Bull & Lifshitz, LLP announces an investigation into possible breaches of fiduciary duty in connection with the proposed acquisition of Health Grades, Inc. (NASDAQ: HGRD) (referred to as "Health Grades" or the “Company”) by Vestar Capital Partners V, L.P. (referred to as "Vestar") in a cash transaction valued at approximately $294 million.

Under the terms of an agreement unanimously approved by the Board of Directors of Health Grades, an affiliate of Vestar will commence an all-cash tender offer no later than August 10, 2010. Following completion of the tender offer, the affiliate of Vestar will acquire all of the remaining publicly-held shares of Health Grades at $8.20 per share through a second-step merger.

Bull & Lifshitz, LLP's investigation is focused on whether the Board of Directors breached their fiduciary duties to Health Grades stockholders and whether the proposed deal provides adequate value to the Company’s shareholders.

If you are a holder of Health Grades stock and want to discuss your legal rights, you may e-mail or call Bull & Lifshitz, LLP who will, without obligation or cost to you, attempt to answer your questions.

If you are a shareholder of Health Grades and would like more information about our investigation, please contact Peter D. Bull, Esq. by telephone at (866) 313-6222 or by sending an e-mail including your contact information to: counsel@nyclasslaw.com. All e-mail correspondence should make reference to Health Grades.

Bull & Lifshitz, LLP is a New York City-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please visit our website at www.nyclasslaw.com.

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