by
    hospital risk management and identification of areas where
    additional education may be advantageous for the professional.
•
Hospital Risk Assessment.
We conduct risk assessments of
    potential hospital customers in conjunction with our sales and
    contracting process. As part of the risk assessment, registered
    nurses or physicians employed by us conduct a detailed analysis
    of the hospital's operations affecting the emergency
    department or hospitalist services, including the triage
    procedures, on-call coverage, transfer procedures, nursing
    staffing and related matters in an effort to address risk
    factors contractually during negotiations with potential
    customer hospitals.
•
Clinical Fail-Safe Programs.
We review and identify key
    risk areas which we believe may result in increased incidence of
    patient injuries and resulting claims against us and our
    affiliated medical professionals. We continue to develop
    "fail-safe" clinical tools and make them available to
    our affiliated physicians for use in conjunction with their
    practice and to our customer hospitals for use as a part of
    their peer review process. These "fail-safe" tools
    assist physicians in identifying common patient attributes and
    complaints that may identify the patient as being at high risk
    for certain conditions (
e.g.
, a heart attack).
•
Quality Improvement Programs.
Our medical directors are
    actively engaged in their respective hospital's quality
    improvement committees and initiatives. In addition, we provide
    tools that provide guidance to the medical directors on how to
    conduct quality reviews of their physicians and help them track
    their physicians' medical practices.
•
Physician Education Programs.
Our wholly owned
    subsidiary, Emergency Medical Education Systems, Inc, or EMEDS,
    conducts physician education through risk management and board
    review conferences and on-line teaching modules. Our affiliated
    medical professionals can access EMEDS to obtain valuable
    medical information. Our internal continuing education services
    are fully accredited by the Accreditation Council for Continuing
    Medical Education. This allows us to grant our physicians and
    nurses continuing education credits for internally developed
    educational programs at a lower cost than if such credits were
    earned through external programs. Our risk management department
    also provides other forms of education, including articles in
    the company newsletter that highlight current medical literature
    on important emergency medicine topics.
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•
Proactive Professional Liability Claims Handling.
We
    utilize a third party claims administrator to manage
    professional liability claims against companies and medical
    professionals covered under our insurance program. For each
    case, detailed reports are reviewed to ensure proactively that
    the defense is comprehensive and aggressive. Each professional
    liability claim brought against an EmCare affiliated medical
    professional or EmCare affiliated company is reviewed by
    EmCare's Claims Committee, consisting of physicians,
    attorneys and company executives, before any resolution of the
    claim. The Claims Committee periodically instructs EmCare's
    risk management department to undertake an analysis of
    particular physicians or hospital locations associated with a
    given claim.
Billing and Collections
We receive payment for patient services from:
•
the federal and state governments, primarily under the Medicare
    and Medicaid programs,
•
health maintenance organizations, preferred provider
    organizations and private insurers,
•
hospitals, and
•
individual patients.
Over the last three fiscal years, our self-pay revenue has
remained stable as a percentage of EmCare's net revenue.
The table below presents the approximate percentages of
EmCare's net revenue from the following sources:
Percentage of EmCare's
Net Revenue
Year Ended August 31,
2002
2003
2004
Medicare
15
%
16
%
17
%
Medicaid
2
3
3
Commercial insurance/managed care
57
54
53
Self-pay
4
3
2
Subsidies/fees
22
24
25
Total net revenue
100
%
100
%
100
%
See "— Regulatory Matters — Medicare,
Medicaid and Other Government Program Reimbursement" for
additional information on reimbursement from Medicare, Medicaid
and other government-sponsored programs.
We code and bill for physician services through our wholly-owned
subsidiary, Reimbursement Technologies, Inc. We utilize
state-of-the-art document imaging and paperless workflow
processes to expedite the billing cycle and improve compliance
and customer service. Currently, at approximately 45% of our
customer locations, medical records and emergency department
logs are scanned and transmitted electronically to us. We are in
the process of transitioning additional customers to on-site
scanning. By providing these enhanced services, we believe we
increase the value of services we provide to our customers and
improve customer relations. Additionally, we believe these
comprehensive services differentiate us in sales situations and
improve the chance of being selected in competitive bidding
processes.
We do substantially all of the billing for our affiliated
physicians, and we have extensive experience in processing
claims to third party payors. We employ a billing staff of
approximately 600 employees who are trained in third party
coverage and reimbursement procedures. Our integrated billing
and collection system uses proprietary software to tailor the
submission of claims to Medicare, Medicaid and certain other
third party payors and has the capability to electronically
submit most claims to the third party payors' systems. We
forward uncollected accounts electronically to two outside
collection agencies automatically, based on established
parameters. Each of these collection agencies have on-site
employees working at our in-house
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billing company to assist in providing patients with quality
customer service. Our comprehensive billing and collection
system allows us to have full control of accounts receivable at
each step of the process.
Contracts
We have contracts with (i) hospital customers to provide
professional staffing and related management services,
(ii) healthcare facilities and independent physician groups
to provide management services, and (iii) affiliated
physician groups and medical professionals to provide management
services and various benefits.
Hospital and Practice Support Contracts.
As of
June 30, 2005, EmCare provides services under 329
contracts. Typically, the agreements with the hospitals are
awarded on a competitive basis, and have an initial term of
three years with one-year automatic renewals and termination by
either party on specified notice. We have improved our contract
retention rate to 91% for fiscal 2004, up from 74% in fiscal
2001.
Our contracts with hospitals provide for one of three payment
models:
•
we bill patients and third party payors directly for physician
    fees,
•
we bill patients and third party payors directly for physician
    fees, with the hospital paying us an additional pre-arranged fee
    for our services, and
•
we bill the hospitals directly for the services of the
    physicians.
In all cases, the hospitals are responsible for billing and
collecting for non-physician-related services.
We have established long-term relationships with some of the
largest names in healthcare services, including Baylor Health
System, Community Health Systems, HCA, Quorum Healthcare, Tenet
Healthcare and Universal Health System. Our top ten hospital
emergency department contracts represent $68.3 million, or
12.4%, of EmCare's fiscal 2004 net revenue. We have
maintained our relationships with these customers for an average
of 12 years.
Affiliated Physician Group Contracts.
In most states, we
contract directly with our hospital customers to provide
physician staffing and related management services. We, in turn,
contract with a professional corporation that is wholly-owned by
one or more physicians, which we refer to as an affiliated
physician group, or with independent contractor physicians. It
is these physicians who provide the medical professional
services. We then provide comprehensive management services to
the physicians. We typically provide professional liability and
workers compensation coverage to our affiliated physicians.
Certain states have laws that prohibit or restrict unlicensed
persons or business entities from practicing medicine. The laws
vary in scope and application from state to state. Some of these
states may prohibit us from contracting directly with hospitals
or physicians to provide professional medical services. In those
states, the affiliated physician groups contract with the
hospital, as well as all medical professionals. We provide
management services to the affiliated physician groups.
Medical Professional Contracts.
We contract with medical
professionals as either independent contractors or employees to
provide services to our customers. The medical professionals
generally are paid an hourly rate for each hour of coverage, a
variable rate based upon productivity or contract margin, or a
combination of both a fixed hourly rate and a variable rate
component. We typically provide professional liability and
workers compensation coverage to our medical professionals.
The contracts with medical professionals typically have one-year
terms with automatic renewal clauses for additional one-year
terms. The contracts can be terminated with cause for various
reasons, and usually contain provisions allowing for termination
without cause by either party upon 90 days' notice.
Agreements with physicians generally contain a non-compete or
non-solicitation provision and, in the case of medical
directors, a non-compete provision. The enforceability of these
provisions varies from state to state.
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Management Information Systems
We have invested in scalable information systems and proprietary
software packages designed to allow us to grow efficiently and
to deliver and implement our best practice procedures
nationally, while retaining local and regional flexibility. We
have developed and maintain integrated systems to facilitate the
exchange of information between our regions and our customers.
Our customers, affiliated physicians and employees throughout
the country access a wide variety of information through our
custom portal,
www.emcare.com.
Designed as a forum to
deliver information and communicate with our various
constituencies, this website provides a unifying platform to
promote the growth in our business. It includes individualized
content, including physician schedules, rosters and performance
reports, all delivered securely to the intended individuals
through the use of a password.
We have developed and implemented the following proprietary
applications that we believe provides us with a competitive
advantage in billing and collections, and in recruiting,
credentialing, enrolling, scheduling and compensating healthcare
professionals.
EmSource
is our system for our recruiting staff to source
physician candidates. The system consists of a database of
approximately 800,000 physicians that is updated weekly to
provide the most current physician contact information available.
EmTrac
is our primary operations support system that
supports credentialing and scheduling. Information collected in
EmSource
during the recruiting process populates
EmTrac,
forms the basis for the credentialing module, and
is used to provide alerts on license and privilege expirations.
EmTrac
is used by our schedulers to match physician
availability and preferences with the needs of the hospital
customer.
EmComp
is our system for calculating physician's
gross pay and is an important tool supporting our compensation
strategy. Physicians are compensated by a wide variety of pay
plans ranging from simple hourly wages to "fee for
service" plans linked to productivity.
EmComp
has
been designed to support an unlimited variety of pay plans,
thereby giving EmCare a competitive advantage in physician
recruitment and retention. The system takes the actual hours
worked from
EmTrac
and the production data from
EmBillz,
and applies the pay rules from the
physician's contract to calculate gross pay.
EmBillz
is the coding, billing and accounts receivable
management system through which we process more than five
million emergency department visits each year. This proprietary
system supports the full collection process: from capturing the
emergency department patient logs, coding and issuing bills in
accordance with applicable federal and state regulations, and
payment follow-up and cash receipt posting.
Edison
is a system that automates much of our physician
enrollment. To bill Medicare, Medicaid and some other third
party payors, each physician must have an approved provider
number for that payor. There are hundreds of unique forms from
the combination of states and payors.
Edison
facilitates
the completion of the forms, thereby relieving physicians of
significant administrative workload and enabling us to track
pending receivables and ensure timely completion.
Sales and Marketing
Contracts for outsourced emergency department and hospitalist
services are obtained through strategic marketing programs and
responses to requests for proposals. EmCare's business
development team includes five Vice Presidents of Practice
Development located throughout the United States who are
responsible for developing sales and acquisition opportunities
for the operating group in his or her territory. A significant
portion of the compensation program for these sales
professionals is commission-based, with incentive compensation
based on the profitability of the contracts they sell and actual
contract performance in the first year. Leads for new hospital
customers are developed through our business development group,
which telemarkets the United States hospital industry. In
addition, leads are generated through our website, journal
advertising and a lead referral program. Each Vice President of
Practice Development is responsible for working with the
regional chief executive officer to structure and provide
customer proposals for new prospects in their respective regions.
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Emergency medicine practices vary among healthcare facilities. A
healthcare facility request for proposal generally will include
demographic information of the facility department, a list of
services to be performed, the length of the contract, the
minimum qualifications of bidders, billing information,
selection criteria and the format to be followed in the bid.
Prior to responding to a request for proposal, EmCare's
senior management ensures that the proposal is in line with
certain financial parameters. Senior management evaluates all
aspects of each proposal, including financial projections,
staffing model, resource requirements and competition, to
determine how to best achieve our business objectives and the
customer goals.
Competition
The market for outsourced emergency department staffing and
related management services is highly fragmented, with more than
800 national, regional and local providers handling over
113 million patient visits in 2003. There are more than
4,700 hospitals in the United States with emergency
departments, of which 67% currently outsource physician
services. Of these hospitals that outsource, we believe
approximately 50% contract with a local provider, 25% contract
with a regional provider and 25% contract with a national
provider.
Team Health is our largest competitor and has the second largest
share of the emergency department services market with an
approximately 4.4% share. The other national providers of
outsourced emergency department services are Sterling
Healthcare, National Emergency Service and the Schumacher Group,
which tend to focus on hospitals with lower to medium volume
emergency departments.
Insurance
Professional Liability Program.
For the period
January 1, 2001 through December 31, 2004, our
professional liability insurance program provided claims made
insurance coverage with limits of $1 million per loss
event, with a $3 million annual per physician aggregate,
for all medical professionals for whom we have agreed to procure
coverage. Our subsidiaries and affiliated corporate entities are
provided with coverage of $1 million per loss event, but
share a $10 million annual corporate aggregate.
For the 2001 calendar year, Lexington Insurance Company provided
the majority of the professional liability insurance coverage,
subject to an aggregate policy limit of $10 million. We
also procured coverage on a regional basis under separate
policies of insurance during this period.
For the 2002, 2003 and 2004 calendar years, Columbia Casualty
Company and Continental Casualty Company, collectively referred
to as CCC, provided our professional liability insurance
coverage, covering all claims occurring and reported during
those calendar years. The CCC policies have a retroactive date
of January 1, 2001, thereby covering all claims occurring
during the 2001 calendar year but reported in the 2002, 2003 and
2004 calendar years. We also procured coverage on a regional
basis under separate policies of insurance during this period.
We are maintaining our calendar year 2004 professional liability
insurance program for calendar year 2005.
Captive Insurance Arrangement.
On December 10, 2001,
we formed EMCA Insurance Company, Ltd., or EMCA, as a wholly
owned subsidiary under the Companies Law of the Cayman Islands.
EMCA reinsures CCC for all losses associated with the CCC
insurance policies under the professional liability insurance
program, and provides collateral for the reinsurance arrangement
through a trust agreement.
Workers Compensation Program.
For the period
September 1, 2002 through August 31, 2004, we procured
workers compensation insurance coverage for employees of EmCare
and affiliated physician groups through Continental Casualty
Company. Continental reinsures a portion of this workers
compensation exposure, on both a per claim and an aggregate
basis, with EMCA.
From September 1, 2004, EmCare has insured its workers
compensation exposure through The Travelers Indemnity Company,
which reinsures a portion of the exposure with EMCA.
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Properties
We lease approximately 48,990 square feet in an office
building at 1717 Main Street, Dallas, Texas for our
corporate headquarters. We also lease 16 facilities to
house administrative, billing and other support functions for
our regional operations. We believe our present facilities are
sufficient to meet our current and projected needs, and that
suitable space is readily available should our need for space
increase. Our leases expire at various dates through 2014.
Employees
The following is an approximate break down of our affiliated
physicians, independent contractors and employees by job
classification as of June 30, 2005.
Job Classification
Full-Time
Part-Time
Total
Physicians*
1,887
714
2,601
Physician assistants
162
142
304
Nurse practitioners
104
94
198
Non-clinical employees
1,076
119
1,195
Total
3,229
1,069
4,298
*
We have approximately 4,500 affiliated physicians. These figures
    represent clinicians providing services at a particular time.
We believe that our relations with our employees are good. None
of our physicians, physician assistants, nurse practitioners or
non-clinical employees are subject to any collective bargaining
agreement.
We offer our physicians substantial flexibility in terms of type
of facility, scheduling of work hours, benefit packages,
opportunities for relocation and career development. This
flexibility, combined with fewer administrative burdens,
improves physician retention rates and stabilizes our contract
base.
Legal Matters
We are subject to litigation arising in the ordinary course of
our business, including litigation principally relating to
professional liability claims. There can be no assurance that
our insurance coverage will be adequate to cover all liabilities
occurring out of such claims. In the opinion of management, we
are not engaged in any legal proceedings that we expect will
have a material adverse effect on our business, financial
condition, cash flows or results of our operations other than as
set forth below.
From time to time, in the ordinary course of business and like
others in the industry, we receive requests for information from
government agencies in connection with their regulatory or
investigational authority. Such requests can include subpoenas
or demand letters for documents to assist the government in
audits or investigations. We review such requests and notices
and take appropriate action. We have been subject to certain
requests for information and investigations in the past and
could be subject to such requests for information and
investigations in the future.
Our healthcare businesses are subject to the Medicare and
Medicaid fraud and abuse laws, which prohibit, among other
things, any false claims, or any bribe, kick-back or rebate in
return for the referral of Medicare and Medicaid patients.
Violation of these prohibitions may result in civil and criminal
penalties and exclusion from participation in the Medicare and
Medicaid programs. We have implemented policies and procedures
that management believes will assure that we are in substantial
compliance with these laws.
EmCare has been named a defendant in a collective action lawsuit
brought by a number of nurse practitioners and physician
assistants under the Fair Labor Standards Act. The plaintiffs
are seeking to recover overtime pay for the hours they worked in
excess of 40 in a workweek and reclassification as non-exempt
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employees. Certain of the plaintiffs brought a related action
under California state law. We have entered into a settlement of
the California state law claims.
Regulatory
Matters
As a participant in the healthcare industry, our operations and
relationships with healthcare providers such as hospitals, other
healthcare facilities and healthcare professionals are subject
to extensive and increasing regulation by numerous federal and
state government entities as well as local government agencies.
Specifically, but without limitation, we are subject to the
following laws and regulations.
Medicare, Medicaid and Other Government Program
Reimbursement
We derive a significant portion of our revenue from services
rendered to beneficiaries of Medicare, Medicaid and other
government-sponsored healthcare programs. To participate in
these programs, we must comply with stringent and often complex
enrollment and reimbursement requirements from the federal and
state governments. We are subject to governmental reviews and
audits of our bills and claims for reimbursement. Retroactive
adjustments to amounts previously reimbursed from these programs
can and do occur on a regular basis as a result of these reviews
and audits. In addition, these programs are subject to statutory
and regulatory changes, administrative rulings, interpretations
and determinations, all of which may materially increase or
decrease the payments we receive for our services as well as
affect the cost of providing services.
Government funding for health care programs is subject to
statutory and regulatory changes, administrative rulings,
interpretations of policy and determinations by intermediaries
and governmental funding restrictions, all of which could
materially impact program reimbursements for our services. In
recent years, Congress has consistently attempted to curb
federal spending on such programs.
Reimbursement to us typically is conditioned on our providing
the correct procedure and diagnosis codes and properly
documenting both the service itself and the medical necessity
for the service. Incorrect or incomplete documentation and
billing information, or the incorrect selection of codes for the
level of service provided, could result in non-payment for
services rendered or lead to allegations of billing fraud.
Moreover, third party payors may disallow, in whole or in part,
requests for reimbursement based on determinations that certain
amounts are not reimbursable, they were for services provided
that were not medically necessary, there was a lack of
sufficient supporting documentation, or for a number of other
reasons. Retroactive adjustments, recoupments or refund demands
may change amounts realized from third party payors. Additional
factors that could complicate our billing include:
•
disputes between payors as to which party is responsible for
    payment,
•
the difficulty of adherence to specific compliance requirements,
    diagnosis coding and various other procedures mandated by the
    government, and
•
failure to obtain proper physician credentialing and
    documentation in order to bill governmental payors.
Due to the nature of our business and our participation in the
Medicare and Medicaid reimbursement programs, we are involved
from time to time in regulatory reviews, audits or
investigations by government agencies of matters such as
compliance with billing regulations and rules. We may be
required to repay these agencies if a finding is made that we
were incorrectly reimbursed, or we may lose eligibility for
certain programs in the event of certain types of
non-compliance. Delays and uncertainties in the reimbursement
process adversely affect our level of accounts receivable,
increase the overall cost of collection, and may adversely
affect our working capital and cause us to incur additional
borrowing costs. Unfavorable resolutions of pending or future
regulatory reviews or investigations, either individually or in
the aggregate, could have a material adverse effect on our
business, financial condition and results of operations.
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We establish an allowance for discounts applicable to Medicare,
Medicaid and other third party payors and for doubtful accounts
based on credit risk applicable to certain types of payors,
historical trends, and other relevant information. We review our
allowance for doubtful accounts on an ongoing basis and may
increase or decrease such allowance from time to time, including
in those instances when we determine that the level of effort
and cost of collection of certain accounts receivable is
unacceptable.
We believe that regulatory trends in cost containment will
continue. We cannot assure you that we will be able to offset
reduced operating margins through cost reductions, increased
volume, the introduction of additional procedures or otherwise.
Ambulance Services.
In February 2002, the Health Care
Financing Administration, now renamed the Centers for Medicare
and Medicaid Services, issued the Medicare Ambulance Fee
Schedule Final Rule, or Final Rule, that revised Medicare
policy on the coverage of ambulance transport services,
effective April 1, 2002. The Final Rule was the result of a
mandate under the Balanced Budget Act of 1997 to establish a
national fee schedule for payment of ambulance transport
services that would control increases in expenditures under
Part B of the Medicare program, establish definitions for
ambulance transport services that link payments to the type of
services furnished, consider appropriate regional and
operational differences and consider adjustments to account for
inflation, among other provisions.
The Final Rule provided for a five-year phase-in of a national
fee schedule, beginning April 1, 2002. Prior to that date,
Medicare used a charge-based reimbursement system for ambulance
transport services and reimbursed 80% of charges determined to
be reasonable, subject to the limits fixed for the particular
geographic area. The patient was responsible for co-pay amounts,
deductibles and the remaining balance of the transport cost, if
we did not accept the assigned reimbursement, and Medicare
required us to expend reasonable efforts to collect the balance.
In determining reasonable charges, Medicare considered and
applied the lowest of various charge factors, including the
actual charge, the customary charge, the prevailing charge in
the same locality, the amount of reimbursement for comparable
services, and the inflation-indexed charge limit.
On April 1, 2002, the Final Rule became effective. The
Final Rule categorizes seven levels of ground ambulance
services, ranging from basic life support to specialty care
transport, and two categories of air ambulance services. Ground
providers are paid based on a base rate conversion factor
multiplied by the number of relative value units assigned to
each level of transport, plus an additional amount for each mile
of patient transport. The base rate conversion factor for
services to Medicare patients was set initially at $170.54
(which is adjusted each year by the Consumer Price Index).
Adjustments to the base rate conversion factor are also included
to recognize differences in relative practice costs among
geographic areas, and higher transportation costs that may be
incurred by ambulance providers in rural areas with low
population density. The Final Rule requires ambulance providers
to accept assignment on Medicare claims, which means a provider
must accept Medicare's allowed reimbursement rate as full
payment. Medicare typically reimburses 80% of that rate and the
remaining 20% is collectible from a secondary insurance or the
patient. Originally, the Final Rule called for a five-year
phase-in period to allow providers time to adjust to the new
payment rates. The national fee schedule was to be phased in at
20% increments each year, with payments being made at 100% of
the national fee schedule in 2006 and thereafter.
With the passage of the Medicare Prescription Drug Improvement
and Modernization Act of 2003, or the Medicare Modernization
Act, modifications were made to the phase-in of the ambulance
fee schedule in order to mitigate decreases in reimbursement in
some regions caused by the Final Rule. The Medicare
Modernization Act established regional fee schedules based on
historic costs in each region. Effective July 1, 2004, in
those regions where the regional fee schedule exceeds the
national fee schedule, the regional fee schedule is blended with
the original national fee schedule on a temporary basis, until
2010. During this period, the Medicare allowable reimbursement
rate will be the greater of (a) the national fee schedule
and (b) a blend of the national fee schedule and the
regional fee schedule. For 2004, that 20% of the blended rate
was based on the national fee schedule and 80% of the blended
rate was based on the regional fee schedule. For each succeeding
year through 2007, the percentages will increase 20% for the
national fee schedule and
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decrease 20% for the regional fee schedule portions of the
blended rate. For 2008 and 2009, the fee schedule will remain at
the 2007 mix of 20% regional and 80% national. In addition to
the regional fee schedule change, the Medicare Modernization Act
included other provisions for additional reimbursement for
ambulance transport services provided to Medicare patients.
Among other relief, the Medicare Modernization Act provides for
a 1% increase in reimbursement for urban transports and a 2%
increase for rural transports for the remainder of the original
phase-in period of the national ambulance fee schedule, through
2006. Although we expect these provisions under the Medicare
Modernization Act to positively impact the effects of the Final
Rule on our transport revenue attributable to Medicare patients,
we currently are unable to predict the total impact.
State or local government regulations or administrative policies
regulate rate structures in some states in which we provide
ambulance transport services. For example, in certain service
areas in which we are the exclusive provider of ambulance
transport services, the community sets the rates for emergency
ambulance services pursuant to an ordinance or master contract
and may also establish the rates for general ambulance services
that we are permitted to charge. We may be unable to receive
ambulance service rate increases on a timely basis where rates
are regulated or to establish or maintain satisfactory rate
structures where rates are not regulated.
Emergency Physician Services Fee Schedule.
Medicare pays
for all physician services based upon a national fee schedule,
or Fee Schedule, which contains a list of uniform rates. The
payment rates under the Fee Schedule are determined based on:
(1) national uniform relative value units for the services
provided, (2) a geographic adjustment factor and (3) a
conversion factor. The Centers for Medicare and Medicaid
Services, or CMS, updates the conversion factor annually. The
Fee Schedule uses a target-setting formula system called the
Sustainable Growth Rate, or SGR, to update annually the
conversion factor. The SGR is a target rate of growth in
spending for physician services which is intended to control the
growth of Medicare expenditures for physicians' services.
The Fee Schedule update is adjusted to reflect the comparison of
actual expenditures to target expenditures. Because one of the
factors for calculating the SGR system is linked to the growth
in the U.S. gross domestic product, the SGR formula may
result in a negative payment update if growth in Medicare
beneficiaries' use of services exceeds GDP growth. The SGR
formula may result in significant yearly fluctuations in Fee
Schedule updates, which may be unrelated to changes in the
actual cost of providing physician services.
Medicare Reassignment.
The Medicare program prohibits the
reassignment of Medicare payments due to a physician or other
healthcare provider to any other person or entity unless the
billing arrangement between that physician or other healthcare
provider and the other person or entity falls within an
enumerated exception to the Medicare reassignment prohibition.
Historically, there was no exception that allowed us to receive
directly Medicare payments related to the services of
independent contractor physicians. However, the Medicare
Modernization Act amended the Medicare reassignment statute as
of December 8, 2003 and now permits our independent
contractor physicians to reassign their Medicare receivables to
us under certain circumstances.
Federal False Claims Act
We are subject to the federal False Claims Act that imposes
civil and criminal liability on individuals or entities that
submit false or fraudulent claims for payment to the government.
Government agencies continue civil and criminal enforcement
efforts in connection with investigations of healthcare
companies and their executives and managers, many of which
involve the False Claims Act. The False Claims Act provides, in
part, that the federal government may bring a lawsuit against
any person whom it believes has knowingly or recklessly
presented, or caused to be presented, a false or fraudulent
request for payment from the federal government, or who has made
a false statement or used a false record to get a claim
approved. In addition, private parties may initiate
"qui
tam"
whistleblower lawsuits against any person or
entity under the False Claims Act in the name of the government
and share in the proceeds of the lawsuit.
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The government and a number of courts have taken the position
that claims presented in violation of the various statutes,
including the federal Anti-Kickback Statute and the Stark Law,
can be considered a violation of the False Claims Act based on
the contention that a provider impliedly certifies compliance
with all applicable laws, regulations and other rules when
submitting claims for reimbursement. Penalties for False Claims
Act violations include fines ranging from $5,500 to $11,000 for
each false claim, plus up to three times the amount of damages
sustained by the federal government. A False Claims Act
violation may provide the basis for exclusion from the
federally-funded healthcare programs. In addition, some states
have adopted similar insurance fraud, state whistleblower and
false claims provisions. Although we intend and endeavor to
conduct our business in compliance with all applicable fraud and
abuse laws, we cannot assure you that our arrangements or
business practices will not be subject to government scrutiny or
be found to violate applicable fraud and abuse laws.
Federal Anti-Kickback Statute
We are subject to the federal Anti-Kickback Statute. The
Anti-Kickback Statute is broadly worded and prohibits the
knowing and willful offer, payment, solicitation or receipt of
any form of remuneration in return for, or to induce,
(1) the referral of a person covered by Medicare, Medicaid
or other governmental programs, (2) the furnishing or
arranging for the furnishing of items or services reimbursable
under Medicare, Medicaid or other governmental programs or
(3) the purchase, lease of order or arranging or
recommending purchasing, leasing or ordering of any item or
service reimbursable under Medicare, Medicaid or other
governmental programs. Certain federal courts have held that the
Anti-Kickback Statute can be violated if "one purpose"
of a payment is to induce referrals. Violations of the
Anti-Kickback Statute can result in exclusion from Medicare,
Medicaid or other governmental programs as well as civil and
criminal penalties, including fines of up to $50,000 per
violation and three times the amount of the unlawful
remuneration. Imposition of any of these remedies could have a
material adverse effect on our business, financial condition and
results of operations.
In addition to a few statutory exceptions, the OIG has published
safe harbor regulations that outline categories of activities
that are deemed protected from prosecution under the
Anti-Kickback Statute provided all applicable criteria are met.
The failure of a financial relationship to meet all of the
applicable safe harbor criteria does not necessarily mean that
the particular arrangement violates the Anti-Kickback Statute.
In order to obtain additional clarification on arrangements that
may not be subject to a statutory exception or may not satisfy
the criteria of a safe harbor, Congress established a process
under the Health Insurance Portability and Accountability Act of
1996 in which parties can seek an advisory opinion from the OIG.
We and others in the healthcare community have taken advantage
of the advisory opinion process, and a number of advisory
opinions have addressed issues that pertain to our various
operations, such as discounted ambulance services being provided
to skilled nursing facilities, patient co-payment
responsibilities, compensation formulas under a management
services arrangement, and ambulance restocking arrangements. In
a number of these advisory opinions the government concluded
that such arrangements could be problematic if the requisite
intent were present. Although advisory opinions are binding only
on HHS and the requesting party or parties, when new advisory
opinions are issued, regardless of the requestor, we review them
and their application to our operations as part of our ongoing
corporate compliance program and endeavor to make appropriate
changes where we perceive the need to do so. See
"— Corporate Compliance Program and Corporate
Integrity Obligations."
Health facilities such as hospitals and nursing homes refer two
categories of ambulance transports to us and other ambulance
companies: (1) transports for which the facility must pay
the ambulance company, and (2) transports which the
ambulance company can bill directly to Medicare or other public
or private payors. In Advisory Opinion 99-2, which we requested,
the OIG addressed the issue of whether substantial contractual
discounts provided to nursing homes on the transports for which
the nursing homes are financially responsible may violate the
Anti-Kickback Statute when the ambulance company also receives
referrals of Medicare and other government-funded transports.
The OIG opined that such discounts implicate the Anti-Kickback
Statute if even one purpose of the discounts is to induce the
referral of the transports paid for by
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Medicare and other federal programs. The OIG further indicated
that a violation may exist even if there is no contractual
obligation on the part of the facility to refer federally funded
patients, and even if similar discounts are provided by other
ambulance companies in the same marketplace. Following our
receipt of this Advisory Opinion in March of 1999, we began
taking steps to bring our contracts with health facilities into
compliance with the OIG's views. However, the government
has alleged that certain of our contracts in effect in Texas,
principally in periods prior to the issuance of the Advisory
Opinion, violated the Anti-Kickback Statute. Our contracting
practices in Oregon and possibly other jurisdictions may also be
under investigation. See " — American
Medical Response — Legal Matters." We cannot
assure you that the OIG or other authorities will not find that
our discounting practices in such other jurisdictions, or for
other periods of time, violate the Anti-Kickback Statute.
The OIG has also addressed potential violations of the
Anti-Kickback Statute (as well as other risk areas) in its
Compliance Program Guidance for Ambulance Suppliers. In addition
to discount arrangements with health facilities, the OIG notes
that arrangements between local governmental agencies that
control 911 patient referrals and ambulance companies which
receive such referrals may violate the Anti-Kickback Statute if
the ambulance companies provide inappropriate remuneration in
exchange for such referrals. Although we believe we have
structured our arrangements with local agencies in a manner
which complies with the Anti-Kickback Statute, we cannot assure
you that enforcement agencies will not find that some of those
arrangements violate that statute.
Fee-Splitting; Corporate Practice of Medicine
We are subject to various state laws that prohibit the practice
of medicine by corporations and are intended to prevent
unlicensed persons from interfering with or influencing the
physician's professional judgment and the sharing of
professional services income with non-professional or business
interests. Activities other than those directly related to the
delivery of healthcare may be considered an element of the
practice of medicine in many states. Under the corporate
practice of medicine restrictions of certain states, decisions
and activities such as scheduling, contracting, setting rates
and the hiring and management of non-clinical personnel may
implicate the restrictions on corporate practice of medicine. In
such states, we maintain long-term management contracts with
affiliated physician groups, which employ or contract with
physicians to provide physician services. We believe that we are
in material compliance with applicable state laws relating to
the corporate practice of medicine and fee-splitting. However,
regulatory authorities or other parties, including our
affiliated physicians, may assert that, despite these
arrangements, we are engaged in the corporate practice of
medicine or that our contractual arrangements with affiliated
physician groups constitute unlawful fee-splitting. In this
event, we could be subject to adverse judicial or administrative
interpretations, to civil or criminal penalties, our contracts
could be found legally invalid and unenforceable or we could be
required to restructure our contractual arrangements with our
affiliated physician groups.
Federal Stark Law
We are also subject to a provision of the Social Security Act,
commonly known as the "Stark Law." Where applicable,
this law prohibits a physician from referring Medicare patients
and Medicaid patients to an entity providing "designated
health services" if the physician or a member of such
physician's immediate family has a "financial
relationship" with the entity, unless an exception applies.
The penalties for violating the Stark Law include the denial of
payment for services ordered in violation of the statute,
mandatory refunds of any sums paid for such services and civil
penalties of up to $15,000 for each violation, and twice the
dollar value of each such service and possible exclusion from
future participation in the federally-funded healthcare
programs. A person who engages in a scheme to circumvent the
Stark Law's prohibitions may be fined up to $100,000 for
each applicable arrangement or scheme. Although we believe that
we have structured our agreements with physicians so as to not
violate the Stark Law and related regulations, a determination
of liability under the Stark Law could have an adverse effect on
our business, financial condition and results of operations.
