Shane Spees Named New CEO for VBMC-Harlingen;
Randy McLelland Named Chief Financial Officer

HARLINGEN, TEXAS - October 11, 2004 –  Valley Baptist Health System, which recently expanded by purchasing a hospital in Brownsville, has announced organizational changes which include the addition of longtime Valley banker and community leader Randy McLelland as Chief Financial Officer for Valley Baptist Health System; Shane Spees as Chief Executive Officer for Valley Baptist Medical Center-Harlingen; Greg Harb as Chief Executive Officer for Valley Baptist Health Center-Brownsville; and Jim Salyer as Senior Vice President for Corporate Services.

James G. Springfield, CHE, President & Chief Executive Officer of Valley Baptist Health System, said Randy McLelland accepted the position of Senior Vice President, Chief Financial Officer with Valley Baptist effective October 4, 2004.

“Mr. McLelland has enjoyed a long and distinguished banking career in the Rio Grande Valley,” Mr. Springfield said.

Mr. McLelland previously served as Chief Operating Officer for Lone Star National Bank, following many years of executive leadership at JP Morgan/Chase and its predecessor bank, Texas Commerce Bank.

In addition, Mr. McLelland has served on the Valley Baptist Board of Directors for many years, most recently as Chairman of the Board of Valley Baptist Health System. “Randy’s leadership and contributions to Valley Baptist through the years have been remarkable and we welcome him and his wife, Madelaine, to the Valley Baptist staff,” Mr. Springfield added.

Shane Spees, the new CEO of Valley Baptist Medical Center-Harlingen, comes to the Valley from Houston, where he previously served as Assistant Vice President of Operations at Memorial Hermann Southwest Hospital. Mr. Spees received a Master of Healthcare Administration degree from the University of Houston-Clear Lake, a Juris Doctor degree from the University of Mississippi School of Law, and a Bachelor of Public Administration from the University of Mississippi.

“Mr. Spees will make a significant impact on our organization,” Mr. Springfield said. “We welcome Shane, his wife Parker, and their daughter, Addy-Parker, to Harlingen.”

Also coming to the Valley from Houston is Greg Harb, the new CEO for Valley Baptist Medical Center-Brownsville, which was previously Brownsville Medical Center. Valley Baptist completed purchase of the 243-bed Brownsville hospital on June 29 of this year. Mr. Harb is working on the process to fully integrate the Brownsville hospital into the Valley Baptist system.

“Significant progress has already been made in the transition process and we look forward to many years of service to the Brownsville community under Greg’s able leadership,” Mr. Springfield said. “We are excited to have Greg, his wife Stacy, and their children, Hannah and Sarah, joining us in the Valley.”

Mr. Harb previously served as Vice President and Chief Operating Officer for Memorial Hermann and Memorial Hermann Children’s Hospitals in Houston. Mr. Harb received a Master’s of Healthcare Administration from Washington University in St. Louis, Missouri; a Master’s of Business Arts from the University of Memphis in Tennessee; and a Bachelor of Science degree from Millsaps College in Jackson, Mississippi.

As Valley Baptist’s Senior Vice President for Corporate Services, Jim Salyer will oversee major construction projects and special projects, as well as providing leadership in several clinical services areas and in the field of graduate medical education.

“Jim joins us after having served as a key healthcare executive with the Memorial Hermann Healthcare System in Houston, most recently as Chief Executive Officer of Memorial Hermann Children’s Hospital in the Texas Medical Center,” Mr. Springfield said. “We welcome Jim and Sheila Salyer to the Harlingen community.”

Mr. Salyer has nearly 30 years of experience in healthcare management, in addition to several years of experience in private practice as a physical therapist. Mr. Salyer earned his Masters Degree in Healthcare Administration and is a Fellow in the American College of Healthcare Executives.

In addition to the four new administrators, Mr. Springfield announced several promotions of administrators who were already serving within the Valley Baptist system. These appointments include James E. Eastham as Executive Vice President and Chief Operating Officer of Valley Baptist Health System; Scott Manis as Vice President, Chief Operating Officer for VBMC-Harlingen; Jim Wesson as Vice President, Chief Operating Officer of Valley Baptist Medical Center-Brownsville; Doug Volinski as Vice President of Finance in addition to his current duties as Corporate Compliance Officer; and Linda McKenna as director for Valley Baptist’s Physician-Hospital Organization in addition to her current duties as Vice President of Governmental Affairs.

“As Valley Baptist continues to grow, our organization will continue to evolve,” Mr. Springfield added. “I am pleased that we have so many people within our organization who have distinguished themselves here at Valley Baptist. I am also pleased that our organization has successfully attracted other high-quality individuals to our team from other organizations.”