November 2014

Dear shareholders and prospective shareholders,

Yesterday morning we announced a transformational deal for CRH Medical.

We acquired the business, assets and interests of Gastroenterology Anesthesia Associates, LLC, (“GAA”), which is one of the largest providers of anesthesiology services to gastroenterologists in the southeastern United States.

CRH paid US$58.6 million at closing with up to an additional US$14.6 million payable within four and half years based on agreed financial performance requirements of the acquired business. The maximum total purchase price assuming achievement of all performance measures is US$73.2 million.

GAA is a provider of anesthesia services and has strong financial performance with more than US$25 million in revenue and US$16 million in EBITDA for the 12 months ending June 2014.

Gastrointestinal endoscopy procedures are highly reliant upon anesthesia services from third-party anesthesia providers, such as GAA. As part of the transaction, CRH will acquire the expertise, skills and exemplary track record from which to pursue a strategy of consolidating additional anesthesia groups. CRH believes this new platform has the potential to not only grow revenues via future accretive acquisitions but also through organic growth of the acquired business.

With the acquisition of GAA, CRH also further aligns itself with gastroenterologists who either are or could be users of CRH’s current business.

Below is a link to the press release announcing the transaction:

Continuing Education – Webinars

Though we did not attend any conferences this month, we were able to host another round of webinars for physicians. These regular webinars, presented by our Medical Director, Dr Mitch Guttenplan, are designed for prospective physician clients and physicians who CRH has already trained.

Over the past year, these webinars have proven to be an invaluable way to garner new physician interest, and act as an educational resource for trained physicians.
November’s sessions, which were the last for the year, were very well received and we will continue to host these in the New Year.

We look forward to sharing the December edition of the CRH Investor Bulletin with you, and as always, we appreciate your interest and support.

Adam Peeler
Media and Investor Relations
TMX Equicom
416.815.0700 x 225

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