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Other Federal Healthcare Fraud and Abuse Laws
We are also subject to other federal healthcare fraud and abuse
laws. Under the Health Insurance Portability and Accountability
Act of 1996, there are two additional federal crimes that could
have an impact on our business: "Healthcare Fraud" and
"False Statements Relating to Healthcare Matters." The
Healthcare Fraud statute prohibits knowingly and recklessly
executing a scheme or artifice to defraud any healthcare benefit
program, including private payors. A violation of this statute
is a felony and may result in fines, imprisonment and/or
exclusion from government-sponsored programs. The False
Statements Relating to Healthcare Matters statute prohibits
knowingly and willfully falsifying, concealing or covering up a
material fact by any trick, scheme or device or making any
materially false, fictitious or fraudulent statement in
connection with the delivery of or payment for healthcare
benefits, items or services. A violation of this statute is a
felony and may result in fines and/or imprisonment.
Although we intend and endeavor to conduct our business in
compliance with all applicable fraud and abuse laws, we cannot
assure you that our arrangements or business practices will not
be subject to government scrutiny or be found to violate
applicable fraud and abuse laws.
Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996
The Administrative Simplification Provisions of the Health
Insurance Portability and Accountability Act of 1996, or HIPAA,
required the Department of Health and Human Services, or HHS, to
adopt standards to protect the privacy and security of
health-related information. All healthcare providers were
required to be compliant with the new federal privacy
requirements enacted by HHS no later than April 14, 2003.
We believe we have taken reasonable measures to comply with
these requirements.
The HIPAA privacy requirements contain detailed requirements
regarding the use and disclosure of individually identifiable
health information. Improper use or disclosure of identifiable
health information covered by the HIPAA privacy regulations can
result in the following civil and criminal penalties:
(1) civil money penalties for HIPAA privacy violations are
$100 per incident, to a maximum of $25,000, per person, per
year, per standard violated; (2) a person who knowingly and
in violation of the HIPAA privacy regulations obtains
individually identifiable health information or discloses such
information to another person may be fined up to $50,000 and
imprisoned up to one year, or both; (3) if the offense is
committed under false pretenses, the fine may be up to $100,000
and imprisonment for up to five years; and (4) if the
offense is done with the intent to sell, transfer or use
individually identifiable health information for commercial
advantage, personal gain or malicious harm, the fine may be up
to $250,000 and imprisonment for up to ten years.
In addition to enacting the foregoing privacy requirements, HHS
issued a final rule creating security requirements for
healthcare providers and other covered entities on
February 20, 2003. The final security rule requires covered
entities to meet specified standards by April 25, 2005. The
security standards contained in the final rule do not require
the use of specific technologies (
e.g.
, no specific
hardware or software is required), but instead require
healthcare providers and other covered entities to comply with
certain minimum security procedures in order to protect data
integrity, confidentiality and availability. We believe we have
taken reasonable steps to comply with these standards.
HIPAA also required HHS to adopt national standards establishing
electronic transaction standards that all healthcare providers
must use when submitting or receiving certain healthcare
transactions electronically. Although these standards were to
become effective October 2002, Congress extended the compliance
deadline until October 2003 for organizations, such as ours,
that submitted a request for an extension. We believe we have
taken reasonable steps to comply with these standards.
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Fair Debt Collection Practices Act
Some of our operations may be subject to compliance with certain
provisions of the Fair Debt Collection Practices Act and
comparable statutes in many states. Under the Fair Debt
Collection Practices Act, a third party collection company is
restricted in the methods it uses to contact consumer debtors
and elicit payments with respect to placed accounts.
Requirements under state collection agency statutes vary, with
most requiring compliance similar to that required under the
Fair Debt Collection Practices Act. We believe we are in
substantial compliance with the Fair Debt Collection Practices
Act and comparable state statutes where applicable.
State Fraud and Abuse Provisions
We are subject to state fraud and abuse statutes and
regulations. Most of the states in which we operate have adopted
a form of anti-kickback law, almost all of those states also
have adopted self-referral laws and some have adopted separate
false claims or insurance fraud provisions. The scope of these
laws and the interpretations of them vary from state to state
and are enforced by state courts and regulatory authorities,
each with broad discretion. Generally, state laws cover all
healthcare services and not just those covered under a
federally-funded healthcare program. A determination of
liability under such laws could result in fines and penalties
and restrictions on our ability to operate in these
jurisdictions.
Although we intend and endeavor to conduct our business in
compliance with all applicable fraud and abuse laws, we cannot
assure you that our arrangements or business practices will not
be subject to government scrutiny or be found to violate
applicable fraud and abuse laws.
Licensing, Certification, Accreditation and Related Laws and
Guidelines
In certain jurisdictions, changes in our ownership structure
require pre-or post-notification to governmental licensing and
certification agencies. Relevant laws and regulations may also
require re-application and approval to maintain or renew our
operating authorities or require formal application and approval
to continue providing services under certain government
contracts. For example, in connection with our acquisition of
AMR from Laidlaw, two of our subsidiaries were required to apply
for state and local ambulance operating authority in New York.
We and our affiliated physicians are subject to various federal,
state and local licensing and certification laws and regulations
and accreditation standards and other laws, relating to, among
other things, the adequacy of medical care, equipment, personnel
and operating policies and procedures. We are also subject to
periodic inspection by governmental and other authorities to
assure continued compliance with the various standards necessary
for licensing and accreditations.
Because we perform services at hospitals and other types of
healthcare facilities, we and our affiliated physicians may be
subject to laws which are applicable to those entities. For
example, our operations are impacted by the Emergency Medical
Treatment and Active Labor Act of 1986, which prohibits
"patient dumping" by requiring hospitals and hospital
emergency department and others to assess and stabilize any
patient presenting to the hospital's emergency department
or urgent care center requesting care for an emergency medical
condition, regardless of the patient's ability to pay. Many
states in which we operate have similar state law provisions
concerning patient dumping. Violations of the Emergency Medical
Treatment and Active Labor Act of 1986 can result in civil
penalties and exclusion of the offending physician from the
Medicare and Medicaid programs.
In addition to the Emergency Medical Treatment and Active Labor
Act of 1986 and its state law equivalents, significant aspects
of our operations are affected by state and federal statutes and
regulations governing workplace health and safety, dispensing of
controlled substances and the disposal of medical waste. Changes
in ethical guidelines and operating standards of professional
and trade associations and private accreditation commissions
such as the American Medical Association and the Joint
Commission on
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Accreditation of Healthcare Organizations may also affect our
operations. We believe our operations as currently conducted are
in substantial compliance with these laws and guidelines.
Corporate Compliance Program and Corporate Integrity
Obligations
We have developed a corporate compliance program in an effort to
monitor compliance with federal and state laws and regulations
applicable to healthcare entities, to ensure that we maintain
high standards of conduct in the operation of our business and
to implement policies and procedures so that employees act in
compliance with all applicable laws, regulations and company
policies. Our program also attempts to monitor compliance with
our Corporate Compliance Plan, which details our standards for:
(1) business ethics, (2) compliance with applicable
federal, state and local laws, and (3) business conduct. We
have an Ethics and Compliance Department whose focus is to
prevent, detect and mitigate regulatory risks. We attempt to
accomplish this mission through:
•
providing guidance, education and proper controls based on the
    regulatory risks associated with our business model and
    strategic plan,
•
conducting internal audits and reviews to identify any improper
    practices that may be occurring,
•
resolving regulatory matters, and
•
enhancing the ethical culture and leadership of the organization.
We believe our compliance program has been structured
appropriately in light of the guidance provided by the OIG. The
primary compliance program components recommended by the OIG,
all of which we have attempted to implement, include:
•
formal policies and written procedures,
•
designation of a Compliance Officer,
•
education and training programs,
•
internal monitoring and reviews,
•
responding appropriately to detected misconduct,
•
open lines of communication, and
•
discipline and accountability.
Our corporate compliance program is based on the overall goal of
promoting a culture that encourages employees to conduct
activities with integrity, dignity and care for those we serve,
and in compliance with all applicable laws and policies.
Notwithstanding the foregoing, we audit compliance with our
compliance program on a sample basis. Although such an approach
reflects a reasonable and accepted approach in the industry, we
cannot assure you that our program will detect and rectify all
compliance issues in all markets and for all time periods.
As do other healthcare companies which operate effective
compliance programs, from time to time we identify practices
that may have resulted in Medicare or Medicaid overpayments or
other regulatory issues. For example, we have previously
identified situations in which we may have inadvertently
utilized incorrect billing codes for some of the services we
have billed to government programs such as Medicare or Medicaid.
In such cases, it is our practice to disclose the issue to the
affected government programs and, if appropriate, to refund any
resulting overpayments. The government usually accepts such
disclosures and repayments without taking further enforcement
action, and we generally expect that to be the case with respect
to our past and future disclosures and repayments. However, it
is possible that such disclosures or repayments will
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result in allegations by the government that we have violated
the False Claims Act or other laws, leading to investigations
and possibly civil or criminal enforcement actions.
In addition, as a condition to settlement of two government
investigations, certain of our operations are subject to
Corporate Integrity Agreements, or CIAs, with the HHS. As part
of these CIAs, AMR was required to establish and maintain a
compliance program that includes the following elements:
(1) a compliance officer and committee, (2) written
standards including a code of conduct and policies and
procedures, (3) general and specific training and
education, (4) claims review by an independent review
organization, (5) disclosure program for reporting of
compliance issues or questions, (6) screening and removal
processes for ineligible persons, (7) notification of
government investigations or legal proceedings and
(8) reporting of overpayments and other "reportable
events."
If we fail or if we are accused of failing to comply with the
terms of the settlements, we may be subject to additional
litigation or other government actions, including being excluded
from participating in the Medicare program and other federal
healthcare programs.
See "Risk Factors — Risk Factors Related to
Healthcare Regulation" for additional information related
to regulatory matters.
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MANAGEMENT
Directors and Executive Officers
The following table sets forth information regarding our
directors and executive officers.
Name
Age
Position*
William A. Sanger
55
Director, Chairman and Chief Executive Officer
Don S. Harvey
48
Director, President and Chief Operating Officer
Randel G. Owen
46
Chief Financial Officer
Dighton C. Packard, M.D.
57
Chief Medical Officer
Todd G. Zimmerman
40
General Counsel
Robert M. Le Blanc
39
Lead Director
Steven B. Epstein
61
Director
James T. Kelly
58
Director
Michael L. Smith
57
Director
*
Unless otherwise noted, the positions identified are the
    positions held with the general partner of Emergency Medical
    Services L.P. prior to this offering and with Emergency Medical
    Services Corporation following this offering, and it is the
    entity that will survive the reorganization of Emergency Medical
    Services L.P.
William A. Sanger
has been a director, chairman and Chief
Executive Officer of Emergency Medical Services Corporation
since February 10, 2005. Mr. Sanger was appointed
President of EmCare in 2001 and Chief Executive Officer of AMR
and EmCare in June 2002. Mr. Sanger is a co-founder of
BIDON Companies where he has been a Managing Partner since 1999.
Mr. Sanger served as President and Chief Executive Officer
of Cancer Treatment Centers of America, Inc. from 1997 to 2001.
From 1994 to 1997, Mr. Sanger was co-founder and Executive
Vice President of PhyMatrix Corp., then a publicly traded
diversified health services company. In addition,
Mr. Sanger was president and chief executive officer of
various other healthcare entities, including JFK Health Care
System. Mr. Sanger has an MBA from the Kellogg School of
Management at Northwestern University. Mr. Sanger has been
a leader in the healthcare industry for more than three decades.
Don S. Harvey
has been President and Chief Operating
Officer of Emergency Medical Services Corporation since
February 10, 2005, and was elected a director of Emergency
Medical Services Corporation in July 2005. Mr. Harvey
joined EmCare as an executive officer in 2001 and was appointed
President in June 2002. Mr. Harvey is a co-founder of BIDON
Companies where he has been a Managing Partner since 1999. Prior
to that, he served as President of the Eastern Region of Cancer
Treatment Centers of America, Inc. from 1997 to 1999. Prior to
that, Mr. Harvey was an executive officer of PhyMatrix
Corp. and Executive Vice President of JFK Healthcare System.
Mr. Harvey is a director of several organizations,
including the emergency medicine industry trade association
EDPMA. Mr. Harvey has more than 20 years of experience
in healthcare services serving the public, governmental and
private markets.
Randel G. Owen
has been Chief Financial Officer of
Emergency Medical Services Corporation since February 10,
2005. Mr. Owen was appointed Executive Vice President and
Chief Financial Officer of AMR in March 2003. He joined EmCare
in July 1999 and served as Executive Vice President and Chief
Financial Officer from June 2001 to March 2003. Before joining
EmCare, Mr. Owen was Vice President of Group Financial
Operations for PhyCor, Inc. in Nashville, Tennessee from 1995 to
1999. Mr. Owen has more than 20 years of financial
experience in the health care industry. Mr. Owen received
an accounting degree from Abilene Christian University.
Dighton C. Packard, M.D.
has been Chief Medical
Officer of EmCare since 1990 and became Chief Medical Officer of
Emergency Medical Services Corporation in April 2005.
Dr. Packard is also the Chairman of the Department of
Emergency Medicine at Baylor University Medical Center in
Dallas, Texas and a member of the Board of Trustees for Baylor
University Medical Center and for Baylor Heart and Vascular
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Hospital. Dr. Packard has practiced emergency medicine for
more than 25 years. He received his BS from Baylor
University at Waco and his MD from the University of Texas
Medical School at San Antonio.
Todd G. Zimmerman
has been General Counsel of Emergency
Medical Services Corporation since February 10, 2005.
Mr. Zimmerman was appointed General Counsel and Executive
Vice President of EmCare in July 2002 and of AMR in May 2004.
Mr. Zimmerman joined EmCare in October 1997 in connection
with EmCare's acquisition of Spectrum Emergency Care, Inc.
where he served as Corporate Counsel. Prior to joining Spectrum
in 1997, Mr. Zimmerman worked in the private practice of
law for seven years, providing legal advice and support to
various large corporations. Mr. Zimmerman received his BS
in Business Administration from St. Louis University and
his J.D. from the University of Virginia School of Law.
Robert M. Le Blanc
has served as Managing Director of
Onex Investment Corp., an affiliate of Onex Corporation, a
diversified industrial corporation, since 1999. Prior to joining
Onex in 1999, he was with Berkshire Hathaway for seven years.
From 1988 to 1992, Mr. Le Blanc held numerous positions
with GE Capital, with responsibility for corporate finance and
corporate strategy. Mr. Le Blanc serves as a Director of
Magellan Health Services, Inc., Res-Care, Inc., Center for
Diagnostic Imaging, Inc. and First Berkshire Hathaway Life.
Mr. Le Blanc became a director of Emergency Medical
Services Corporation in December 2004.
Steven B. Epstein
became a director of Emergency Medical
Services Corporation in July 2005. Mr. Epstein is the
founder and senior healthcare partner of the law firm of Epstein
Becker & Green, P.C. Epstein Becker &
Green, P.C. generally is recognized as one of the
country's leading healthcare law firms. Mr. Epstein
serves as a legal advisor to healthcare entities throughout the
U.S. Mr. Epstein received his B.A. from Tufts
University, where he serves on the Board of Trustees and the
Executive Committee, and his J.D. from Columbia Law School,
where he serves as Chairman of the Law School's Board of
Visitors. In addition, Mr. Epstein serves as a director of
many health care companies and venture capital and private
equity firms, including HealthExtras, Inc. (a pharmacy benefit
company).
James T. Kelly
became a director of Emergency Medical
Services Corporation in July 2005. From 1986 to 1996,
Mr. Kelly served as President and Chief Executive Officer
of Lincare Holding Inc., and he served as Chairman of the Board
of Lincare from 1994 to 2000. Lincare is a publicly traded
company that provides respiratory care, infusion therapy and
medical equipment to patients in the home. Prior to joining
Lincare, Mr. Kelly was with Union Carbide Corporation for
19 years, where he served in various management positions.
Mr. Kelly also serves as a director of American Dental
Partners, Inc. (a provider of dental management services) and
HMS Holdings Corp. (a provider of consulting and business office
outsourcing and reimbursement services to healthcare providers).
Michael L. Smith
became a director of Emergency Medical
Services Corporation in July 2005. Mr. Smith served as
Executive Vice President and Chief Financial and Accounting
Officer of Anthem, Inc. and its subsidiaries, Anthem Blue Cross
and Blue Shield, from 2001 until his retirement in January 2005.
Mr. Smith was Executive Vice President and Chief Financial
Officer of Anthem Insurance from 1999, and from 1996 to 1998 he
served as Chief Operating Officer and Chief Financial Officer of
American Health Network Inc., then a subsidiary of Anthem.
Mr. Smith was Chairman, President and Chief Executive
Officer of Mayflower Group, Inc. (a transportation company) from
1989 to 1995, and held various other management positions with
that company from 1974 to 1989. Mr. Smith also serves as a
director of First Indiana Corporation and its principal
subsidiary, First Indiana Bank, Finishmaster, Inc. (auto paint
distribution), InterMune, Inc. (a biopharmaceutical company) and
Kite Realty Group Trust (a retail property REIT). Mr. Smith
also serves as a member of the Board of Trustees of DePauw
University, a Trustee of the Indianapolis Museum of Art and a
Trustee of the Michigan Maritime Museum.
Except as described in this prospectus, there are no
arrangements or understandings between any member of the board
of directors or executive officer and any other person pursuant
to which that person was elected or appointed to his or her
position.
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Our board of directors has the power to appoint our executive
officers. Each executive officer will hold office for the term
determined by the board of directors and until such
person's successor is chosen or until such person's
death, resignation or removal.
Mr. Le Blanc is serving as our Lead Director. In that role,
his primary responsibility is to preside over periodic executive
sessions of our board of directors in which management directors
and other members of management do not participate, and he has
the authority to call meetings of the non-management directors.
The Lead Director also chairs certain portions of board
meetings, serves as liaison between the Chairman of the Board
and the non-management directors, and develops, together with
the Chairman, the agenda for board meetings. The Lead Director
will also perform other duties the board delegates from time to
time to assist the board in fulfilling its responsibilities.
There are no family relationships among any of our directors and
executive officers.
Composition of the Board of Directors after this Offering
Our certificate of incorporation, as in effect upon completion
of this offering, will provide for a classified board of
directors consisting of three staggered classes of directors, as
nearly equal in number as possible. At each annual meeting of
stockholders, a class of directors will be elected for a
three-year term to succeed the directors of the same class whose
terms are then expiring. The terms of the directors will expire
upon election and qualification of successor directors at the
annual meeting of stockholders to be held during the years 2006
for the Class I directors, 2007 for the Class II
directors and 2008 for the Class III directors.
Effective upon the closing of this offering, our board of
directors will consist of six members, classified as follows:
•
our Class I directors will
    be                     ,
•
our Class II directors will
    be                     ,
    and
•
our Class III directors will
    be                     .
Our by-laws, as in effect immediately prior to this offering,
will provide that the authorized number of directors, which will
be                     ,
may be changed by a resolution adopted by at least a majority of
our directors then in office. Any additional directorships
resulting from an increase in the number of directors may only
be filled by the directors and will be distributed among the
three classes so that, as nearly as possible, each class will
consist of one-third of the directors. This classification of
our board of directors could have the effect of delaying or
preventing changes in control or changes in our management.
Following the consummation of this offering, we will be deemed
to be a "controlled company" under the rules of the
NYSE, and we will qualify for, and intend to rely upon, the
"controlled company" exception to the board of
directors and committee composition requirements under the rules
of the NYSE. Pursuant to this exception, we will be exempt from
the rules that would otherwise require that our board of
directors be comprised of a majority of "independent
directors" and that our executive compensation and
corporate governance and nominating committees be comprised
solely of "independent directors," as defined under
the rules of the NYSE. The "controlled company"
exception does not modify the independence requirements for the
audit committee, and we intend to comply with the requirements
of the Sarbanes-Oxley Act of 2002 and the NYSE rules, which
require that our audit committee be comprised of independent
directors exclusively.
Upon the completion of this offering, our board will consist of
six directors, three of whom will qualify as
"independent" according to the rules and regulations
of the SEC and the New York Stock Exchange.
Committees of the Board of Directors
Prior to the completion of this offering, our board of directors
will have established an audit committee, a compensation
committee and a corporate governance and nominating committee.
The composition, duties and responsibilities of these committees
are set forth below. Committee members will hold office for a
term of one year.
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Audit Committee.
The audit committee is responsible for
(1) selecting the independent auditor, (2) approving
the overall scope of the audit, (3) assisting the board of
directors in monitoring the integrity of our financial
statements, the independent accountant's qualifications and
independence, the performance of the independent accountants and
our internal audit function and our compliance with legal and
regulatory requirements, (4) annually reviewing our
independent auditor's report describing the auditing
firms' internal quality-control procedures, and any
material issues raised by the most recent internal
quality-control review, or peer review, of the auditing firm,
(5) discussing the annual audited financial and quarterly
statements with management and the independent auditor,
(6) discussing earnings press releases, as well as
financial information and earnings guidance provided to analysts
and rating agencies, (7) discussing policies with respect
to risk assessment and risk management, (8) meeting
separately, periodically, with management, internal auditors and
the independent auditor, (9) reviewing with the independent
auditor any audit problems or difficulties and management's
response, (10) setting clear hiring policies for employees
or former employees of the independent auditors,
(11) handling such other matters that are specifically
delegated to the audit committee by the board of directors from
time to time and (12) reporting regularly to the full board
of directors.
Upon completion of this offering, our audit committee will
consist of Messrs. Epstein, Kelly and Smith, with
Mr. Smith serving as chairman of the committee. All of the
committee members have been determined to be independent
and                     and
Mr. Smith have each been determined to be an "audit
committee financial expert," as such term is defined in
Item 401(h) of Regulation S-K.
Compensation Committee.
The compensation committee is
responsible for (1) reviewing key employee compensation
policies, plans and programs, (2) reviewing and approving
the compensation of our executive officers, (3) reviewing
and approving employment contracts and other similar
arrangements between us and our executive officers,
(4) reviewing and consulting with the chief executive
officer on the selection of officers and evaluation of executive
performance and other related matters, (5) administration
of stock plans and other incentive compensation plans and
(6) such other matters that are specifically delegated to
the compensation committee by the board of directors from time
to time.
Upon completion of this offering, our compensation committee
consists of Messrs. Kelly, Le Blanc
and                     ,
with Mr. Kelly serving as chairman.
Corporate Governance and Nominating Committee.
Our
corporate governance and nominating committee's purpose
will be to assist our board of directors by identifying
individuals qualified to become members of our board consistent
with the criteria set by our board and to develop our corporate
governance principles. This committee's responsibilities
will include: (1) evaluating the composition, size and
governance of our board of directors and its committees and
making recommendations regarding future planning and the
appointment of directors to our committees,
(2) establishing a policy for considering stockholder
nominees for election to our board of directors,
(3) recommending ways to enhance communications and
relations with our stockholders, (4) evaluating and
recommending candidates for election to our board of directors,
(5) overseeing our board of directors' performance and
self-evaluation process and developing continuing education
programs for our directors, (6) reviewing our corporate
governance principles and providing recommendations to the board
of directors regarding possible changes, and (7) reviewing
and monitoring compliance with our code of ethics and our
insider trading policy.
Upon completion of this offering, our corporate governance and
nominating committee will consist of Messrs. Le
Blanc,                     and                     .
Compliance Committee.
Our compliance committee is
responsible for overseeing our Corporate Compliance Program. The
committee's responsibilities include oversight of our
processes for maintaining and monitoring compliance with federal
and state laws applicable to healthcare entities. The specific
functions overseen by the committee include our procedures for
(1) providing guidance and education to our workforce,
(2) performing compliance audits, (3) resolving
regulatory matters that come to our attention through our
compliance hotline, our audit activities or contacts from
government agencies and (4) enhancing the ethical culture
and leadership of our organization. Our compliance officers, who
supervise our Ethics and Compliance Department, will report
directly to the compliance committee and will meet with it on a
regular basis.
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Upon completion of this offering, our compliance committee will
consist of Messrs. Le
Blanc,                     and                     ,
with Mr. Le Blanc serving as chairman.
Other Committees.
Our board of directors may establish
other committees as it deems necessary or appropriate from time
to time.
The compensation arrangements for our Chief Executive Officer
and each of our named executive officers were established
pursuant to the terms of the respective employment agreements
between us and each executive officer. The terms of the
employment agreements were established pursuant to arms-length
negotiations between a representative of Onex and each executive
officer.
None of our executive officers serves, and we anticipate that
none will serve, as a member of the board of directors or
compensation committee of any entity that has one or more
executive officers that serves on our board of directors or
compensation committee.
Following this offering, directors who are not our employees
will receive an annual cash payment of $35,000, payable
quarterly, $2,000 for each board meeting attended in person and
$1,000 for each board meeting attended via conference call, and
$1,000 and $500, respectively, for each committee meeting
attended in person or via conference call. The chair of the
audit committee and the compensation committee will receive an
additional $15,000 and $10,000, respectively. Consistent with
corporate policy, Mr. Le Blanc, as chairman of the
compliance committee, will receive no compensation for his
services to the company. When they were elected to the board, we
granted to each of Messrs. Epstein, Kelly and Smith an option to
purchase 2,500 partnership units, with the same vesting schedule
as is applicable to our executive officers. See
"Management — Executive Compensation". All
directors are reimbursed for their out-of-pocket expenses
incurred in connection with such services.
Executive Compensation
The following table sets forth the compensation of our chief
executive officer and the four other most highly compensated
executive officers during fiscal 2004. We refer to these
officers as our named executive officers.
Summary Compensation Table
Annual Compensation
Other Annual
Long-Term
All Other
Name and Principal Position(1)
Year
Salary
Bonus
Compensation(2)
Compensation Awards(3)
Compensation(4)
William A. Sanger
2004
$
571,411
$
488,750
—
—
$
9,957
Chief Executive Officer of AMR and of EmCare
Don S. Harvey
2004
$
390,625
$
337,500
—
—
$
3,925
President and Chief Operating Officer of EmCare
Randel G. Owen
2004
$
286,422
$
117,500
$
55,944(5
)
$
35,245
$
7,745
Chief Financial Officer of AMR
Dighton C. Packard, M.D.
2004
$
211,467
$
83,200
—
$
21,333
$
4,571
Chief Medical Officer of EmCare
Todd G. Zimmerman
2004
$
201,955
$
146,997
—
$
11,594
$
5,157
General Counsel of EmCare
(1)
Represents each person's principal position in fiscal 2004.
    All of these individuals became executive officers of Emergency
    Medical Services in connection with the acquisition.
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(2)
In accordance with the rules of the SEC, other annual
    compensation disclosed in this table does not include various
    perquisites and other personal benefits received by a named
    executive officer that does not exceed the lesser of $50,000 or
    10% of such officer's total annual salary and bonus
    disclosed in this table.
(3)
Represents the vesting of restricted share awards granted to the
    named executive officers by Laidlaw on November 24, 2004,
    as follows: Mr. Owen — 1,900 shares;
    Dr. Packard — 1,150 shares;
    Mr. Zimmerman — 625 shares. In connection
    with the acquisition, these awards terminated and no further
    restricted shares will vest.
(4)
Represents matching contributions to company 401(k) plans.
(5)
Other annual compensation for Mr. Owen includes a
    relocation allowance of $47,544.
Substantially all of our salaried employees, including our named
executive officers, participate in our 401(k) savings plans. We
maintain three 401(k) plans for eligible AMR employees.
Employees may contribute a maximum of 40% of their compensation
up to a maximum of $13,000. We match the contribution up to a
maximum of 3% to 6% of the employee's salary per year,
depending on the plan. Eligible EmCare employees may elect to
contribute 1% to 25% of their annual compensation and we match
50% of the first 6% of base compensation that an employee
contributes.
Prior to our acquisition of AMR and EmCare, our named executive
officers participated in the Laidlaw, Inc. U.S. Supplemental
Executive Retirement Arrangement, or SERP. The benefit amount
payable under the plan at age 65 is based upon an
employee's final average earnings. The form of the benefit
would be an annuity, guaranteed for five years. Based on the
number of years of service and their respective salaries prior
to the acquisition, the following are the total estimated
accrued values of future benefits payable under the Laidlaw SERP
to the named executive officers on retirement, calculated at
August 31, 2004: Mr. Sanger — $169,532;
Mr. Harvey  — $69,782; Mr. Owen —
$141,190; Dr. Packard — $169,030; and
Mr. Zimmerman  — $92,481. No additional benefits
will accrue under the SERP.
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Option Grants and Stock Awards
There were no stock option grants or restricted stock awards to
the named executive officers in fiscal 2004.
The following table sets forth information regarding options
granted to each of our named executive officers in February 2005
in connection with our acquisition of AMR and EmCare. Potential
realizable value is based upon the assumed initial public
offering of
$           per
share, and is net of the exercise price of
$           per
share. The potential realizable value set forth in the last
column of the table is calculated based on the term of the
option at the time of the grant, which is ten years. The assumed
5% and 10% rates of appreciation comply with the rules of the
SEC and do not represent our estimate of future stock price.
Actual gains, if any, on stock option exercises will be
dependent on future performance of our class A common
stock. We have not granted any stock appreciation rights to any
of the named executive officers.
The exercise price of each option listed below is equal to the
price paid per share by our initial investors. Each option may
be exercised only upon the vesting of such options. One-half of
the options held by each named executive officer vest ratably
over a four-year period as of the one-year anniversaries of the
grant (the 6-month anniversaries, in the case of
Mr. Sanger), and one-half vest ratably over the same period
but are exercisable only if a specified performance target is
met. See " — Equity Plans — Equity
Option Plan." The percentage of total options is based upon
options to purchase an aggregate
of                      shares
of class A common stock granted to employees under the
equity option plan we adopted in connection with the acquisition
of AMR and EmCare.
Option Grants in Fiscal 2005
Individual Grants
Potential Realizable
Value of Assumed
Number of
% of Total
Annual Rates of Stock
Securities
Options
Price Appreciation for
Underlying
Granted to
Option Term
Options
Employees in
Exercise
Name
Granted(1)
Fiscal Year
Price
Expiration Date(1)
5%
10%
William A. Sanger
988,112
(2)
42
%
$
10.00
February 10, 2015
Don S. Harvey
247,028
(3)
11
%
$
10.00
February 10, 2015
Randel G. Owen
247,028
(3)
11
%
$
10.00
February 10, 2015
Todd G. Zimmerman
98,811
(3)
4
%
$
10.00
February 10, 2015
Dighton C. Packard, M.D.
32,500
(3)
1
%
$
10.00
February 10, 2015
(1)
The options may expire earlier, upon termination of employment
    or certain corporate events. See "— Equity
    Plans — Equity Option Plan." If the
    employee's employment is terminated prior to
    February 10, 2015, his options will expire earlier as
    follows: (a) upon the termination of employment if the
    termination is for "cause", (b) 30 days
    after the termination of employment, or such other date as
    determined by the compensation committee, following termination
    by the employee for "good reason" or by us without
    "cause" or due to retirement, or (c) 90 days
    after termination of employment due to death or disability.
    Vesting of the options may accelerate, and all options will
    terminate if not exercised, upon (i) a sale of our equity
    (other than a sale as part of an initial public offering)
    whereby any person other than existing equity holders as of the
    grant date acquire our voting power to elect a majority of our
    board of directors or (ii) a sale of all or substantially
    all of our assets.
(2)
The options vest ratably on the first eight six-month
    anniversaries of the grant date,
provided
, that the
    exercisability of one-half of the options is conditioned upon
    meeting certain specified performance targets. See "—
    Equity Plans — Equity Option Plan." If
    Mr. Sanger is terminated, the options will vest as
    scheduled to the nearest six-month anniversary of the grant date.
(3)
The options vest ratably on the first four anniversaries of the
    grant date, provided, that the exercisability of one-half of the
    options is conditioned upon meeting certain specified
    performance targets. See "— Equity Plans —
    Equity Option Plan."
None of the named executive officers held any stock options
during the fiscal year ended August 31, 2004 and none of
them held unexercised stock options at that date.
Employment Agreements
We have entered into employment agreements with
Messrs. Sanger, Harvey, Owen and Zimmerman, each effective
February 10, 2005, and with Dr. Packard effective
April 19, 2005. Mr. Sanger's employment agreement
has a five-year term and Mr. Harvey's employment
agreement has a four-year term. The employment agreements of
Mr. Owen, Mr. Zimmerman and Dr. Packard have a
three-year, a two-year term
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and a one-year term, respectively, and renew automatically for
successive one-year terms unless either party gives notice at
least 90 days prior to the expiration of the then current
term. Each executive has the right to terminate his agreement on
90 days' notice, in which event he will be subject to
the non-compete provisions described below, provided he receives
specified severance benefits. The employment agreements include
provisions for the payment of an annual base salary as well as
the payment of a bonus based upon the achievement of performance
criteria established by our board of directors or, in the case
of Dr. Packard, our Chief Executive Officer or President.
The annual base salary of Mr. Sanger is subject to annual
review and adjustment after the second anniversary of the
effectiveness of the agreement. The annual base salary of
Messrs. Harvey, Owen and Zimmerman are subject to annual
review and adjustment after the first anniversary of the
effectiveness of the agreements. Dr. Packard's base
salary is subject to a $100,000 increase if he reduces his
clinical activities and increases the time he provides services
to us.
