Message from the CEO

I am pleased to say that, as CRC Health Group has grown from a single facility at its inception in 1995 to a nationally recognized healthcare organization with 90 facilities in 21 states, we have successfully integrated our founding ideals into a successful and growing healthcare company.

We believe our success has been the result of our strict adherence to our mission and our delivery of the highest quality clinical care. Moving forward, we intend to build on this foundation by working with our clinicians in continuing to implement advanced treatment processes and by partnering with organizations that are capitalizing on state of the art health care research and technology to deliver the most comprehensive scope of treatment services available to fully meet the broad spectrum of customer needs.

CRC corporate leadership is made up of outstanding healthcare professionals with strong backgrounds in mental health and addiction treatment. Philosophically, CRC is committed to tailoring its treatment programs to the communities, states and regions that we serve. Each facility has operational autonomy.

Corporate leadership sets the operational tone and provides the basis for becoming a leading provider of chemical dependency and addiction treatment without sacrificing treatment quality or losing sight of the individual client. Experienced professionals at each of our facilities deliver CRC's services. Our multidisciplinary treatment teams include physicians specializing in addictionology and psychiatry, certified addiction counselors, mental health specialists and licensed nursing personnel.

We expect that CRC Health Group will continue to grow organically and through acquisitions in coming years We remain deeply committed to our mission and to the expansion of our services so that we will be able to bring quality programs to those in need. We look forward to continued excellence from future operations.

Sincerely,

Barry W. Karlin
Chairman and Chief Executive Officer