May 3, 2005

VRC is the leading provider of teleradiology services to hospitals and radiology practices

Generation Partners announced today that the firm made an investment in Virtual Radiologic Consultants, Inc. (“VRC”), a leading provider of teleradiology services. Founded in 2001, VRC is one of the fastest growing providers of remote digital diagnostic imaging (teleradiology) services in the U.S. Generation Partners is a $325 million private equity firm focused on the Business Services and Information Services sectors.

VRC, which is based in Minneapolis, MN, is a leading provider of teleradiology services. Teleradiology is the practice of transmitting radiologic images (such as CT Scans or MRIs) from a hospital or clinic where the scan is obtained to another location for interpretative and diagnostic purposes. VRC maintains a staff of American trained and US Board certified radiologists to perform interpretative reads from remote locations.The company partners with radiology practices and hospital radiology departments to provide quality radiology services that allow clients to reduce their after-hours coverage needs to a more manageable level and to improve the workload for their radiologists. Since the company was founded in 2001, VRC has undergone rapid growth fueled by an increasing need for radiological services coupled with a nationwide shortage of radiologists. The capital provided by Generation will be used by VRC to fund the company’s rapid growth. Other investors in the financing included Invision AG and FujiFilm Medical Systems USA.

Mark Jennings, Managing General Partner at Generation Partners, said “We are extremely pleased to be involved with such an outstanding company. Generation’s primary focus is to invest in growing service companies which are poised to benefit from technological advances. VRC is an excellent fit for us given the combination of a large and rapidly growing diagnostic imaging industry and the advent of technologies that have now made ‘remote’ reading of these images reliable and high quality.

Dr. Sean Casey, VRC CEO said: “Our partnership with Generation will help accelerate our growth while permitting us to continue the high quality service levels our customers have come to expect from VRC. This minority investment also provides us with greater access to capital to support continuing development of the technological infrastructure that underlies our services, and will also allow us to develop related applications for our infrastructure to address new opportunities in the health care services industry. Generation has a clear understanding of our business and an outstanding track record of working with businesses at our stage of growth. We are excited about our future and very pleased to have Generation on board with us.”

Rob Pflieger, Partner of Generation Partners said: “Dr. Sean Casey has built VRC into the leading company in the teleradiology industry. The entire company is geared to meet the needs of its customers as well as its radiologists, which has enabled VRC to grow rapidly since its founding. Further, VRC has a strong recurring revenue business model and a professional management team in place, to capitalize on the tremendous opportunities in teleradiology. We couldn’t be more excited to be involved with VRC.”

About Virtual Radiologic Consultants, Inc.
Virtual Radiologic Consultants (VRC) is a leading teleradiology services provider for all modalities. JCAHO accredited, VRC is dedicated to providing radiology practices, hospitals and imaging facilities with quality services that maximize the benefits of technology to support optimum patient care. Licensed in fifth states, VRC’s experienced radiologists are Board Certified by the American Board of Radiology. Founded in 2001, the company is headquartered in Minneapolis, Minnesota, and can be found on the web at www.virtualrad.net.

About Generation Partners
Generation Partners is a $325 million private investment firm focused on providing equity capital to growth-oriented companies through buyout, growth equity, and venture capital investments. The firm targets $3-20 million investments focused primarily on 1) Business Services/Outsourcing 2) Information Services/Media and 3) other businesses for which technology is a key element of strategy. Some of Generation's portfolio companies include: MedVance Institute, Post Education, Sterling Testing Systems, Agility Recovery Solutions, High End Systems, Hotjobs, The Platform for Media, Promatory Communications, and American Cellular Corp. The firm has offices in Greenwich, CT and San Francisco, CA. For more information on Generation Partners, please visit www.generation.com