If we terminate a named executive officer's employment
without cause or any of them leaves after a change of control
for one of several specified reasons, we have agreed to continue
the executive's base salary and provide his benefits for a
period of 24 months from the date of termination for
Messrs. Sanger, Harvey and Owen, 18 months for
Mr. Zimmerman, and 12 months for Dr. Packard.
These agreements contain non-competition and non-solicitation
provisions pursuant to which the executive agrees not to compete
with AMR or EmCare or solicit or recruit our employees for a
period from the date of termination for 24 months in the
case of Mr. Sanger, Mr. Harvey, Mr. Owen and
Dr. Packard and 12 months in the case of
Mr. Zimmerman.
The annual base salary and target bonus for each named executive
officer is as follows:
Target
Annual
Bonus
Executive
Base Salary
Percentage
William A. Sanger
$
850,000
100
%
Don S. Harvey
$
500,000
75
%
Randel G. Owen
$
350,000
50
%
Todd G. Zimmerman
$
325,000
50
%
Dighton C. Packard, M.D.
$
260,000
50
%
Pursuant to their employment agreements, effective
February 10, 2005, we granted options to purchase our
class A common stock to each named executive officer. See
"— Option Grants and Stock Awards" and
"— Equity Plans — Equity Option
Plan." The option grant to each of these named executive
officers was conditioned upon his investment in our equity in an
amount as indicated in his respective employment agreement.
Our executive employment agreements with Messrs. Sanger,
Harvey, Owen and Zimmerman include indemnification provisions.
Under those agreements, we agree to indemnify each of these
individuals against claims arising out of events or occurrences
related to that individual's service as our agent or the
agent of any of our subsidiaries to the fullest extent legally
permitted. Under Delaware law, an officer may be indemnified,
except to the extent any claim arises from conduct that was not
in good faith or in a manner reasonably believed to be in, or
not opposed to, our best interest or, with respect to any
criminal action or proceedings, there was reasonable cause to
believe such conduct was unlawful.
Equity Plans
Equity Option Plan
We adopted our equity option in connection with the acquisition
of AMR and EmCare. We have granted options to purchase 2,337,479
partnership units under the plan and have reserved an additional
379,830 units for future grants.
The compensation committee of our board of directors, or the
board itself if there is no committee, administers the equity
option plan.
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The plan provides that if Emergency Medical Services undergoes a
reorganization, recapitalization or other change in its equity,
the compensation committee may make adjustments to the plan in
order to prevent dilution of outstanding options. In connection
with this offering, each option to purchase one partnership unit
at a price
of            per
unit will be adjusted to become the right to
purchase            shares
of class A common stock at a price
of            per
share.
The options to purchase 2,337,479 partnership units we have
granted under the plan are non-qualified options for federal
income tax purposes. These options have the following terms:
•
exercise price equal to $10.00 per unit, being the equity
    purchase price paid by the initial investors,
•
vesting ratably on each of the first four anniversaries of the
    grant date (the first eight 6-month anniversaries in the case of
    Mr. Sanger),
provided
, that the exercisability of
    one-half of the options granted to each employee is subject to
    the further condition that Onex has realized a 15% internal rate
    of return, as defined, or, on the fourth anniversary of the
    grant date, we have achieved an aggregate EBITDA of not less
    than $617.4 million, subject to certain adjustments, for
    the four fiscal years ending December 31, 2008,
•
each option expires on the tenth anniversary of the grant date
    unless the employee's employment is terminated earlier, in
    which case the options will expire as follows: (i) upon the
    termination of employment if the termination is for
    "cause", (ii) 30 days after the termination
    of employment, or such other date as determined by the
    compensation committee, following termination by the employee
    for "good reason" or by us without "cause"
    or due to retirement, or (iii) 90 days after
    termination of employment due to death or disability, and
•
upon (i) a sale of the equity of Emergency Medical Services
    (other than a sale as part of this offering) whereby any person
    other than existing equity holders as of the grant date acquire
    voting power to elect a majority of our board of directors or
    (ii) a sale of all or substantially all of our assets, all
    options granted to each employee will accelerate (although still
    subject to the performance target) and will terminate if not
    exercised.
All options and Emergency Medical Services equity held by our
senior management are governed by agreements which:
•
restrict transfer of their equity until the fifth anniversary of
    purchase, and
•
grant "piggyback" registration rights.
See "Description of Capital Stock — Equityholder
Agreements" and "— Registration
Agreement" for a description of the transfer restrictions
and "piggyback" registration rights.
Management Investment and Equity Purchase Plan
In connection with our acquisition of AMR and EmCare, our named
executive officers purchased an aggregate of 407,500 units. See
"Certain Relationships and Related Party
Transactions — Issuance of Shares." Approximately
160 employees and affiliated physicians, physician
assistants and nurse practitioners purchased in the aggregate an
additional 155,050 partnership units pursuant to our equity
purchase plan. All units held by these investors, including our
named executive officers, and
the                     shares
of our class A common stock these units will be converted
into, are governed by equityholders agreements. These agreements
contain restrictions on transfer of the equity. See
"Description of Capital Stock — Equityholder
Agreements."
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PRINCIPAL AND SELLING STOCKHOLDERS
The following table shows information with respect to the
beneficial ownership of our common stock as
of                      ,
2005, giving effect to our reorganization as a holding company,
including the exchange of limited partnership units for
class A common stock, the assumed exchange of LP
exchangeable units for our class B common stock,
the           -for-          stock
split, and as adjusted to reflect the sale of our class A
common stock being offered in this offering, by:
•
each person known by us to own beneficially 5% or more of our
    class A or class B common stock,
•
each of our directors,
•
each of our named executive officers, and
•
all of our directors and executive officers as a group.
In addition, up
to          LP
exchangeable units owned by the Onex entities may be exchanged
for shares of our class B common stock, converted into
class A common stock and sold if the underwriters exercise
their over-allotment option, as set forth in this section. No
members of management, and no other stockholder, is selling
common stock as a part of this offering.
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Before Offering
After Offering
Number of
Percentage
Percentage
Shares
of Class/All
Percentage
of Class/All
Percentage
Beneficially
Common
of Voting
Common
of Voting
Name of Beneficial Owner
Owned(1)(2)
Stock
Power
Stock
Power
Five Percent Stockholders
Onex Corporation(3)
class B
Onex Partners LP(4)
class B
Onex Partners LLC(5)
class B
Onex EMSC Co-Invest LP(6)
class B
Directors and Executive Officers
Robert M. Le Blanc(7)
class B
Steven B. Epstein(8)
class A
James T. Kelly(8)
class A
Michael L. Smith(8)
class A
William A. Sanger(8)
class A
Don S. Harvey(8)
class A
Dighton C. Packard, M.D.(9)
class A
Randel G. Owen(8)
class A
Todd G. Zimmerman(8)
class A
All directors and executive officers as a group (9 persons)
class B
class A
*
Represents beneficial ownership of less than 1%.
(1)
The amounts and percentages of our common stock beneficially
    owned are reported on the basis of regulations of the SEC
    governing the determination of beneficial ownership of
    securities. Under the rules of the SEC, a person is deemed to be
    a "beneficial owner" of a security if that person has
    or shares "voting power," which includes the power to
    vote or direct the voting of such security, or "investment
    power," which includes the power to dispose of or to direct
    the disposition of such security. A person is also deemed to be
    a beneficial owner of any securities of which that person has a
    right to acquire beneficial ownership within 60 days,
    including our common stock subject to an option that is
    exercisable within 60 days. Under these rules, more than
    one person may be deemed to be a beneficial owner of such
    securities as to which such person has an economic interest.
    None of the options granted under our equity option plan is
    exercisable within 60 days.
(2)
On each matter submitted to the stockholders for their vote, our
    class A common stock is entitled to one vote per share, and
    our class B common stock is entitled to ten votes per
    share, reducing to one vote per share under certain limited
    circumstances. Except as required by law, our class A and
    class B common stock vote together on all matters submitted
    to stockholders for their vote.
(3)
Includes the following:
    (i)             LP exchangeable
    units held by Onex Partners LP;
    (ii)             LP exchangeable
    units held by Onex Partners LLC;
    (iii)             LP exchangeable
    units held by Onex EMSC Co-Invest LP;
    (iv)             LP exchangeable
    units held by EMS Executive Investco LLC;
    (v)             LP exchangeable
    units held by Onex US Principals LP; and
    (vi)             LP exchangeable
    units held by Emergency Medical Services Corporation. Onex
    Corporation may be deemed to own beneficially the LP
    exchangeable units held by (a) Onex Partners LP,
    through Onex' ownership of all of the common stock of Onex
    Partners GP, Inc., the general partner of Onex
    Partners GP LP, the general partner of Onex
    Partners LP; (b) Onex Partners LLC, through
    Onex' ownership of all of the equity of Onex
    Partners LLC; (c) Onex EMS Co-Invest LP, through
    Onex' ownership of all of the common stock of Onex
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Partners GP, Inc., the general
    partner of Onex Partners GP LP, the general partner of
    Onex EMSC Co-Invest LP; (d) EMS Executive
    Investco LLC, through Onex' ownership of Onex American
    Holdings II LLC which owns 33.33% of the voting power
    of EMS Executive Investco LLC; and (e) Onex
    US Principals LP through Onex' ownership of all
    of the equity of Onex American Holdings GP LLC, the
    general partner of Onex US Principals LP.
In addition, prior to the formation
    of our holding company, Onex Corporation's subsidiary, Onex
    American Holdings II LLC, owns 50% of the voting stock
    of Emergency Medical Services Corporation, the general partner
    of EMS L.P., and a 99.9% economic interest in Emergency
    Medical Services Corporation. Emergency Medical Services
    Corporation owns directly less than .001% of the equity interest
    of EMS L.P. However, as its general partner, Emergency
    Medical Services Corporation may be deemed to own beneficially
    all of the equity of the partnership. The equity owned by
    Emergency Medical Services Corporation may be deemed
    beneficially owned 50% by Mr. Le Blanc and 50% by Onex
    American Holdings II LLC and Onex Corporation.
    Mr. Le Blanc disclaims such beneficial ownership.
Mr. Gerald W. Schwartz, the
    Chairman, President and Chief Executive Officer of Onex
    Corporation, owns shares representing a majority of the voting
    rights of the shares of Onex Corporation and as such may be
    deemed to own beneficially all of the LP exchangeable units
    owned beneficially by Onex Corporation. Mr. Schwartz
    disclaims such beneficial ownership. The address for Onex
    Corporation is 161 Bay Street, Toronto, ON M5J 2S1
(4)
All of the LP exchangeable
    units owned by Onex Partners LP may be deemed owned beneficially
    by each of Onex Partners GP LP, Onex Partners GP, Inc.
    and Onex Corporation. The address for Onex Partners LP is
    c/o Onex Investment Corporation, 712 Fifth Avenue, New
    York, New York 10019.
(5)
All of the LP exchangeable units
    owned by Onex Partners LLC may be deemed owned beneficially by
    Onex Corporation. The address for Onex Partners LLC is 421
    Leader Street, Marion, Ohio 43302.
(6)
All of the LP exchangeable units
    owned by Onex EMSC Co-Invest LP may be deemed owned beneficially
    by each of Onex Partners GP LP, Onex Partners GP, Inc. and Onex
    Corporation. The address for Onex EMSC Co-Invest LP is
    c/o Onex Investment Corporation, 712 Fifth Avenue, New
    York, New York 10019.
(7)
Includes
    (i)             LP
    exchangeable units held by Onex US Principals LP which may
    be deemed owned beneficially by Mr. Le Blanc by reason
    of his pecuniary interest in the LP exchangeable units owned by
    Onex US Principals LP,
    (ii)         LP
    exchangeable units owned by Onex EMSC Co-Invest LP which may be
    deemed to be owned beneficially by Mr. Le Blanc by reason
    of his pecuniary interest in Onex EMSC Co-Invest LP and
    (iii)          shares
    of LP exchangeable units owned by Emergency Medical Services
    Corporation. Prior to our reorganization into a holding company,
    Mr. Le Blanc owns 50% of the voting common stock of
    Emergency Medical Service Corporation and a 0.01% economic
    interest in Emergency Medical Services Corporation. See note
    (3) with respect to Emergency Medical Services
    Corporation's equity interest in EMS L.P., as to which
    Mr. Le Blanc disclaims beneficial ownership. Mr. Le
    Blanc also disclaims beneficial interest in the LP exchangeable
    units owned by Onex US Principals LP and Onex EMSC
    Co-Invest LP. Mr. Le Blanc's address is
    c/o Onex Investment Corporation, 712 Fifth Avenue, New
    York, New York 10019.
(8)
The address of these stockholders
    is c/o Emergency Medical Services Corporation, 6200 S. Syracuse
    Way, Suite 200, Greenwood Village, Colorado 80111-4737.
(9)
The address of this stockholder is
    c/o EmCare Holdings Inc., 1717 Main Street, Suite 5200,
    Dallas, Texas 75201.
The following table sets forth information regarding the
ownership of shares of our common stock assuming the
underwriters' over-allotment option is exercised in full:
Shares Beneficially Owned
Number of
After the Offering
Shares Offered
in Over-
Percentage of
Allotment
Class/All
Percentage of
Name of Beneficial Owner
Option
Number
Common Stock
Voting Power
Onex Partners LP
Onex Partners LLC
Onex EMSC Co-Invest LP
Onex US Principals LP
EMS Executive Investco LLC
We have agreed to pay all the expenses of the selling
stockholders in connection with this offering other than
underwriting discounts and commissions. In the event the
underwriters' over-allotment option is not exercised in
full, the number of shares to be sold by the selling
stockholders named above will be reduced proportionately.
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DESCRIPTION OF CAPITAL STOCK
The following description summarizes the material terms of our
capital stock and provisions of our restated certificate of
incorporation and restated by-laws as they will be in effect
upon completion of this offering. This description also
summarizes the principal agreements relating to the LP
exchangeable units. Because this is only a summary, it does not
contain all of the information that may be important to you. For
a complete description, you should refer to our restated
certificate of incorporation and restated by-laws, the
EMS L.P. limited partnership agreement, and the voting and
exchange trust agreement and the support agreement referred to
below, copies of which will be filed as exhibits to the
registration statement of which this prospectus is a part, and
to the applicable provisions of the Delaware General Corporation
Law, or the DGCL, and the Delaware Revised Uniform Limited
Partnership Act. References to our certificate of incorporation
and to our by-laws are references to these documents, as
restated.
Overview
At the time of this offering, our authorized capital stock will
consist of:
•
shares of class A common stock, par value $0.01 per share,
•
shares of class B common stock, par value $0.01 per share,
•
one share of class B special voting stock, $0.01 par value,
    and
•
shares of preferred stock, par value $0.01 per share.
Of
the           authorized
shares of class A common stock, pursuant to this offering
we are
offering            shares
and, subject to the underwriters' exercise of their
over-allotment option in full, the selling stockholders are
offering            shares.
On the closing of this offering, if the underwriters'
over-allotment option is not
exercised,            shares
of class A common stock will be
outstanding,                LP
exchangeable units will be outstanding and held by the Onex
entities, and there will be no shares of class B common
stock or preferred stock outstanding. If the underwriters'
over-allotment option is exercised in full, the number of shares
of class A common stock outstanding will increase, and the
number of LP exchangeable units outstanding will decrease,
by            .
We refer to our class A common stock and our class B
common stock together as "our common stock."
Common Stock
The class A common stock and the class B common stock
will be identical in all respects, except with respect to voting
and except that each share of class B common stock is
convertible into one share of class A common stock at the
option of the holder. All of our existing common stock is, and
the shares of class A common stock being offered by us and
the selling stockholders, if any, in this offering will be, upon
payment therefor, validly issued, fully paid and non-assessable.
Voting Rights.
Generally, on all matters on which the
holders of common stock are entitled to vote, the holders of the
class A common stock, the class B common stock and the
class B special voting stock vote together as a single
class. On all matters with respect to which the holders of our
common stock are entitled to vote, each outstanding share of
class A common stock is entitled to one vote, each
outstanding share of class B common stock is entitled to
ten votes and the one share of class B special voting stock
is entitled to a number of votes equal to the number of votes
that could be cast if all of the then outstanding LP
exchangeable units were exchanged for class B common stock.
If the Minimum Hold Condition is no longer satisfied, the number
of votes per share of class B common stock will be reduced
automatically to one vote per share. The Minimum Hold Condition
is satisfied so long as the aggregate of the numbers of
outstanding shares of class B common stock and LP
exchangeable units is at least 10% of the total number of shares
of common stock and LP exchangeable units outstanding.
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Class A Common Stock.
In addition to the other
    voting rights or power to which the holders of class A
    common stock are entitled, holders of class A common stock are
    entitled to vote as a separate class on approval of (i) any
    alteration, repeal or amendment of our certificate of
    incorporation which would adversely affect the powers,
    preferences or rights of the holders of class A common
    stock; and (ii) any merger or consolidation of our company
    with any other entity if, as a result, shares of class B
    common stock would be converted into or exchanged for, or
    receive, any consideration that differs from that applicable to
    the shares of class A common stock as a result of such
    merger or consolidation, other than a difference limited to
    preserving the relative voting power of the holders of the
    class A common stock, the class B common stock and the
    class B special voting stock. In respect of any matter as
    to which the holders of the class A common stock are
    entitled to a class vote, holders have one vote per share, and
    the affirmative vote of the holders of a majority of the shares
    of class A common stock outstanding is required for
    approval.
Class B Common Stock and Class B Special Voting
    Stock.
In addition to the other voting rights or power to
    which the holders of class B common stock and class B
    special voting stock are entitled, holders of class B
    common stock and class B special voting stock are entitled
    to vote together as a single class on approval of (i) any
    alteration, repeal or amendment of our certificate of
    incorporation which would adversely affect the powers,
    preferences or rights of the holders of class B common
    stock or class B special voting stock; and (ii) any
    merger or consolidation of our company with any other entity if,
    as a result, (a) the class B special voting stock
    would not remain outstanding or (b) shares of class B
    common stock would be converted into or exchanged for, or
    receive, any consideration that differs from that applicable to
    the shares of Class A common stock as a result of such
    merger or consolidation, other than a difference limited to
    preserving the relative voting power of the holders of the
    class A common stock, the class B common stock and the
    class B special voting stock. In respect of any matter as
    to which the holders of the class B common stock and
    class B special voting stock are entitled to a class vote,
    holders of class B common stock have one vote per share and
    the holder of the class B special voting stock will have
    one vote for each LP exchangeable unit outstanding, and the
    affirmative vote of the holders of a majority of the votes
    entitled to be cast is required for approval.
Dividend Rights.
Subject to preferences that may apply to
shares of preferred stock outstanding at the time, holders of
our outstanding common stock are entitled to any dividend
declared by the board of directors out of funds legally
available for this purpose. No dividend can be declared on the
class A or class B common stock unless at the same
time an equal dividend is paid on each share of class A or
class B common stock, as the case may be. Dividends paid in
shares of our common stock must be paid, with respect to a
particular class of common stock, in shares of that class. We
will not pay dividends on our class B special voting stock.
The holders of the LP exchangeable units have the right to
receive distributions equivalent to, on a per share/per unit
basis, the dividends paid to the holders of the class A and
class B common stock. If a dividend with respect to our
common stock is paid in shares of common stock, the
corresponding distribution with respect to the
LP exchangeable units will be made in LP exchangeable
units.
Conversion Rights.
The class A common stock is not
convertible. Each share of class B common stock may be
converted at any time at the option of the holder into one share
of class A common stock. The class B common stock will
be converted automatically into class A common stock upon a
transfer thereof to any person other than (i) Onex
Corporation, (ii) an affiliate of Onex, (iii) Gerald
W. Schwartz or an affiliate of Mr. Schwartz, (iv) Onex
Partners LP or (v) or another person or entity,
provided
, that, in the case of this clause (v),
Onex, an affiliate of Onex, Mr. Schwartz or Onex Partners
LP has or shares "voting power" or "investment
power," as those terms are defined in the rules of the SEC,
over the class B common stock held by that person or
entity. In addition, the holders of a majority of the
outstanding shares of class B common stock and LP
exchangeable units may elect that the Minimum Hold Condition is
deemed not to be satisfied.
Preemptive or Similar Rights.
Our common stock is not
entitled to preemptive or other similar rights to purchase any
of our securities.
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Right to Receive Liquidation Distributions.
Upon our
voluntary or involuntary liquidation, dissolution or winding up,
the holders of our common stock are entitled to receive pro rata
our assets which are legally available for distribution, after
payment of all debts and other liabilities and subject to the
rights of any holders of preferred stock then outstanding, and
subject to the rights of the holders of LP exchangeable units to
receive distributions of assets equivalent to, on a per
share/per unit basis, the distributions to the holders of
class A and class B common stock. We will not make any
distribution of assets with respect to the class B special
voting stock upon our liquidation, dissolution or winding up.
NYSE Listing.
We intend to apply to include the
class A common stock for trading on the NYSE under the
symbol "EMS". The class B common stock, the
class B special voting stock and the LP exchangeable
units will not be listed on any securities exchange.
LP Exchangeable Units and Class B Special Voting
Stock
Each of the LP exchangeable units will be a security of EMS L.P.
that, taking into account the ancillary rights described in this
section, are substantially equivalent economically to a share of
class B common stock. The holders of LP exchangeable units
will have the following rights:
•
the right to exchange those units, at the holders' option,
    for shares of class B common stock on a one-for-one basis,
•
the right to receive distributions, on a per unit basis, in
    amounts (or property in the case of non-cash dividends), which
    are the same as, or economically equivalent to, and which are
    payable at the same time as, dividends declared on the
    class B common stock (or dividends that would be required
    to be declared if class B common stock were outstanding),
•
the right to vote, through the trustee holder of the
    class B special voting stock, at all stockholder meetings
    at which holders of the class B common stock or
    class B special voting stock are entitled to vote, and
•
the right to participate on a pro rata basis with the
    class B common stock in the distribution of assets of
    Emergency Medical Services, upon specified events relating to
    the voluntary or involuntary liquidation, dissolution, winding
    up or other distribution of the assets through the mandatory
    exchange of LP exchangeable units for shares of class B
    common stock.
On the closing of this offering, we will enter into a voting and
exchange trust agreement and issue one share of class B
special voting stock to Onex Corporation as trustee to be held
for the benefit of the holders of LP exchangeable units. By
furnishing instructions to the trustee, holders of the LP
exchangeable units will be able to exercise essentially the same
voting rights with respect to Emergency Medical Services as they
would have if they had exchanged their LP exchangeable units for
shares of our class B common stock.
Concurrently with the closing of this offering, we will also
enter into a support agreement under which we will agree to
maintain the economic equivalency of the LP exchangeable units
and the class B common stock by, among other things, not
declaring and paying dividends on the class A common stock
or class B common stock unless EMS L.P. is able to
make, and in fact makes, economically equivalent and
contemporaneous distributions on the LP exchangeable units in
accordance with the terms of those units. EMS L.P. may also make
such unit distributions or adjustments from time to time as
necessary to maintain the one-for-one economic equivalence
between the LP exchangeable units and shares of our
class B common stock. The LP exchangeable units do not
carry any other right to receive distributions from EMS L.P.
The support agreement provides that, in the event that a tender
offer, share exchange offer, issuer bid, take-over bid or
similar transaction for the purpose of acquiring the
class A common stock and/ or class B common stock is
proposed by Emergency Medical Services or is proposed to
Emergency Medical Services or its stockholders and is
recommended by the board of directors of Emergency Medical
Services, or is otherwise effected or to be effected with the
consent or approval of the board of directors of Emergency
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Medical Services and the LP exchangeable units are not otherwise
exchanged for shares of class B common stock, then
Emergency Medical Services will use its reasonable efforts to
enable and permit holders of LP exchangeable units to
participate in such an offer to the same extent and on an
economically equivalent basis as the holders of our common
stock. Without limiting the generality of the foregoing,
Emergency Medical Services will use its reasonable efforts to
ensure that holders of LP exchangeable units may participate in
all such offers without being required to exercise their right
to exchange their LP exchangeable units for class B common
stock or, if so required, to ensure that any such exchange shall
be effective only upon, and shall be conditional upon, the
closing of the offer and only to the extent necessary to tender
or deposit under the offer. In the event of the acquisition of
Emergency Medical Services through a merger or similar
transaction, Emergency Medical Services will use its reasonable
efforts to permit holders of LP exchangeable units to
participate in such transaction to the same extent, and on an
economically equivalent basis, as the holders of our common
stock. Without limiting the generality of the foregoing,
Emergency Medical Services will use its reasonable efforts to
ensure that the holders of LP exchangeable units may participate
in such transaction without being required to exercise their
right to exchange their LP exchangeable units for class B
common stock by effecting a concurrent merger or similar
transaction of EMS L.P. with the acquiring entity.
The exchange rights of the LP exchangeable units are subject to
adjustment or modification in the event of a stock split,
combination or other change to our capital structure so as to
maintain the initial one-to-one relationship between the LP
exchangeable units and our class B common stock. We may at
any time cause all of the outstanding LP exchangeable units to
be exchanged for one share of our class B common stock for
each LP exchangeable unit held.
The LP exchangeable units that will be outstanding on the
closing of this offering may not be resold or otherwise
transferred in the United States except to an Onex entity (or in
connection with a tender offer, share exchange offer, issuer
bid, take-over bid or similar transaction or merger as described
above) and then only pursuant to an effective registration
statement under the Securities Act or an exemption from
registration under the Securities Act.
Preferred Stock
Following this offering, our board of directors may, without
further action by our stockholders, from time to time, direct
the issuance of up
to            million
shares of preferred stock in series and may, at the time of
issuance, determine the rights, preferences and limitations of
each series. Satisfaction of any dividend preferences of
outstanding shares of preferred stock would reduce the amount of
funds available for the payment of dividends on shares of our
common stock. Holders of shares of preferred stock may be
entitled to receive a preference payment in the event of our
liquidation, dissolution or winding-up before any payment is
made to the holders of shares of our common stock. Under
specified circumstances, the issuance of shares of preferred
stock may render more difficult or tend to discourage a merger,
tender offer or proxy contest, the assumption of control by a
holder of a large block of our securities or the removal of
incumbent management. Upon the affirmative vote of a majority of
the total number of directors then in office, the board of
directors, without stockholder approval, may issues shares of
preferred stock with voting and conversion rights which could
adversely affect the holders of shares of our common stock. Upon
consummation of this offering, there will be no shares of
preferred stock outstanding, and we have no present intention to
issue any shares of preferred stock.
Options
Following this offering, we will have outstanding under our
equity option plan options to purchase a total of
approximately                      shares
of class A common stock with an exercise price of
$          per
share.
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Anti-Takeover Effects of our Certificate of Incorporation and
By-Laws
Some provisions of our certificate of incorporation and our
by-laws contain provisions that are intended to enhance the
likelihood of continuity and stability in the composition of our
board of directors.
These provisions also may have the effect of delaying, deferring
or preventing a future takeover or change in control unless the
takeover or change in control is approved by our board of
directors.
Class B Common Stock and Class B Special Voting
    Stock
The Onex entities' ownership of the LP exchangeable units
entitles them to acquire from us all of the outstanding
class B common stock which carries ten votes per share.
Through the class B special voting stock, the Onex entities
will exercise essentially the same voting rights with respect to
Emergency Medical Services as they would have if they had
exchanged their LP exchangeable units for our class B
common stock. Upon completion of this offering, Onex will own
beneficially           %
of our common stock and will
control           %
of the combined voting power of our outstanding common stock.
Undesignated Preferred Stock
The ability to authorize undesignated preferred stock makes it
possible for our board of directors to issue one or more series
of preferred stock with voting or other rights or preferences
that could impede the success of any attempt to change control
of us. These and other provisions may have the effect of
deferring hostile takeovers or delaying changes in control or
management of our company.
Advance Notice Requirements for Stockholder Proposals and
    Directors Nominations
Our by-laws provide that stockholders seeking to bring business
before our annual meeting of stockholders, or to nominate
candidates for election as directors at our annual meeting, must
provide timely notice of their intent in writing. To be timely,
a stockholder's notice must be delivered to, or mailed and
received at, our principal executive offices not less than
120 days prior to the first anniversary of the date of our
notice of annual meeting provided with respect to the previous
year's annual meeting of stockholders;
provided
,
that if no annual meeting of stockholders was held in the
previous year or the date of the annual meeting of stockholders
has been changed to be more than 30 calendar days earlier than
such anniversary, notice by the stockholder, to be timely, must
be received a reasonable time before the solicitation is made.
These by-law provisions are not applicable to a holder of
class B common stock or class B special voting stock.
Our by-laws also specify certain requirements as to the form and
content of a stockholder's notice. These provisions may
have the effect of precluding our stockholders from bringing
matters before a meeting or from making nominations for
directors if the proper procedures are not followed or may
discourage or defer a potential acquiror from conducting a
solicitation of proxies to elect our slated directors or
otherwise attempting to obtain control of the Company.
Call of Special Meetings
Our by-laws provide that, except as otherwise required by law,
special meetings of the stockholders may be called only by the
board of directors, our chief executive officer, our secretary
or the holders of our common stock having a majority of the
voting power of all our outstanding class A common stock,
class B common stock and class B special voting stock,
collectively. Stockholders are not otherwise permitted to call a
special meeting or to require the board of directors to call a
special meeting.
Filling of Board Vacancies; Removal
Our by-laws authorize only our board of directors to fill
vacancies and newly created directorships, resignation or
removal. This may deter a stockholder from increasing the size
of our board and gaining control of our board of directors by
filling the resulting vacancies with its own nominees.
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Staggered Board
Our certificate of incorporation provides that our board is
classified into three classes of directors. The existence of a
staggered board could delay a successful tender offeror from
obtaining majority control of our board, and the prospect of
such delay may deter a potential offeror. Please see
"Management — Composition of the Board of
Directors after this Offering" for more information
regarding the staggered board.
Additional Certificate of Incorporation and By-Law
Provisions
Stockholder Action by Written Consent
Any action required or permitted to be taken at an annual or
special stockholders' meeting may be taken without a
meeting, without prior notice and without a vote, if a consent
or consents in writing, setting forth the action so taken, shall
be signed by the holders of outstanding stock having not less
than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted. The action must
be evidenced by one or more written consents describing the
action taken, signed by the stockholders entitled to take action
without a meeting, and delivered to us in the manner prescribed
by the DGCL.
Delaware "Business Combination" Statute
We have elected not to be subject to Section 203 of the
DGCL, which generally prohibits a publicly held Delaware
corporation from engaging in various "business
combination" transactions with any "interested
stockholder" for a period of three years after the date of
the transaction in which the person became an "interested
stockholder," unless the transaction is approved by the
board of directors before that person becomes an
"interested stockholder" or another exception is
available. A "business combination" includes mergers,
asset sales and other transactions resulting in a financial
benefit to a stockholder. An "interested stockholder"
is a person who, together with affiliates and associates, owns
(or within three years, did own) 15% or more of a
corporation's voting stock. The statute is intended to
prohibit or delay the accomplishment of mergers or other
takeover or change in control attempts that do not receive the
prior approval of the board of directors. By virtue of our
decision to elect out of the statute's provisions, the
statute does not apply to us, but we could elect to be subject
to Section 203 in the future by amending our certificate of
incorporation.
Amendments to our Certificate of Incorporation and
    By-laws
Except where our board of directors is permitted by law or by
our certificate of incorporation to act without any action by
our stockholders, provisions of our certificate of incorporation
may not be adopted, repealed, altered or amended, in whole or in
part, without the approval of a majority of the outstanding
stock entitled to vote thereon and a majority of the outstanding
stock of each class entitled to vote thereon as a class. The
holders of the outstanding shares of a particular class of our
capital stock are entitled to vote as a class upon any proposed
amendment of our certificate of incorporation that would alter
or change the relative powers, preferences or participating,
optional or other special rights of the shares of such class so
as to affect them adversely relative to the holders of any other
class. Our by-laws may be amended or repealed and new by-laws
may be adopted by a vote of the holders of a majority of the
voting power of our common stock or, except to the extent
relating to stockholders meetings and stockholder action by
written consent, by the board of directors. Any by-laws adopted
or amended by the board of directors may be amended or repealed
by the stockholders entitled to vote thereon.
Indemnification of Directors and Officers and Limitations on
Liability
Our certificate of incorporation and by-laws provide a right to
indemnification to the fullest extent permitted by law to any
person who was or is a party or is threatened to be made a party
to or is involved in any threatened, pending or completed
action, suit or proceeding, whether civil, criminal,
administrative or investigative and whether by or in our right
or otherwise, by reason of the fact that he or she, or a person
of
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whom he or she is the legal representative, is or was our
director or officer or is or was serving at our request as a
director or officer of another corporation or in a capacity with
comparable authority or responsibilities for any partnership,
joint venture, trust, employee benefit plan or other enterprise,
and that such person will be indemnified and held harmless by us
to the fullest extent authorized by, and subject to the
conditions and procedures set forth in the DGCL, against all
judgments, fines, penalties, excise taxes, amounts paid in
settlement and costs, charges and expenses (including
attorneys' fees, disbursements and other charges). Our
by-laws authorize us to take steps to ensure that all persons
entitled to the indemnification are properly indemnified,
including, if the board of directors so determines, purchasing
and maintaining insurance.
