MedCath Corporation Announces Entering Into Definitive Agreements Relating to the Sale of Arkansas Heart Hospital and Heart Hospital of New Mexico (MDTH)

MedCath Corporation MDTH, a healthcare provider focused on high acuity healthcare services, today announced  that it has entered into definitive agreements relating to the sale of Arkansas Heart Hospital and Heart Hospital of New Mexico. MedCath Corporation announced today it has entered into a definitive agreement to sell its 70.3% ownership interest and management rights in Arkansas Heart Hospital to AR-MED, LLC pursuant to the terms of an Equity Purchase Agreement dated May 6, 2011 (the "Equity Purchase Agreement").   AR-MED, LLC is majority owned by Dr. Bruce Murphy, a physician affiliated with Little Rock Cardiology Clinic, P.A. and a current investor in the Arkansas Heart Hospital.  The transaction is subject to MedCath stockholder approval and other customary closing conditions listed in the Equity Purchase Agreement.