July 23, 2009

Gentiva(R) Health Services Signs Agreement to Acquire Home Health Agency with Offices in Mississippi and Alabama

ATLANTA, July 23, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has signed a definitive agreement to purchase Magna Home Health, a part of the Rush Health System, located in central Mississippi and west central Alabama. Both states require a certificate of need (CON) by county to participate in the home health program.

With the addition of Magna's locations in Meridian, Mississippi, and Gilbertown, Alabama, Gentiva will expand its coverage with seven new CON counties. Gentiva already has a significant presence in these states under the Gilbert's brand in Mississippi and the Mid South brand in Alabama.

"This acquisition will solidify Gentiva's role as the pre-eminent home health provider in those two states," said Gentiva CEO and President Tony Strange. "We look forward to welcoming Magna's employees to the Gentiva family, as we have with our two other recent acquisitions. Not only do these mergers allow our company to provide a high standard of compassionate care to a larger patient population, but they demonstrate our appetite and ability to be competitive in a consolidation environment spurred by healthcare reform."

The purchase is expected to close in third quarter of this year and will be funded from Gentiva's existing cash reserves. The acquisition is not expected to have a material impact on Gentiva's financial position or results of operations in 2009.

About Gentiva Health Services, Inc.

Gentiva Health Services, Inc. is a leading provider of comprehensive home health services, delivering innovative, high quality care to patients across the United States. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-G

Forward-Looking Statement

Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: economic and business conditions, including the ability to access capital markets; demographic changes; changes in, or failure to comply with, existing governmental regulations; legislative proposals for healthcare reform; changes in Medicare and Medicaid reimbursement levels; effects of competition in the markets in which the Company operates; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters or terrorist acts; ability to successfully integrate the operations of acquisitions the Company may make and achieve expected synergies and operational efficiencies within expected time-frames; effect on liquidity of the Company's debt service requirements; and changes in estimates and judgments associated with critical accounting policies and estimates. For a detailed discussion of certain of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company's various filings with the Securities and Exchange Commission (SEC), including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 28, 2008.

    Financial and Investor Contact: John R. Potapchuk
                                    631-501-7035
                                    john.potapchuk@gentiva.com
                                    or Brandon Ballew
                                    770-221-6700
                                    brandon.ballew@gentiva.com

    Media Contact:                  Jennifer Gery-Egan
                                    Brainerd Communicators
                                    212-986-6667
                                    gery@braincomm.com

SOURCE Gentiva Health Services, Inc.

http://www.gentiva.com

Copyright (C) 2009 PR Newswire. All rights reserved


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