LOUISVILLE, Ky., Sept. 14 /PRNewswire/ -- Caretenders HealthCorp
(Nasdaq: CTND) today announced development plans and activities to more than
double its adult day care operations in Kentucky.

    * The Company was granted four Certificates of Need (CON's) from the state
      authorizing it to add new ADC's in Elizabethtown (south of Louisville),
      Frankfort (central KY), Owensboro (western KY) and the metropolitan
      Cincinnati area (northern KY).  Fulfillment of these CON's would
      increase to 7 the number of centers the Company has in Kentucky.

    * As the first step in the initiative, the Company has acquired the assets
      of the Hardin County Adult Day Care center in Elizabethtown, which
      recently moved into a newly constructed facility.  The center has a
      current capacity of 49 guests per day.

    * Additionally, the Company has doubled the capacity of one of its two
      existing Louisville KY centers from 50 to 100 guests per day.

    "Kentucky, through its commitment to home and community based health care
programs is positioning itself, as one of the most attractive states for the
development of our adult day health services program.  The Governor and his
administration are encouraging low cost alternatives to institutional
placement through their policies related to the development of adult day
centers throughout the Commonwealth.  This foresight has driven us to focus on
the opportunity that exists in the state.  We are very pleased to add the
Elizabethtown center to the Caretenders' Kentucky network of adult day health
services.  Combined with the expansion of the Louisville center we now have
capacity to care for about 200 guests per day in Louisville and the
surrounding area and 265 state-wide.  Upon fulfillment of the CON's for three
additional centers we would expect to have capacity in the state for close to
400 guests per day across the state," said William B. Yarmuth, Chairman and
CEO.  Yarmuth added, "The acquisition of this center increases to 23 the
number of centers we currently have in operation.  We will continue to look
for additional opportunities for acquisition and expansion of our adult day
health services both inside and out of Kentucky."
    Financial terms of the acquisition were not disclosed.  The Company's
adult day care system now includes capacity for over 1,600 guests on a daily
basis.  The recently completed Elizabethtown acquisition and Louisville center
expansion increased system-wide capacity by approximately 7%.
    Caretenders HealthCorp provides adult day health services in Kentucky,
Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio and Florida.

    All statements, other than statements of historical facts, included in
this news release, including the objectives and expectations of management for
future operating results and/or completion of its development activities, are
forward-looking statements.  These forward-looking statements are based on the
Company's current expectations.  Although the Company believes that the
expectations with respect to the future of adult day health services reflected
in such forward-looking statements are reasonable, there can be no assurance
that such expectations will prove to be correct.
    Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially.  The potential risks and
uncertainties which could cause actual results to differ materially could
include the impact of further changes in the Medicare reimbursement system,
including the ultimate implementation of a prospective payment system;
government regulation; health care reform; pricing pressures from fourth-party
payers; changes in laws and interpretations of laws relating to the healthcare
industry and possible zoning, permit or other developmental obstacles.  For a
more complete discussion regarding these and other factors which could affect
the Company's financial performance, refer to the Company's Securities and
Exchange Commission filing on Form 10-K for the year ended March 31, 1999, in
particular information under the headings "Business" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
The Company disclaims any intent or obligation to update its forward-looking
statements.

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