ADPI American Dental Partners, Inc. (MM)

On January 11, 2008, American Dental Partners, Inc. (the “Company”) and its subsidiary guarantors entered into the Amended and Restated Forbearance Agreement and Amendment No. 4 to the Credit Agreement (the “Amended Forbearance Agreement”) with the lending institutions (the “Lenders”) party to the credit agreement dated February 22, 2005, as amended (the “Credit Agreement”) and KeyBank National Association, as lender and as administrative agent. Pursuant to the Amended Forbearance Agreement, the Lenders have extended the forbearance period through the earlier of February 29, 2008 or the occurrence of an Event of Default other than those identified in the Amended Forbearance Agreement. Capitalized terms used herein and not otherwise defined shall have the meaning attributed to them in the Credit Agreement.

Pursuant to the terms of the Amended Forbearance Agreement, the Lenders have agreed, among other things, and upon satisfaction of certain conditions, to continue to make revolving loans to the Company during the forbearance period in accordance with the Credit Agreement for use by the Company in the operation of its business, provided that the aggregate principal amount of all loans outstanding and letters of credit outstanding shall not exceed $61,424,000, and no other Defaults or Events of Default exist under the Credit Agreement. The borrowing capacity under the Credit Agreement has been reduced to $75,000,000 from $130,000,000. Borrowings under the Credit Agreement will be made at the Eurodollar rate plus 250 basis points rather than the default interest rate permitted under the Credit Agreement and the commitment fee for the unused capacity under the Credit Agreement will be 37.50 basis points. The principal amount outstanding under the Credit Agreement, including outstanding letters of credit, was $41,424,000 as of December 14, 2007.

The Lenders have committed to release the collateral under the Credit Agreement necessary for the Company to meet the obligations of the previously announced Settlement Agreement related to the litigation among PDG, P.A., PDHC, Ltd., one of the Company’s Minnesota subsidiaries, and the Company at the time of closing of the definitive agreements contemplated by the Settlement Agreement.

On January 11, 2008, the Company and its subsidiary guarantors entered into the Amended and Restated Forbearance Agreement with the lending institutions party to the term loan agreement dated September 25, 2007 (the “Term Loan Agreement”) and KBCM Bridge LLC, as lender and as administrative agent pursuant to which the forbearance period has been extended through the earlier of February 29, 2008 or the occurrence of an Event of Default other than those identified in the amended Forbearance Agreement. Borrowings under the Term Loan Agreement will be made at the Eurodollar rate plus 250 basis points rather than the default interest rate permitted under the Term Loan Agreement. The Lenders have committed to release the collateral under the Term Loan Agreement necessary for the Company to meet the obligations of the previously announced Settlement Agreement related to the litigation among PDG, P.A., PDHC, Ltd., one of the Company’s Minnesota subsidiaries, and the Company at the time of closing of the definitive agreements contemplated by the Settlement Agreement.

Copies of each of the amended forbearance agreements are filed herewith as Exhibits 10.1 and 10.2 and are incorporated herein by reference.

On January 11, 2008, the Company issued a press release announcing the foregoing. A copy of the press release is filed herewith as exhibit 99.1.