(San Jose, CA) - CRC Health Corporation CEO, Dr. Barry Karlin today announced the acquisition of the highly respected Comprehensive Addiction Programs, Inc.  ("CAPS').  CAPS owns and operates sixteen residential and outpatient addiction treatment facilities which now become part of CRC's national network of privately held addiction facilities in fifteen states across the country.

    The CAPS drug and alcohol facilities are in Pennsylvania, South Dakota, Virginia, Florida, North Carolina, South Carolina, Massachusetts, Maryland and Delaware.  Existing CRC facilities are in California, Colorado, New Mexico, Texas, Washington,  Pennsylvania and Wisconsin.  CRC's three divisions - Residential Outpatient Facilities, Opiate Treatment Program, and eGetgoing (Internet drug and alcohol treatment including teenGetgoing) "reach throughout the country and permit a full continuum of care," Karlin stated.  He added, "this acquisition is particularly exciting because CAPS is an excellent fit with CRC in multiple ways, enjoying a sterling reputation for high quality care, a similar clinical philosophy, and a management style that mirrors CRC.  The acquisition of CAPS is a key step in the evolution of CRC's mission to provide high quality treatment regardless of geographical location and the stage of the disease in a patient."

    CRC has long been an established operator of residential facilities.  Last year it became a leading player in opiate treatment when it acquired 25 opiate addiction centers.  The Silicon Valley Business Journal called CRC one of the Silicon Valley's "five fastest growing private companies".  CRC now has over 1,700 employees.

    Dr. Karlin reported that this acquisition was completed with financing of $40 million in an equity syndicate including North Castle Partners (lead investor) and Credit Suisse First Boston; in addition to a $70 million senior debt financing led by BNP Paribas and Madison Capital.  North Castle Partners is the leading private equity firm in the Healthy Living and Aging ("HL&A") industry with more than $800 million under management.  Doug Lehrman, a partner at North Castle, described their investment in CRC as an opportunity for the company to fill the "treatment gap" which has plagued our society for decades; further that their investment in chemical dependency treatment is an important extension to North Castle's commitment to the HL&A space.