WAKEFIELD, MA -- (Marketwire) -- 07/26/10 -- American Dental Partners, Inc. (NASDAQ: ADPI) announced financial results today for the quarter and six months ended June 30, 2010.

Comparing results for the second quarter of 2010 with results for the second quarter of 2009:

--  Net revenue was $72,366,000 for the second quarter of 2010 as compared
    to $70,378,000 for the second quarter of 2009.
--  Earnings from operations were $7,959,000 for the second quarter of 2010
    as compared to $7,454,000 for the second quarter of 2009.
--  Net earnings were $3,112,000 for the second quarter of 2010, which
    included $493,000 of expenses, net of tax, associated with senior debt
    refinancing and affiliation with Cincinnati Dental Services, as
    compared to $3,012,000 for the second quarter of 2009.
--  Diluted net earnings per share were $0.19 for the second quarter of
    2010, which included $0.03 per share of expenses, net of tax,
    associated with senior debt refinancing and affiliation with Cincinnati
    Dental Services, as compared to $0.23 for the second quarter of 2009.
--  Diluted cash net earnings per share were $0.29 for the second quarter
    of 2010, which included $0.03 per share of expenses, net of tax,
    associated with senior debt refinancing and affiliation with Cincinnati
    Dental Services, as compared to $0.33 for the second quarter of 2009.

Comparing results for the six months ending 2010 with results for the six months ending 2009:

--  Net revenue was $144,220,000 for the six months ending 2010 as compared
    to $139,763,000 for the six months ending 2009.
--  Earnings from operations were $14,573,000 for the six months ending
    2010 as compared to $13,403,000 for the six months ending 2009.
--  Net earnings were $5,457,000 for the six months ending 2010, which
    included $546,000 of expenses, net of tax, associated with senior debt
    refinancing and affiliation with Cincinnati Dental Services, as
    compared to $4,433,000 for the six months ending 2009.
--  Diluted net earnings per share were $0.34 for the six months ending
    2010, which included $0.03 per share of expenses, net of tax,
    associated with senior debt refinancing and affiliation with Cincinnati
    Dental Services, as compared to $0.34 for the six months ending 2009.
--  Diluted cash net earnings per share were $0.52 for the six months
    ending 2010, which included $0.03 per share of expenses, net of tax,
    associated with senior debt refinancing and affiliation with Cincinnati
    Dental Services, as compared to $0.55 for the six months ending 2009.

Patient revenue of the Company's affiliated dental group practices was $111,906,000 for the quarter, which includes $106,267,000 from dental group practices that are affiliated with the Company by means of service agreements and $5,639,000 from Arizona's Tooth Doctor for Kids. Same market patient revenue declined 2.1% for the quarter and 2.4% excluding in-market practice acquisitions. For the six months ending June 30, 2010, patient revenue of the Company's affiliated dental group practices was $222,692,000, which includes $211,287,000 from dental group practices that are affiliated with the Company by means of service agreements and $11,405,000 from Arizona's Tooth Doctor for Kids. Same market patient revenue declined 2.4% for the six months ending June 30, 2010 and 2.8% excluding in-market practice acquisitions.

Cash flow from operations was $10,030,000 for the quarter and $17,729,000 for the six months ending June 30, 2010. Amounts paid for affiliations and acquisitions amounted to $18,000,000 during the quarter and the six months ending June 30, 2010. The Company completed one platform affiliation during the quarter and the six months ending June 30, 2010. Affiliations completed during the quarter generated approximately $1,700,000 of patient revenue and are expected to generate patient revenue of approximately $19,000,000 on an annualized basis. Capital expenditures were $2,108,000 for the quarter and $3,109,000 for the six months ending June 30, 2010. The Company completed two de novo facilities during the quarter. During the first six months of 2010, the Company completed three de novo facilities.

The Company recognized during the quarter $204,000 of professional fees, which have been included in general corporate expenses, $123,000 net of tax or $0.01 per diluted share, associated with its previously announced affiliation with Cincinnati Dental Services. The Company recognized $287,000 of professional fees for the six months ending June 30, 2010, $174,000 net of tax or $0.01 per diluted share associated with its affiliation with Cincinnati Dental Services.

