CEO ALBERT LAROCHELLE TO SEEK ANOTHER "TURN-AROUND"

On April 24th, the Board of Trustees of the Otis Health Care Center accepted the resignation of CEO Albert LaRochelle, 55, who has decided that he would like to take on the challenge of turning around the finances of one more rural hospital.

"I was the CEO of a hospital in Spearman, Texas, for 12 years before I came to Grace Cottage, and I've been here 13 years," said Al. "It's a good time for me to move on, because I'm leaving when Grace Cottage is on a much stronger financial footing - in fact, we will end this fiscal year in the black."

Grace Cottage has grown exponentially during Al's 13-year tenure -- from an annual operating budget of $3 million in 1993 to over $15 million this fiscal year (a 500% increase!) and from 60 employees to over 160 employees. Thanks to Al, Grace Cottage became the very first Critical Access Hospital in Vermont (today, more than half of Vermont's hospitals now have that federal designation). During Al's time here, a retail pharmacy, podiatry, and two Rural Health Clinics (now employing six family practice doctors, three family nurse practitioners and a pediatrician) and a full-time chiropractor were all added to the services offered at Grace Cottage.

"Al has largely been responsible for the operating success of this hospital today, and he's put us on a sound financial footing", said Roger Allbee, Chairman of the Board of Trustees. Al's resignation is effective September 30, 2006. The Board of Trustees has formed a search committee for a new CEO and will implement a management transition plan.