Our certificate of incorporation provides that none of the
directors shall be personally liable to us or our stockholders
for monetary damages for breach of fiduciary duty as a director,
except liability for:
•
any breach of the director's duty of loyalty to us or our
    stockholders,
•
acts or omissions not in good faith or which involve intentional
    misconduct or a knowing violation of law,
•
the payment of unlawful dividends and unlawful repurchase or
    redemption of our capital stock prohibited by the DGCL, and
•
any transaction from which the director derived any improper
    personal benefits.
The effect of this provision of our certificate of incorporation
is to eliminate our rights and the rights of our stockholders to
recover monetary damages against a director for breach of the
fiduciary duty of care as a director, including breaches
resulting from negligent or grossly negligent behavior, except
in the situations described above. This provision does not limit
or eliminate our rights or the rights of any stockholder to seek
non-monetary relief, such as an injunction or rescission in the
event of a breach of a director's duty of care.
Equityholder Agreements
We are a party to an investor equityholders agreement with the
Onex entities and certain of their affiliates, which we refer to
together as the Onex Investors, and certain other equityholders,
whom we refer to together as the Other Investors. Our Other
Investors include all of our named executive officers and our
directors who hold class A common stock. Under this
agreement, until the fifth anniversary of the closing of this
offering, an Other Investor's right to sell common stock he
owns immediately prior to this offering, and any shares he
acquires upon the exercise of options he holds immediately prior
to this offering, is limited. An Other Investor may sell up to
12.5% of those shares in the first year following this offering,
increasing 12.5% each year up to a maximum of 50% of his shares
(or, if greater, the percentage of its shares sold by Onex
Partners),
plus
the number of shares required to pay any
income taxes on the exercise of options. The other substantive
provisions of the investor equityholders agreement will
terminate upon completion of this offering.
We are also a party to an equityholders agreement with the Onex
Investors and certain employee and affiliated physician
investors. Under this agreement, the employees and affiliated
physicians may not sell their class A common stock for a
period of 180 days after the date of this prospectus.
Certain of these employees are subject to the further
limitations on resale that are applicable to the Other Investors.
Registration Agreement
We are a party to a registration agreement with Onex Partners,
certain Onex affiliates and the Other Investors, including the
management investors. Following the completion of this offering,
stockholders holding
approximately            million
shares of our common stock and LP exchangeable units will have
the right, subject to various conditions and limitations, to
include their shares of class A common stock in
registration statements relating to our securities. In addition,
the Onex entities have the right, beginning 180 days after
the date of this prospectus, on unlimited occasions, to demand
that we register their shares of our common stock under the
Securities Act, subject to certain limitations. If we propose to
register any shares of our common
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stock under the Securities Act either for our account or for the
account of any stockholders, the holders having piggyback
registration rights are entitled to receive notice of such
registration and include their shares of our common stock in any
such registration. These registration rights are subject to
certain conditions and limitations, including the right of the
underwriters of an offering to limit the number of shares of
common stock to be included in a registration. We generally are
required to bear all expenses of such registrations.
Registration of any of the shares of our common stock held by
stockholders with registration rights would result in such
shares becoming freely tradable without restriction under the
Securities Act immediately upon the effectiveness of such
registration.
Holders who have the right to demand registration have agreed
not to exercise this right without the prior consent of Banc of
America Securities LLC and JPMorgan Securities Inc. for a period
of 180 days from the date of this prospectus.
Transfer Agent and Registrar
will
serve as our transfer agent and registrar for our class A
common stock. The transfer agent's address
is                     and
the telephone number
is                     .
Listing
We intend to apply to include our class A common stock for
trading on the New York Stock Exchange under the symbol
"EMS." The class B common stock, class B
special voting stock and LP exchangeable units will not be
listed on any securities exchange.
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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Since September 2001, we have not engaged in any transactions
valued in excess of $60,000 with any of our executive officers,
directors or holders of more than 5% of our outstanding voting
securities, other than the transactions described below.
Transactions with Laidlaw
The Acquisition
Pursuant to stock purchase agreements with Laidlaw
International, Inc. and a subsidiary of Laidlaw, on
February 10, 2005 we purchased all of the capital stock of
AMR and EmCare for an aggregate purchase price of
$815.8 million, subject to certain post-closing
adjustments. These adjustments included a decrease to reflect
debt assumed by us and an increase to reflect the increase in
the combined net worth of AMR and EmCare from August 31,
2004 through the date of closing, subject to the contractual
provision that the aggregate purchase price would not be more
than $835.8 million
minus
outstanding debt we
assumed. For purposes of these adjustments, the closing was
deemed to be effective as of the close of business on
January 31, 2005, and we had the benefit and the risks of
the businesses from that date. The aggregate purchase price we
paid was $826.6 million.
Pursuant to the stock purchase agreement, in March 2005 we
purchased an AMR subsidiary from Laidlaw for a purchase price of
approximately $2.2 million. This deferred purchase enabled
Laidlaw to prepay an outstanding debt obligation of the
subsidiary that was secured by the subsidiary's property.
The purchase price paid to Laidlaw at the closing of the
acquisition had been reduced by approximately $2.2 million.
Accordingly, the aggregate purchase price for the acquisition,
including this subsidiary, was $828.8 million.
The stock purchase agreements contain customary representations,
warranties and covenants. Pursuant to the stock purchase
agreements, we are indemnified by the seller (a subsidiary of
Laidlaw that directly owned AMR and EmCare) and Laidlaw, subject
to specified exceptions, for losses arising from:
•
breaches by the seller of its representations, warranties,
    covenants and agreements contained in the stock purchase
    agreements,
•
damages relating to certain government investigations, and
•
tax liabilities for periods prior to closing.
Claims for indemnification are subject to an aggregate
deductible equal to 1% of the aggregate purchase price and may
not exceed 15% of the aggregate purchase price (in each case,
without giving effect to any purchase price adjustment), each
subject to certain specified exceptions. Most claims for
indemnification must be made by the date that is 18 months
from the closing date; claims for environmental matters, taxes
and certain healthcare matters may be made for periods ranging
from three years to the applicable statute of limitations
(solely for certain tax matters), and certain representations,
such as those relating to corporate organization and ownership
of the capital stock of AMR and EmCare, do not expire.
Prior to the acquisition, Laidlaw provided various services to
AMR and EmCare, including income tax accounting, preparation of
tax returns, certain risk management/compliance/insurance
coverage services, cash management, certain benefit plan
administration and internal audit, and AMR and EmCare guaranteed
certain Laidlaw debt. See notes 10, 11 and 12 to the audited
combined financial statements included in this prospectus.
Management Bonuses in Connection with the
Acquisition
In connection with the acquisition, Laidlaw paid bonuses to
Mr. Sanger and Mr. Harvey of $12,691,032 and
$2,270,002, respectively, pursuant to their employment
agreements. Also in connection with the acquisition, Laidlaw
paid Mr. Owen, Mr. Zimmerman and Dr. Packard
$200,363, $174,301 and $325,188, respectively, under
Laidlaw's equity plan. Pursuant to that plan, in 2003,
units were granted to the named executive officers and other
members of senior management of AMR and EmCare. These units
vested in
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installments and were valued based upon the difference between
the initial value and the final value of AMR or EmCare, as
applicable. Participation in this plan by AMR and EmCare
management, including the named executive officers, terminated
upon the completion of the acquisition.
Transition Services Agreement
In connection with the acquisition, we entered into a transition
services agreement with Laidlaw. Pursuant to this agreement:
•
we agreed to hire a tax employee who will work for Laidlaw on a
    consulting basis, until about December 31, 2005, to assist
    in Laidlaw's preparation of pre-closing period state and
    federal tax returns relating to AMR and EmCare,
•
Laidlaw agreed to make its tax personnel available to us on a
    consulting basis until December 31, 2005, and
•
Laidlaw agreed to lease certain Arlington, Texas office space to
    us for 120 days at a lease price of $3,500 per month.
We will pay Laidlaw for tax consulting services based on a fixed
hourly rate. Laidlaw will reimburse us for 120% of our tax
employee's salary through June 30, 2005 and thereafter
for 75% of the 120% of salary, it will pay the out-of-pocket
expenses related to the tax employee's services to Laidlaw
and it will pay 50% of any search firm fee with respect to the
tax employee. For the five months ended June 30, 2005,
under the transition services agreement we paid Laidlaw $19,515.
Performance Bond Arrangement
Certain of AMR's ambulance transport services contracts
require that AMR or its subsidiary post a surety or performance
bond. In the AMR stock purchase agreement, Laidlaw agrees to
continue to provide to us any cash required as collateral to
support the performance bonds in effect at January 31,
2005, and for a three-year period to pay any bond premiums in
excess of the rates in effect at the closing date. We have
agreed to indemnify Laidlaw for any claims against Laidlaw in
connection with these performance bonds. Under this agreement,
at June 30, 2005, Laidlaw continued to hold the performance
bond collateral amount of $16.4 million, which represents
50% of the face amount of the performance bonds at
January 31, 2005. The cash collateral relating to each bond
will be delivered to us, or to a new surety for our benefit,
when Laidlaw is released from its indemnity obligations with
respect to the outstanding bond; until that release, Laidlaw and
we share equally investment income on the cash collateral.
Risk Financing Program
AMR is party to separate risk financing agreements with Laidlaw
for the period September 1, 1993 to August 31, 2001
and the period September 1, 2003 to the date of the closing
of the acquisition. Pursuant to these agreements, AMR had
insured its workers compensation, auto and general liability
claims through Laidlaw's captive insurance company and
participated in Laidlaw's group policies with respect to
other types of coverage for occurrences during the specific
period of each agreement.
For the period September 1, 1993 to August 31, 2001,
we are fully-insured for AMR's workers compensation, auto
and general liability programs. We have no further payment
obligation to Laidlaw under that agreement, having previously
made all premium payments, and Laidlaw has agreed to bear the
cost of any claims relating to such claims for this period. For
the period September 1, 2003 to February 10, 2005, we
retain the risk of loss as to the first $2 million of auto
and general liability claims per occurrence and the first
$1 million of workers compensation claims per occurrence,
as a self-insurance program funded through Laidlaw's
captive insurance program. AMR had collateral deposited with
Laidlaw totaling approximately $42.2 million at
February 10, 2005 and $37.7 million at June 30,
2005. This collateral is held in a trust fund owned by Laidlaw,
and is applied by Laidlaw to cover AMR's claims and related
expenses. We are responsible to Laidlaw for any claims costs in
excess of the collateral amount, and any excess collateral will
be repaid to us by Laidlaw. This self-insurance program for the
period September 1, 2003 to February 10,
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2005 can be terminated by either party on 60 days'
written notice. See "Business — American Medical
Response — Insurance."
Management Agreement
We are party to a management agreement dated February 10,
2005 with Onex Partners Manager LP, or Onex Manager, a
wholly-owned subsidiary of Onex Corporation. In exchange for an
annual management fee of $1.0 million, Onex Manager
provides us with corporate finance and strategic planning
consulting services. The annual fee may be increased, to a
maximum of $2.0 million, with the approval of directors who
are not affiliated with Onex. We also reimburse Onex Manager for
out-of-pocket expenses incurred in connection with the provision
of services pursuant to the agreement, and reimburse Onex
Manager for out-of-pocket expenses incurred in connection with
the acquisition. The management agreement has an initial term of
five years, subject to automatic one-year renewals, unless
terminated by either party by notice given at least 90 days
prior to the scheduled expiration date.
Issuance of Shares
The following table summarizes the purchases of units of limited
partnership of Emergency Medical Services L.P. by our directors,
executive officers and holders who beneficially own more than 5%
of our outstanding voting securities. The information in this
table, as to the type and number of shares purchased, gives
effect to (i) the conversion of units into our common stock
to be effected immediately prior to this offering and
(ii) the exchange of the LP exchangeable units into
our class B common stock.
Aggregate
Purchase
Name
Number and Type of Shares
Price
Date of Purchase
5% Holders
Onex Corporation
shares
    of class B common stock
$
214,050,010
February 10, 2005
Onex Partners LP
shares
    of class B common stock
$
114,844,820
February 10, 2005
Onex Partners LLC
shares
    of class B common stock
$
74,046,160
February 10, 2005
Onex EMSC Co-Invest LP
shares
    of class B common stock
$
18,965,700
February 28, 2005
Executive Officers
William A. Sanger
shares
    of class A common stock
$
3,000,000
February 10, 2005
Don S. Harvey
shares
    of class A common stock
$
500,000
February 10, 2005
Randel G. Owen
shares
    of class A common stock
$
225,000
February 10, 2005
Dighton S. Packard, M.D.
shares
    of class A common stock
$
225,000
February 10, 2005
Todd G. Zimmerman
shares
    of class A common stock
$
125,000
February 10, 2005
Non-Officer Directors
Robert M. Le Blanc
shares
    of class B common stock
$
373,991
February 10, 2005
Steven B. Epstein
shares
    of class A common stock
$
250,000
April 22, 2005
James T. Kelly
shares
    of class A common stock
$
750,000
March 10, 2005
Michael L. Smith
shares
    of class A common stock
$
250,000
June 30, 2005
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Employment Agreements and Indemnification Agreements
We have an employment agreement and an option agreement with
Mr. Sanger, our Chairman and Chief Executive Officer, and
with certain of our other senior executives. For a description,
see "Management — Employment Agreements."
In November 1999, Texas EM-I Medical Services, P.A., a physician
group affiliated with EmCare, entered into an employment
agreement with Dighton C. Packard, M.D. Dr. Packard's
employment agreement automatically renews for successive
two-year terms unless either party gives notice 180 days
prior to the expiration of the then current term.
Dr. Packard has the right to terminate his agreement upon
180 days' notice, in which event he agrees to not
compete with Texas EM-I for 12 months following termination
of employment. Under the employment agreement, Dr. Packard
is to receive an annual base salary plus a bonus based on the
performance of the group under the agreements with Baylor
University Medical Center.
We have entered into indemnification agreements with each of our
directors, and our executive employment agreements include
indemnification provisions. Under those agreements, we agree to
indemnify each of these individuals against claims arising out
of events or occurrences related to that individual's
service as our agent or the agent of any of our subsidiaries to
the fullest extent legally permitted. See "Description of
Capital Stock — Indemnification of Directors and
Officers and Limitations on Liability."
Equityholder Agreements and Registration Agreement
On February 10, 2005, we entered into an investor
equityholders agreement and a registration rights agreement with
certain of our equityholders, including each of the named
executive officers. We are also party to an equityholders
agreement with certain of our employee, affiliated physician,
physician assistant and nurse practitioner equityholders. For a
descriptions of these agreements, see "Description of
Capital Stock — Equityholder Agreements" and
"Description of Capital Stock — Registration
Agreement."
Consulting Agreement with BIDON Companies
On January 16, 2001, EmCare entered into a management
services agreement with BIDON, Inc., the stock of which is owned
by William A. Sanger, Don S. Harvey and a third partner.
Pursuant to the agreement, BIDON provided consulting and
management services to EmCare, including the services of
Messrs. Sanger and Harvey on a substantially full-time
basis. The agreement provided that BIDON was entitled to a
management fee and an incentive bonus, as well as a performance
fee payable upon a change in control of EmCare. The agreement
expired in March 31, 2003 and Messrs. Sanger and
Harvey entered into employment agreements with EmCare at that
time. Pursuant to the agreement, EmCare paid total fees and
bonuses to BIDON, including expense reimbursement, of
$2.6 million and $2.3 million in fiscal 2002 and
fiscal 2003, respectively.
Other Related Party Transactions and Business
Relationships
Steven B. Epstein, one of our directors, is a founding member
and the senior health law partner in the Washington, D.C. firm
of Epstein, Becker & Green, P.C., or EBG. EBG provided
healthcare-related legal services to Onex in connection with our
acquisition of AMR and EmCare.
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MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following summary describes certain material federal income
tax consequences arising from the purchase, ownership and
disposition of our class A common stock acquired in this
offering. This discussion does not cover all aspects of
U.S. federal income taxation that may be relevant to each
such holder due to the particular circumstances of such holder
or, except as expressly stated, address estate and gift tax
consequences, state, local or other tax consequences or
non-U.S. tax laws. This summary is based on the provisions
of the Internal Revenue Code of 1986, as amended (the
"Code"), final, temporary and proposed United States
Treasury regulations promulgated thereunder, and the
administrative and judicial interpretations thereof, all as in
effect as of the date of this prospectus and all of which are
subject to change, possibly with retroactive effect. In
particular, this summary does not address the considerations
that may be applicable to (a) particular classes of
taxpayers, including financial institutions, insurance
companies, small business investment companies, mutual funds,
partnerships or other pass-through entities or investors in such
entities, expatriates, broker-dealers and tax-exempt
organizations, (b) holders with a "functional
currency" other than the U.S. dollar or
(c) holders of 10% or more of the total combined voting
power of the Company's shares. This summary deals only with
the tax treatment of holders who own our common stock as
"capital assets" as defined in Section 1221 of
the Code.
THE SUMMARY OF U.S. FEDERAL INCOME TAX CONSIDERATIONS
SET FORTH BELOW IS FOR GENERAL INFORMATION ONLY AND DOES NOT
CONSTITUTE TAX ADVICE. ALL PROSPECTIVE PURCHASERS SHOULD CONSULT
THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES TO
THEM OF THE PURCHASE, OWNERSHIP, SALE OR OTHER DISPOSITION OF
SECURITIES INCLUDING THE EFFECTS OF APPLICABLE STATE, LOCAL,
NON-U.S. OR OTHER TAX LAWS, POSSIBLE CHANGES IN THE TAX
LAWS AND THE POSSIBLE APPLICABILITY OF INCOME TAX TREATIES.
As used herein, the term "U.S. Holder" means a
beneficial owner of our common stock that is for
U.S. federal income tax purposes:
•
a U.S. citizen or individual resident in the United States,
•
a corporation, or other entity treated as a corporation created
    or organized under the laws of the United States or any
    political subdivision thereof,
•
an estate the income of which is subject to U.S. federal
    income taxation regardless of its source, or
•
a trust (i) if a U.S. court can exercise primary
    supervision over the administration of such trust and one or
    more U.S. fiduciaries have the authority to control all of
    the substantial interests of such trust or (ii) that has a
    valid election in effect under applicable U.S. Treasury
    regulations to be treated as a United States person.
Except as provided below in the discussion of estate tax, the
term "Non-U.S. Holder" is a beneficial owner of
our common stock that is, for U.S. federal income tax
purposes, a nonresident alien individual or a corporation, trust
or estate that is not a U.S. Holder.
If a partnership, including any entity treated as a partnership
for U.S. federal income tax purposes, is a holder of our
common stock, the tax treatment of a partner in the partnership
will generally depend upon the status of the partner and the
activities of the partnership. If you are a partnership, or a
partner in such a partnership, you should consult your own tax
advisor regarding the tax consequences of the purchase,
ownership and disposition of our common stock.
Dividends
We do not anticipate paying cash dividends on our common stock
in the foreseeable future. See "Dividend Policy." If
distributions are paid on shares of our common stock, such
distributions will constitute dividends for U.S. federal
income tax purposes to the extent paid from our current or
accumulated earnings and profits, as determined under
U.S. federal income tax principles. If a distribution
exceeds our current and accumulated earnings and profits, it
will constitute a return of capital that is applied against and
reduces, but
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not below zero, a holder's adjusted tax basis in our common
stock. Any remainder will constitute gain from the deemed sale
of the common stock. See "— Dispositions."
U.S. Holders.
Any dividends payable by us will be
treated as U.S. source dividend income and will be eligible
for the dividends-received deduction generally allowed to
U.S. corporations under Section 243 of the Code
(subject to certain limitations and holding period requirements).
For taxable years ending on or before December 31, 2008,
certain "qualified dividend income" will be taxable to
a non-corporate U.S. Holder at the special reduced rate
normally applicable to capital gains (subject to certain
limitations). A U.S. Holder will be eligible for this
reduced rate only if it has held our common stock for more than
60 days during the 121-day period beginning 60 days
before the ex-dividend date.
Non-U.S. Holders.
The dividends on our common stock
paid to a Non-U.S. Holder generally will be subject to
withholding of U.S. federal income tax at a 30% rate on the
gross amount of the dividend or such lower rate as may be
provided by an applicable income tax treaty. Dividends that are
effectively connected with a Non-U.S. Holder's conduct
of a trade or business in the United States and, if a tax treaty
applies, attributable to a permanent establishment or fixed base
in the United States, known as "U.S. trade or business
income," are generally not subject to the 30% withholding
tax if the Non-U.S. Holder files the appropriate
U.S. Internal Revenue Service form with the payor. However,
such U.S. trade or business income, net of specified
deductions and credits, generally is taxed at the same graduated
rates as applicable to U.S. persons. Any U.S. trade or
business income received by a Non-U.S. Holder that is a
corporation may also, under certain circumstances, be subject to
an additional "branch profits tax" at a 30% rate or
such lower rate as specified by an applicable income tax treaty.
A Non-U.S. Holder that claims the benefit of an applicable
income tax treaty generally will be required to satisfy
applicable certification and other requirements prior to the
distribution date. Non-U.S. Holders should consult their
tax advisors regarding their entitlement to benefits under a
relevant income tax treaty.
A Non-U.S. Holder that is eligible for a reduced rate of
U.S. federal withholding tax or other exclusion from
withholding under an income tax treaty but that did not timely
provide required certifications or other requirements, or that
has received a distribution subject to withholding in excess of
the amount properly treated as a dividend, may obtain a refund
or credit of any excess amounts withheld by timely filing an
appropriate claim for refund with the U.S. Internal Revenue
Service.
Dispositions
U.S. Holders.
A U.S. Holder will recognize gain
or loss for U.S. federal income tax purposes upon the sale
or other disposition of our common stock in an amount equal to
the difference between the amount realized and the
U.S. Holder's adjusted tax basis for such stock. Such
gain or loss will be capital gain or loss and will be long-term
capital gain or loss if the stock had been held for more than
one year. If the U.S. Holder's holding period on the
date of the sale or exchange is one year or less, such gain or
loss will be short-term capital gain or loss. However, if a
U.S. Holder has received a dividend to which the special
reduced rate of tax, discussed above, applies, and which exceeds
10% of the U.S. Holder's basis for the stock (taking
into account certain rules that aggregate dividends for this
purpose), any loss on sale or other disposition generally will
be a long-term capital loss to the extent of that dividend,
regardless of the U.S. Holder's actual holding period.
Any gain or loss recognized on the sale or other disposition of
our common stock will generally be U.S. source income. Any
capital loss realized upon sale, exchange or other disposition
of our common stock is generally deductible only against capital
gains and not against ordinary income, except that in the case
of noncorporate taxpayers, a capital loss may be deductible to
the extent of capital gains plus ordinary income of up to $3,000.
A U.S. Holder's tax basis for his, her or its shares
of our common stock will generally be the purchase price paid
therefor by such U.S. Holder (reduced by amounts of any
distributions, in excess of earnings and profits of the Company,
received by such U.S. Holder). The holding period of each
share of our common
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stock owned by a U.S. Holder will commence on the day
following the date of the U.S. Holder's purchase of
such share and will include the day on which the share is sold
by such U.S. Holder.
Non-U.S. Holders.
A Non-U.S. Holder generally
will not be subject to U.S. federal income tax (or
withholding thereof) on gain recognized on a disposition of our
common stock unless:
•
the gain is U.S. trade or business income, in which case
    such gain generally will be taxed in the same manner as gains of
    U.S. persons, and such gains may also be subject to the
    branch profits tax in the case of a corporate
    Non-U.S. Holder;
•
the Non-U.S. Holder is an individual who is present in the
    United States for more than 182 days in the taxable year of
    the disposition and who meets certain other requirements, in
    which case such holder generally will be subject to
    U.S. federal income tax at a rate of 30% (or a reduced rate
    under an applicable treaty) on the amount by which capital gains
    allocable to U.S. sources (including gains from the sale,
    exchange, retirement or other disposition of the common stock)
    exceed capital losses allocable to U.S. sources; or
•
we are or have been a "U.S. real property holding
    corporation" for U.S. federal income tax purposes at
    any time during the shorter of the five-year period ending on
    the date of disposition or the period that the
    Non-U.S. Holder held our common stock (the "applicable
    period").
Generally, a corporation is a "U.S. real property
holding corporation" if the fair market value of its
"U.S. real property interests" equals or exceeds
50% of the sum of the fair market value of its worldwide real
property interests plus its other assets used or held for use in
a trade or business. The tax relating to stock in a
"U.S. real property holding corporation"
generally will not apply to a Non-U.S. Holder whose
holdings, actual or constructive, at all times during the
applicable period, constituted 5% or less of our common stock,
provided that our common stock was regularly traded on an
established securities market. We believe we have never been,
are not currently and are not likely to become a U.S. real
property holding corporation for U.S. federal income tax
purposes in the future.
Information Reporting and Backup Withholding.
We must
report annually to the U.S. Internal Revenue Service and to
each holder the amount of dividends paid to that holder and the
tax withheld with respect to those dividends. Copies of the
information returns reporting those dividends and the amount of
tax withheld may also be made available to the tax authorities
in the country in which a Non-U.S. Holder is a resident
under the provisions of an applicable income tax treaty.
Backup withholding, currently imposed at a rate of 28%, may
apply to payments of dividends paid by us. If you are a
U.S. Holder, backup withholding will apply if you fail to
provide an accurate taxpayer identification number or
certification of exempt status or fail to report all interest
and dividends required to be shown on your federal income tax
returns. Certain U.S. Holders (including, among others,
corporations) are not subject to backup withholding.
If you are a Non-U.S. Holder, backup withholding will apply
to dividend payments if you fail to provide us with the required
certification that you are not a U.S. person.
Payments of the proceeds from a disposition (including a
redemption) effected outside the United States by or through a
non-US. broker generally will not be subject to information
reporting or backup withholding. However, information reporting,
but generally not backup withholding, will apply to such a
payment if the broker has certain connections with the United
States unless the broker has documentary evidence in its records
that the beneficial owner of the disposed stock is a
Non-U.S. Holder and either specified conditions are met or
an exemption is otherwise established. Backup withholding and
information reporting will apply to dispositions made by or
through a U.S. office of any broker (U.S. or foreign).
Backup withholding is not an additional tax. Any amounts
withheld from a payment to you that result in an overpayment of
taxes generally will be refunded, or credited against your
U.S. federal income tax liability, if any, provided that
the required information is timely furnished to the
U.S. Internal Revenue Service.
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Holders should consult their own tax advisors regarding
application of backup withholding in their particular
circumstance and the availability of, and procedure for
obtaining, an exemption from backup withholding under current
U.S. Treasury regulations.
Federal Estate Tax.
Common stock owned or treated as
owned by an individual who is a Non-U.S. Holder (as specifically
defined for U.S. federal estate tax purposes) at the time
of death will be included in such individual's gross estate
for U.S. federal estate tax purposes, unless an applicable
treaty provides otherwise.
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SHARES ELIGIBLE FOR FUTURE SALE
Prior to this offering, there has been no public market for our
class A common stock, and we cannot assure you that a
significant public market for our class A common stock will
develop or be sustained after this offering. Sales of
significant amounts of our class A common stock in the
public market after this offering, including shares of our
class A common stock issued upon exercise of outstanding
options or exchange of our LP exchangeable units for our
class B common stock and conversion into class A
common stock, or the perception that such sales could occur,
could adversely affect the prevailing market price of our
class A common stock and could impair our future ability to
raise capital through the sale of our equity securities.
Sale of Restricted Shares and Lock-Up Agreements
Upon completion of this
offering,                      shares
of class A common stock
and                      LP exchangeable
units will be outstanding, assuming no exercise of the
underwriters' over-allotment option.
Of
the                      shares
of class A common stock to be outstanding upon completion
of this
offering,                      shares
of class A common stock offered pursuant to this offering,
or                      shares
if the underwriters' option is exercised in full, will be
freely tradable without restriction or further registration
under federal securities laws except to the extent shares of
class A common stock are purchased in this offering by our
affiliates, as that term is defined in Rule 144 under the
Securities Act.
The
remaining                      shares
of class A common stock outstanding and all of our
LP exchangeable units were issued and sold by us in private
transactions. These shares of class A common stock, as well
as
the                      shares
of class A common stock issuable on conversion of
class B common stock, are, or when issued on conversion
will be, eligible for public sale if registered under the
Securities Act or sold in accordance with Rule 144 of the
Securities Act, subject to the contractual provisions of our
equityholders agreements. See "Description of Capital
Stock — Equityholder Agreements." Of these
remaining shares of our common stock and LP exchangeable
units,                      shares
are held by officers, directors and certain existing
stockholders who are subject to market stand-off provisions that
prohibit their sale for a period of 180 days after the date
of this prospectus. In addition, Onex, our executive officers
and directors and certain of our other existing stockholders,
who hold in the
aggregate                      shares
of our common stock (giving effect to the exchange of the
LP exchangeable units), are subject to various lock-up
agreements that prohibit the holders from offering, selling,
contracting to sell, granting an option to purchase, making a
short sale or otherwise disposing of any shares of our common
stock or any option to purchase shares of our common stock or
any securities exchangeable for or convertible into shares of
common stock for a period of 180 days after the date of
this prospectus without the prior written consent of Banc of
America Securities LLC. Banc of America Securities LLC, in its
discretion and at any time without notice, may release all or
any portion of our common stock held by our officers, directors
and existing stockholders subject to these lock-up agreements.
Banc of America Securities LLC has agreed with J.P. Morgan
Securities Inc. that it will not, without the consent of
J.P. Morgan Securities Inc., exercise its discretion to
release all or any portion of our common stock held by our
officers, directors and existing stockholders subject to these
lock-up agreements.
The issuance of the shares of our class A common stock to
holders of EMS L.P. partnership units in connection with our
formation as a holding company is registered by a prospectus
included with the registration statement filed for this offering.
As a result of the agreements described above, the registration
of our class A common stock issued in connection with our
formation as a holding company and the provisions of
Rule 144 of the Securities
Act,                      shares
of our class A common stock will be available for sale in
the public market as follows:
•
shares
    will be eligible for sale beginning 180 days after the date
    of this prospectus,
•
shares
    held by our executive officers and directors will be eligible
    for sale under Rule 144 commencing one-year from the date
    of this offering, or, if earlier, after the shares are
    registered under the Securities Act, and
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•
shares
    will be eligible for sale under Rule 144 one year from the
    date of the exchange of the class B exchangeable units for class
    B common stock or, if earlier, after the exchange or the resale
    of the shares registered under the Securities Act.
Rule 144
In general, Rule 144 allows a stockholder (or stockholders
where shares are aggregated) who has beneficially owned shares
of our class A common stock for at least one year and who
files a Form 144 with the SEC to sell within any
three-month period commencing 90 days after the date of
this prospectus a number of those shares that does not exceed
the greater of:
•
1% of the number of shares of our class A common stock then
    outstanding, which will equal
    approximately                      shares
    immediately after this offering, assuming no exercise of the
    underwriters' over-allotment option, or
•
the average weekly trading volume of our class A common
    stock during the four calendar weeks preceding the filing of the
    Form 144 with respect to such sale.
Registration Rights
As described above in "Description of Capital
Stock — Registration Agreement," upon completion
of this offering, the holders of
approximately                      shares
of our common stock will have the right, subject to various
conditions and limitations, to demand the filing of, and include
their shares in, registration statements relating to our common
stock, subject to the 180-day lock-up arrangement described
above. These registration rights of our stockholders could
impair the prevailing market price and impair our ability to
raise capital by depressing the price at which we could sell our
class A common stock.
Options
In addition to
the                      shares
of class A common stock outstanding immediately after this
offering, as of the date of this prospectus, there were
outstanding options to
purchase                      shares
of our class A common stock. None of these options are
currently exercisable.
As soon as practicable after the completion of this offering, we
intend to file a registration statement on Form S-8 under
the Securities Act covering shares of our class A common
stock reserved for issuance under our equity option plan.
Accordingly, shares of our class A common stock registered
under such registration statement will be available for sale in
the open market upon exercise by the holders, subject to vesting
restrictions, Rule 144 limitations applicable to our
affiliates and the contractual lock-up and market stand-off
provisions described above.
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UNDERWRITING
We and the selling stockholders are offering the shares of
class A common stock described in this prospectus through a
number of underwriters. Banc of America Securities LLC and
J.P. Morgan Securities Inc. are the representatives of the
underwriters. We and the selling stockholders have entered into
a firm commitment underwriting agreement with the
representatives. Subject to the terms and conditions of the
underwriting agreement, we and the selling stockholders have
agreed to sell to the underwriters, and each underwriter has
agreed to purchase from us and the selling stockholders, the
number of shares of class A common stock listed next to its
name in the following table:
Underwriter
Number of Shares
Banc of America Securities LLC
J.P. Morgan Securities Inc.
CIBC World Markets Corp.
Credit Suisse First Boston LLC
Scotia Capital (USA) Inc.
Utendahl Capital Group, LLC
Total
The underwriting agreement is subject to a number of terms and
conditions and provides that the underwriters must buy all of
the shares if they buy any of them. The underwriters will sell
the shares to the public when and if the underwriters buy the
shares from us and the selling stockholders.
The underwriters initially will offer the shares to the public
at the price specified on the cover page of this prospectus. The
underwriters may allow a concession of not more than
$          per
share to selected dealers. The underwriters may also allow, and
those dealers may re-allow, a concession of not more than
$          per
share to some other dealers. If all the shares are not sold at
the public offering price, the underwriters may change the
public offering price and the other selling terms. The
class A common stock is offered subject to a number of
conditions, including:
•
receipt and acceptance of the class A common stock by the
    underwriters; and
•
the underwriters' right to reject orders in whole or in
    part.
Over-Allotment Option.
