MINNEAPOLIS (February, 2015) — Yukon Partners (“Yukon”), a provider of mezzanine capital for middle market private equity transactions, is pleased to announce its junior capital investment in Pacific Labs (“Pacific” or the “Company”), a provider of specialized toxicology lab services located outside of Dallas, Texas.

Pacific’s toxicology testing services focus on Urine Drug Monitoring (UDM) increasingly required for prescribed pain medications, addiction medicine, and other patient screening and compliance monitoring. The Company’s pathology testing services assist gastrointestinal and dermatological medical providers. Payers for services include In-Network and Out-of-Network Commercial Insurance, Medicare, Medicaid, Tricare, and Workmen’s Compensation Carriers.

Ancor Capital Partners (“Ancor”) sponsored the transaction whereby Yukon acquired a minority equity interest and Ancor acquired a majority equity interest in the Company. Mezzanine capital was also provided by Yukon. Management will also own a meaningful interest in the Company and will continue to operate the business on a day-to-day basis.

Ancor will complement the management team’s vision with strategic guidance and financial expertise to accelerate growth while continuing to leverage the Company’s strong relationships with its physician and physician-owned laboratory customers as well as its low cost testing technology. Ancor will also leverage its transactional experience and network of industry contacts to find additional growth and sales opportunities.

“We are extremely excited to partner with a unique laboratory testing company to assist growing it to the next level,” said J. Randall Keene, Ancor Managing Partner. “About a year ago, we identified this industry sector as an attractive investment area and had one of our Operating Partners focus on the lab testing area to identify a differentiated approach in a crowded market that would meet our criteria for an investment. We are also very fortunate to have the confidence of the existing owners who will continue to be active with us in this dynamic company,” Keene said. “In addition to teaming with our Operating Partner and owners, we are also very pleased to again partner with Yukon Partners.”

Bill Dietz, Managing Partner of Yukon added, “Ancor’s vast experience and success in the health care sector and its ability to bring a professional management team to the Company made it the natural partner for us. We are excited to have Ancor as a partner to support building the infrastructure to scale for rapid growth and maintain the quality service offering for the Company’s customers, partners, and employees.”

About Yukon Partners

Yukon Partners is an independent and unaffiliated mezzanine firm primarily serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, and public-to-private buyouts. Yukon Partners is based in Minneapolis, Minnesota. For more information, please visit www.yukonpartners.com.

About Ancor Capital Partners

Ancor Capital Partners, based in Fort Worth, Texas, is an operations-oriented private equity firm focused on lower middle-market manufacturing and distribution companies with EBITDA of $5-$15 million. Extensive operational experience gives the Ancor team a unique understanding of the critical business issues faced by lower middle-market companies. Ancor’s proven track record includes 36 acquisitions to date in health care, consumer and other industries. For more information, please visit www.ancorcapital.com.

For more information, please contact:

William Dietz

Managing Partner

Yukon Partners

612-435-7804