Total 2001 net revenues for the company grew to $1.38 billion, compared to $1.36 billion on a continuing operations basis for 2000. For the fourth quarter of 2001, net revenues grew four percent, to $356.8 million, compared to net revenues of $342.2 million on a continuing operations basis for the fourth quarter of 2000.

Net income for 2001 was $21.0 million, compared to a loss of $104.2 million for 2000. For the fourth quarter of 2001, net income was $6.3 million, compared to $3.6 million, excluding special charges and a gain on the sale of the company's staffing business, for the fourth quarter of 2000.

Diluted earnings per share for 2001, excluding special items, were $0.95 per share, compared to $0.43 per share, excluding special items, in 2000. For the fourth quarter of 2001, diluted earnings per share were $0.24 per share, compared to $0.16 per share, excluding special items, in the corresponding period of 2000. For 2001, diluted cash earnings per share were $1.36 sper share, compared to $0.86 per share, excluding special items for 2000. The year 2000 per share amount included $0.28 per share relating to the results of the company's staffing and Canadian operations, which were sold during that year. For the fourth quarter of 2001, diluted cash earnings per share were $0.33 per share, compared to $0.26 per share, excluding special items, for the corresponding period of 2000.

On January 2, 2002, Gentiva announced that it had entered into an agreement with Accredo Health Inc. to sell the company's specialty pharmaceutical services business for approximately $415 million in cash and stock consideration, subject to certain adjustments and conditions. Gentiva announced today that it continues to believe that this agreement, which will require federal anti-trust regulatory approval and the shareholder approval of both companies, remains on track for closure in the second quarter of 2002.

"Gentiva ends 2001 as a market leader in two of the most vital components of the country's health care delivery system," said Gentiva chairman, president and chief executive officer Edward A. Blechschmidt. "Additionally, since Gentiva's creation in March 2000, our company has undergone a dramatic turnaround in our balance sheet, a vastly improved image in the marketplace and, with the consummation of the specialty pharmaceutical services sale agreement with Accredo Health, we find ourselves well positioned to grow our core home health business," said Blechschmidt.

Home Health Services

For the fourth quarter of 2001, net revenues for the home health services business increased four percent, to $188.8 million, compared to $181.1 million for the corresponding quarter of 2000. Net revenues for the company's home health services business for 2001 declined slightly, to $729.6 million, compared to $736.5 million for 2000, due largely to the closure of 12 nursing branches in the fourth quarter of 2000 and the transition, since October 2000, to Medicare's Prospective Payment System (PPS).

Operating contribution for the company's home health services business for 2001 grew 28 percent, to $51.4 million, compared to $40.3 million for 2000. For the fourth quarter of 2001, operating contribution for the company's home health services business grew 16 percent, to $12.0 million, compared to $10.3 million for the corresponding period of 2000.

Gentiva also announced today that it has extended its six year relationship with CIGNA HealthCare for two additional years. During the quarter, the company also announced the opening of a new home health location in the metro market of Atlanta, Georgia.

"Gentiva ends 2001 as the market leader in the nation's home health care industry," said Blechschmidt. "We believe that the combination of demographic and reimbursement trends, combined with our national stature, commitment to clinical excellence and strong balance sheet, position Gentiva to continue to grow its market leadership in this promising industry."

Specialty Pharmaceutical Services

For the fourth quarter of 2001, net revenues for the specialty pharmaceutical services business grew five percent, to $192.4 million, compared to $183.8 million for the corresponding period of 2000. Net revenues for the company's specialty pharmaceutical services business for 2001 grew six percent, to $739.3 million, compared to $699.3 million for 2000.

Operating contribution for the company's specialty pharmaceutical services business for 2001 was $72.9 million, compared to $84.6 million for 2000. For the fourth quarter 2001, operating contribution for the company's specialty pharmaceutical services business was $20.3 million, compared to $21.2 million for the corresponding period of 2000. Operating contribution for the company's specialty pharmaceutical services business was impacted negatively by continued shortages in coagulation therapies, used in the treatment of hemophilia, during most of 2001 and investments, during the year and quarter, in Gentiva's specialty pharmaceutical sales force.

Gentiva's growth in specialty pharmaceutical revenues throughout 2001 was fueled by notable revenue growth in a number of key specialty pharmaceutical products, including Flolan®, an intravenous therapy used in the treatment of pulmonary hypertension, immunoglobulin therapy (IVIG), used in the treatment of primary immune deficiency, and other core therapy products.

During the fourth quarter, Gentiva also continued to expand its product offerings for the treatment of pulmonary arterial hypertension. On December 5, 2001, Gentiva announced that it had been selected by Actelion Ltd., a Switzerland-based pharmaceutical manufacturer, to serve as one of their preferred distributors for Tracleer, the first oral therapy approved by the U.S. Food and Drug Administration (FDA) for the treatment of this disease. With its distribution of Tracleer, Gentiva now is the only specialty pharmaceutical distributor in the nation to offer both FDA-approved therapies, Tracleer and Flolan, used in the treatment of pulmonary hypertension.

Gentiva also maintains an agreement with United Therapeutics Corporation to serve as one of two distributors of Remodulin, an injectable therapy for the treatment of pulmonary hypertension. While Remodulin has not yet received final approval from the FDA, United Therapeutics did announce, on February 11, 2002, that it has received an approvable letter from the FDA for this therapy, which typically is a final step prior to the FDA's approval for the therapy to be distributed and marketed.

"As we await the approval of our agreement with Accredo Health, we maintain our commitment to growing our specialty pharmaceutical business with the expectation that we will be creating, once this agreement concludes, the most dynamic, growth-oriented specialty pharmaceutical company in the nation," said Blechschmidt.

Conference Call Details

Gentiva will comment further on its fourth quarter and 2001 operating results in its previously announced quarterly conference call, which will be held this morning, February 12, 2002, at 11 a.m. Eastern Standard Time. To participate in the call from the United States or Canada, call (888) 276-9995. To participate from outside the United States or Canada, call (612) 288-0337.

Gentiva Health Services (Nasdaq: GTIV), a Fortune 1000 company, is the nation's leading provider of home health care and specialty pharmaceutical services. With more than 300 locations in the United States, the company had approximately $1.4 billion in 2001 net revenues. For more information, visit Gentiva's Web site, www.gentiva.com.