American Dental Partners and PDG complete litigation settlement

Under the terms of the definitive settlement agreement and in settlement and dismissal of the PDG Litigation, the company transferred to PDG the leases and associated tangible assets with respect to 25 of 31 Park Dental facilities and various trade names, including ‘Park Dental’. The parties agreed that PDHC will provide interim management services to PDG for a period of up to nine months. PDG will pay PDHC a management fee of $19 million regardless of whether PDG utilizes the management services of PDHC during the nine month period.

The company also agreed to forgive outstanding accounts receivable due from PDG at December 31, 2007 of $2.03 million. This resolves the outstanding litigation among PDG, PDHC, one of the company’s Minnesota subsidiaries, and the company in the District Court of Minnesota, Fourth Judicial District.