January 4, 2002

BIRMINGHAM, AL — William E. Smith Jr., chairman of Royal Cup Inc., was elected chairman of the UAB Health System Board of Directors effective January 1, 2002. He succeeds John J. McMahon Jr., who served as chairman since the Health System’s inception in 1996.

“John McMahon’s leadership has been invaluable,” said David Fine, CEO of the UAB Health System. “He has been instrumental in ensuring our focus on providing the people of Alabama, and beyond, with the best health care possible. I look forward to working with Bill Smith as we continue to improve our programs and support the academic and scientific activities of the University of Alabama School of Medicine.”

“I feel privileged to have served on the Board and to have participated in what has been a very interesting and important chapter in the continued progress of UAB’s medical center,” McMahon said. “I have learned a great deal, and can say without reservation that the UAB Health System is one of Alabama’s greatest resources because of the quality and dedication of the people that comprise it — the physicians, nurses, administrators and support staff. I expect that Bill Smith will do a superb job as board chairman.”

“The UAB Health System is internationally recognized for its premier medical faculty,” Smith said. “In order to maintain and improve upon our standing, we’re undertaking a number of initiatives, from a major upgrade of our hospital facilities to a focused effort to boost UAB’s medical research program into the top 10 in funding from the National Institutes of Health. These are exciting times for our health system, and I’m confident we can reach our goals.”

Smith was born in Birmingham and graduated from Ramsay High School. He received his undergraduate degree from Washington & Lee University in 1963.

After graduation, he entered the U.S. Army Infantry, where he served two years as a second lieutenant. Following military service, he earned a master’s degree from the Harvard Business School. In 1968, Smith and his brother, Hatton, assumed responsibility for the family coffee company following the death of their father. Royal Cup Inc. is one of Birmingham’s largest privately owned companies. He has been chairman, president and CEO of the family company since 1968.

Smith is a director and vice chairman of Dunn Investment Company, SouthTrust Bank, N.A., and is a member of the University of Alabama Health Services Foundation, the UAB School of Education Board of Advisors, the Executive Committee of the Campaign for UAB and the UAB Presidents Council. He is co-chairman of the Chief Executive Organization, and a member of the Public Affairs Research Council of Alabama.

Smith is the founder, a board member and former chairman of the board of Leadership Alabama. He also is founder and chairman of the board of A+, The Coalition for Better Education, and a member of the Davidson College Board of Trustees and the Davidson College Board of Visitors, where he formerly served as chairman. He is a member of Leadership Birmingham Board of Trustees and former president of its Alumni Council.

Smith was honored with the Children’s Hospital “A Friend of Children Award” in 1993, received the 1993 Birmingham Southern College “A Medal of Service Award,” was named by the Mobile Press Register as “1994 Alabamian of the Year” and received the Leadership Alabama “Distinguished Alumni Award.”

Smith was chairman of the Jefferson County Cancer Crusade and section chairman of the United Way. He also has worked with the Birmingham Metropolitan Development Board, Operation New Birmingham and the Birmingham Area Chamber of Commerce.

Formed in 1996, the UAB Health System brings together the health components of UAB is composed of the UAB Hospital, Viva Health, the Kirklin Clinic, the UAB Health Centers, and the Callahan Eye Foundation Hospital.