VA and Louisiana State University join forces

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VA and Louisiana State University
Announce Site Selections for New Orleans Medical Center Projects

WASHINGTON (Nov. 25, 2008) - In a public event held today in New
Orleans, the Department of Veterans Affairs (VA) and the State of
Louisiana jointly announced the selection of adjacent downtown sites for
construction of their replacement medical center projects. The two
projects, called the Veterans Affairs Medical Center and the Louisiana
State University Academic Medical Center, restore greatly needed health
care capability lost in New Orleans during flooding after Hurricane
Katrina in late August 2005.

"Restoring a full capability medical center for our veterans in New
Orleans and southeastern Louisiana is one of the Secretary's highest
priorities," said Deputy Secretary of Veterans Affairs Gordon H.
Mansfield. "Site selection is a key milestone in the project delivery
process."

"VA selected the downtown site because it offers the best solution for
our veterans, today and into the future," Mansfield added. "The site,
located within a robust medical district with affiliate health care
teaching universities, promotes long term operational synergy and
efficiency. The selected site aligns with the City of New Orleans and
State of Louisiana Hurricane Katrina recovery and redevelopment plans."

An agreement between VA and the City of New Orleans obligates the city
to acquire the land for the new facility, prepare the site for
construction and turn over the site to VA within one year.

"I understand this site selection creates near term impact on the
directly affected and surrounding neighborhoods," Mansfield continued.

"We have been working cooperatively with federal, state, city and
neighborhood partners to develop a robust package of treatment measures
to mitigate the negative impacts and invest in new local opportunities."


"Constructing this state-of-the-art medical complex near downtown New
Orleans follows through on the Administration's commitment to fully
support recovery efforts," he said.

The announcement follows a nearly one-year process of extensive study of
site alternatives, including analysis of the potential impacts on the
environment and historically significant structures.

"Today is of great significance for the City of New Orleans and for the
veterans of the Gulf Coast. The announcement by my colleagues at the
U.S. Department of Veterans Affairs brings to closure a collaborative
and inclusive process involving Federal, state and local government, as
well as stakeholders who determined the location of the new veterans
hospital," said retired Maj. Gen. Douglas O'Dell, federal coordinator
for Gulf Coast rebuilding.

"The hospital is a key component of the city's vision of a revitalized
downtown area and a world class medical campus," O'Dell added.

"Further, this decision advances the goal President Bush and Secretary
Peake established of better access to quality health care for the needs
of current and future veterans,"

Dr. John Lombardi, LSU System President, said that building these
hospitals in close proximity to each other assures the future of top
quality health care, research, and medical education not only for the
New Orleans area but for the entire state for many years to come. "This
is a major milestone in constructing these joint academic medical
centers that are destined to be models of health care reform for the
nation in creating thousands of jobs while delivering cost-efficient
medical treatment and disease management," he said.

New Orleans Mayor C. Ray Nagin, who hosted today's news conference where
the announcement was made, said, "The new VA hospital in downtown New
Orleans will provide needed medical care for veterans throughout the
region and will serve as a key economic driver for our future. Along
with the new LSU hospital, it will serve as the centerpiece of our
biomedical district, generating thousands of jobs and enabling our city
to compete with communities that are known for their medical services
and research."

More information on the VA and LSU medical center projects is available
at http://www.valsumedcenters.com