The selling stockholders have
granted the underwriters an over-allotment option to buy up
to           additional
shares of our class A common stock at the same price per
share as they are paying for the shares shown in the table
above. These additional shares would cover sales of shares by
the underwriters which exceed the total number of shares shown
in the table above. The underwriters may exercise this option at
any time within 30 days after the date of this prospectus.
To the extent that the underwriters exercise this option, each
underwriter will purchase additional shares from the selling
stockholders in approximately the same proportion as it
purchased the shares shown in the table above. If purchased, the
additional shares will be sold by the underwriters on the same
terms as those on which the other shares are sold. We will pay
the expenses associated with the exercise of this option.
Discount and Commissions.
The following table shows the
per share and total underwriting discounts and commissions to be
paid to the underwriters by us and the selling stockholders.
These amounts are shown assuming no exercise and full exercise
of the underwriters' option to purchase additional shares.
We estimate that the expenses of the offering to be paid by us,
not including underwriting discounts and commissions, will be
approximately
$           million.
Paid by the
Paid by Us
Selling Stockholders
No Exercise
Full Exercise
No Exercise
Full Exercise
Per Share
$
$
$
$
Total
$
$
$
$
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Listing.
We intend to apply to include our class A
common stock for trading on the New York Stock Exchange under
the symbol "EMS." In order to meet one of the
requirements for listing our class A common stock on the
New York Stock Exchange, the underwriters have undertaken to
sell 100 or more shares of our class A common stock to a
minimum of 2,000 beneficial holders.
Stabilization.
In connection with this offering, the
underwriters may engage in activities that stabilize, maintain
or otherwise affect the price of our common stock, including:
•
stabilizing transactions;
•
short sales;
•
syndicate covering transactions;
•
imposition of penalty bids; and
•
purchases to cover positions created by short sales.
Stabilizing transactions consist of bids or purchases made for
the purpose of preventing or retarding a decline in the market
price of our class A common stock while this offering is in
progress. Stabilizing transactions may include making short
sales of our class A common stock, which involves the sale
by the underwriters of a greater number of shares of
class A common stock than they are required to purchase in
this offering, and purchasing shares of class A common
stock from the selling stockholders or on the open market to
cover positions created by short sales. Short sales may be
"covered" shorts, which are short positions in an
amount not greater than the underwriters' over-allotment
option referred to above, or may be "naked" shorts,
which are short positions in excess of that amount. Syndicate
covering transactions involve purchases of our class A
common stock in the open market after the distribution has been
completed in order to cover syndicate short positions.
The underwriters may close out any covered short position either
by exercising their over-allotment option, in whole or in part,
or by purchasing shares in the open market. In making this
determination, the underwriters will consider, among other
things, the price of shares available for purchase in the open
market compared to the price at which the underwriters may
purchase shares through the over-allotment option.
A naked short position is more likely to be created if the
underwriters are concerned that there may be downward pressure
on the price of the class A common stock in the open market
that could adversely affect investors who purchased in this
offering. To the extent that the underwriters create a naked
short position, they will purchase shares in the open market to
cover the position.
The representatives also may impose a penalty bid on
underwriters and dealers participating in the offering. This
means that the representatives may reclaim from any syndicate
members or other dealers participating in the offering the
underwriting discount, commissions or selling concession on
shares sold by them and purchased by the representatives in
stabilizing or short covering transactions.
These activities may have the effect of raising or maintaining
the market price of our class A common stock or preventing
or retarding a decline in the market price of our class A
common stock. As a result of these activities, the price of our
class A common stock may be higher than the price that
otherwise might exist in the open market. If the underwriters
commence the activities, they may discontinue them at any time.
The underwriters may carry out these transactions on the New
York Stock Exchange, in the over-the-counter market or otherwise.
Discretionary Accounts.
The underwriters have informed us
that they do not expect to make sales to accounts over which
they exercise discretionary authority in excess of 5% of the
shares of class A common stock being offered.
IPO Pricing.
Prior to this offering, there has been no
public market for our class A common stock. The initial
public offering price will be negotiated between us and the
representatives of the underwriters. Among the factors to be
considered in these negotiations are:
•
the history of, and prospects for, our company and the industry
    in which we compete;
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•
our past and present financial performance;
•
an assessment of our management;
•
the present state of our development;
•
the prospects for our future earnings;
•
the prevailing conditions of the applicable United States
    securities market at the time of this offering;
•
market valuations of publicly traded companies that we and the
    representatives of the underwriters believe to be comparable to
    us; and
•
other factors deemed relevant.
The estimated initial public offering price range set forth on
the cover of this preliminary prospectus is subject to change as
a result of market conditions and other factors.
Qualified Independent Underwriter.
Because we anticipate
that the underwriters or their affiliates will receive more than
10% of the net proceeds of this offering in connection with our
application of the net proceeds, Rule 2710(h)(1) of the
Conduct Rules of the NASD Manual requires the price to be no
higher than the price recommended by a "qualified
independent underwriter" which has participated in the
preparation of the registration statement and performed its
usual standard of due diligence in connection with that
preparation. In accordance with this requirement, Credit Suisse
First Boston LLC has assumed the responsibilities of acting as a
qualified independent underwriter and will recommend a price in
compliance with the requirements of Rule 2720 of the
Conduct Rules. Credit Suisse First Boston LLC will receive no
compensation for acting in this capacity; however, we have
agreed to indemnify Credit Suisse First Boston LLC for acting as
a qualified independent underwriter against specified
liabilities under the Securities Act.
Lock-up Agreements.
We, our directors and our executive
officers have entered into lock-up agreements with the
underwriters. Under these agreements, subject to exceptions, we
may not issue any new shares of common stock, and those holders
of stock and options may not, directly or indirectly, offer,
sell, contract to sell, pledge or otherwise dispose of or hedge
any common stock or securities convertible into or exchangeable
for shares of common stock, or publicly announce the intention
to do any of the foregoing, without the prior written consent of
Banc of America Securities LLC and J.P. Morgan Securities Inc.
for a period of 180 days from the date of this prospectus.
This consent may be given at any time without public notice. In
addition, during this 180-day period, we have agreed not to file
any registration statement for, and the Onex entities have
agreed not to make any demand for, or exercise any right of, the
registration of, any shares of common stock or any securities
convertible into or exercisable or exchangeable for common stock
without the prior written consent of Banc of America Securities
LLC.
Indemnification.
We and the selling stockholders will
indemnify the underwriters against some liabilities, including
liabilities under the Securities Act. If we and the selling
stockholders are unable to provide this indemnification, we and
the selling stockholders will contribute to payments the
underwriters may be required to make in respect of those
liabilities.
Online Offering.
A prospectus in electronic format may be
made available on the web sites maintained by one or more of the
underwriters participating in this offering. Other than the
prospectus in electronic format, the information on any such web
site, or accessible through any such web site, is not part of
the prospectus. The representatives may agree to allocate a
number of shares to underwriters for sale to their online
brokerage account holders. Internet distributions will be
allocated by the underwriters that will make internet
distributions on the same basis as other allocations. In
addition, shares may be sold by the underwriters to securities
dealers who resell shares to online brokerage account holders.
Conflicts/Affiliates.
The underwriters and their
affiliates have provided, and may in the future provide, various
investment banking, commercial banking and other financial
services for us and our affiliates for which services they have
received, and may in the future receive, customary fees. Bank of
America, N.A., an affiliate of Banc of America Securities LLC,
is the administrative agent, collateral agent and a lender under
our senior secured credit facility. JPMorgan Chase Bank, N.A.,
an affiliate of J.P. Morgan Securities Inc., is
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the syndication agent and a lender under our existing senior
secured credit facility. In addition, Banc of America Securities
LLC and J.P. Morgan Securities Inc. acted as joint
book-running managers in connection with the offering of our
10% senior subordinated notes due 2015.
Selling Restrictions.
Each of the underwriters has
represented and agreed that:
(a)     it has not made or will not
    make an offer of shares to the public in the United Kingdom
    within the meaning of section 102B of the Financial
    Services and Markets Act 2000 (as amended) ("FSMA")
    except to legal entities which are authorized or regulated to
    operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities or otherwise in circumstances which do not require
    the publication by the company of a prospectus pursuant to the
    Prospectus Rules of the Financial Services Authority
    ("FSA");
(b)     it has only communicated or
    caused to be communicated and will only communicate or cause to
    be communicated an invitation or inducement to engage in
    investment activity (within the meaning of section 21 of
    FSMA) to persons who have professional experience in matters
    relating to investments falling within Article 19(5) of the
    Financial Services and Markets Act 2000 (Financial Promotion)
    Order 2005 or in circumstances in which section 21 of FSMA
    does not apply to the company; and
(c)     it has complied with, and will
    comply with all applicable provisions of FSMA with respect to
    anything done by it in relation to the shares in, from or
    otherwise involving the United Kingdom.
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a
"Relevant Member State"), each Underwriter has
represented and agreed that with effect from and including the
date on which the Prospectus Directive is implemented in that
Relevant Member State (the "Relevant Implementation
Date") it has not made and will not make an offer of Shares
to the public in that Relevant Member State prior to the
publication of a prospectus in relation to the Shares which has
been approved by the competent authority in that Relevant Member
State or, where appropriate, approved in another Relevant Member
State and notified to the competent authority in that Relevant
Member State, all in accordance with the Prospectus Directive,
except that it may, with effect from and including the Relevant
Implementation Date, make an offer of Shares to the public in
that Relevant Member State at any time:
(a)     to legal entities which are
    authorized or regulated to operate in the financial markets or,
    if not so authorized or regulated, whose corporate purpose is
    solely to invest in securities;
(b)     to any legal entity which has
    two or more of (1) an average of at least 250 employees
    during the last financial year; (2) a total balance sheet
    of more
    than
€
43,000,000
    and (3) an annual net turnover of more than
€
50,000,000,
    as shown in its last annual or consolidated accounts; or
(c)     in any other circumstances
    which do not require the publication by the Issuer of a
    prospectus pursuant to Article 3 of the Prospectus
    Directive.
For the purposes of this provision, the expression an
"offer of Shares to the public" in relation to any
Shares in any Relevant Member State means the communication in
any form and by any means of sufficient information on the terms
of the offer and the Shares to be offered so as to enable an
investor to decide to purchase or subscribe the Shares, as the
same may be varied in that Member State by any measure
implementing the Prospectus Directive in that Member State and
the expression "Prospectus Directive" means Directive
2003/71/ EC and includes any relevant implementing measure in
each Relevant Member State.
This offering is exempted from prospectus requirements in Norway
pursuant to the Norwegian Securities Trading Act. No prospectus
(including any amendment, supplement or replacement thereto) has
been prepared in connection with the offering of the
class A common stock that has been reviewed by the Oslo
Stock Exchange or the Norwegian Registry of Business
Enterprises, or by the competent authority of another State that
is a contracting party to the EEA agreement. This prospectus
shall not be released, distributed, published or reproduced, in
whole or in part, nor should its contents be disclosed by any
recipients to any other person.
This is not a prospectus and has not been prepared in accordance
with the prospectus requirements provided for in the Swedish
Financial Instruments Trading Act (lagen (1991:980) om handel
med finasiella
134
Table of Contents
instrument) nor any other Swedish enactment. Neither the Swedish
Financial Supervisory Authority nor any other Swedish public
body has examined, approved or registered this document.
This prospectus has not been notified to or approved by the
Belgian Banking, Finance and Insurance Commission
("Commission bancaire, financiere et des
assurances"/"Commissie voor het Bank, Financie- en
Assurantiewezen") and is therefore transmitted on a purely
confidential basis. Accordingly, the class A common stock
may not be offered for sale, sold or marketed in Belgium by
means of a public offering under Belgian law. Any offer to sell
the class A common stock in Belgium will be permitted
exclusively to either:
(i)     persons who each subscribe for
    a minimum
    of
€
250,000, or
(ii)     qualifying institutional
    investors, acting for their own account, and listed in
    Article 3, 2
f
of the Royal Decree of July 7,
    1999. Qualifying institutional investors under Article 3,
    2
f
of the Royal Decree are the following:
(1)
the European Central Bank, certain Belgian sovereigns and public
    institutions;
(2)
licensed Belgian and foreign credit institutions;
(3)
licensed Belgian and foreign investment firms;
(4)
licensed Belgian and foreign collective investment schemes;
(5)
licensed Belgian and foreign insurance companies, Belgian and
    foreign reinsurance companies, and certain pensions funds;
(6)
Belgian holding companies;
(7)
authorized Belgian coordination centers; and
(8)
Belgian and foreign companies listed on a Belgian or a foreign
    regulated market with consolidated own funds of at least
€
425 million.
No prospectus (including any amendment, supplement or
replacement thereto) has been prepared in connection with the
offering of the class A common stock that has been approved
by the
Autorité des marchés financiers
or by
the competent authority of another state that is a contracting
party to the Agreement on the European Economic Area that has
been recognized in France; no class A common stock has been
offered or sold and will be offered or sold, directly or
indirectly, to the public in France except to qualified
investors
(investisseurs qualifiés)
and/or to a
limited circle of investors
(cercle restreint
d'investisseurs)
acting for their own account as
defined in article L. 411-2 of the French
Code Monétaire
et Financier
and applicable regulations thereunder; none of
this prospectus or any other materials related to the offering
or information contained therein relating to the class A
common stock has been released, issued or distributed to the
public in France except to qualified investors
(investisseurs
qualifiés)
and/or to a limited circle of investors
(cercle restreint d'investisseurs)
mentioned above;
and the direct or indirect resale to the public in France of any
class A common stock acquired by any qualified investors
(investisseurs qualifiés)
and/or any investors
belonging to a limited circle of investors
(cercle restreint
d'investisseurs)
may be made only as provided by
articles L. 412-1 and L. 621-8 of the French
Code
Monétaire et Financier
and applicable regulations
thereunder.
The class A common stock has not been and will not be
registered under the Securities and Exchange Law of Japan (the
Securities and Exchange Law) and each underwriter has agreed
that it will not offer or sell any securities, directly or
indirectly, in Japan or to, or for the benefit of, any resident
of Japan (which term as used herein means any person resident in
Japan, including any corporation or other entity organized under
the laws of Japan), or to others for re-offering or resale,
directly or indirectly, in Japan or to a resident of Japan,
except pursuant to an exemption from the registration
requirements of, and otherwise in compliance with, the
Securities and Exchange Law and any other applicable laws,
regulations and ministerial guidelines of Japan.
The class A common stock may not be offered or sold by
means of any document other than to persons whose ordinary
business is to buy or sell shares or debentures, whether as
principal or agent, or in circumstances which do not constitute
an offer to the public within the meaning of the Companies
Ordinance
135
Table of Contents
(Cap. 32) of Hong Kong, and no advertisement, invitation or
document relating to the class A common stock may be
issued, whether in Hong Kong or elsewhere, which is directed at,
or the contents of which are likely to be accessed or read by,
the public in Hong Kong (except if permitted to do so under the
securities laws of Hong Kong) other than with respect to
class A common stock which are or are intended to be
disposed of only to persons outside Hong Kong or only to
"professional investors" within the meaning of the
Securities and Futures Ordinance (Cap. 571) of Hong Kong and any
rules made thereunder.
This prospectus has not been registered as a prospectus with the
Monetary Authority of Singapore. Accordingly, this prospectus
and any other document or material in connection with the offer
or sale, or invitation or subscription or purchase, of the
class A common stock may not be circulated or distributed,
nor may the class A common stock be offered or sold, or be
made the subject of an invitation for subscription or purchase,
whether directly or indirectly, to persons in Singapore other
than under circumstances in which such offer, sale or invitation
does not constitute an offer or sale, or invitation for
subscription or purchase, of the class A common stock to
the public in Singapore.
136
Table of Contents
LEGAL MATTERS
The validity of the shares of class A common stock offered
hereby and certain other legal matters will be passed upon for
us by Kaye Scholer LLP, New York, New York. Certain regulatory
matters will be passed upon for us by Foley & Lardner
LLP, San Diego, California. The validity of the shares of
class A common stock and certain other legal matters will
be passed upon for the underwriters by Cahill Gordon &
Reindel
llp
,
New York, New York.
EXPERTS
The combined financial statements of American Medical Response,
Inc. and EmCare Holdings Inc. for the year ended August 31,
2002 (Predecessor), the nine months ended May 31, 2003
(Predecessor), and as of and for the three months ended
August 31, 2003, the year ended August 31, 2004 and
the five months ended January 31, 2005 are included in this
prospectus in reliance on the report of PricewaterhouseCoopers
LLP, an independent registered public accounting firm given on
the authority of said firm as experts in auditing and
accounting, as stated in their reports appearing herein.
WHERE YOU CAN FIND MORE INFORMATION
We have filed a registration statement on Form S-1 with the
Securities and Exchange Commission under the Securities Act with
respect to the shares of class A common stock offered by
this prospectus. This prospectus, which constitutes a part of
the registration statement, does not contain all of the
information included in the registration statement or the
schedules, exhibits and amendments to the registration
statement. You should refer to the registration statement and
its exhibits and schedules for further information. Statements
made in this prospectus as to any of our contracts, agreements
or other documents referred to are not necessarily complete. In
each instance, if we have filed a copy of such contract,
agreement or other document as an exhibit to the registration
statement, you should read the exhibit for a more complete
understanding of the matter involved. Each statement regarding a
contract, agreement or other document is qualified in all
respects by reference to the actual document.
You may read and copy information omitted from this prospectus
but contained in the registration statement at the public
reference facilities maintained by the SEC at Room 1024,
Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, D.C. 20549. You may also request copies of all
or any portion of such material from the Public Reference
Section of the SEC at 100 F Street, NE, Room 1580,
Washington, D.C. 20549 at prescribed rates. Please call the
Securities and Exchange Commission at 1-800-SEC-0330 for further
information on the operation of the public reference rooms. In
addition, materials filed electronically with the SEC are
available at the SEC's World Wide Web site at
http://www.sec.gov.
Upon completion of this offering, we will become subject to the
information and periodic reporting requirements of the
Securities Exchange Act of 1934, and, in accordance therewith,
will file periodic reports, proxy statements and other
information with the SEC. Such periodic reports, proxy
statements and other information will be available for
inspection and copying at the public reference room and web site
of the SEC referred to above. We also intend to furnish our
stockholders with annual reports containing our financial
statements audited by an independent public accounting firm and
quarterly reports containing our unaudited financial
information. We maintain a web site at
www.emsc.net
. You
may access our annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports, filed or furnished pursuant to
section 13(a) or 15(d) of the Exchange Act with the SEC
free of charge at our web site as soon as reasonably practicable
after this material is electronically filed with, or furnished
to, the SEC. The reference to our web address does not
constitute incorporation by reference of the information
contained at that site.
137
Table of Contents
AMERICAN MEDICAL RESPONSE, INC. & EMCARE HOLDINGS
INC.
INDEX TO COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS
Page
Combined Financial Statements (as Restated) for the Five
    Months Ended January 31, 2005, for the Year Ended
    August 31, 2004, for the Three Months Ended August 31,
    2003, for the Nine Months Ended May 31, 2003 (Predecessor)
    for the Year Ended August 31, 2002 (Predecessor)
Report of Independent Registered Public Accounting Firm
F-2
Combined Balance Sheets at January 31, 2005,
    August 31, 2004 and 2003
F-5
Combined Statements of Operations and Comprehensive Income
    (Loss) for the five months ended January 31, 2005, for the
    year ended August 31, 2004, for the three months ended
    August 31, 2003, for the nine months ended May 31,
    2003 (Predecessor) and for the year ended August 31, 2002
    (Predecessor)
F-6
Statements of Changes in Combined Equity for the five months
    ended January 31, 2005, for the year ended August 31,
    2004, for the three months ended August 31, 2003, for the
    nine months ended May 31, 2003 (Predecessor) and for the
    year ended August 31, 2002 (Predecessor)
F-7
Combined Statements of Cash Flows for the five months ended
    January 31, 2005, for the year ended August 31, 2004,
    for the three months ended August 31, 2003, for the nine
    months ended May 31, 2003 (Predecessor), and for the year
    ended August 31, 2002 (Predecessor)
F-8
Notes to Combined Financial Statements
F-9
Page
Unaudited Consolidated/ Combined Financial Statements for the
    Three Months and Five Months Ended June 30, 2005 and
    June 30, 2004
Unaudited Consolidated Balance Sheet at June 30, 2005 and
    Combined Balance Sheet at January 31, 2005
F-36
Unaudited Consolidated/ Combined Statements of Operations and
    Comprehensive Income for the three months and five months ended
    June 30, 2005 and 2004
F-37
Unaudited Consolidated/Combined Statements of Cash Flows for
    five months ended June 30, 2005 and 2004
F-38
Notes to Unaudited Consolidated/ Combined Financial Statements
F-39
F-1
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders of American Medical Response, Inc.
and EmCare Holdings, Inc.:
In our opinion, the accompanying combined balance sheets
(successor basis) and the related combined statements of
operations and comprehensive income (loss) (successor basis),
changes in combined equity (successor basis) and cash flows
(successor basis) present fairly, in all material respects, the
financial position of American Medical Response, Inc. and its
subsidiaries ("AMR") and EmCare Holdings, Inc. and its
subsidiaries ("EmCare") as of January 31, 2005
and August 31, 2004 and 2003 and the results of their
operations and changes in combined equity and cash flows for the
five-month period ended January 31, 2005, for the year
ended August 31, 2004 and for the three-month period ended
August 31, 2003, in conformity with accounting principles
generally accepted in the United States of America. These
combined financial statements are the responsibility of the AMR
and EmCare management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with the
standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
As discussed in Note 1 to the combined financial
statements, AMR and EmCare are wholly-owned subsidiaries of
Laidlaw International, Inc., previously Laidlaw, Inc.
("Laidlaw"). The United States Bankruptcy Court for
the Western District for New York confirmed Laidlaw's Third
Amended Plan of Reorganization (the "plan") on
February 27, 2003. Confirmation of the plan resulted in the
discharge of all claims against Laidlaw that arose on or before
June 28, 2001 and terminated all rights and interest of
equity security holders as provided for in the plan. The plan
was implemented in June 2003 and Laidlaw emerged from
bankruptcy. In connection with its emergence from bankruptcy,
Laidlaw adopted fresh-start accounting and recorded fresh-start
accounting adjustments in the separate financial statements of
AMR and EmCare on June 1, 2003. As a result, the
Company's post-emergence (successor basis) financial
statements reflect a different basis of accounting than its
pre-emergence (predecessor basis) financial statements.
As discussed in Note 1 to the combined financial
statements, the Company has restated its financial statements as
of August 31, 2004 and 2003.
PricewaterhouseCoopers LLP
Denver, Colorado
August 1, 2005
F-2
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders of American Medical Response, Inc.
and EmCare Holdings, Inc.:
In our opinion, the accompanying combined statements of
operations and comprehensive income (loss) (predecessor basis),
changes in combined equity (predecessor basis) and cash flows
(predecessor basis) present fairly, in all material respects,
the results of operations and changes in combined equity and
cash flows of American Medical Response, Inc. and its
subsidiaries ("AMR") and EmCare Holdings, Inc. and its
subsidiaries ("EmCare") for the nine-month period
ended May 31, 2003, and for the year ended August 31,
2002, in conformity with accounting principles generally
accepted in the United States of America. These combined
financial statements are the responsibility of the AMR and
EmCare management; our responsibility is to express an opinion
on these financial statements based on our audits. We conducted
our audits of these statements in accordance with the standards
of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
As discussed in Note 1 to the combined financial
statements, AMR and EmCare are wholly-owned subsidiaries of
Laidlaw International, Inc., previously Laidlaw, Inc.
("Laidlaw"). The United States Bankruptcy Court for
the Western District of New York confirmed Laidlaw's Third
Amended Plan of Reorganization (the "plan") on
February 27, 2003. Confirmation of the plan resulted in the
discharge of all claims against Laidlaw that arose on or before
June 28, 2001 and terminated all rights and interest of
equity security holders as provided for in the plan. The plan
was implemented in June 2003 and Laidlaw emerged from
bankruptcy. In connection with its emergence from bankruptcy,
Laidlaw adopted fresh-start accounting and recorded fresh-start
accounting adjustments in the separate financial statements of
AMR and EmCare on June 1, 2003. As a result, the
Company's post-emergence (successor basis) financial
statements reflect a different basis of accounting than its
pre-emergence (predecessor basis) financial statements.
As discussed in Note 2 to the combined financial
statements, on September 1, 2002, AMR and EmCare changed
their method of accounting for goodwill.
As discussed in Note 1 to the combined financial
statements, the Company has restated its financial statements
for the nine-month period ended May 31, 2003 and the year
ended August 31, 2002.
PricewaterhouseCoopers LLP
Denver, Colorado
January 14, 2005, except as to the restatement described in
Note 1, as to which the date is August 1, 2005
F-3
Table of Contents
American Medical Response, Inc.
& EmCare Holdings Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Combined Financial Statements
January 31, 2005 and August 31, 2004 and 2003 (as
restated)
F-4
Table of Contents
American Medical Response, Inc. and EmCare Holdings Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Combined Balance Sheets
January 31, 2005, August 31, 2004 and 2003
(dollars in thousands)
As Restated —
See Note 1
January 31,
August 31,
August 31,
2005
2004
2003
ASSETS
Current assets:
Cash and cash equivalents
$
14,631
$
9,476
$
10,641
Restricted cash and cash equivalents
9,846
5,691
939
Restricted marketable securities
2,473
6,756
201
Trade and other accounts receivable, net
369,767
344,210
320,452
Parts and supplies inventory
18,499
18,577
17,444
Prepaids and other current assets
40,135
32,015
32,207
Current deferred tax assets
65,092
52,981
58,836
Current assets
520,443
469,706
440,720
Non-current assets:
Property, plant and equipment, net
128,766
132,685
133,546
Intangible assets, net
16,075
15,758
148,205
Non-current deferred tax assets
202,469
214,389
96,596
Restricted long-term investments
41,810
47,285
40,608
Other long-term assets
73,947
69,776
55,071
Assets
$
983,510
$
949,599
$
914,746
LIABILITIES AND COMBINED EQUITY
Current liabilities:
Accounts payable
$
55,818
$
50,915
$
50,182
Accrued liabilities
171,645
166,784
146,179
Current portion of long-term debt
5,846
7,565
8,270
Current liabilities
233,309
225,264
204,631
Long-term debt
5,651
7,915
15,787
Other long-term liabilities
146,273
142,580
133,789
Liabilities
385,233
375,759
354,207
Commitments and contingencies (notes 7, 9 and 10)
Laidlaw payable
202,042
186,778
22,416
Laidlaw investment
356,550
356,550
546,144
Retained earnings (deficit)
40,000
30,518
(6,831
)
Comprehensive loss
(315
)
(6
)
(1,190
)
Combined equity
598,277
573,840
560,539
Liabilities and combined equity
$
983,510
$
949,599
$
914,746
The accompanying notes are an integral part of these combined
financial statements.
F-5
Table of Contents
American Medical Response, Inc. and EmCare Holdings Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Combined Statements of Operations and Comprehensive Income
(Loss)
For the Five Months Ended January 31, 2005, for the Year
Ended August 31, 2004, for the Three Months Ended
August 31, 2003, for the Nine Months Ended May 31,
2003 (Predecessor) and for the Year Ended August 31, 2002
(Predecessor)
(dollars in thousands)
Predecessor — as Restated
See note 1
Five
Three
Months
Year
Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Net revenue
$
696,179
$
1,604,598
$
384,461
$
1,103,335
$
1,415,786
Compensation and benefits
481,305
1,117,890
264,604
757,183
960,590
Operating expenses
94,882
218,277
55,212
163,447
219,321
Insurance expense
39,002
80,255
34,671
69,576
66,479
Selling, general and administrative expenses
21,635
47,899
12,017
37,867
61,455
Laidlaw fees and compensation charges
19,857
15,449
1,350
4,050
5,400
Depreciation and amortization expense
18,808
52,739
12,560
32,144
67,183
Impairment losses
—
—
—
—
262,780
Restructuring charges
—
2,115
1,449
1,288
3,777
Laidlaw reorganization costs
—
—
—
3,650
8,761
Income (loss) from operations
20,690
69,974
2,598
34,130
(239,960
)
Interest expense
(5,644
)
(9,961
)
(908
)
(4,691
)
(6,418
)
Realized gain (loss) on investments
—
(1,140
)
90
—
—
Interest and other income
714
240
22
304
369
Fresh-start accounting adjustments
—
—
—
46,416
—
Income (loss) before income taxes and cumulative effect of
    change in accounting principle
15,760
59,113
1,802
76,159
(246,009
)
Income tax expense
(6,278
)
(21,764
)
(8,633
)
(829
)
(1,374
)
Income (loss) before cumulative effect of a change in accounting
    principle
9,482
37,349
(6,831
)
75,330
(247,383
)
Cumulative effect of a change in accounting principle
—
—
—
(223,721
)
—
Net income (loss)
9,482
37,349
(6,831
)
(148,391
)
(247,383
)
Other comprehensive income (loss), net of tax
Unrealized holding gains (losses) during the period
(309
)
1,184
(1,190
)
603
116
Comprehensive income (loss)
$
9,173
$
38,533
$
(8,021
)
$
(147,788
)
$
(247,267
)
The accompanying notes are an integral part of these combined
financial statements.
F-6
Table of Contents
American Medical Response, Inc. and EmCare Holdings Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Statements of Changes in Combined Equity
For the Five Months Ended January 31, 2005, for the Year
Ended August 31, 2004, for the Three Months Ended
August 31, 2003, for the Nine Months Ended May 31,
2003 (Predecessor) and for the Year Ended August 31, 2002
(Predecessor)
(dollars in thousands)
Accumulated
Retained
Other
Total
Laidlaw
Laidlaw
Earnings
Comprehensive
Combined
Payable
Investment
(Deficit)
Income (Loss)
Equity
Balances August 31, 2001 (Predecessor)
$
1,422,088
$
2,089,376
$
(2,437,836
)
$
—
$
1,073,628
Prior period adjustment — see note 1
—
—
(41,020
)
—
(41,020
)
Net loss
—
—
(247,383
)
—
(247,383
)
Payments made to Laidlaw, net
(24,823
)
—
—
—
(24,823
)
Unrealized holding gains
—
—
—
116
116
Balances August 31, 2002 (Predecessor) as
    restated — see note 1
1,397,265
2,089,376
(2,726,239
)
116
760,518
Net loss
—
—
(148,391
)
—
(148,391
)
Payments made to Laidlaw, net
(83
)
—
—
—
(83
)
Unrealized holding gains
—
—
—
603
603
Balances May 31, 2003 (Predecessor) as restated —
    see note 1
$
1,397,182
$
2,089,376
$
(2,874,630
)
$
719
$
612,647
Fresh-start balances June 1, 2003 as restated —
    see note 1
$
66,503
$
546,144
$
—
$
—
$
612,647
Net loss
—
—
(6,831
)
—
(6,831
)
Payments made to Laidlaw, net
(44,087
)
—
—
—
(44,087
)
Unrealized holding losses
—
—
—
(1,190
)
(1,190
)
Balances August 31, 2003, as restated — see
    note 1
22,416
546,144
(6,831
)
(1,190
)
560,539
Dividend to Laidlaw
200,000
(200,000
)
—
—
—
Net income
—
—
37,349
—
37,349
Fresh-start adjustments (note 1)
—
10,406
—
—
10,406
Payments made to Laidlaw, net
(35,638
)
—
—
—
(35,638
)
Unrealized holding gains
—
—
—
1,184
1,184
Balances August 31, 2004 as restated — see
    note 1
186,778
356,550
30,518
(6
)
573,840
Net income
—
—
9,482
—
9,482
Advances from Laidlaw, net
15,264
—
—
—
15,264
Unrealized holding losses
—
—
—
(309
)
(309
)
Balances January 31, 2005
$
202,042
$
356,550
$
40,000
$
(315
)
$
598,277
The accompanying notes are an integral part of these combined
financial statements.
