Challenger Acquires eResidency.com^TM

Memphis, Tennessee, 06/15/06 - Challenger Corporation announced today the acquisition of eResidency.com, a prominent provider of resident scheduling and management services for clinical residency training programs at American medical schools, universities, and hospitals. Challenger is the foremost provider of combined clinical training content and resident performance evaluation in the market. The company serves 45 prominent training programs for physicians and physician assistants nationwide. The eResidency.com acquisition immediately introduces Challenger to 25 additional institutions. According to Challenger CEO and President Bob Sweeney, PhD, MS, the relationship with eResidency.com will create an integrated service platform unmatched in scope and efficiency by any competitor in the residency training and management information system environment.

Said Sweeney, "We have long enjoyed a cooperative marketing arrangement with Rick Kulkarni, the physician entrepreneur who founded eResidency.com in 2001. A primary purpose of the acquisition was to forge the ideal complementary merger of competencies and brands for an audience that is particularly sensitive to the quality of service. We can now provide a comprehensive library of peer-reviewed training content, a robust and easy to use reporting system, a resident scheduling service, our proprietary Challenger Statpak^TM statistical reporting package, and Medicare coding and billing in the same unified package. And we can do so at half the cost of alternative methods."

Rick Kulkarni, MD, is a graduate of the emergency medicine residency program affiliated with Harvard Medical School. eResidency.com was founded while Dr. Kulkarni was in residency training. Rick has also served as member of the emergency medicine staff affiliated with the David Geffen School of Medicine at UCLA. Recently, he was appointed Medical Director of the Adult Emergency Department at Yale-New Haven Hospital where he also holds an academic appointment with Yale Medical School. Dr. Kulkarni is considered a leading expert in online medical training management systems. He will continue to collaborate with Challenger after the acquisition for strategic guidance related to the software. Dr. Kulkarni remarked, "There exists great potential as a result of this transaction for Challenger Corporation to bring to market an integrated product which includes access not only to eResidency's online graduate medical education training software but also to Challenger's existing extensive high quality clinical educational content. The winners truly are the individual trainees in graduate medical education."

Challenger owns the world's largest collection of approved electronic CME media, comprising over 3,800 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 400,000 practicing American primary care and hospital-based physicians and nearly 70,000 physician assistants. Challenger products are approved for physician and PA CME credit through joint sponsorships with nine medical schools and three specialty societies.

Media Contact:

Robert E. Sweeney, PhD, MS
CEO and President
Challenger Corporation
5100 Poplar Avenue, Ste. 310
Memphis, Tennessee 38137
Tel: (901) 762-8449
E-mail: robert.sweeney@chall.com