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Gentiva(R) Health Services Acquires Leading Colorado Home Health Provider
Date:6/2/2008

MELVILLE, N.Y., June 2 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, announced today that it has acquired Physicians Home Health Care (PHHC), one of Colorado's largest home health providers, for $12 million in cash. The transaction will be funded from Gentiva's existing credit facility.

PHHC, first established by a group of physicians in 1984, operates three locations serving 12 Colorado counties, including the Colorado Springs, Denver and Pueblo regions. The acquisition extends Gentiva's operations to 38 states.

Unaudited 2007 net revenues for PHHC were approximately $9.4 million, with nearly 83% derived from Medicare reimbursement. The acquisition is not expected to have a material impact on Gentiva's 2008 earnings.

"This acquisition moves Gentiva into another very active state for home healthcare and strengthens our growing Western division," said Chairman and CEO Ron Malone. "It will give us an additional platform to expand our services, including our groundbreaking specialty programs. We anticipate a smooth integration and extend a warm welcome to the Physicians Home Health Care employees as they join the Gentiva family."

About Gentiva Health Services, Inc.

Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health services. The Company serves patients across the United States, through its direct service delivery units or through CareCentrix(R), which manages home health services for major managed care organizations. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; dise
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SOURCE Gentiva Health Services, Inc.
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