F-7
Table of Contents
American Medical Response, Inc. and EmCare Holdings Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Combined Statements of Cash Flows
For the Five Months Ended January 31, 2005, for the Year
Ended August 31, 2004, for the Three Months Ended
August 31, 2003, for the Nine Months Ended May 31,
2003 (Predecessor)
and for the Year Ended August 31, 2002 (Predecessor)
Predecessor — as
restated
see note 1
Five Months
Three Months
Nine Months
Ended
Year Ended
Ended
Ended
Year Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
(dollars in thousands)
(dollars in thousands)
Cash Flows from Operating Activities
Net income (loss)
$
9,482
$
37,349
$
(6,831
)
$
(148,391
)
$
(247,383
)
Adjustments to reconcile net income (loss) to net cash provided
    by operating activities:
Depreciation and amortization
18,808
53,957
12,775
32,359
67,205
Loss (gain) on disposal of property, plant and equipment
145
(446
)
(316
)
(349
)
(1,140
)
Impairment charge
—
—
—
—
262,780
Cumulative effect of a change in accounting principle
    (note 3)
—
—
—
223,721
—
Non-cash allocated expenses (income)
—
(4,505
)
11,522
3,058
(8,094
)
Restructuring charges
—
2,115
1,449
1,288
3,777
Notes payable discount
213
132
50
218
422
Loss (gain) on restricted investments
197
1,140
(90
)
—
—
Deferred income taxes
6,278
21,899
(8,421
)
—
—
Fresh-start accounting adjustments (note 1)
—
—
—
(46,416
)
—
Changes in operating assets/liabilities (net of acquisitions):
Trade and other accounts receivable
(26,057
)
(23,764
)
1,522
(14,049
)
21,352
Parts and supplies inventory
78
(1,133
)
(517
)
233
(153
)
Prepaids and other current assets
(269
)
5,892
3,700
(12,257
)
(10,345
)
Accounts payable and accrued liabilities
3,046
17,322
3,553
(6,614
)
22,350
Compliance and insurance accruals
4,045
20,402
12,520
31,312
46,575
Restructuring charges and acquisition accruals
—
(2,681
)
(907
)
(5,344
)
(802
)
Net cash provided by operating activities
15,966
127,679
30,009
58,769
156,544
Cash Flows from Investing Activities
Purchase of property, plant and equipment
(14,045
)
(42,787
)
(18,079
)
(34,768
)
(31,118
)
Purchase of business
(1,200
)
—
—
—
—
Proceeds from sale of business
1,300
—
—
—
—
Proceeds from sale of property, plant and equipment
175
858
341
624
2,549
Purchase of restricted cash and investments
(31,257
)
(64,357
)
(11,287
)
(66,266
)
(50,946
)
Proceeds from sale and maturity of restricted investments
35,960
46,389
12,530
36,748
32,215
Other investing activities
(79
)
6,814
1,359
(35,173
)
(10,047
)
Increase in Laidlaw insurance deposits
(12,521
)
(28,433
)
—
—
—
Net cash used in investing activities
(21,667
)
(81,516
)
(15,136
)
(98,835
)
(57,347
)
Cash Flows from Financing Activities
Repayments of capital lease obligations and other debt
(3,992
)
(8,709
)
(1,851
)
(6,338
)
(17,817
)
Increase (decrease) in bank overdrafts
5,866
(4,544
)
8,675
(815
)
(1,134
)
Advances from (payments to) Laidlaw
8,982
(31,133
)
(55,609
)
(3,141
)
(16,729
)
Increase (decrease) in other non-current liabilities
—
(2,942
)
1,563
2,234
(386
)
Net cash provided by (used in) financing activities
10,856
(47,328
)
(47,222
)
(8,060
)
(36,066
)
Increase (decrease) in cash and cash equivalents
5,155
(1,165
)
(32,349
)
(48,126
)
63,131
Cash and cash equivalents, beginning of period
9,476
10,641
42,990
91,116
27,985
Cash and cash equivalents, end of period
$
14,631
$
9,476
$
10,641
$
42,990
$
91,116
The accompanying notes are an integral part of these combined
financial statements.
F-8
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial Statements
(dollars in thousands)
1.
General
Basis of Presentation of Financial Statements
These financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of
America ("GAAP") to reflect the combined financial
position, results of operations and cash flows of American
Medical Response, Inc. and its subsidiaries ("AMR")
and EmCare Holdings Inc. and its subsidiaries
("EmCare") (combined or each individually, the
"Company"). These financial statements have been
prepared in connection with the definitive sale agreement
referred to in note 17 to reflect the businesses that were
purchased. AMR and EmCare are indirect, wholly owned
subsidiaries of Laidlaw International Inc., previously Laidlaw
Inc. ("Laidlaw" or the "Parent"). The
Company operates in two segments, AMR in the Healthcare
Transportation Service business and EmCare in the Emergency
Management Service business.
AMR operates in 34 states, providing a full range of
medical transportation services from basic patient transit to
the most advanced emergency care and pre-hospital assistance. In
addition, AMR operates emergency (911) call and response
services for large and small communities all across the United
States, offers medical staff for large entertainment venues like
stadiums and arenas, and provides telephone triage,
transportation dispatch and demand management services.
EmCare provides outsourced business services to hospitals
primarily for emergency departments, related urgent care centers
and for certain inpatient departments for 313 hospitals in
38 states. EmCare recruits physicians, gathers their
credentials, arranges contracts for their services, assists in
monitoring their performance and arranges their scheduling. In
addition, EmCare assists clients in such operational areas as
staff coordination, quality assurance, departmental
accreditation, billing, record-keeping, third-party payment
programs, and other administrative services.
Restatement
Accounts receivable allowance.
The Company determined
that because of an error in its reserving methodology, its
accounts receivable allowances were understated at various
balance sheet dates prior to and including the periods presented
herein. As a result, AMR has recorded an adjustment of
$50 million to increase the accounts receivable allowance
as of May 31, 2003, of which $39 million reduces
previously reported retained earnings (deficit) as of
August 31, 2001. Adjustments were also required for the
nine-month period ended May 31, 2003 and the year ended
August 31, 2002, reflecting a reduction of net revenue and
a corresponding increase in accounts receivable allowances of
$8.0 million and $3.0 million, respectively. There
were no further adjustments necessary subsequent to May 31,
2003. In addition, the Company made other adjustments related to
certain deferred rent and leasehold amortization matters,
reducing previously reported retained earnings (deficit) as of
August 31, 2001 by $2.0 million and reducing earnings
for the nine-month period ended May 31, 2003 by
$0.1 million and for the year ended August 31, 2002 by
$0.2 million.
AMR adopted SFAS No. 142,
Goodwill and Other
Intangible Assets
("SFAS No. 142"), on
September 1, 2002 and recorded a charge associated with a
change in accounting principle based on a fair value assessment
of goodwill. The impact of reducing the net accounts receivable
balance prior to the assessment reduced the charge necessary
upon adoption of SFAS No. 142 by $42 million.
Effective June 1, 2003, the Company's parent emerged
from bankruptcy and applied fresh-start accounting. The impact
of the correction made to the nine-month period ended
May 31, 2003 increased the fresh-start income adjustment by
$8.1 million.
F-9
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Also as a part of applying fresh-start accounting, the Company
adjusted its assets and liabilities to fair value. As a result
of the restatement which reduced net assets by
$52.3 million, as discussed above, the Company allocated
$52.3 million to goodwill at June 1, 2003 as the
reorganization value exceeded the fair value of the assets and
liabilities. See "Chapter 11
Reorganization — Laidlaw", below, for further
information.
As a result of these corrections, as of May 31, 2003,
deferred tax assets of $20.3 million have been recorded
with a corresponding full valuation allowance. In fiscal 2004,
AMR had reversed all of its valuation allowance, which reversal
now includes the valuation allowance referred to above. In
accordance with fresh-start accounting, the reversal of
valuation allowances first reduces intangible assets to zero,
and then any excess is credited to the Laidlaw investment in the
Statement of Changes in Combined Equity. As a result of the
increased goodwill of $52.3 million and the release of the
valuation allowance of $20.3 million discussed above, the
Company reduced its previously recorded credit to Laidlaw
investment by $32.0 million. See note 5 for further
information.
Following is a summary of the effects of these changes on the
Company's Combined Balance Sheet as of August 31, 2004
and 2003 and Combined Statements of Operations for the nine
months ended May 31, 2003 and for the fiscal year ended
August 31, 2002. Correcting for the error did not require
adjustment to total net cash flows provided by operating
activities, net cash flows used in investing activities, or net
cash flows provided by (used in) financing activities.
Combined Balance Sheets
As Previously
As
Reported
Adjustments
Restated
August 31, 2004
Trade and other accounts receivable, net
$
394,210
$
(50,000
)
$
344,210
Current deferred tax assets
33,935
19,046
52,981
Current assets
500,660
(30,954
)
469,706
Property, plant & equipment
133,362
(677
)
132,685
Non-current deferred tax assets
213,127
1,262
214,389
Assets
979,968
(30,369
)
949,599
Other long-term liabilities
140,897
1,683
142,580
Liabilities
374,076
1,683
375,759
Laidlaw investment
388,602
(32,052
)
356,550
Combined equity
605,892
(32,052
)
573,840
Liabilities and combined equity
979,968
(30,369
)
949,599
August 31, 2003
Trade and other accounts receivable, net
370,452
(50,000
)
320,452
Current assets
490,720
(50,000
)
440,720
Property, plant & equipment
134,223
(677
)
133,546
Intangible assets, net
95,845
52,360
148,205
Assets
913,063
1,683
914,746
Other long-term liabilities
132,106
1,683
133,789
Liabilities
352,524
1,683
354,207
Liabilities and combined equity
$
913,063
$
1,683
$
914,746
F-10
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Combined Statements of Operations and Comprehensive Income
(Loss)
As Previously
As
Reported
Adjustments
Restated
Nine months ended May 31, 2003 (predecessor)
Net revenue
$
1,111,335
$
(8,000
)
$
1,103,335
Operating expenses
163,293
154
163,447
Depreciation and amortization expense
32,156
(12
)
32,144
Income (loss) from operations
42,272
(8,142
)
34,130
Fresh-start accounting adjustments
38,274
8,142
46,416
Cumulative effect of a change in accounting principle
(267,939
)
44,218
(223,721
)
Net income (loss)
(192,609
)
44,218
(148,391
)
Comprehensive income (loss)
(192,006
)
44,218
(147,788
)
Year ended August 31, 2002 (predecessor)
Net revenue
1,418,786
(3,000
)
1,415,786
Operating expenses
219,121
200
219,321
Depreciation and amortization expense
67,185
(2
)
67,183
Income (loss) from operations
(236,762
)
(3,198
)
(239,960
)
Income (loss) before income taxes and cumulative effect of a
    change in accounting principle
(242,811
)
(3,198
)
(246,009
)
Income (loss) before cumulative effect of a change in accounting
    principle
(244,185
)
(3,198
)
(247,383
)
Net income (loss)
(244,185
)
(3,198
)
(247,383
)
Comprehensive income (loss)
$
(244,069
)
$
(3,198
)
$
(247,267
)
Chapter 11 Reorganization — Laidlaw
On June 28, 2001, Laidlaw and certain of its affiliates
filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy Code. During the pendency of
the Chapter 11 case, Laidlaw continued to operate its
businesses in accordance with the applicable provisions of the
Bankruptcy Code. Although subsidiaries of Laidlaw, neither AMR
nor EmCare filed for reorganization under Chapter 11 of the
Bankruptcy Code.
Laidlaw emerged from bankruptcy protection during fiscal 2003,
and on June 1, 2003 adopted Statement of
Position 90-7, "Financial Reporting by Entities in
Reorganization Under the Bankruptcy Code" (SOP 90-7),
applying fresh-start accounting to its balance sheet as of the
close of business on May 31, 2003. In accordance with the
principles of fresh-start accounting, Laidlaw determined the
reorganization value of its individual business units and
adjusted their assets and liabilities to estimated fair values
as of May 31, 2003. On May 31, 2003, Laidlaw applied
"push-down" accounting and allocated to the Company
its share of reorganization value aggregating
$939.9 million. Reorganization value, as defined in
SOP 90-7, is the amount that approximates the fair value of
the assets of an entity before considering liabilities. The
reorganization value allocated to the Company was based on the
consideration of factors such as the industries in which the
Company operates, the general economic conditions that impact
the health care industry, and application of certain valuation
methods, including a discounted cash flow analysis, an analysis
of comparable publicly traded company multiples and a comparable
acquisitions analysis. The net effect of all fresh-start
accounting
F-11
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
adjustments pushed down to the Company resulted in additional
income of $46.4 million, which is reflected as an
adjustment to the financial results for the period from
September 1, 2002 through May 31, 2003.
As a result of the application of push-down accounting, the
Company's balance sheet as of the close of business
May 31, 2003 and financial statements for periods beginning
on June 1, 2003, referred to as "Successor
Company", may not be comparable with its financial
statements for periods before June 1, 2003, referred to as
Predecessor Company" because they are, in effect, those
reflecting the application of a new basis of accounting. The
balances below have been adjusted for the restatement described
above. As a result, trade receivables, property plant and
equipment, intangible assets and other long-term liabilities
changed by $(50) million, $(0.6) million,
$44.2 million and $1.6 million, respectively, in the
Predecessor and Successor columns. Retained earnings (deficit)
increased by $8.1 million in the Predecessor fair value
adjustment column and the adjustment to intangible fair value
decreased by $8.1 million. The effects of fresh-start
reporting on the Company's combined balance sheet as of the
close of business May 31, 2003 are as follows:
Restated
Predecessor
Fair Value
Successor
Company
Adjustments
Company
Assets
Current assets:
Cash and cash equivalents
$
42,990
$
—
$
42,990
Restricted cash and cash equivalents
1,154
—
1,154
Trade and other accounts receivable, net
321,974
—
321,974
Parts and supplies inventory
16,927
—
16,927
Other current assets
35,907
—
35,907
Current deferred tax assets
—
(c)
72,493
72,493
Current assets
418,952
72,493
491,445
Property, plant, and equipment, net
130,212
(a)
(4,683
)
125,529
Intangible assets, net
230,222
(b)
(79,843
)
150,379
Non-current deferred tax assets
—
(c)
73,918
73,918
Restricted long-term investments — trust
43,764
—
43,764
Other long-term assets
56,596
—
56,596
Assets
$
879,746
$
61,885
$
941,631
F-12
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Restated
Predecessor
Fair Value
Successor
Company
Adjustments
Company
Liabilities and Combined Equity
Current liabilities:
Accounts payable
$
40,156
$
—
$
40,156
Accrued liabilities
140,777
(d)
1,000
141,777
Current portion of long-term debt
8,807
—
8,807
Current liabilities
189,740
1,000
190,740
Long-term debt
17,052
—
17,052
Other long-term liabilities
106,723
(e)
14,469
121,192
Liabilities
313,515
15,469
328,984
Laidlaw payable
59,355
(f)
7,148
66,503
Laidlaw investment
3,419,470
(f)
(2,873,326
)
546,144
Retained earnings (deficit)
(2,913,313
)  (f)
2,913,313
—
Comprehensive income
719
(f)
(719
)
—
Combined equity
566,231
46,416
612,647
Liabilities and combined equity
$
879,746
$
61,885
$
941,631
(a)
Adjusts property, plant and equipment to reflect the estimated
    fair value of the assets based on independent appraisals.
(b)
Eliminates the Predecessor Company's historic goodwill,
    records identifiable intangible assets at estimated fair value
    based upon independent appraisals and records the remaining
    reorganization value to goodwill.
(c)
Records the net deferred income tax assets of the Company.
(d)
Records the operating leases at their estimated fair value based
    on independent valuations and the current borrowing rate of the
    Company.
(e)
Adjusts the Company's insurance reserves to their estimated
    fair value.
(f)
Reflects the elimination of the accumulated deficit and
    comprehensive income and establishes the payable account to
    Laidlaw.
2.
Summary of Significant Accounting Policies
Combination
The combined financial statements include the accounts of the
Company or of the Predecessor Company consolidated with all of
their respective subsidiaries. All significant intracompany
transactions are eliminated.
Use of Estimates
The preparation of financial statements in accordance with GAAP
requires the Company to make estimates and assumptions that
affect reported amounts of assets, liabilities, revenue and
expenses, and disclosure of contingencies. Future events could
alter such estimates.
Cash and Cash Equivalents
Cash and cash equivalents are composed of highly liquid
investments with an original maturity of three months or less
and are recorded at market value.
At January 31, 2005 and August 31, 2004 and 2003, bank
overdrafts of $22.0 million, $16.1 million and
$20.6 million, respectively, were included in accounts
payable on the accompanying combined balance sheets.
F-13
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents include short-term
investments that are part of the portfolio of the Company's
captive insurance arrangement. These investments are highly
liquid and have original maturities of three months or less.
These assets are used to support the current portion of claim
liabilities under the captive arrangement.
Restricted Marketable Securities
Marketable securities were pledged as collateral against the
Company's claim liabilities under the captive insurance
arrangement. Restricted marketable securities are
income-yielding securities that can be converted readily into
cash and include commercial paper, corporate and foreign notes
and bonds, and U.S. Treasury and agency obligations. Such
securities are stated at market value and are classified as
available-for-sale under Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 115,
Accounting for Certain Investments in Debt and Equity
Securities
("SFAS No. 115"), with
unrealized gains and losses reported, net of tax, in other
comprehensive income as a component of combined equity.
Trade and Other Accounts Receivable, net
The Company determines its allowances based on payor
reimbursement schedules, historical write-off experience and
other economic data. The allowance for uncompensated care is
reviewed monthly. Management continually evaluates the
collectibility of trade and accounts receivable based on payor
reimbursement schedules, historical write-off experience and
other economic data. Account balances are charged off against
the allowance when it is probable the receivable will not be
recovered.
At January 31, 2005 and August 31, 2004 and 2003,
trade and other accounts receivable are net of allowances for
contractual discounts and uncompensated care of
$910.0 million, $827.4 million and
$695.0 million, respectively.
Parts and Supplies Inventory
Parts and supplies inventory is valued at cost, determined on a
first-in, first-out basis. Durable medical supplies, including
stretchers, oximeters and other miscellaneous items, are
capitalized as inventory and expensed as used.
Property, Plant and Equipment, net
Property, plant and equipment were reflected at their fair
values as of June 1, 2003. Additions to property, plant and
equipment subsequent to this date are recorded at cost.
Maintenance and repairs that do not extend the useful life of
the property are charged to expense as incurred. Gains and
losses from dispositions of property, plant and equipment are
recorded in the period incurred. Depreciation of property, plant
and equipment is provided substantially on a straight-line basis
over their estimated useful lives, which are as follows:
Buildings
35 to 40 years
Leasehold improvements
Shorter of expected life or life of lease
Vehicles
5 to 7 years
Computer hardware and software
3 to 5 years
Other
3 to 10 years
F-14
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Goodwill
The Predecessor Company adopted SFAS No. 142 on
September 1, 2002. SFAS No. 142 requires that any
goodwill recorded in connection with an acquisition consummated
on or after July 1, 2001 not be amortized, and instead
requiring a periodic assessment of recoverability utilizing a
fair value measurement. In connection with the adoption of this
standard, the Predecessor Company impaired $223.7 million
of restated goodwill, which is included in the accompanying
combined financial statements for the nine months ended
May 31, 2003, as a cumulative effect of a change in
accounting principle. Recording this change had no tax-related
benefit or expense. Goodwill balances are as follows:
Restated
Predecessor Company:
Balance on August 31, 2002
$
453,943
Impairment loss under SFAS No. 142, September 1,
    2002
(223,721
)
Balance on May 31, 2003
$
230,222
Successor Company:
Fresh-start adjustment
$
(177,862
)
Balance on June 1, 2003 and August 31, 2003
52,360
Deferred tax valuation adjustment, August 31, 2004
(52,360
)
Balance on August 31, 2004 and January 31, 2005
$
—
Had the change in the accounting policy for amortizing goodwill
been in effect in the prior year, the Predecessor Company's
income (loss) before cumulative effect of a change in accounting
principle for the year ended August 31, 2002 would have
been ($226.0) million compared to ($247.4) million as
originally recorded. There would have been no changes to the
results recorded for the five months ended January 31,
2005, the year ended August 31, 2004, the three months
ended August 31, 2003 or the Predecessor Company nine
months ended May 31, 2003.
Impairment of Long-lived Assets other than Goodwill and
Other Indefinite Lived Intangibles
Long-lived assets other than goodwill and other indefinite lived
intangibles are assessed for impairment whenever events or
changes in circumstances indicate that the carrying value may
not be recoverable. Important factors which could trigger
impairment review include significant underperformance relative
to historical or projected future operating results, significant
changes in the use of the acquired assets or the strategy for
the overall business, and significant negative industry or
economic trends. If indicators of impairment are present,
management evaluates the carrying value of long-lived assets
other than goodwill and other indefinite lived intangibles in
relation to the projection of future undiscounted cash flows of
the underlying business. Projected cash flows are based on
historical results adjusted to reflect management's best
estimate of future market and operating conditions, which may
differ from actual cash flows.
Contract Value
At January 31, 2005, August 31, 2004 and 2003, the
Company's contracts and customer relationships, recorded as
part of fresh-start push-down accounting, represent the
amortized fair value of such assets held by the Company at
June 1, 2003. Contract Assets are amortized on a
straight-line basis over the average length of the contracts and
the expected contract renewal period of 10 years. In
accordance with the provisions of fresh-start accounting, the
reversal of the income tax valuation allowance resulted in a
reduction in certain Contract Assets at August 31, 2004
(note 5).
F-15
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Radio Frequencies
The radio frequency licenses, recorded as part of push-down
accounting and included in net intangible assets on the
accompanying combined balance sheet, total $4.0 million at
August 31, 2003 and are considered to be indefinite lived
intangible assets. As such, they are not amortized. The radio
frequency licenses are reviewed for impairment on an annual
basis. In accordance with the provisions of fresh-start
accounting, the reversal of the income tax valuation allowance
resulted in the radio frequency asset being reduced to zero at
August 31, 2004 (note 5).
Restricted Long-Term Investments
Restricted long-term investments include investments that are
part of the portfolio of the Company's captive insurance
subsidiary. In accordance with SFAS No. 115
,
the Company determines the classification of securities as
held-to-maturity or available-for-sale at the time of purchase
and re-evaluates such designation at each balance sheet date.
Securities are classified as held-to-maturity when the Company
has the positive intent and ability to hold securities to
maturity. Held-to-maturity securities are stated at cost,
adjusted for amortization of premiums and discounts to maturity.
Investments not classified as held-to-maturity are classified as
available-for-sale. Available-for-sale securities are carried at
fair value, with unrealized gains and losses reported as a
separate component of equity. The cost of securities sold is
based on the specific identification method. Restricted
long-term investments are available-for-sale.
These investments are used to support the Company's
self-insurance program. The investments are comprised
principally of government securities and investment grade debt
securities.
Other Long-Term Liabilities
Long-term portions of insurance reserves, acquisition-related
liabilities and other liabilities are classified as other
long-term liabilities.
Contractual Arrangements
EmCare structures its contractual arrangements for emergency
department management services in various ways. In most states,
a wholly-owned subsidiary of EmCare ("EmCare
Subsidiary") contracts with hospitals to provide emergency
department management services. The EmCare Subsidiary enters
into an agreement ("PA Management Agreement") with a
professional association or professional corporation
("PA"), whereby the EmCare Subsidiary provides the PA
with management services, and the PA agrees to provide physician
services for the hospital contract. The PA employs physicians
directly or subcontracts with another entity for the physician
services. In certain states, the PA contracts directly with the
hospital, but provides physician services and obtains management
services in the same manner as described above. In all
arrangements, decisions regarding patient care are made
exclusively by the physicians. In consideration for these
services, the EmCare Subsidiary receives a monthly fee that may
be adjusted from time to time to reflect industry practice,
business conditions, and actual expenses for administrative
costs and uncollectible accounts. In most states, these fees
approximate the excess of the PA's revenues over its
expenses.
Each PA is wholly-owned by a physician who enters into a Stock
Transfer and Option Agreement with EmCare. This agreement gives
EmCare the right to replace the physician owner with another
physician in accordance with the terms of the agreement.
EmCare has determined that existing management contracts meet
Emerging Issues Task Force 97-2,
Application of FASB
Statement No. 94 and APB Opinion No. 16 to Physician
Practice Entities
, requirements
F-16
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
for consolidation. Accordingly, the consolidated financial
statements of EmCare and these combined financial statements
include the accounts of EmCare and its subsidiaries and the PAs.
The financial statements of the PAs are consolidated with EmCare
and its subsidiaries because EmCare has ultimate control over
the assets and business operations of the PAs as described
above. Notwithstanding the lack of technical majority ownership,
consolidation of the PAs is necessary to present fairly the
financial position and results of operations of EmCare because
of the existence of a control relationship by means other than
record ownership of the PAs' voting stock. Control of a PA
by EmCare is perpetual and other than temporary because EmCare
may replace the physician owner of the PA at any time and
thereby continue EmCare's relationship with the PA.
Financial Instruments and Concentration of Credit
Risk
The Company's cash and cash equivalents, accounts
receivable, accounts payable, accrued liabilities (other than
current portion of self-insurance estimates), long-term debt and
long-term liabilities (other than self-insurance estimates)
constitute financial instruments. Based on management's
estimates, the carrying value of the Company's cash and
cash equivalents, accounts receivable, accounts payable, accrued
liabilities (other than current portion of self-insurance
estimates), long-term debt and long-term liabilities (other than
self-insurance estimates) approximates their fair value as of
January 31, 2005 and August 31, 2004 and 2003.
Concentration of credit risks in accounts receivable is limited,
due to the large number of customers comprising the
Company's customer base throughout the United States. A
significant component of the Company's revenue is derived
from Medicare and Medicaid. Given that these are government
programs, the credit risk for these customers is considered low.
The Company performs ongoing credit evaluations of its other
customers, but does not require collateral to support customer
accounts receivable. The Company establishes an allowance for
uncompensated care based on the credit risk applicable to
particular customers, historical trends and other relevant
information. For each of the periods presented, the Company
derived approximately 35% of its net revenue from Medicare and
Medicaid, 60% from insurance providers and contracted payors,
and 5% directly from patients.
Revenue Recognition
Revenue is recognized at the time of service and is recorded net
of provisions for contractual discounts and estimated
uncompensated care. These provisions amounted to approximately
61%, 56%, 53%, 52% and 49% of gross revenue for the five months
ended January 31, 2005, the year ended August 31,
2004, the three months ended August 31, 2003, the nine
months ended May 31, 2003 and the year ended
August 31, 2002, respectively.
Healthcare reimbursement is complex and may involve lengthy
delays. Third-party payors are continuing their efforts to
control expenditures for healthcare, including proposals to
revise reimbursement policies. The Company has from time to time
experienced delays in reimbursement from third-party payors. In
addition, third-party payors may disallow, in whole or in part,
claims for reimbursement based on determinations that certain
amounts are not reimbursable under plan coverage, determinations
of medical necessity, or the need for additional information.
Laws and regulations governing the Medicare and Medicaid
programs are very complex and subject to interpretation. As a
result, there is a reasonable possibility that recorded
estimates will change materially in the short-term. Retroactive
adjustments may change the amounts realized from third-party
payors and are considered in the recognition of revenue on an
estimated basis in the period the related services are rendered.
Such amounts are adjusted in future periods, as adjustments
become known.
Subsidies and fees in connection with community contracts are
recognized ratably over the service period the payment covers.
F-17
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
The Company also provides services to patients who have no
insurance or other third-party payor coverage. In certain
circumstances, federal law requires providers to render services
to any patient who requires emergency care regardless of their
ability to pay.
Income Taxes
The Company accounts for income taxes under SFAS 109.
Deferred income taxes reflect the impact of temporary
differences between the reported amounts of assets and
liabilities for financial reporting purposes and such amounts as
measured by tax laws and regulations. The deferred tax assets
and liabilities represent the future tax return consequences of
those differences, which will either be taxable or deductible
when the assets and liabilities are recovered or settled. A
valuation allowance is provided for deferred tax assets when
management concludes it is more likely than not that some
portion of the deferred tax assets will not be recognized.
AMR and EmCare are included in the consolidated U.S. income
tax return with other Laidlaw U.S. subsidiaries. The tax
allocation agreement calculates tax liability on a separate
company basis and provides for reimbursement or payment for
utilization of carryovers among members of the group.
Consequently, AMR and EmCare only receive the benefits of net
operating loss and interest carryforwards to the extent utilized
in Laidlaw's consolidated return. Costs related to income
taxes are included as payable to or receivable from Laidlaw.
Recent Accounting Pronouncements
In December 2004, the Financial Accounting Standards Board
("FASB") issued Statement No. 123 (revised 2004),
"
Share-Based Payment
." This Statement is a
revision of FASB Statement No. 123, "
Accounting for
Stock-Based Compensation
" and is effective as of the
beginning of the first interim or annual reporting period that
begins after June 15, 2005. The Statement requires public
companies to measure the cost of employee services received in
exchange for an award of equity instruments based on the
grant-date fair value of the award. The Company anticipates that
the adoption of this Statement will not have a material impact
on its financial statements.
3.
Property, Plant and Equipment, net
Property, plant and equipment, net consisted of the following at
January 31, 2005 and August 31, 2004 and 2003:
As Restated
2005
2004
2003
Land
$
2,079
$
2,079
$
2,079
Building and leasehold improvements
14,293
14,147
11,670
Vehicles
91,114
85,172
65,163
Computer hardware and software
42,006
35,585
29,290
Other
46,891
45,622
32,130
196,383
182,605
140,332
Less: accumulated depreciation
(67,617
)
(49,920
)
(6,786
)
Property, plant and equipment, net
$
128,766
$
132,685
$
133,546
Vehicles include certain vehicles held under capital leases with
a net book value of $11.7 million, $13.9 million and
$19.0 million at January 31, 2005 and August 31,
2004 and 2003, respectively. Accumulated depreciation and
amortization at January 31, 2005 and August 31, 2004
and 2003 includes $8.4 million, $6.3 million and
$1.3 million, respectively, relating to such vehicles.
Depreciation expense was
F-18
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
$18.0 million for the five months ended January 31,
2005, $43.2 million for the year ended August 31,
2004, $10.2 million for the three months ended
August 31, 2003, $32.2 million for the nine months
ended May 31, 2003 and $45.7 million for the year
ended August 31, 2002.
4.
Intangible Assets, net
Intangible assets, net consisted of the following at
January 31, 2005 and August 31, 2004 and 2003:
Restated
2005
2004
2003
Goodwill
$
—
$
—
$
52,360
Contract value
22,544
22,106
94,177
Radio frequencies
—
—
4,000
Covenant not to compete
250
—
19
22,794
22,106
150,556
Less: accumulated amortization
(6,719
)
(6,348
)
(2,351
)
Intangible assets, net
$
16,075
$
15,758
$
148,205
Amortization expense of intangible assets was $0.8 million
for the five months ended January 31, 2005,
$9.5 million for the year ended August 31, 2004 and
$2.4 million for the three months ended August 31,
2003, $0 for the nine months ended May 31, 2003 and
$21.4 million for the year ended August 31, 2002.
Covenants and the contract value are amortized over a life of
10 years. As a result of the reversal of the separate
company tax valuation allowance as of August 31, 2004 under
fresh-start accounting, AMR reduced its intangible assets to
zero and EmCare reduced its intangible assets to
$15.8 million. Estimated annual amortization over each of
the next five years is approximately $2.2 million.
5.
Income Taxes
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts
used for income tax purposes. Significant components of the
Company's deferred taxes were as follows at
January 31, 2005 and August 31, 2004 and 2003:
Restated
2005
2004
2003
Deferred tax assets:
Accounts receivable
$
38,817
$
34,726
$
54,447
Accrued liabilities
58,508
56,803
62,120
Intangible assets
42,732
46,047
24,311
Interest carryforwards
84,590
85,188
84,474
Net operating loss carryforwards
54,565
55,055
94,576
279,212
277,819
319,928
Deferred tax liabilities:
Excess of tax over book depreciation
(11,651
)
(10,449
)
(8,544
)
Net deferred tax assets
267,561
267,370
311,384
Valuation allowance
—
—
(155,952
)
Net deferred tax assets
$
267,561
$
267,370
$
155,432
F-19
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
The Company has significant net deferred tax assets resulting
from net operating loss ("NOL") and interest deduction
carryforwards and other deductible temporary differences that
will reduce taxable income in future periods.
SFAS No. 109 "
Accounting for Income
Taxes
" requires that a valuation allowance be
established when it is "more likely than not" that
all, or a portion, of net deferred tax assets will not be
realized. A review of all available positive and negative
evidence needs to be considered, including expected reversals of
significant deductible temporary differences, a company's
recent financial performance, the market environment in which a
company operates, tax planning strategies and the length of NOL
and interest deduction carryforward periods. Furthermore, the
weight given to the potential effect of negative and positive
evidence should be commensurate with the extent to which it can
be objectively verified.
At the fresh-start accounting date, May 31, 2003, the
Company recorded a valuation allowance of $156.0 million,
based on the criteria required under SFAS No. 109
discussed above. During fiscal 2004, write-offs of net operating
loss carryforwards and realization of other assets reduced the
valuation allowance by $48.2 million. As a result of the
Company's improved financial performance during fiscal
2004, management reduced the deferred tax valuation allowance by
an additional $107.8 million during the year ended
August 31, 2004. As required under fresh-start accounting,
this change also resulted in a reduction in intangible assets
and goodwill and an increase in Laidlaw equity of AMR.
The Company has interest carryovers of $222.6 million at
January 31, 2005 limited by Internal Revenue Code
Section 163(j) without expiration, and federal net
operating loss carryforwards of $143.7 million which expire
in the years 2005 to 2024. The interest carryovers and
$134.0 million of the net operating loss carryforwards are
subject to Laidlaw's annual Section 382 limitation of
$58 million.
In connection with the sale described in note 17, the value
of deferred tax assets and liabilities will be adjusted.
The components of income tax benefit (expense) were as follows:
Predecessor
Five Months
Year
Three Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Current tax expense
State
$
—
$
559
$
(162
)
$
829
$
1,374
Federal
—
(694
)
17,216
—
—
Total
—
(135
)
17,054
829
1,374
Deferred tax expense
State
762
2,496
(76
)
—
—
Federal
5,516
19,403
(8,345
)
—
—
Total
6,278
21,899
(8,421
)
—
—
Total tax expense
State
762
3,055
(238
)
829
1,374
Federal
5,516
18,709
8,871
—
—
Total
$
6,278
$
21,764
$
8,633
$
829
$
1,374
F-20
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
A reconciliation of the provision (benefit) for income taxes at
the federal statutory rate compared to the Company's
effective tax rate is as follows:
As Restated
Predecessor
Five Months
Year
Three Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Income tax expense (benefit) at the statutory rate
$
5,516
$
20,690
$
631
$
26,656
$
(86,103
)
Decrease(increase) in income taxes resulting from:
State taxes, net of federal
495
1,986
(155
)
539
893
Goodwill amortization/impairment
—
—
—
—
76,517
Fresh start accounting adjustments
—
—
—
(16,246
)
—
Parent Company allocations
—
(1,577
)
7,990
(2,826
)
(40,377
)
Change in valuation allowance
—
—
—
(7,607
)
50,158
Other
267
665
167
313
286
Provision for income taxes
$
6,278
$
21,764
$
8,633
$
829
$
1,374
6.