The Company recognized $432,000 of stock-based compensation expense, which has been included in general corporate expenses, $260,000 net of tax or $0.02 per diluted share, during the quarter as compared to $385,000, $232,000 net of tax or $0.02 per diluted share, for the same quarter last year.

As previously announced, the Company refinanced its indebtedness by entering into a new $180,000,000 senior secured credit facility, which includes a $100,000,000 revolving credit facility and an $80,000,000 term loan facility. As a result, included in interest expense, net, for the quarter was $615,000 of expenses associated with the retirement of the Company's prior credit facility, $370,000 net of tax or $0.02 per diluted share.

As previously announced, the Company's Board of Directors approved a program under which the Company is authorized to repurchase up to $10,000,000 of its common stock. The Company may repurchase shares under the program in the open market, in block trades, through privately negotiated transactions or otherwise. The timing and extent of any repurchases under the program will depend upon market conditions, corporate requirements and other factors. The repurchase program has no expiration date. No shares have been repurchased in the six months ended June 30, 2010.

Cash net earnings and cash earnings from operations are non-GAAP financial measures. In accordance with the requirements of Regulation G of the Securities and Exchange Commission, please see the attached financial tables for a presentation of the most comparable GAAP measures, the reconciliation to the nearest GAAP measure and all additional reconciliations required by Regulation G.

The Company regards non-GAAP financial measures, such as cash net earnings and cash earnings from operations, as important financial measures for understanding its financial performance. These measures exclude amortization expense, net of tax. The Company incurs significant amortization expense related to its service agreements in contrast to many companies, in the same and other industries, that do not amortize intangibles based on authoritative literature for goodwill and other intangibles. Expenses related to the Company's debt refinancing and professional fees related to our acquisition have also been excluded from our non-GAAP financial measures. The Company believes these items should be presented separately due to their magnitude and non-recurring impact to our ongoing operations. The primary limitations associated with the Company's use of non-GAAP measures are that these measures may not be directly comparable to the amounts reported by other companies. Management compensates for these limitations by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in this press release.

For further discussion of these events and a comprehensive review of the quarter ended June 30, 2010, the Company will host its previously announced conference call on Tuesday, July 27, 2010 at 9:00 a.m., EDT, which will be broadcast live over the Internet at www.amdpi.com. The call will be hosted by Gregory A. Serrao, Chairman, President and Chief Executive Officer. To access the webcast, participants should visit the Investors section of the website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the webcast will be available at www.amdpi.com approximately two hours after the call through 6:00 p.m., EDT, Tuesday, August 3, 2010.

American Dental Partners is one of the nation's leading business partners to dental group practices. The Company is affiliated with 26 dental group practices, which have 275 dental facilities with approximately 2,379 operatories located in 21 states.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of the historical information contained in this press release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively affect the matters herein described, including but not limited to the Company's risks associated with overall or regional economic conditions, dependence upon affiliated dental practices, contracts the affiliated practices have with third-party payors, government regulation of the dental industry, impact of health care reform, dependence upon service agreements and the impact of any terminations or potential terminations of such contracts, business interruptions, the outcome of pending litigation and the Company's acquisition and affiliation strategy, which are detailed from time to time in the "Risk Factors" section of the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10-Q.

                        AMERICAN DENTAL PARTNERS, INC.

                            FINANCIAL HIGHLIGHTS
                 (in thousands, except per share amounts)
                                (unaudited)


                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                    ------------------- -------------------
                                      2010      2009      2010      2009
                                    --------- --------- --------- ---------

