Stockholders to receive $17.25 per share in cash;

transaction valued at approximately $294 million

Greenwich, CT and Eden Prairie, MN, July 12, 2010 ? Generation Partners today announced that the shareholders of Virtual Radiologic Corporation (NASDAQ: VRAD), a national radiology practice and a leader in the development of radiologist workflow technology, have approved and adopted the merger agreement providing for the acquisition of Virtual Radiologic (“vRad” or the “Company”) by an affiliate of Providence Equity Partners.  The transaction is valued at approximately $294 million and was completed today.  Generation Partners is the Company’s largest shareholder and was the Company’s first institutional investor.

“vRad has been a highly successful investment for our firm”, commented Mark Jennings, Managing Partner at Generation Partners.  “During the period of our ownership, vRad grew annual revenues from approximately $13 million to more than $120 million today.  vRad has become the leader in its industry and is a shining example of how private sector innovation can lower our country’s healthcare costs while improving the quality of patient care at the same time.”  He added, “with this sale of vRad and last year’s sale of MedVance Institute, a national leader in medical and allied health-related career training, Generation is realizing the success that comes from a strong commitment to the healthcare services industry and our more than 20-year track record of working with management teams to build high growth service businesses.”  Andrew Hertzmark, Partner at Generation Partners, added, “the vRad management team has done an outstanding job building the Company, and we are highly confident that vRad will continue to grow and set the standard for care and innovation in the industry under Providence’s ownership.”

"We are pleased with the outcome of today’s stockholder vote,” said Rob Kill, vRad’s President and Chief Executive Officer.  "The vote results underscore the value we are delivering to shareholders through this transaction.  Looking ahead, we expect to continue building on our leadership position in the development of radiologist workflow technology and in providing the highest quality patient care.  Kill continued, “we have had an outstanding partnership with Generation Partners for the past five years and their hard work and expertise have been invaluable in helping us transform the Company into the industry leader delivering the highest quality patient care with industry-leading service levels.”

Under the terms of the merger agreement, vRad stockholders will receive $17.25 in cash for each share of vRad common stock held.  Letters of transmittal allowing former vRad stockholders to deliver their shares to the paying agent in exchange for payment of the merger consideration will be distributed promptly after the closing.

With the closing of the transaction, vRad's common stock will cease to trade on NASDAQ at market close today and will be delisted.

Goldman, Sachs & Co. served as financial advisor and Oppenheimer Wolff & Donnelly LLP served as legal counsel to vRad.

About Generation Partners

Generation Partners is a private equity firm with $340 million of capital under management with offices in Greenwich, CT and San Francisco, CA.  Generation provides equity capital to growth companies and pursues both majority and minority investments.  Generation focuses on recurring revenue service businesses with strong secular growth drivers and specializes in professionalizing businesses to break through the $100 million mark and beyond.  Over the past 23 years, the firm’s principals have invested in more than 50 companies including:  Post University, Sterling Infosystems, Virtual Radiologic, MedVance Institute, Demand Media, Hotjobs, thePlatform for Media, Agility Recovery Solutions, High End Systems, and many others.  For more information on Generation Partners, please visit www.generation.com.

About Virtual Radiologic

Virtual Radiologic Corporation is a national radiology practice working in partnership with local radiologists and hospitals to optimize radiology’s pivotal role in patient care.  vRad’s more than 140 affiliated radiologists serve 1,170-plus facilities (nearly 20% of U.S. hospitals), reading 2.7 million studies annually.  Delivering unparalleled access to subspecialty expertise, vRad contributes to improved quality of patient care.  And with our next-generation technology, vRad enhances productivity, helping to lower the overall cost of care while expediting time to diagnosis and treatment.  For more information, visit www.vrad.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, in particular, statements about plans, objectives, strategies and prospects regarding, among other things, vRad’s business and results of operations.  These statements can be identified by the use of words such as “will,” “believe,” “expect,” and “anticipate” and similar terms or expressions of future expectation.  These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of vRad to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.  For examples of such risks and uncertainties, please see vRad’s Annual Report on Form 10-K, as well as other filings with the Securities and Exchange Commission.  vRad undertakes no duty to update these forward-looking statements due to new information or as a result of future events.