Challenger Completes Successful Equity Round, Exceeds Profit Goals

Memphis, TN 10/05/05 - Challenger Corporation announced today the successful completion of its First Round equity raise from key customers and has initiated a Second Round aimed at the same audience as well client medical groups and related institutions. Simultaneously, the privately held firm reported its second consecutive quarter of cash profits, thereby meeting and exceeding financial projections year-to-date.

According to CEO and President Bob Sweeney, the equity campaign has proven beyond question the credibility of the firm's brand and product line in the clinical training and testing marketplace. "The Challenger Lifetime Subscribers are 650 astute physician leaders who have made substantial purchases of Challenger educational software and now have asked for a means of participating in the company's strategic financial opportunity. Our First Round campaign began last year and exceeded the call target within six months.

As a result, our Second Round has been opened to individual customers as well as the institutions we originally targeted. They love our products and they believe in the Challenger physician and business leadership team."

Challenger owns the world's largest collection of approved electronic CME media, comprising over 3,700 approved hours of credit. Thousands of physicians and other clinicians rely upon Challenger materials to prepare for specialty board exams, recertification, maintenance of certification, and lifelong learning. Challenger serves the educational and training needs of over 485,000 practicing American primary care and hospital-based physicians. Challenger products are approved for physician CME credit through joint sponsorships with prominent medical schools and specialty societies.

The firm seeks profitable growth at a rate in excess of industry norms and eventually intends to seek a strategic exit through one or more means. By relying on internal capital raised from its customer base and affiliates, the company has greatly reduced the cost of capital as an initial growth constraint, while ensuring that product quality and process efficiency are maintained and improved upon for a highly critical and selective audience-the nation's practicing physicians. Challenger is in the midst of a two-year capital campaign aimed at raising about $3 million for product expansion and development of a national sales force. Specific figures on the capital raise to date are confidential, according to Sweeney; however, the firm's management is available to discuss opportunities for outside investment or collaborative market opportunities.

Media Contact:

Robert E. Sweeney, PhD, MS
CEO and President
Challenger Corporation
5050 Poplar Avenue, Ste. 430
Memphis, Tennessee 38157
Tel: (901) 762-8449
E-mail: strategic@chall.com