Net revenue                         $  72,366 $  70,378 $ 144,220 $ 139,763
Operating expenses:
   Salaries and benefits               28,735    29,820    58,337    59,976
   Lab fees and dental supplies        10,668    10,321    21,736    20,614
   Office occupancy expenses            9,131     8,542    18,256    17,041
   Other operating expenses             6,878     5,785    13,425    11,773
   General corporate expenses           3,669     3,332     7,316     6,692
   Depreciation expense                 2,862     2,700     5,707     5,415
   Amortization of intangible
    assets                              2,464     2,424     4,870     4,849
                                    --------- --------- --------- ---------
      Total operating expenses         64,407    62,924   129,647   126,360
                                    --------- --------- --------- ---------
Earnings from operations                7,959     7,454    14,573    13,403
   Interest expense, net                2,726     2,187     5,378     5,557
                                    --------- --------- --------- ---------
Earnings before income taxes            5,233     5,267     9,195     7,846
   Income taxes                         2,082     2,091     3,632     3,112
                                    --------- --------- --------- ---------
Consolidated net earnings               3,151     3,176     5,563     4,734
   Noncontrolling interest                 39       164       106       301
                                    --------- --------- --------- ---------
Net earnings                        $   3,112 $   3,012 $   5,457 $   4,433
                                    ========= ========= ========= =========

Net earnings per common share:
   Basic                            $    0.20 $    0.23 $    0.35 $    0.34
                                    ========= ========= ========= =========
   Diluted                          $    0.19 $    0.23 $    0.34 $    0.34
                                    ========= ========= ========= =========
Weighted average common shares
 outstanding:
   Basic                               15,728    12,949    15,721    12,942
                                    ========= ========= ========= =========
   Diluted                             16,056    13,099    16,055    13,059
                                    ========= ========= ========= =========






                        AMERICAN DENTAL PARTNERS, INC.

                            FINANCIAL HIGHLIGHTS
                               (in thousands)
                                (unaudited)


                                                    June 30,   December 31,
                                                      2010         2009
                                                  ------------ ------------
ASSETS
Current assets:
   Cash and cash equivalents                      $      6,554 $      6,807
   Accounts receivable, net                             20,646       20,811
   Other current assets                                 16,486       15,529
                                                  ------------ ------------
      Total current assets                              43,686       43,147
                                                  ------------ ------------

Property and equipment, net                             52,882       53,766
                                                  ------------ ------------
Other non-current assets:
   Goodwill                                             90,750       86,852
   Intangible assets, net                              189,602      180,573
   Other assets                                          8,431        9,673
                                                  ------------ ------------
      Total non-current assets                         288,783      277,098
                                                  ------------ ------------
      Total assets                                $    385,351 $    374,011
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable and accrued expenses          $     28,435 $     27,211
   Other current liabilities                            10,844       12,054
   Current maturities of debt                            8,154        8,685
                                                  ------------ ------------
      Total current liabilities                         47,433       47,950
                                                  ------------ ------------
Non-current liabilities:
   Long-term debt                                      101,028       93,506
   Other liabilities                                    43,241       45,239
                                                  ------------ ------------
      Total non-current liabilities                    144,269      138,745
                                                  ------------ ------------
      Total liabilities                                191,702      186,695
                                                  ------------ ------------

Noncontrolling interest                                    464        1,857

Commitments and contingencies
Stockholders' equity                                   193,185      185,459
                                                  ------------ ------------
      Total liabilities and stockholders' equity  $    385,351 $    374,011
                                                  ============ ============





                        AMERICAN DENTAL PARTNERS, INC.

                         SUPPLEMENTAL OPERATING DATA
   (in thousands, except per share amounts and selected statistical data)
                                 (unaudited)


                          Selected statistical data


                                               June 30,
                                           -----------------
                                             2010     2009
                                           -------- --------

            Number of dental facilities         275      242
            Number of operatories (a)         2,379    2,131
            Number of affiliated dentists
             (b)                                581      538

(a) An operatory is an area where dental care is performed and generally
    contains a dental chair, a hand piece delivery system and other
    essential equipment.
(b) Includes full-time equivalent general or specialty dentists employed by
    or contracted with the affiliated practices, including Arizona's Tooth
    Doctor for Kids.


