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On April 19, 2013, St. Lukes Episcopal Health System Corporation (the System) executed an agreement (the Agreement) with Catholic Health Initiatives (CHI) and The Episcopal Diocese of Texas for the transfer of control of the System to CHI. The transaction is expected to be completed early this summer, when CHI would become the sole member of the System, subject to customary closing conditions, including required regulatory approvals. The parties can give no assurance that the transaction will occur as proposed in the Agreement. If consummated, the name of the System will become St. Lukes Health System. As part of the transfer, CHI has agreed to contribute $1 billion in cash and to issue a $260 million promissory note, payable over seven years, to the Episcopal Health Foundation, a newly created foundation controlled by the Episcopal Diocese of Texas. The Episcopal Health Foundation will focus on the unmet health needs of the greater Houston areas underserved population. These funds will not be controlled by or available to the System to pay its liabilities. In addition to the contribution, CHI has made various post-closing commitments, including, subject to certain conditions, the expenditure of an additional $1 billion for future investments in the System over a 7-year period. The System and its controlled affiliates, St. Lukes Episcopal Hospital and St. Lukes Community Health Services, are obligated to repay outstanding bonds of the Harris County Health Facilities Development Corporation and Harris County Cultural Education Facilities Finance Corporation, among other obligations secured by their master indenture. CHI will not assume the liability for or otherwise guarantee these obligations as part of the transaction. CHI has informed the System that it is evaluating the refinancing of all or a portion of the bonds, and that any refinancing would be dependent on market conditions, management considerations, and other factors. There can be no assurance that the bonds will be refinanced in connection with or following the transaction. This notice is not made by the System in connection with a purchase or sale of bonds and accordingly is not intended to contain all information material to a decision to purchase or sell bonds. The System is not obligated to update this notice for satisfaction of conditions, closing, or amendment or termination of the Agreement. For further information please contact Mr. Brian Doyle, Assistant Treasurer, St. Lukes Episcopal Hospital, 6624 Fannin Street, Suite 1100, Houston, TX 77030, by phone (832) 355-8225. The date of this Notice is May 1, 2013. ST. LUKES EPISCOPAL HEALTH SYSTEM CORPORATION