BUFFALO, N.Y. (Friday, April 16, 2004) - William D. McGuire, Chief Executive Officer of Kaleida Health, announced today that he has named James R. Kaskie as President and Chief Operating Officer of Kaleida Health. In addition, the Kaleida Health Board of Directors announced a five-year extension of McGuire's contract to remain as Chief Executive Officer of Kaleida Health.

Kaskie is currently the Senior Vice President for Operations of Catholic Health Initiatives (CHI), one of the largest not-for-profit healthcare organizations in the United States

In this role, he is responsible for overseeing Catholic Health Initiatives' $1.8 billion operation in a five-state area comprised of Arkansas, Kentucky, Maryland, Ohio and Pennsylvania. The service area includes acute-care hospitals, a psychiatric hospital, a long-term acute-care hospital, home health agencies, a community health services organization and two joint venture organizations.

In announcing the appointment, McGuire stated, "Jim brings an extraordinary amount of operations and planning experience to Kaleida at a time when we are moving into a period of growth and expansion. We think it is a perfect fit."

Kaskie has held executive leadership positions with Catholic Health Initiatives since 1996, when the organization was formed. Headquartered in Denver, Colo., Catholic Health Initiatives is comprised of 68 hospitals and 44 long-term care, assisted and independent living facilities and residential units in 19 states. Catholic Health Initiatives represents more than 67,000 employees and combined annual operating revenues of $6.1 billion.

"I am honored to join Kaleida Health at this important time in the organization's history", said Kaskie. "I was so impressed with everyone I met, including physicians, board members, employees, members of the senior staff, and faculty members of the medical school. I'm looking forward to contributing and being an active part of Kaleida's mission to advance the health of the community."

Previously, Kaskie was Regional Senior Vice President with Catholic Health Corporation, a multi-state health system headquartered in Omaha, Neb. Catholic Health Corporation was one of the founding organizations of Catholic Health Initiatives.

Earlier in his career, Kaskie was an executive with Incarnate Word Health System. He served as President and CEO of Incarnate Word Hospital in St. Louis for eight years, and prior to that, as a Vice President of Santa Rosa Medical Center in San Antonio, Texas for four years. Kaskie is a Fellow of the American College of Healthcare Executives.

He received a Master of Health Administration degree and a Bachelor of Arts degree in history from St. Louis University, St. Louis, Mo., and a Master of Business Administration degree from Xavier University in Cincinnati. He also holds a Master of Arts degree in theology from Aquinas Institute of Theology in St. Louis.

The son of a physician, Kaskie and his wife, Jane, are both natives of St. Louis and have been married for 27 years. They have two adult children.

Kaskie will succeed former Executive Vice President and Chief Operating Officer, Kathy Galvin, who returned to New York City in February. His transition to Kaleida will begin in mid-May and be completed by July 1 of this year.

Commenting on the extension for Bill McGuire, William L. Joyce, Chairman of the Kaleida Health Board of Directors said, "We are especially pleased with the turnaround of Kaleida Health, and we are delighted that Bill will remain as the organization's leader for an extended period."