Accrued Liabilities
Accrued liabilities were as follows at January 31, 2005 and
August 31, 2004 and 2003:
2005
2004
2003
Accrued wages and benefits
$
53,231
$
65,757
$
56,960
Accrued paid time off
20,141
19,828
16,896
Current portion of self-insurance reserve
41,283
36,384
28,206
Accrued restructuring
1,118
1,611
3,088
Current portion of compliance and legal
3,607
5,660
8,056
Accrued billing and collection fees
3,522
3,466
3,300
Accrued profit sharing
23,802
7,566
6,552
Other
24,941
26,512
23,121
Total accrued liabilities
$
171,645
$
166,784
$
146,179
F-21
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
7.
Long-term Debt
Long-term debt consisted of the following at January 31,
2005 and August 31, 2004 and 2003:
2005
2004
2003
Notes due at various dates from 2004 to 2022 with interest rates
    from 6% to 10%
$
1,219
$
2,959
$
6,478
Mortgage loan due 2010 with an interest rate of 7%
2,168
2,190
2,242
Capital lease obligations due at various dates from 2006 to 2007
    (note 10)
8,110
10,331
15,337
11,497
15,480
24,057
Less current portion
(5,846
)
(7,565
)
(8,270
)
Total long-term debt
$
5,651
$
7,915
$
15,787
The aggregate amount of minimum payments (deposit refunds)
required on long-term debt in each of the years indicated is as
follows:
Year ending January 31,
2006
$
5,846
2007
3,771
2008
(878
)
2009
121
2010
108
Thereafter
2,529
$
11,497
8.
Restructuring Charges and Impairment Losses
The activity in the accrued restructuring balance is as follows:
2002 Plan
2003 Plan
2004 Plan
Severance
Lease
Total
Severance
Severance
Total
Incurred
$
1,517
$
2,260
$
3,777
$
3,777
Paid
(456
)
(149
)
(605
)
(605
)
August 31, 2002
1,061
2,111
3,172
3,172
Incurred April 2003
—
—
—
$
1,288
1,288
Incurred August 2003
—
—
—
1,449
1,449
Paid
(559
)
(561
)
(1,120
)
(1,701
)
(2,821
)
August 31, 2003
502
1,550
2,052
1,036
3,088
Incurred
—
—
—
—
$
2,115
2,115
Paid
(502
)
(566
)
(1,068
)
(1,036
)
(1,488
)
(3,592
)
August 31, 2004
—
984
984
—
627
1,611
Incurred
—
—
—
—
—
—
Paid
—
(238
)
(238
)
—
(255
)
(493
)
January 31, 2005
$
—
$
746
$
746
$
—
$
372
$
1,118
F-22
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Restructuring Plans
During fiscal year 2004, AMR was re-aligned into three
geographic regions. The billing centers and operating units
within the four original AMR regions were shifted to create the
new structure and the administrative office of the former
South-Central region was closed. The functions previously
performed by this group were distributed to the remaining
regions. This restructuring plan is expected to be completed by
December 2005.
During fiscal year 2003, AMR's Northern Pacific Region
re-aligned the management structure of its operations. The first
phase occurred in April 2003 and the second and final phase
occurred in August 2003.
During fiscal year 2002, in an effort to eliminate the
differences in size among regions, AMR was re-aligned into four
geographic regions. The operating units within the five original
regions were shifted to create the new structure and the
administrative offices of the former South region and one
billing center were closed. National Products and Services was
also closed. The functions previously performed by this group
were distributed to the remaining regions and the corporate
office. This restructuring plan is expected to be completed by
December 2008.
2002 Impairment Losses
During fiscal year 2002, AMR incurred an impairment charge of
$262.8 million, including $254.9 goodwill impairment and
$7.9 million property, plant and equipment impairment. The
impairment losses resulted from the inability of AMR to recover
the carrying value of the long-lived assets from expected future
operating cash flows.
9.
Retirement Plans and Employee Benefits
AMR maintains three 401(k) plans (the "AMR Plans") for
its employees and employees of its subsidiaries who meet the
eligibility requirements set forth in the AMR Plans. Employees
may contribute a maximum of 40% of their compensation up to a
maximum of $13 (thousand). Generally 50% of the contribution is
matched by AMR up to a maximum of 3% to 6% of the
employee's salary per year, depending on the plan.
AMR's contributions to the AMR Plans for the five months
ended January 31, 2005 were $3.7 million, the year
ended August 31, 2004 were $8.1 million, for the three
months ended August 31, 2003 were $1.9 million and for
the nine months ended May 31, 2003 were $5.7 million.
For the year ended August 31, 2002, AMR's
contributions to the AMR Plans were $6.9 million.
Contributions are included in operating expenses on the
accompanying combined statements of operations.
EmCare established the EmCare Holdings Inc. 401(k) Savings Plan
(the "EmCare Plan") in 1994 to provide retirement
benefits to its employees. Employees may elect to participate in
the EmCare Plan at the beginning of each calendar quarter and
may contribute 1% to 25% of their annual compensation on a
tax-deferred basis subject to limits established by the Internal
Revenue Service. EmCare contributes 50% of the first 6% of base
compensation that a participant contributes to the EmCare Plan
during any calendar year. The EmCare Plan follows a calendar
year-end. Accordingly, EmCare makes its matching contributions
based on eligible employee contributions for each calendar year.
EmCare contributed $0.1 million to the EmCare Plan during
the five months ended January 31, 2005. During calendar
years 2004, 2003 and 2002, EmCare contributed $0.5 million,
$0.4 and $0.4 million, respectively, to the EmCare Plan.
In fiscal 2004, Laidlaw issued Value Appreciation Rights
("VAR") to various employees of AMR and EmCare. There
were no VARs issued prior to fiscal 2004. The VARs vest 100% on
the third anniversary of the date of the grant. The VARs
compensation is based on prescribed formulas that estimate
changes in the enterprise values of AMR and EmCare. The Company
recognizes compensation expense on a straight-line
F-23
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
basis over the vesting period with compensation expense of
$4.1 million for fiscal 2004. The Company recognized
$15.3 million of expense related to the VARs for the period
ended January 31, 2005 which is included in Laidlaw fees
and compensation charges. This expense related to the sale
transaction discussed in note 17 and was funded by Laidlaw
in accordance with the terms of the sale agreements. The VAR
program was terminated in connection with the sale of AMR and
EmCare in February 2005 and employees and executives will earn
no further rights.
10.
Commitments and Contingencies
Lease Commitments
The Company leases various facilities and equipment under
operating lease agreements. Rental expense incurred under these
leases was $12.4 million, $27.9 million,
$7.2 million and $23.2 million for the five months
ended January 31, 2005, the year ended August 31,
2004, the three months ended August 31, 2003 and the nine
months ended May 31, 2003, respectively, and was
$32.4 million in fiscal 2002.
In addition, the Company leases certain vehicles under capital
leases. Assets under capital lease are capitalized using
inherent interest rates at the inception of each lease. Capital
leases are collateralized by the leased vehicles.
Future commitments under capital and operating leases for
vehicle, premises, equipment and other recurring commitments are
as follows (the balances below include fair value adjustments as
described in note 2):
Operating
Capital
Leases &
Leases
Other
Year ending January 31,
2006
$
6,000
$
26,400
2007
3,558
19,335
2008
(948
)
15,242
2009
—
11,785
2010
—
7,810
Thereafter
—
20,659
8,610
$
101,231
Less imputed interest
(500
)
Total capital lease obligations
8,110
Less current portion
(5,530
)
Long-term capital lease obligations
$
2,580
Other commitments consisting of dispatch and responder fees
total $5,362, $1,133, $991, $989, $2,912 and $243 for the years
ending January 31, 2006, 2007, 2008, 2009, 2010 and
thereafter.
Services
The Company is subject to the Medicare and Medicaid fraud and
abuse laws which prohibit, among other things, any false claims,
or any bribe, kick-back or rebate in return for the referral of
Medicare and Medicaid patients. Violation of these prohibitions
may result in civil and criminal penalties and exclusion
F-24
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
from participation in the Medicare and Medicaid programs.
Management has implemented policies and procedures that
management believes will assure that the Company is in
substantial compliance with these laws. From time to time, we
receive requests for information from government agencies
pursuant to their regulatory or investigational authority. Such
requests can include subpoenas or demand letters for documents
to assist the government in audits or investigations. The
Company is cooperating with the government agencies conducting
these investigations and is providing requested information to
the government agencies. Other than the investigations described
below, management believes that the outcome of any of these
investigations would not have a material adverse effect on the
Company.
During the first quarter of fiscal 2004, AMR was advised by the
U.S. Department of Justice ("DOJ") that it was
investigating certain of AMR's business practices. The
specific practices at issue were (1) whether ambulance
transports involving Medicare eligible patients complied with
the "medical necessity" requirement imposed by
Medicare regulations, (2) whether patient signatures, when
required, were properly obtained from Medicare eligible
patients, and (3) whether discounts in violation of the
federal Anti-Kickback Statute were provided by AMR in exchange
for referrals involving Medicare eligible patients. In
connection with the third issue, the government has alleged that
certain of AMR's hospital and nursing home contracts
in effect in Texas, primarily certain contracts in effect in
1996 and 1997, contained discounts in violation of the federal
Anti-Kickback Statute. The government recently has provided the
Company with an analysis of the investigation conducted in
connection with this contract issue, and invited the Company to
respond. The Company is considering the government's
analysis and intends to provide its views, as requested. The
government may also be investigating whether AMR's
contracts with health facilities in Oregon and other
jurisdictions violate the Anti-Kickback Statute. At this time,
it is not possible to predict the ultimate conclusion of these
investigations, nor is it possible to estimate possible
financial exposure, if any, to the Company.
From August 1998 until August 2000, American Medical Response
West ("AMR West"), a subsidiary of AMR, received six
subpoenas duces tecum from the United States Attorney's
Office. These subpoenas related to billing matters for emergency
transports during the periods January 1, 1995 to
December 31, 1999. Pursuant to a settlement agreement with
the United States Attorney's Office, AMR West paid
$3.5 million in 2004 and entered into a five-year agreement
with the Department of Health and Human Services covering
various administrative processes and procedures. AMR reserved
for these matters in periods prior to the statements of
operations presented herein.
In June 1999, the DOJ began an investigation of the billing
processes of Regional Emergency Services L.P., or RES, a
subsidiary of AMR, and one of RES' hospital clients.
The DOJ alleged violations by the companies of the False Claims
Act based on the absence of certificates of medical necessity
and other non-compliant billing practices from October 1992 to
May 2002. Pursuant to a settlement agreement to resolve these
allegations, including settlement of claims in Texas described
below, in April 2004 AMR paid $5.0 million of a total
$20.0 million settlement amount, with the balance paid by the
hospital. AMR reserved for these matters in periods prior to the
statements of operations presented herein.
On May 9, 2002, AMR received a subpoena duces tecum from
the Office of Inspector General for the United States Department
of Health and Human Services. The subpoena required AMR to
produce a broad range of documents relating to RES contracts in
Texas, Georgia and Colorado for the period from January 1993
through May 2002. The Texas claims were resolved pursuant to the
settlement agreement described above. The government
investigations in Georgia and Colorado are continuing; it is not
currently possible to estimate the financial exposure, if any,
to the Company.
On July 12, 2005, the Company received a letter and draft
Audit Report from the Office of Inspector General for the United
States Department of Health and Human Services, or OIG,
requesting the Company's
F-25
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
response to its draft findings that the Company's
Massachusetts subsidiary received substantial overpayments from
Medicare for services performed between July 1, 2002 and
December 31, 2002. The draft findings state that some of
these services did not meet Medicare medical necessity and
reimbursement requirements. The Company disagrees with the
OIG's finding and is in the process of responding to the
draft Audit Report. If the Company is unsuccessful in
challenging the OIG's draft findings, and in any
administrative appeals to which the Company may be entitled
following the release of a final Audit Report, the Company may
be required to make a substantial repayment.
Letters of Credit
At January 31, 2005 and August 31, 2004 and 2003, AMR
had $23,297, $8,212 and $9,112, respectively, in outstanding
letters of credit. At January 31, 2005 and August 31,
2004 and 2003, Laidlaw also had issued letters of credit on
behalf of AMR for $1,000, $23,328 and $28,185, respectively.
Other Legal Matters
EmCare has been named as a defendant in a collective action
lawsuit brought by a number of nurse practitioners and physician
assistants under the federal Fair Labor Standards Act. The
plaintiffs are seeking to recover overtime pay for the hours
they worked in excess of 40 in a workweek and reclassification
as non-exempt employees. Certain of the plaintiffs brought a
related action under California state law. EmCare has entered
into a settlement of the California state law claims for
$1.5 million. EmCare reserved the amount of this settlement
in fiscal 2004 and it was included as a component of selling,
general and administrative expenses.
Guarantees
Upon emergence from Chapter 11, Laidlaw established a new
senior secured credit facility (the "Facility"). The
Facility is guaranteed by Laidlaw and certain Laidlaw
subsidiaries, including AMR and EmCare. In addition, the
Facility is secured by the assets of Laidlaw and certain Laidlaw
subsidiaries, including AMR and EmCare, except for certain
assets of the Company contractually excluded from the
securitization. Under the terms of the Facility, Laidlaw is
required to meet certain financial covenants, including a fixed
charge coverage ratio, leverage ratio, interest coverage ratio,
net tangible asset ratio and maximum senior secured leverage
ratio, as well as certain non-financial covenants. As of
January 31, 2005, Laidlaw was in compliance with all
covenants and the outstanding balance under the Facility and
issued letters of credit aggregated $597.3 million.
As a result of emergence from Chapter 11, Laidlaw also
issued unsecured senior notes. These notes are also guaranteed
by Laidlaw and certain Laidlaw subsidiaries, including AMR and
EmCare. The outstanding balance under the notes at
January 31, 2005 aggregated $406 million.
In connection with the sale discussed in note 17, AMR and
EmCare have been released from these guarantees.
Income Tax Matters
The respective tax authorities, in the normal course, audit
previous tax filings. It is not possible at this time to predict
the final outcome of these audits or establish a reasonable
estimate of possible additional taxes owing, if any.
F-26
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
11.
Related Party
Allocation of Costs from Laidlaw
Laidlaw charges AMR and EmCare for the estimated cost of certain
functions that are managed by Laidlaw and can reasonably be
attributed directly to the operations of the Company. The
charges to the Company are based on management's estimate
of such services specifically used by the Company. Where
determinations based on specific usage alone have been
impracticable, other methods and criteria were used that Laidlaw
management believes are reasonable. Such allocations are not
intended to represent the costs that would be or would have been
incurred if the Company were an independent business.
The amount of Laidlaw's combined equity and the Laidlaw
payable included in the balance sheet represents a net balance
as a result of various transactions between the Company and
Laidlaw. There are no terms of settlement associated with the
account balance. The balance is primarily the result of the
Company's participation in Laidlaw's central cash
management program, wherein all the subsidiaries' cash
receipts are remitted to Laidlaw and all cash disbursements are
funded by Laidlaw. Other transactions include certain direct
obligations administered by Laidlaw, as well as the
Company's share of the current portion of the Laidlaw
consolidated federal and state income tax liability and various
other administrative expenses allocated by Laidlaw. As a result,
obligations for these matters are not reflected on the
accompanying balance sheet. Self-insurance obligations and
related deposits administered by Laidlaw are reflected on the
accompanying balance sheet.
Laidlaw charges or cost allocations included in the accompanying
combined statements of operations include the following:
Predecessor
Five Months
Year
Three Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Allocated insurance expense (income)
$
—
$
(4,505
)
$
11,522
$
3,058
$
(8,094
)
Direct insurance expense
17,069
40,554
—
—
—
Laidlaw fees and compensation charges
19,857
15,449
1,350
4,050
5,400
Reorganization costs
—
—
—
3,650
8,761
Interest
4,480
6,225
403
3,081
4,585
Included in insurance expense are allocations of charges and
credits made to AMR related to the operating costs and
investment activities of Laidlaw's captive insurance
company. These allocations also include changes in actuarial
estimates of insurance reserves for fiscal year 2001 and prior
years' claims estimates. For fiscal year 2002 and 2003, AMR
obtained insurance coverage from outside parties, rather than
through Laidlaw. In fiscal 2004, AMR returned to the Laidlaw
insurance program for workers compensation, auto and general
liability. EmCare's participation in the Laidlaw insurance
program is limited to directors' and officers, and general
liability insurance which is allocated as a component of Laidlaw
fees and compensation charges.
Management costs have been calculated using a formula based upon
the Company's share of Laidlaw's consolidated revenue
and represent Laidlaw's general and administrative costs
incurred for the benefit of the
F-27
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Company. Fiscal 2004 management costs include $4.1 million
of charges related to incentive plans for management of the
Company.
During the nine months ended May 31, 2003 and fiscal year
2002, Laidlaw charged the Company additional costs incurred by
Laidlaw as a result of its reorganization of $3.7 million
and $8.8 million, respectively.
Interest expense has been recorded by the Company based on an
average intercompany balance and applicable interest rates
(prime + 2%). During fiscal 2002 and for the nine months ended
May 31, 2003, Laidlaw, as a result of its bankruptcy,
suspended interest on purchase acquisition debt pushed down to
AMR.
On March 1, 2004, AMR declared a $200 million dividend
payable to Laidlaw. The dividend has been recorded as an
increase in the Laidlaw payable account on the balance sheet and
as a decrease to combined equity. There are no specific
repayment terms related to the Laidlaw payable account which has
been included as a component of equity on the accompanying
combined balance sheets and combined statements of changes in
equity.
At January 31, 2005, Laidlaw maintained deposits of
$16.4 million for collateral on behalf of AMR supporting
performance bonds held by a related party. AMR's interest
in the collateral is included in other long-term assets. As
described in note 12, Laidlaw also maintains
insurance-related deposits on behalf of AMR.
The Company transfers surplus funds to Laidlaw as necessary and,
as described above, bears the cost of various allocated
expenses. The Company's operating results, cash flows and
financial position may significantly differ from those that
would have been achieved in the absence of the Company's
relationship with Laidlaw.
12.
Insurance
Insurance reserves are established for automobile, workers
compensation, general liability and professional liability
claims utilizing policies with both fully-insured and
self-insured components. In those instances where the Company
has obtained third-party insurance coverage, either directly
through an independent outside party or through participation in
a Laidlaw administered program, the Company normally retains
liability for the first $1 to $2 million of the loss.
Insurance reserves cover known claims and incidents within the
level of Company retention that may result in the assertion of
additional claims, as well as claims from unknown incidents that
may be asserted arising from activities through January 31,
2005.
The Company establishes reserves for claims based upon an
assessment of actual claims and claims incurred but not
reported. The reserves are established based on consultation
with third-party independent actuaries using actuarial
principles and assumptions that consider a number of factors,
including historical claim payment patterns (including legal
costs) and changes in case reserves and the assumed rate of
inflation in health care costs and property damage repairs. All
claims arising and not settled before June 1, 2003 were
recorded at estimated fair value as of the fresh-start date.
Claims, other than auto and general liability claims, that arose
after June 1, 2003 are discounted at a rate commensurate
with the interest rate on monetary assets that essentially are
risk free and have a maturity comparable to the underlying
liabilities. Auto and general
F-28
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
liability claims that arose after June 1, 2003 are not
discounted. The table below summarizes the non-health and
welfare insurance reserves included in the accompanying combined
balance sheets.
Accrued
Other Long-Term
Total
January 31, 2005
Liabilities
Liabilities
Liabilities
Automobile
$
4,054
$
10,558
$
14,612
Workers compensation
11,554
34,636
46,190
General/ Professional liability
25,675
97,905
123,580
$
41,283
$
143,099
$
184,382
Accrued
Other Long-Term
Total
August 31, 2004
Liabilities
Liabilities
Liabilities
Automobile
$
4,007
$
8,887
$
12,894
Workers compensation
10,903
32,406
43,309
General/ Professional liability
21,474
96,887
118,361
$
36,384
$
138,180
$
174,564
Accrued
Other Long-term
Total
August 31, 2003
Liabilities
Liabilities
Liabilities
Automobile
$
4,845
$
6,244
$
11,089
Workers compensation
10,152
23,870
34,022
General/ Professional liability
13,209
88,897
102,106
$
28,206
$
119,011
$
147,217
Certain insurance programs also require the Company to maintain
deposits with third-party insurers, trustees or with Laidlaw to
cover future claims costs and are included in other assets in
the combined balance sheets. Investments supporting insurance
programs are comprised principally of government securities and
investment grade securities and are presented as restricted
assets in the combined balance sheets. These investments are
designated as available-for-sale and reported at fair value.
Investment income/loss earned on these investments is reported
as a component of insurance expense in the combined statement of
operations. The following table summarizes these deposits and
restricted investments:
January 31,
August 31,
August 31,
2005
2004
2003
Restricted cash and cash equivalents
$
9,846
$
5,691
$
939
Restricted marketable securities
2,473
6,756
201
Short-term deposits (included in other current assets)
8,044
9,889
14,997
Short-term deposits with Laidlaw (included in other current
    assets)
11,541
5,700
—
Restricted long-term investments
41,810
47,285
40,608
Long-term deposits (included in other long-term assets)
20,006
23,708
28,626
Long-term deposits with Laidlaw (included in other long-term
    assets)
29,413
22,733
—
Total insurance deposits
$
123,133
$
121,762
$
85,371
F-29
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Provisions for insurance expense included in the combined
statement of operations includes annual provisions determined in
consultation with Company actuaries, premiums paid to
third-party insurers net of retrospective policy adjustments,
interest accretion and earnings/loss on investments. Fiscal 2004
expense was reduced by a $3.8 million experience refund
received during the year.
13.
Supplemental Cash Flow Information
Predecessor
Restated
Five Months
Year
Three Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Cash paid during the period for interest
$
488
$
556
$
436
$
1,605
$
1,278
Finance and investing activities not requiring the use of cash:
Dividend to Laidlaw
—
200,000
—
—
—
Acquisition of equipment through capital leases
—
—
—
—
26,320
Reduction of deferred tax asset valuation allowance through:
Reduction of ambulance service contracts and other intangibles
—
124,977
—
—
—
Reduction of associated deferred tax asset
—
(27,606
)
—
—
—
Laidlaw equity
$
—
$
10,406
$
—
$
—
$
—
14.
Segment Information
The Company is organized around two separately managed business
units: healthcare transportation services and emergency
management services, which have been identified as operating
segments. The healthcare transportation services reportable
segment focuses on providing a full range of medical
transportation services from basic patient transit to the most
advanced emergency care and pre-hospital assistance. The
emergency management services reportable segment provides
outsourced business services to hospitals primarily for
emergency departments, urgent care centers and for certain
inpatient departments. The Chief Executive Officer has been
identified as the chief operating decision maker (CODM) for
purposes of SFAS No. 131 "Disclosures about
Segments of an Enterprise and Related Information"
(SFAS 131), as he assesses the performance of the business
units and decides how to allocate resources to the business
units. Pre-tax income from continuing operations before
interest, taxes and depreciation and amortization ("Segment
EBITDA") is the measure of profit and loss that the CODM
uses to assess performance and make decisions. Pre-tax income
from continuing operations represents net revenue less direct
operating expenses incurred
F-30
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
within the operating segments. The accounting policies for
reported segments are the same as for the Company as a whole
(see note 2).
Predecessor Company —
Restated
Five Months
Year
Three Months
Nine Months
Year
Ended
Ended
Ended
Ended
Ended
January 31,
August 31,
August 31,
May 31,
August 31,
2005
2004
2003
2003
2002
Healthcare Transportation Services
Revenue
$
455,059
$
1,054,800
$
255,807
$
751,344
$
984,451
Segment EBITDA
33,859
85,557
7,941
48,026
(189,624
)(1)
Total identifiable assets
645,441
628,635
605,268
638,495
(2)
894,943
Capital expenditures
12,054
38,573
17,581
30,888
26,670
Emergency Management Services
Revenue
241,120
549,798
128,654
351,991
431,335
Segment EBITDA
5,639
37,156
7,217
18,248
16,847
Total identifiable assets
338,069
320,964
309,478
303,136
(2)
163,132
Capital expenditures
1,991
4,214
498
3,880
4,448
Total
Total revenue
696,179
1,604,598
384,461
1,103,335
1,415,786
Total segment EBITDA
39,498
122,713
15,158
66,274
(172,777
)
Total identifiable assets
983,510
949,599
914,746
941,631
(2)
1,058,075
Total capital expenditures
14,045
42,787
18,079
34,768
31,118
Reconciliation of EBITDA to Net Income (Loss)
EBITDA
39,498
122,713
15,158
66,274
(172,777
)(1)
Depreciation and amortization expense
(18,808
)
(52,739
)
(12,560
)
(32,144
)
(67,183
)
Interest expense
(5,644
)
(9,961
)
(908
)
(4,691
)
(6,418
)
Realized gain (loss) on investments
—
(1,140
)
90
—
—
Interest and other income
714
240
22
304
369
Fresh-start accounting adjustments
—
—
—
46,416
—
Income tax expense
(6,278
)
(21,764
)
(8,633
)
(829
)
(1,374
)
Cumulative effect of a change in accounting principle
—
—
—
(223,721
)
—
Net income (loss)
$
9,482
$
37,349
$
(6,831
)
$
(148,391
)
$
(247,383
)
(1)
Includes an impairment loss of $262,780.
(2)
Total assets of the Company at June 1, 2003 after fair
    value adjustments.
F-31
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
15.
Valuation and Qualifying Accounts
Allowances for
Contractual
Valuation Allowance
Discounts and
for Deferred Tax
Uncompensated Care
Assets
Total
Balance at August 31, 2001 (Predecessor) —
    restated
$
618,871
$
309,275
$
928,146
Additions
1,387,940
6,383
1,394,323
Reductions
(1,391,191
)
(4,964
)
(1,396,155
)
Balance at August 31, 2002 (Predecessor) —
    restated
615,620
310,694
926,314
Additions
1,216,675
3,200
1,219,875
Reductions
(1,158,932
)
(157,942
)
(1,316,874
)
Balance at May 31, 2003 (Predecessor) — restated
$
673,363
$
155,952
$
829,315
Fresh-start balance at June 1, 2003 — restated
$
673,363
$
155,952
$
829,315
Additions
451,362
—
451,362
Reductions
(429,708
)
—
(429,708
)
Balance at August 31, 2003 — restated
695,017
155,952
850,969
Additions
2,019,502
—
2,019,502
Reductions
(1,887,111
)
(155,952
)
(2,043,063
)
Balance at August 31, 2004 — restated
827,408
—
827,408
Additions
948,125
—
948,125
Reductions
(865,502
)
—
(865,502
)
Balance at January 31, 2005
$
910,031
$
—
$
910,031
16.
Prior Period Results (unaudited)
We have included below an unaudited combined statement of
operations and comprehensive income for the five months ended
January 31, 2004 and an unaudited combined statement of
cash flows for the five months ended January 31, 2004 for
comparison purposes only to the audited statements included
herein.
Five Months
Ended
January 31,
2004
(unaudited)
Combined Statement of Operations
Net revenue
$
667,506
Compensation and benefits
461,923
Operating expenses
90,828
Insurance expense
40,393
Selling, general and administrative expenses
22,016
F-32
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
Five Months
Ended
January 31,
2004
(unaudited)
Laidlaw fees and compensation charges
6,436
Depreciation and amortization expense
22,079
Income from operations
23,831
Interest expense
(4,137
)
Interest and other income
1,403
Income before income taxes
21,097
Income tax expense
(8,558
)
Net income
$
12,539
Combined Statement of Cash Flows
Cash Flows from Operating Activities
Net income
$
12,539
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation and amortization
22,079
Loss on disposal of property, plant and equipment
309
Gain on restricted investments
52
Deferred income taxes
9,020
Changes in operating assets/liabilities:
Trade and other accounts receivable
(33,822
)
Other current assets
5,123
Accounts payable and accrued liabilities
2,183
Net cash provided by operating activities
17,483
Cash Flows from Investing Activities
Purchase of property, plant and equipment
(14,225
)
Proceeds from sale of property, plant and equipment
83
Purchase of restricted cash and investments
(9,585
)
Proceeds from sale of restricted investments
14,107
Net change in deposits and other assets
(2,147
)
Net cash used in investing activities
(11,767
)
Cash Flows from Financing Activities
Repayments of capital lease obligations and other debt
(3,784
)
Increase in bank overdrafts
(3,216
)
Payments made to Laidlaw
(184
)
Increase in other non-current liabilities
1,683
Net cash used in financing activities
(5,501
)
Increase in cash and cash equivalents
215
Cash and cash equivalents, beginning of period
10,641
Cash and cash equivalents, end of period
$
10,856
F-33
Table of Contents
American Medical Response, Inc. & EmCare Holdings
Inc.
(The Healthcare Transportation and Emergency Management
Services
Businesses of Laidlaw International, Inc.)
Notes to Combined Financial
Statements — (Continued)
17.
Subsequent Event
On December 6, 2004, Laidlaw announced it had entered into
definitive agreements to sell 100% of the capital stock of AMR
and EmCare to Onex Partners LP, an affiliate of Onex
Corporation. Completion of the transaction occurred
February 10, 2005 with an effective date after the close of
business on January 31, 2005. Emergency Medical Services
L.P. was formed as the entity which ultimately acquired American
Medical Response, Inc. and EmCare Holdings Inc. from Laidlaw
International, Inc. The purchase price was $828.8 million,
subject to working capital and other purchase price adjustments.
F-34
Table of Contents
Emergency Medical Services L.P.
Consolidated/Combined Financial Statements
June 30, 2005
F-35
Table of Contents
Emergency Medical Services L.P.
Balance Sheets
Unaudited
Predecessor
Consolidated
Combined
June 30,
January 31,
2005
2005
(dollars in
(dollars in
thousands)
thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
31,365
$
14,631
Restricted cash and cash equivalents
12,785
9,846
Restricted marketable securities
1,011
2,473
Trade and other accounts receivable, net
346,491
369,767
Parts and supplies inventory
18,404
18,499
Other current assets
34,684
40,135
Current deferred tax assets
19,774
65,092
Current assets
464,514
520,443
Non-current assets:
Property, plant, and equipment, net
130,061
128,766
Intangible assets, net
84,542
16,075
Non-current deferred tax assets
119,848
202,469
Restricted long-term investments
57,734
41,810
Goodwill
267,474
—
Other long-term assets
99,379
73,947
Assets
$
1,223,552
$
983,510
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
47,906
$
55,818
Accrued liabilities
189,425
171,645
Current portion of long-term debt
9,204
5,846
Current liabilities
246,535
233,309
Long-term debt
596,720
5,651
Other long-term liabilities
149,437
146,273
Liabilities
992,692
385,233
Laidlaw payable
—
202,042
Laidlaw investment
—
356,550
Partnership equity
219,429
—
Retained earnings
11,067
40,000
Comprehensive income (loss)
364
(315
)
Equity
230,860
598,277
Liabilities and equity
$
1,223,552
$
983,510
The accompanying notes are an integral part of these financial
statements.
F-36
Table of Contents
Emergency Medical Services L.P.
Unaudited Statements of Operations and Comprehensive
Income
(in thousands, except per unit amounts)
Consolidated
Combined
Predecessor
Predecessor
Five Months
Three Months
Five Months
Three Months
Ended
Ended
Ended
Ended
June 30,
June 30,
June 30,
June 30,
2005
2005
2004
2004
Net revenue
$
731,410
$
445,021
$
663,880
$
399,975
Compensation and benefits
502,998
307,308
464,610
280,364
Operating expenses
102,170
63,250
91,661
53,490
Insurance expense
39,334
22,427
36,865
22,865
Selling, general and administrative expenses
23,179
14,498
19,269
12,805
Laidlaw fees and compensation charges
—
—
6,436
3,862
Depreciation and amortization expense
23,988
14,136
21,958
13,160
Restructuring charges
—
—
1,381
—
Income from operations
39,741
23,402
21,700
13,429
Interest expense
(21,584
)
(13,646
)
(3,541
)
(3,073
)
Realized gain (loss) on investments
(6
)
33
(52
)
—
Interest and other income
94
81
48
12
Income before income taxes
18,245
9,870
18,155
10,368
Income tax expense
(7,178
)
(3,821
)
(7,831
)
(4,794
)
Net income
11,067
6,049
10,324
5,574
Other comprehensive income, net of tax Unrealized holding gains
    (losses) during the period
364
636
(493
)
(1,118
)
Comprehensive income
$
11,431
$
6,685
$
9,831
$
4,456
Net income per share—basic
$
$
Net income per share—diluted
$
$
Weighted average shares—basic
Weighted average shares—diluted
The accompanying notes are an integral part of these financial
statements.
F-37
Table of Contents
Emergency Medical Services L.P.
