TEAM HEALTH TO BE ACQUIRED BY THE BLACKSTONE GROUP

Knoxville, TN – October 13, 2005 – Team Health, the nation’s largest provider of outsourced physician staffing and administrative services to healthcare providers, today announced it has entered into a definitive agreement to be acquired by The Blackstone Group, a global private equity firm. The current management team will continue to lead Team Health and will remain significant equity holders. Further terms of the transaction have not been disclosed. The transaction is expected to be completed by mid-February 2006.

“We are excited about the growth opportunities for Team Health as we remain a privately held company with Blackstone,” Team Health Chairman and CEO Lynn Massingale, M.D., said. “They are an ideal partner for us, given their ability to help us grow via strategic relationships and acquisitions. Their investment in Team Health is a strong demonstration of their confidence in our management and clinical teams, our strategy, and our future growth. This partnership allows us to leverage our leadership position to continue to focus on providing industry-leading services to our client hospitals, affiliated physician groups, and their patients. We’ve had a very good relationship with Cornerstone Equity Investors, Madison Dearborn Partners and Beecken Petty O’Keefe & Company over the past six years, during which time we experienced significant growth.”

Neil P. Simpkins, Senior Managing Director of The Blackstone Group, said, “We are very pleased to partner with Team Health to continue to provide high quality healthcare services across the United States. Dr. Lynn Massingale and his management team have built an extraordinary company that serves the many needs of hospitals and physicians. We look forward to helping the Company continue to grow and to achieve its strategic goals.”

Dana O’Brien, Senior Managing Director of Cornerstone Equity Investors, LLC and a member of Team Health’s Board of Directors, said. “We have enjoyed our partnership with the company and its management team. Replacing the current investor group with another high quality sponsor will allow Team Health to continue to grow for years to come and for its affiliated physicians to continue to offer outstanding medical care at client hospitals and other healthcare facilities nationwide.”

In 1999, Team Health was purchased by an investor group comprised of Cornerstone Equity Investors, Madison Dearborn Partners, Beecken Petty O’Keefe & Company, and members of Team Health’s management team.

For the 12 months ended September 30, 2005, Team Health reported Revenues of approximately $1 billion and EBITDA of $107.1 million.

About Team Health

Founded in 1979, Team Health is headquartered in Knoxville, Tennessee. Team Health is affiliated with over 7,000 healthcare professionals who provide staffing and administrative services in the areas of emergency medicine, radiology, anesthesia, hospitalist, pediatrics and other healthcare services to over 470 civilian and military hospitals and their affiliated clinics and surgical centers in 44 states. For more information, please visit www.teamhealth.com.

About The Blackstone Group

The Blackstone Group, a global investment and advisory firm with offices in New York, Atlanta, Boston, Los Angeles, London, Hamburg, Paris and Mumbai, was founded in 1985. The firm has raised a total of approximately $34 billion for alternative asset investing since its formation. Over $14 billion of that has been for private equity investing. For more information, please visit www.blackstone.com.

About Cornerstone Equity Investors

Cornerstone Equity Investors, LLC, is a New York-based private equity firm that specializes in healthcare, business services, and specialty manufacturing. Since 1984, the professionals of Cornerstone have raised over $1.2 billion in committed capital. Cornerstone focuses on middle-market leveraged buyouts of corporate divisions, closely held private companies and small capitalization public companies. For more information, please visit www.cornerstone-equity.com.