UPDATE: Community Health to Purchase Health Mgmt at $13.78/Share

Community Health Systems, Inc. (NYSE: CYH) (“CHS”) and Health ManagementAssociates, Inc. (NYSE: HMA) (“HMA”) announced today that they have enteredinto a definitive merger agreement pursuant to which CHS will acquire HMA forapproximately $7.6 billion, including the assumption of approximately$3.7 billion of indebtedness. When completed, CHS would own or operateapproximately 206 hospitals in 29 states with a total bed count of over31,000.Under the terms of the agreement, CHS will acquire all of the issued andoutstanding common stock of HMA for a combination of cash and CHS stockcurrently valued at $13.78 per HMA share, based on CHS' closing stock price asof July 29, 2013, and consisting of $10.50 per share in cash plus 0.06942 of ashare of CHS common stock for each HMA share. HMA shareholders will ownapproximately 16 percent of the shares of the combined company following theclose of the transaction.In addition to the cash and stock consideration, HMA shareholders would alsoreceive one Contingent Value Right (CVR) for each HMA share they own, whichcould yield additional cash consideration of up to $1.00 per share, dependingon the outcome of certain matters described in HMA's public filings under the“Legal Proceedings” section.The merger agreement was unanimously approved by the Board of Directors ofCHS. HMA's Board of Directors also unanimously approved the agreement andrecommends that its stockholders approve the merger.