ORIX Venture Finance Provides Debt for Recapitalization of Pathology, Inc.

Anatomical and clinical pathology laboratory provides quick turnaround, comprehensive and accurate test results

MENLO PARK, Ca., Oct. 20, 2009—ORIX Venture Finance, a leading provider of expansion capital to mid- to late-stage venture-backed companies, announced today that it has provided debt financing to Pathology, Inc., consisting of a term loan and revolving line of credit.  The financing was used to support the recapitalization of the company in conjunction with ABS Capital, and provide growth capital.

Pathology is a provider of multi-specialty pathology services to primary care and specialty physicians in Southern California and is recognized as the region’s leading anatomic pathology laboratory.  The company has contracts with over 20 hospitals in addition to numerous insurance providers, and is highly rated by doctors who value their personal service and client care, superior quality control, and unrivalled test turnaround timeframe as fast as two-days.

 “We’re excited to support this well-respected and dynamic company, and to assist ABS Capital with an exceptional investment.” said Michael David, managing director of ORIX Venture Finance. “Pathology, Inc. is a leader in the Southern California market, providing a vital service for early detection and improving healthcare decision-making for consumers, healthcare professionals, and payers.”

Kevin Sheehan, president of ORIX Venture Finance, added, “We are delighted to complete this transaction with ABS Capital Partners, a top investor in the lab services space, and a consistent partner with ORIX.  As activity in the venture community gathers pace, ORIX is well positioned to support growing companies, like Pathology, with attractive financing solutions.”

“We’re pleased that ORIX Venture Finance has demonstrated its confidence in our business model and our ability to execute by providing us with this credit facility,” said Vicki DiFrancesco, CEO of Pathology, Inc. “We believe it’s important to have sound financial partners that recognize the value of our expertise as we seek to expand our testing menu and expand our geographical footprint.”

About ORIX Venture Finance LLC

ORIX Venture Finance provides enterprise financing to mid- and late-stage venture capital-backed companies via acquisition financing, expansion capital and working capital term loans and credit lines. The Venture Finance team, staffed with highly seasoned venture lending professionals, meets the challenges facing growth companies by structuring flexible financing packages that meet your unique needs. We are dedicated to supporting the growth and success of professionally backed companies with a range of debt products.  For more information about ORIX Venture Finance, go to www.orixventurefinance.com.

About Pathology, Inc.

Pathology, Inc. is a provider of anatomic pathology and molecular diagnostic testing services. The Company has built a solid reputation for quality and customer service with clients that include OB/Gyns, dermatologists, urologists, gastroenterologists, and family practitioners, as well as surgicenters, endoscopy centers, hospitals, and independent laboratories. Pathology has 170 full time employees located at two separate facilities; its Torrance headquarters and a second smaller facility.  Both facilities are CLIA certified and CAP accredited. 

The Company’s pathologists through its association with Affiliated Pathologists Medical Group (APMG) are all board certified and have a variety of multi-specialty interests and expertise as well as extensive cumulative experience in outpatient pathology. They have provided pathology services to physician offices for over 25 years.

About ABS Capital Partners

ABS Capital Partners invests in the very best later-stage growth companies, partnering with CEOs to create a bridge to the next critical stage of success. Whether success is defined as a winning IPO like American Public Education, NeuStar, and Rosetta Stone or a rewarding sale such as US Pathology Labs, Course Advisor and Advanced Disposal, ABS Capital’s financial backing and active partnership supports the CEO in tackling the challenges of rapid growth and creating significant long-term value.

Our partners are highly experienced at working with growth companies – with backgrounds in financial markets, consulting and as C-level executives themselves. Our practical, down-to-earth approach enables a strong partnership to determine and achieve well-defined goals. Our extensive network of resources delivers vital industry connections to our portfolio companies enabling them to capitalize on their competitive advantage.

ABS Capital Partners specializes in four growth sectors – business services, health care, media and communications, and software. With over $2 billion raised since inception, including a $420 million in our latest fund, ABS Capital continues to build on its strong reputation for teaming with various market leaders to deliver strong returns to investors. For more information, please visit www.abscapital.com.