Reconciliation of GAAP earnings, as reported, to non GAAP earnings and cash
                            net earnings


                              Three Months Ended,      Six Months Ended,
                                   June 30,                June 30,
                            ----------------------- -----------------------
                                     2010                    2010
                             2010     Non    2009    2010     Non    2009
                            Actual   GAAP   Actual  Actual   GAAP   Actual
                            ------- ------- ------- ------- ------- -------

Net earnings (as reported)  $ 3,112 $ 3,112 $ 3,012 $ 5,457 $ 5,457 $ 4,433
Add:  Write-off of expenses
 associated with debt
 refinancing, net of tax          -     370       -       -     372       -
Add:  Expenses associated
 with Cincinnati Dental
 Services affiliation, net
 of tax                           -     123       -       -     174       -
                            ------- ------- ------- ------- ------- -------
Net earnings                  3,112   3,605   3,012   5,457   6,003   4,433
Add:  Amortization of
 service agreements, net of
 tax                          1,475   1,475   1,374   2,928   2,928   2,748
                            ------- ------- ------- ------- ------- -------
Cash net earnings           $ 4,587 $ 5,080 $ 4,386 $ 8,385 $ 8,931 $ 7,181
                            ======= ======= ======= ======= ======= =======

Weighted average diluted
 shares outstanding          16,056  16,056  13,099  16,055  16,055  13,059
Diluted net earnings per
 share                      $  0.19 $  0.22 $  0.23 $  0.34 $  0.37 $  0.34
                            ======= ======= ======= ======= ======= =======
Diluted cash net earnings
 per share                  $  0.29 $  0.32 $  0.33 $  0.52 $  0.56 $  0.55
                            ======= ======= ======= ======= ======= =======





                        AMERICAN DENTAL PARTNERS, INC.

                         SUPPLEMENTAL OPERATING DATA
                               (in thousands)
                                (unaudited)


          Patient revenue and same market patient revenue growth (c)


                      Three Months Ended           Six Months Ended
                           June 30,                    June 30,
                      -------------------    %   -------------------    %
                        2010      2009    Change    2010      2009   Change
                      --------- --------- -----  --------- --------- -----
Patient revenue of
 affiliated
 practices:
   Platform dental
    group practices
    affiliated with
    the Company in
    both periods of
    comparison        $ 104,802 $ 107,046  -2.1% $ 208,368 $ 213,485  -2.4%
   Platform dental
    group practices
    that affiliated
    with the Company
    during periods
    of comparison         7,104         -     -     14,324       320     -
                      --------- ---------        --------- ---------
Total patient revenue   111,906   107,046   4.5%   222,692   213,805   4.2%
Patient revenue of
 Arizona's Tooth
 Doctor for Kids          5,639     6,274 -10.1%    11,405    12,398  -8.0%
                      --------- ---------        --------- ---------
Patient revenue of
 affiliated practices
 other than Arizona's
 Tooth Doctor for Kids  106,267   100,772   5.5%   211,287   201,407   4.9%
Net revenue due to
 the Company under
 service agreements      66,134    63,415   4.3%   131,636   125,969   4.5%
                      --------- ---------        --------- ---------
Amounts retained by
 affiliated practices
 other than Arizona's
 Tooth Doctor for
 Kids                 $  40,133 $  37,357   7.4% $  79,651 $  75,438   5.6%
                      ========= =========        ========= =========

(c) Includes patient revenue of affiliated dental group practices that are
    not consolidated with the Company's financial results and patient
    revenue of Arizona's Tooth Doctor for Kids, which is consolidated with
    the Company's financial results.



              Components of same market patient revenue growth


                      Three Months Ended          Six Months Ended
                           June 30,                   June 30,
                      -------------------   %    -------------------    %
                        2010      2009   Change     2010      2009   Change
                      --------- --------- -----  --------- --------- -----
Existing practice
 locations (d)        $ 102,917 $ 106,372  -3.2% $ 204,301 $ 211,416  -3.4%
De novo practice
 locations (e)              830         -     -      1,715       585 193.2%
Expanded/relocated
 practice locations
 (e)                        743       674  10.2%     1,448     1,453  -0.3%
                      --------- ---------        --------- ---------
Same market growth
 excluding
 acquisitions           104,490   107,046  -2.4%   207,464   213,454  -2.8%
Acquired practice
 locations (e)              312         -     -        904        31     -
                      --------- ---------        --------- ---------
Same market patient
 revenue growth       $ 104,802 $ 107,046  -2.1% $ 208,368 $ 213,485  -2.4%
                      ========= =========        ========= =========

(d)  Includes practice locations included in both periods of comparison.
(e)  Includes practice locations completed or aquired in either period of
     comparison.