Unaudited Statements of Cash Flows
(in thousands)
Combined
Predecessor
Consolidated
Five
Five Months
Months
Ended
Ended
June 30,
June 30,
2005
2004
Cash Flows from Operating Activities
Net income
$
11,067
$
10,324
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation and amortization
24,991
21,958
Gain (loss) on disposal of property, plant and equipment
(400
)
(208
)
Deferred income taxes
(456
)
7,831
Changes in operating assets/liabilities:
Trade and other accounts receivable
23,276
18,106
Other current assets
5,546
(789
)
Accounts payable and accrued liabilities
30,679
24,047
Net cash provided by operating activities
94,703
81,269
Cash Flows from Investing Activities
EMS purchase of AMR and EmCare
(828,775
)
—
Purchase of property, plant and equipment
(20,052
)
(17,387
)
Proceeds from sale of property, plant and equipment
456
518
Purchase of restricted cash and investments
(27,103
)
(43,535
)
Proceeds from sale and maturity of restricted investments
10,066
30,595
Net change in deposits and other assets
(9,827
)
5,688
Net cash used in investing activities
(875,235
)
(24,121
)
Cash Flows from Financing Activities
Borrowings under new senior secured credit facility
350,000
—
Proceeds from issuance of senior subordinated notes
250,000
—
Borrowings under new revolving credit facility
20,200
—
Issuance of partnership equity
221,155
—
Financing costs
(20,122
)
—
Repayments of capital lease obligations and other debt
(3,499
)
(3,956
)
Repayments of revolving credit facility
(20,200
)
—
Increase (decrease) in bank overdrafts
(2,091
)
(353
)
Payments made to Laidlaw
—
(49,734
)
Increase (decrease) in other non-current liabilities
1,823
—
Net cash provided by (used in) financing activities
797,266
(54,043
)
Increase in cash and cash equivalents
16,734
3,105
Cash and cash equivalents, beginning of period
14,631
10,856
Cash and cash equivalents, end of period
$
31,365
$
13,961
Cash paid for:
Interest
$
8,457
$
3,878
Taxes
$
4,709
$
—
The accompanying notes are an integral part of these financial
statements.
F-38
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial Statements
(dollars in thousands)
1.
General
Basis of Presentation of Financial Statements
The accompanying unaudited, interim consolidated financial
statements of Emergency Medical Services L.P. ("EMS"
or the "Company") reflect all adjustments of a normal,
recurring nature that are, in the opinion of management,
necessary for a fair presentation of results for these interim
periods but do not include all of the information and note
disclosures required by accounting principles generally accepted
in the United States ("GAAP") for complete financial
statements. The results of operations for the five months and
three months ended June 30, 2005 are not necessarily
indicative of the results that may be expected for the
eleven-month period ending December 31, 2005.
Emergency Medical Services L.P. acquired American Medical
Response, Inc. and EmCare Holdings Inc. from Laidlaw
International, Inc. on February 10, 2005 with an effective
transaction date after the close of business January 31,
2005. The purchase price was $828.8 million, subject to
working capital and other purchase adjustments. The Company
currently is completing its allocation of purchase price, but
goodwill associated with the transaction is expected to be
between approximately $265 and $275 million. To finance the
acquisition, we entered into a new $450 million senior
secured credit facility and issued senior subordinated notes for
gross proceeds of $250 million (see note 8). We also
issued approximately 22.1 million limited partnership units
for $221 million. For this reason, the financial statements
for periods prior to February 1, 2005
("Predecessor") may not be comparable to the financial
statements for periods from and including February 1, 2005
("Successor").
The following table summarizes the estimated fair value of the
assets acquired and liabilities assumed at the date of
acquisition. The Company is in the process of obtaining
third-party valuations of certain intangible assets acquired and
liabilities assumed, and is evaluating the carryover of tax
attributes from the Predecessor; accordingly, the allocation of
the purchase price is subject to adjustment.
Current assets
$
476,757
Property, plant & equipment
128,766
Intangible assets
89,850
Goodwill
267,474
Other long-term assets
253,740
Total assets acquired
1,216,587
Current liabilities
233,144
Long-term debt
620,183
Other long-term liabilities
144,381
Total liabilities assumed
997,708
Net assets acquired
$
218,879
Intangible assets include $0.6 million of radio frequency
licenses, $0.3 million of covenants not to compete and
$89.0 million for customer relationships. Covenants not to
compete and customer relationships are subject to amortization
and have a weighted average useful life of approximately
7 years.
The $267.5 million of goodwill currently has been
preliminarily assigned to AMR and EmCare in the amounts of
$122.9 million and $144.5 million, respectively, based
on the sales agreements and valuations, and is not subject to
amortization. EmCare goodwill is deductible for tax purposes.
Pro forma net revenue, income from operations and net income for
the five months ended June 30, 2004, when adjusted for the
acquisition described above, would be $663.9 million,
$20.4 million and $1.0 million, respectively.
F-39
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
The Company is a party to a management agreement with a
wholly-owned subsidiary of Onex Corporation, its principal
equityholder. In exchange for an annual management fee of
$1.0 million, the Onex subsidiary provides us with
corporate finance and strategic planning consulting services.
For the five months ended June 30, 2005, we expensed
$0.4 million in fees pursuant to this agreement.
The Predecessor companies had a fiscal year ending
August 31. EMS adopted a fiscal year end of
December 31. Accordingly, the financial statements
presented herein include the five-month period beginning the
effective date of acquisition and ending June 30, 2005 and
the three-month period ending June 30, 2005.
The preparation of financial statements in conformity with GAAP
requires management to make certain estimates and assumptions
that affect the amounts reported in the consolidated and
combined financial statements and accompanying notes. Actual
results may differ from those estimates. Estimates are used for,
but not limited to, the establishment of, allowances for
contractual discounts and uncompensated care, reserves for
insurance related liabilities, taxes and contingencies.
2.
Summary of Significant Accounting Policies
Consolidation
The unaudited consolidated financial statements include all
wholly-owned subsidiaries of EMS, including American Medical
Response, Inc. ("AMR") and EmCare Holdings Inc.
("EmCare") and their respective subsidiaries.
Intercompany transactions and balances have been eliminated.
Combination
The unaudited combined financial statements for the five months
and three months ended June 30, 2004 include the accounts
of AMR and EmCare (combined, the "Predecessor"). AMR
and EmCare were indirect, wholly-owned subsidiaries of Laidlaw
International, Inc. ("Laidlaw"). All significant
intracompany transactions have been eliminated.
Recent Accounting Pronouncements
In December 2004, the Financial Accounting Standards Board
("FASB") issued Statement No. 123 (revised
2004),"
Share-Based Payment
". This Statement is
a revision of FASB Statement No. 123, "
Accounting
for Stock-Based Compensation
" and is effective as of
the beginning of the first interim or annual reporting period
that begins after June 15, 2005. The Statement requires
public companies to measure the cost of employee services
received in exchange for an award of equity instruments based on
the grant-date fair value of the award. The Company currently is
evaluating the impact that the adoption of this Statement will
have on its financial statements, including the alternative
transition methods.
3.
Equity-based Compensation
Under the Company's Equity Option Plan approved in February
2005, key employees have been granted options to purchase
partnership units of the Company. The options allow the grantee
to purchase partnership units at $10 per unit (subject to
appropriate adjustment upon a recapitalization or similar
event). The grants vest ratably over a period of 4 years
and, in addition, certain performance measures must be met for
50% of each grant to become exercisable. The Company has adopted
FASB Statement No. 123,
"Accounting for
Stock-Based Compensation"
. This Statement requires
companies to measure the cost of employee services received in
exchange for an award of equity instruments based on the
grant-date fair value of the award. The Company recorded a
charge of $300 for the five months ended June 30, 2005
associated with the grant of these options.
The Black-Scholes option pricing model was used to estimate fair
values as of the date of grant using 0% volatility, risk free
interest rates ranging from 3.95% to 4.20%, 0% dividend yield
and expected terms of 3.5 and 5 years.
The Company granted 2,287,980 options from the inception of
the plan through June 30, 2005.
F-40
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
4.
Accrued Liabilities
Accrued liabilities were as follows at June 30, 2005 and
January 31, 2005:
Successor
Predecessor
June 30,
January 31,
2005
2005
Accrued wages and benefits
$
56,864
$
53,231
Accrued paid time off
22,409
20,141
Current portion of self-insurance reserve
43,856
41,283
Accrued restructuring
475
1,118
Current portion of compliance and legal
2,282
3,607
Accrued billing and collection fees
3,794
3,522
Accrued incentive compensation
15,796
23,802
Accrued interest
12,124
—
Other
31,825
24,941
Total accrued liabilities
$
189,425
$
171,645
5.
Commitments and Contingencies
Services
The Company is subject to the Medicare and Medicaid fraud and
abuse laws which prohibit, among other things, any false claims,
or any bribe, kick-back or rebate in return for the referral of
Medicare and Medicaid patients. Violation of these prohibitions
may result in civil and criminal penalties and exclusion from
participation in the Medicare and Medicaid programs. Management
has implemented policies and procedures that management believes
will assure that the Company is in substantial compliance with
these laws. From time to time, we receive requests for
information from government agencies pursuant to their
regulatory or investigational authority. Such requests can
include subpoenas or demand letters for documents to assist the
government in audits or investigations. The Company is
cooperating with the government agencies conducting these
investigations and is providing requested information to the
government agencies. Other than the investigations described
below, management believes that the outcome of any of these
investigations would not have a material adverse effect on the
Company.
During the first quarter of fiscal 2004, AMR was advised by the
U.S. Department of Justice that it was investigating
certain of AMR's business practices. The specific practices
at issue are (1) whether ambulance transports involving
Medicare eligible patients complied with the "medically
necessary" requirement imposed by Medicare regulations,
(2) whether patient signatures, when required, were
properly obtained from Medicare eligible patients, and
(3) whether discounts in violation of the federal
Anti-Kickback Statute were provided by AMR in exchange for
referrals involving Medicare eligible patients. In connection
with the third issue, the government has alleged that certain of
our hospital and nursing home contracts in effect in Texas,
primarily certain contracts in effect in 1996 and 1997,
contained discounts in violation of the federal Anti-Kickback
Statute. The government recently has provided the Company with
an analysis of the investigation conducted in connection with
this contract issue, and invited the Company to respond. The
Company is considering the government's analysis and
intends to provide its views, as requested. The government may
also be investigating whether AMR's contracts with health
facilities in Oregon and other jurisdictions violate the
Anti-Kickback Statute. At this juncture, it is not possible to
predict the ultimate conclusion of these investigations, nor is
it possible to estimate possible financial exposure, if any, to
the Company.
F-41
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
On May 9, 2002, AMR received a subpoena duces tecum from
the Office of Inspector General for the United States Department
of Health and Human Services ("HHS"). The subpoena
requested copies of documents for the period from January 1993
through May 2002. The subpoena required AMR to produce a broad
range of documents relating to Regional Emergency Services'
contracts in Texas, Georgia and Colorado. The claims in Texas
have been resolved. However, the government investigations in
Georgia and Colorado are continuing and it is not possible at
this time to estimate the financial exposure, if any, to the
Company.
EmCare has been named a defendant in a collective action lawsuit
brought by a number of nurse practitioners and physician
assistants under the federal Fair Labor Standards Act. The
plaintiffs are seeking to recover overtime pay for the hours
they worked in excess of 40 in a workweek and reclassification
as non-exempt employees. Certain of the plaintiffs brought a
related action under California state law. EmCare has entered
into a settlement of the California state law claims.
On July 12, 2005, the Company received a letter and draft
Audit Report from the Office of Inspector General for the United
States Department of Health and Human Services, or OIG,
requesting the Company's response to its draft findings
that the Company's Massachusetts subsidiary received
substantial overpayments from Medicare for services performed
between July 1, 2002 and December 31, 2002. The draft
findings state that some of these services did not meet Medicare
medical necessity and reimbursement requirements. The Company
disagrees with the OIG's finding and is in the process of
responding to the draft Audit Report. If the Company is
unsuccessful in challenging the OIG's draft findings, and
in any administrative appeals to which the Company may be
entitled following the release of a final Audit Report, the
Company may be required to make a substantial repayment.
Income Tax Matters
The respective tax authorities, in the normal course, audit
previous tax filings. It is not possible at this time to predict
the final outcome of these audits or establish a reasonable
estimate of possible additional taxes owing, if any.
In connection with the acquisition of AMR and EmCare, a
section 338(h)(10) election was made for EmCare which
eliminated $85 million of deferred tax assets and
stepped-up EmCare's tax basis to fair value. Differences
between book and tax depreciation and amortization for these
assets will create future deferred tax assets.
AMR HoldCo, Inc. and EmCare HoldCo, Inc. are commonly owned by a
partnership, Emergency Medical Services L.P., and therefore
are required to file two separate consolidated tax returns. The
disclosed tax amounts relate to the corporate income taxes of
these two corporate consolidated groups combined.
6.
Insurance
Insurance reserves are established for automobile, workers
compensation, general liability and professional liability
claims utilizing policies with both fully-insured and
self-insured components. This includes use of an off-shore
captive insurance program for certain professional liability
(malpractice) programs for EmCare. In those instances where
the Company has obtained third-party insurance coverage, either
directly through an independent outside party or through
participation in a Laidlaw-administered program, the Company
normally retains liability for the first $1 to $2 million
of the loss. Insurance reserves cover known claims and incidents
within the level of Company retention that may result in the
assertion of additional claims, as well as claims from unknown
incidents that may be asserted arising from activities through
the balance sheet dates.
F-42
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
The Company establishes reserves for claims based upon an
assessment of actual claims and claims incurred but not
reported. The reserves are established based on consultation
with third-party independent actuaries using actuarial
principles and assumptions that consider a number of factors,
including historical claim payment patterns (including legal
costs) and changes in case reserves and the assumed rate of
inflation in healthcare costs and property damage repairs.
Certain insurance programs also require the Company to maintain
deposits with third-party insurers, trustees or with Laidlaw to
cover future claims costs, and these deposits are included as
assets in the accompanying consolidated balance sheets.
Investments supporting insurance programs are comprised
principally of government securities and investment grade
securities and are presented as restricted assets in the
combined balance sheets. These investments are designated as
available-for-sale and reported at fair value. Investment
income/loss earned on these investments is reported as a
component of insurance expense in the consolidated/combined
statements of operations.
7.
Segment Information
Operating segments are defined by SFAS No. 131,
Disclosures about Segments of an Enterprise and Related
Information
, as components of an enterprise about which
separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance. The
operating segments are managed separately because each operating
segment represents a strategic business unit providing
healthcare transportation services or emergency management
services.
Predecessor
Five
Three
Five
Three
Months
Months
Months
Months
Ended
Ended
Ended
Ended
June 30,
June 30,
June 30,
June 30,
2005
2005
2004
2004
Healthcare Transportation Services
Net revenue
$
469,804
$
284,694
$
434,294
$
259,713
Segment EBITDA
45,244
25,440
32,903
19,676
Capital expenditures
18,344
8,506
15,838
9,891
Emergency Management Services
Net revenue
261,606
160,327
229,586
140,262
Segment EBITDA
18,485
12,098
10,755
6,913
Capital expenditures
1,708
790
1,553
1,230
Total
Net revenue
731,410
445,021
663,880
399,975
Segment EBITDA
63,729
37,538
43,658
26,589
Capital expenditures
20,052
9,296
17,391
11,121
Reconciliation of EBITDA to Net Income
EBITDA
63,729
37,538
43,658
26,589
Depreciation and amortization expense
(23,988
)
(14,136
)
(21,958
)
(13,160
)
Interest expense
(21,584
)
(13,646
)
(3,541
)
(3,073
)
Realized gain (loss) on investments
(6
)
33
(52
)
—
Interest and other income (loss)
94
81
48
12
Income tax expense
(7,178
)
(3,821
)
(7,831
)
(4,794
)
Net income
$
11,067
$
6,049
$
10,324
$
5,574
F-43
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
8.
Debt
On February 10, 2005, the Company issued $250 million
of senior subordinated unsecured notes and executed a
$450 million senior secured credit facility agreement.
The senior subordinated notes have a fixed interest rate of 10%,
payable semi-annually, and mature in February 2015.
The senior secured credit facility consists of a
$350 million senior secured term loan and a
$100 million revolving credit facility commitment, each
collateralized by a pledge of 100% of the capital stock of the
Company and its direct and indirect domestic subsidiaries and
65% of the capital stock of any direct foreign subsidiaries, and
a security interest in substantially all tangible and intangible
assets of EMS and its subsidiaries. The term loan matures in
February 2012 and requires quarterly principal payments of $875
commencing May 2005. The revolving credit facility, which is
limited by outstanding letter of credit obligations, requires
principal and interest to be paid at maturity in February 2011.
The revolving credit facility is also subject to an annual
commitment fee of 0.5% on unused commitments. Under the terms of
the agreement, the Company may select between various interest
rate arrangements based on LIBOR or the Prime Rate plus
additional basis points within a range of 2.0% to 3.0%,
determined by reference to a leverage ratio. At June 30,
2005, net of letters of credit outstanding of
$24.3 million, the maximum available under the revolving
credit facility was $75.7 million. No amounts were
outstanding under the revolving credit facility at June 30,
2005.
The senior secured credit facility agreement contains various
customary operating and financial covenants. The more
restrictive of these covenants limit the Company's and its
subsidiaries ability to create liens on assets; make certain
investments, loans, guarantees or advances; incur additional
indebtedness or issue capital stock; engage in mergers,
acquisitions or consolidations; dispose of assets; pay
dividends, repurchase equity interests or make other restricted
payments; change the business conducted by the Company; engage
in transactions with affiliates; and repay certain indebtedness,
including the senior unsecured notes, or amend or otherwise
modify agreements governing the subordinated indebtedness. The
financial maintenance covenants establish a maximum leverage
ratio, a maximum senior leverage ratio, a minimum fixed charge
coverage ratio and an annual capital expenditure limit. The
Company is in compliance with its borrowing agreement covenants
as of June 30, 2005.
Following is a summary of the Company's borrowings as of
the respective balance sheet dates:
Successor
Predecessor
June 30,
January 31,
2005
2005
Senior subordinated notes due 2015
$
250,000
$
—
Senior secured term loan due 2012 (5.67% at June 30, 2005)
349,125
—
Capital lease obligations
5,808
8,110
Notes due at various dates from 2005 to 2022 with interest rates
    from 6% to 10%
991
3,387
Total long-term debt
605,924
11,497
Less current maturities
(9,204
)
(5,846
)
Long-term debt, less current maturities
$
596,720
$
5,651
F-44
Table of Contents
Emergency Medical Services L.P.
Notes to Unaudited Financial
Statements — (Continued)
The aggregate maturities of debt are as follows:
Year ended June 30,
2006
$
9,204
2007
5,291
2008
2,638
2009
3,547
2010
3,688
Thereafter
581,556
$
605,924
9.
Subsequent Event
On July 28, 2005, the Company's board of directors
authorized the filing of a registration statement on
Form S-1 in connection with a proposed initial public
offering of the Company's equity. The Company currently
anticipates that, in connection with a public offering, it will
effect a reorganization pursuant to which the Company becomes a
consolidated subsidiary of a newly-formed Delaware corporation
and that corporation, to be named Emergency Medical Services
Corporation, will issue common stock in the offering.
F-45
Table of Contents
________________________________________________________________________________
Shares
EMERGENCY MEDICAL SERVICES
CORPORATION
Class A Common
Stock
Prospectus
,
2005
Banc of America Securities
LLC
JPMorgan
CIBC World Markets
Credit Suisse First
Boston
Scotia Capital
Utendahl
Until                     ,
2005, all dealers that buy, sell or trade the class A
common stock may be required to deliver a prospectus, regardless
of whether they are participating in this offering. This is in
addition to the dealers' obligation to deliver a prospectus
when acting as underwriters and with respect to their unsold
allotments or subscriptions.
Table of Contents
PART II
Information Not Required in Prospectus
Item 13.
Other Expenses of Issuance and Distribution
The following table shows the costs and expenses, other than
underwriting discounts and commissions, payable in connection
with the sale and distribution of the class A common stock
being registered. All of these expenses will be paid by us. All
amounts except the SEC registration fee, the NASD filing fee and
the NYSE fee are estimated.
Securities and Exchange Commission registration fee
$
20,304
NASD filing fee
17,750
NYSE listing fee
*
Blue Sky fees and expenses (including attorneys' fees and
    expenses)
Accounting fees and expenses
*
Legal fees and expenses
*
Printing costs
*
Transfer agent and registrar fees
*
Miscellaneous fees and expenses
*
Total
$
*
*
To be provided by amendment
Item 14.
Indemnification of Directors and Officers
General Obligations Law
We will be incorporated under the laws of the State of Delaware.
Under Section 145 of the Delaware General Corporation Law,
the DGCL, a corporation may indemnify its directors, officers,
employees and agents and its former directors, officers,
employees and agents and those who serve, at the
corporation's request, in such capacities with another
enterprise, against expenses, including attorneys' fees, as
well as judgments, fines and settlements in nonderivative
lawsuits, actually and reasonably incurred in connection with
the defense of any action, suit or proceeding in which they or
any of them were or are made parties or are threatened to be
made parties by reason of their serving or having served in such
capacity. The DGCL provides, however, that such person must have
acted in good faith and in a manner such person reasonably
believed to be in, or not opposed to, the best interests of the
corporation and, in the case of a criminal action, such person
must have had no reasonable cause to believe his or her conduct
was unlawful. In addition, the DGCL does not permit
indemnification in an action or suit by or in the right of the
corporation, where such person has been adjudged liable to the
corporation, unless, and only to the extent that, a court
determines that such person fairly and reasonably is entitled to
indemnity for costs the court deems proper in light of liability
adjudication. Indemnity is mandatory to the extent a claim,
issue or matter has been successfully defended.
Certificate of Incorporation and By-Laws
Our certificate of incorporation will provide that none of our
directors shall be personally liable for breach of fiduciary
duty as a director. Any repeal or modification of that provision
shall not adversely affect any right or protection, or any
limitation of the liability of, any of our directors existing
at, or arising out of facts or incidents occurring prior to, the
effective date of such repeal or modification. Both our
certificate of incorporation and our by-laws will provide for
the indemnification of our directors and officers to the fullest
extent permitted by the DGCL.
Indemnification Agreements
Additionally, we have entered into indemnification agreements
with certain of our directors and officers which may, in certain
cases, be broader than the specific indemnification provisions
contained under current
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applicable law. The indemnification agreements may require us,
among other things, to indemnify such officers and directors
against certain liabilities that may arise by reason of their
status or service as directors, officers or employees of the
company and to advance the expenses incurred by such parties as
a result of any threatened claims or proceedings brought against
them as to which they could be indemnified.
Liability Insurance
Our directors and officers are covered by insurance policies
maintained by us against certain liabilities for actions taken
in their capacities as such, including liabilities under the
Securities Act of 1933, or the Securities Act. Insofar as
indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
Underwriting Agreement
The Underwriting Agreement (to be filed as Exhibit 1.1 to
the Registration Statement) provides for the indemnification of
our directors and officers in certain circumstances against
certain liabilities, including liabilities arising under the
Securities Act.
Item 15.
Recent Sales of Unregistered Securities
On February 10, 2005, we issued 21,500,020 class A
units representing limited partnership interests of Emergency
Medical Services L.P. to seven accredited investors in
reliance upon the exemption provided by Rule 506 of the
Securities Act.
On February 10, 2005, we issued 485,500 class B units
representing limited partnership interests of Emergency Medical
Services L.P. to members of senior management in reliance
upon the exemption provided by Rule 506 of the Securities
Act.
Additionally, effective as of February 10, 2005 we granted
to members of senior management options to purchase an aggregate
of 2,287,979 class B units representing limited partnership
interests of Emergency Medical Services L.P. The options
vest 25% per year, with one-half of the options also
subject to achieving certain performance targets. These options
were issued in reliance upon the exemption provided by
Rule 506 of the Securities Act. See
"Management — Equity Plans — Equity
Option Plan."
On March 10, 2005, we issued 75,000 class B units
representing limited partnership interests of Emergency Medical
Services L.P. to one of our directors in reliance upon the
exemption provided by Rule 506 of the Securities Act.
On April 22, 2005, we issued 25,000 class B units
representing limited partnership membership interests of
Emergency Medical Services L.P. to one of our directors in
reliance upon the exemption provided by Rule 506 of the
Securities Act.
On June 30, 2005, we issued 25,000 class B units
representing limited partnership interests of Emergency Medical
Services L.P. to one of our directors in reliance upon the
exemption provided by Rule 506 of the Securities Act.
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Table of Contents
In July 2005, we granted to certain members of our board of
directors and senior management options to purchase an aggregate
of 49,500 class B units representing limited partnership
units of Emergency Medical Services L.P.
In July 2005, we issued 134,050 class B units
representing limited partnership interests of Emergency Medical
Services L.P. to employees of our subsidiaries pursuant to
our equity purchase plan in reliance upon the exemption provided
by Rule 701 the Securities Act. The issuance of these units
to employees in certain states is subject to our making
regulatory filings and/or our receipt of regulatory approval.
In July 2005, we issued 21,000 class B units
representing limited partnership interests of Emergency Medical
Services L.P. to affiliated physicians, physician
assistants and nurse practitioners in reliance upon the
exemption provided by Rule 506 the Securities Act.
Item 16.
Exhibits and Financial Data Schedules
(A)     Exhibits
1
.1
Form of Underwriting Agreement*
1
.2
Form of Lock-Up Agreement*
2
.1
Stock Purchase Agreement, dated as of December 6, 2004, by
    and among Laidlaw International, Inc., Laidlaw Medical Holdings,
    Inc. and Emergency Medical Services Corporation
2
.2
Amendment to Stock Purchase Agreement, dated February 10,
    2005, by and among Laidlaw International, Inc., Laidlaw
    Medical Holdings, Inc. and Emergency Medical Services
    Corporation
2
.3
Stock Purchase Agreement, dated as of December 6, 2004, by
    and among Laidlaw International, Inc., Laidlaw Medical Holdings,
    Inc. and Emergency Medical Services Corporation
2
.4
Amendment to Stock Purchase Agreement, dated as of
    February 10, 2005, by and among Laidlaw International,
    Inc., Laidlaw Medical Holdings, Inc. and Emergency Medical
    Services Corporation
2
.5
Letter, dated March 25, 2005, to AMR Holdco, Inc. from
    Laidlaw Medical Holdings, Inc.
3
.1
Form of Amended and Restated Certificate of Incorporation of
    Emergency Medical Services Corporation*
3
.2
Form of Amended and Restated By-Laws of Emergency Medical
    Services Corporation*
3
.3
Certificate of Formation of Emergency Medical Services L.P.
3
.4
Agreement of Limited Partnership of Emergency Medical Services
    L.P., dated February 10, 2005, by and among Emergency
    Medical Services Corporation and the persons listed on
    Schedule A thereto
4
.1
Form of Class A Common Stock Certificate*
4
.2
Form of Class B Common Stock Certificate*
4
.3
Investor Equityholders Agreement, dated February 10, 2005,
    by and among Emergency Medical Services L.P., Onex
    Partners LP and the equityholders listed on the signature
    pages thereto
4
.4
Equityholders Agreement, dated as of February 10, 2005, by
    and among Emergency Medical Services L.P., Onex
    Partners LP and the equityholders listed on the signature
    pages thereto*
4
.5
Registration Agreement, dated February 10, 2005, by and
    among Emergency Medical Services L.P. and the persons
    listed on Schedule A thereto
4
.6
Indenture, dated February 10, 2005, by and among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., the guarantors named therein
    and U.S. Bank Trust National Association as trustee
4
.7
Supplemental Indenture, dated April 15, 2005, by and among
    AMR Brockton L.L.C., AMR HoldCo, Inc., EmCare HoldCo, Inc., the
    guarantors named therein and U.S. Bank Trust National
    Association as trustee
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Table of Contents
4
.8
Registration Rights Agreement, dated as of February 10,
    2005, by and among AMR HoldCo, Inc., EmCare HoldCo, Inc., the
    guarantors named therein, Banc of America Securities LLC and
    J.P. Morgan Securities Inc.
4
.9
Voting and Exchange Trust Agreement, dated as
    of           ,
    2005, among Emergency Medical Services Corporation, Onex
    Corporation and the LP exchangeable unitholders whose names are
    set forth on Schedule I*
4
.10
Support Agreement, dated as
    of           ,
    2005, among Emergency Medical Services Corporation, Emergency
    Medical Services L.P. and the LP exchangeable unitholders whose
    names are set forth on Schedule I*
5
.1
Opinion of Kaye Scholer LLP with respect to legality of
    securities being registered*
10
.1
Employment Agreement, dated December 6, 2004, between
    William A. Sanger and Emergency Medical Services Corporation
10
.2
Employment Agreement, dated as of February 10, 2005,
    between Don S. Harvey and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation
10
.3
Employment Agreement, dated as of February 10, 2005,
    between Randel G. Owen and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation
10
.4
Employment Agreement, dated as of February 10, 2005,
    between Todd Zimmerman and Emergency Medical Services L.P., and
    assignment to Emergency Medical Services Corporation
10
.5
Employment Agreement, dated as of April 19, 2005, by and
    between Emergency Medical Services L.P. and Dighton Packard,
    M.D., and assignment to Emergency Medical Services Corporation.
10
.6
Emergency Medical Services L.P. Equity Option Plan
10
.7
Emergency Medical Services L.P. Equity Purchase Plan
10
.8
Management Agreement, dated February 10, 2005, by and among
    Onex Partners Manager LP, AMR HoldCo, Inc. and EmCare HoldCo,
    Inc.
10
.9
Purchase Agreement, dated January 27, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., the Registrant, the
    guarantors party thereto, Banc of America LLC Securities and
    J.P. Morgan Securities Inc.
10
.10
Credit Agreement, dated as of February 10, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Inc., Emergency Medical Services
    L.P., the guarantors party thereto, Bank of America, N.A. and
    the other lenders party thereto
10
.11
Amendment No. 1, dated March 29, 2005, among AMR
    HoldCo, Inc., EmCare HoldCo, Emergency Medical Services L.P.,
    the guarantors and the lenders party thereto, to the Credit
    Agreement dated as of February 10, 2005, among AMR HoldCo,
    Inc., EmCare HoldCo, Inc., Emergency Medical Services L.P., the
    guarantors party thereto, Bankc of America, N.A. and the other
    lenders party thereto
10
.12
Security Agreement, dated as of February 10, 2005, made by
    AMR HoldCo, Inc., EmCare HoldCo., Inc., the guarantors party
    thereto, in favor of Bank of America, N.A.
11
.1
Statement regarding computation of earnings per share*
21
.1
Subsidiaries of Emergency Medical Services L.P.
23
.1
Consent of PriceWaterhouseCoopers LLP
23
.2
Consent of Kaye Scholer LLP (included in Exhibit 5.1)*
24
.1
Powers of Attorney of the directors of Emergency Medical
    Services L.P. (included in the signature page to the
    registration statement)
*
To be filed by amendment
(B)     Financial Data Schedule
Item 17.
Undertakings
The undersigned registrant hereby undertakes as specified in the
underwriting agreement to provide to the underwriters at closing
certificates in such denominations and registered in such names
as required by the underwriters to permit prompt delivery to
each purchaser.
Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the
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registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
The undersigned registrant hereby undertakes that:
(1)     For purposes of determining any
    liability under the Securities Act, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule 430A and contained in a
    form of prospectus filed by the registrant pursuant to
    Rule 424(b)(1) or (4) or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
(2)     For the purpose of determining
    any liability under the Securities Act, each post-effective
    amendment that contains a form of prospectus shall be deemed to
    be a new registration statement relating to the securities
    offered therein, and the offering of such securities at that
    time shall be deemed to be the initial bona fide offering
    thereof.
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act, Emergency
Medical Services L.P. has duly caused this registration
statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Greenwood Village, State of
Colorado, on August 2, 2005.
EMERGENCY MEDICAL SERVICES L.P.
By:
Emergency Medical Services Corporation,
its General Partner
By:
/s/
William A. Sanger
William A. Sanger
Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSON BY THESE PRESENTS that each individual whose
signature appears below constitute and appoints William A.
Sanger and Randel G. Owen, and each of them, his or her true and
lawful attorneys-in-fact and agents, with full power of
substitution and resubstitution, for him or her and in his or
her name, place and stead, in any and all capacities (including
his or her capacity as a director and/or officer), to sign any
and all amendments (including post-effective amendments) to this
Registration Statement, and to sign any registration statement
for the same offering covered by the Registration Statement that
is to be effective upon filing pursuant to Rule 462(b)
promulgated under the Securities Act, and all post-effective
amendments thereto, and to file the same, will all exhibits
thereto, and all other documents in connection therewith, with
the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as
fully to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or either of them, or his, her or
their substitute or substitutes, may lawfully do or cause to be
done or by virtue hereof.
* * *
Pursuant to the requirements of the Securities Act, this
Registration Statement on Form S-1 and Power of Attorney
has been signed by the following persons in the capacities
indicated for Emergency Medical Services Corporation, as general
partner of Emergency Medical Services L.P., and on the date
indicated.
Signature
Title
Date
/s/
William A Sanger
William
    A. Sanger
Chairman, Chief Executive Officer and Director (Principal
    Executive Officer)
August 2, 2005
/s/
Randel G. Owen
Randel
    G. Owen
Chief Financial Officer (Principal Financial and Accounting
    Officer)
August 2, 2005
/s/
Robert M. Le Blanc
Robert
    M. Le Blanc
Director
August 2, 2005
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Signature
Title
Date
/s/
Steven B. Epstein
Steven
    B. Epstein
Director
August 2, 2005
/s/
Don S. Harvey
Don
    S. Harvey
Director
August 2, 2005
/s/
James T. Kelly
James
    T. Kelly
Director
August 2, 2005
/s/
Michael L. Smith
Michael
    L. Smith
Director
August 2, 2005
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