Solacium Leadership Changes

I have some important announcements concerning changes in leadership at Solacium.

Anthony Geraci has chosen to return to his entrepreneurial roots and pursue some intriguing personal opportunities. Effective May 1, he will relinquish his responsibilities as Solacium's Chief Operations Officer and Chief Marketing Officer. Fortunately, he has agreed to stay on for awhile to ensure a smooth transition and complete the Fulshear expansion. In addition, Anthony will be available to consult on our new marketing initiatives and other operational issues. Anthony has played a critical role in the evolution of Solacium, bringing energy and expertise to the company's marketing efforts as well as years of experience in direct operations. Perhaps most importantly, he founded Fulshear Ranch Academy and Transitions of Galveston Island, critical components of our future success.

Ashley Auchlterlonie has been serving as Director of Marketing since Anthony became COO. With Anthony's departure, she will report directly to the CEO and the program Admissions and Marketing personnel will report to her. Ashley's marketing experience includes over 12 years of strategic planning and customer oriented sales in the behavioral healthcare industry. She has held the positions of Regional Marketing Manager for Psychiatric Solutions, Sales and Marketing Consultant for Appian Education, and the National Sales Representative for The Brown Schools. Ashley has experience as both an Admissions Director and Clinical Case Manager. I appreciate the enthusiasm, experience, and vision she has brought to our organization.

The final announcement is that David Michel will succeed me as the President and Chief Executive Officer of Solacium. The Solacium Board and I have taken extreme care in selecting an individual whose ethics, leadership, experience, and energy will appropriately honor our responsibility to the families in our programs and the employees who serve them. We are certain David is that person and under his leadership, Solacium will continue in our commitment to this industry.

David Michel (pronounced like "Mitchell") is a Dallas-based leader and entrepreneur with extensive experience in healthcare, technology and media related enterprises. In the early 1990's, David was Vice President of Marketing and Sales for a national healthcare recruitment and consulting firm. In 1994, he left his job to create and produce "Jay Jay the Jet Plane" (www.jayjay.com), a PBS television series for preschoolers. And in 2000, David founded and served as Chairman and CEO of WinningHabits, a company that provides technology-based wellness programs to large employers and health plans. While David continues to oversee Jay Jay, WinningHabits was acquired by Matria Healthcare (NASDAQ: MATR) in October of 2005.

David will immediately assume all operational responsibilities. The reporting relationships are outlined in the attached organizational chart. I will continue with Solacium as the Chairman of the Board, as an advisor, and as an investor. Most of you know that my pathway to CEO of Solacium was circuitous and unexpected. While the role has been taxing, the opportunity to meet and work closely with the employees in our company has been invigorating. I have been most impressed with the universal commitment to the safe and successful treatment of the families that have become our clients.