Melville, N.Y., May 15, 2002—Gentiva Health Services (Nasdaq: GTIV), the nation's leading provider of home health care and specialty pharmaceutical services, today reported its first quarter 2002 financial results, highlighted by record quarterly revenues in each of its two major businesses and a quarter-end cash balance of $134.6 million, the highest ever reported by the company.

Total company net revenues for the quarter grew three percent to $369.6 million, compared to $357.2 million for the same period in 2001. During the quarter, the company adopted FAS 142 (Goodwill and Other Intangible Assets), which resulted in a non-cash charge reducing the company's goodwill by approximately $217 million. After giving effect to the accounting change required by FAS 142, the company reported a net loss for the quarter of $209.2 million or $7.72 per share on a diluted basis. The company reported net income before the accounting change of $8.1 million for the first quarter of 2002, compared to $6.1 million in the corresponding period in 2001. Diluted earnings per share for the first quarter of 2002, before the accounting change, were $.30 per share, compared to $.26 per share for the same period in 2001. Results for the first quarter of 2002 include approximately $3 million of transaction costs relating to the pending sale of the specialty pharmaceutical services business to Accredo Health, Incorporated. Net income for the first quarter of 2001 included approximately $2.7 million of goodwill amortization.

"We are pleased with the results of the first quarter of 2002," said Gentiva chairman, president and chief executive officer Edward A. Blechschmidt. "While we achieved record revenues and further strengthened our cash position, the results of the quarter are somewhat tempered by a necessary focus on transitioning the specialty pharmaceutical services business to Accredo Health and preparing the home health business for its future as a pure home health care company."

On January 2, 2002, Gentiva announced that it had entered into an agreement with Accredo Health, Incorporated 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 on May 13, 2002 that the joint proxy statement relating to the transaction has been declared effective by the Securities and Exchange Commission and that the shareholders' meeting to vote on the proposed transaction has been scheduled for June 12, 2002.

Home Health Services

For the first quarter of 2002, the home health services business achieved record net revenues of $192.8 million, representing an increase of nearly four percent, compared to $185.6 million for the corresponding quarter of 2001. Operating contribution for the first quarter of 2002 grew to $15.5 million, compared to $14.8 million for the same period in 2001.

Highlights during the quarter for the home health services business included the opening of new home health locations in Seattle, Washington and Atlanta, Georgia, the two-year extension of its comprehensive CareCentrix contract with Cigna Healthcare, the accreditation of two Rehab Without Walls locations, and the introduction of Vacuum Assisted ClosureTM (V.A.C.®) therapy for patients with non-healing wounds.

"Our home health services business continued to grow during the first quarter of 2002, driven primarily by increases in the number of PPO enrollees served by our CareCentrix unit and the number of Medicare beneficiaries served throughout our system," said Blechschmidt. "In addition, we further strengthened our reputation for customer service, clinical excellence and innovation by simplifying access to services in several states, introducing a new orthopedic services specialty and establishing and expanding relationships with several payor organizations. We continue to believe our industry-leading position and strong balance sheet, coupled with current demographic and reimbursement trends, position Gentiva for further growth in this promising industry."

Specialty Pharmaceutical Services

For the first quarter of 2002, the specialty pharmaceutical services business recorded record net revenues of $200.5 million, compared to $195.9 million for the corresponding period of 2001. Net revenue growth was driven by increased sales in a number of the specialty pharmaceutical business's core chronic therapies, including Flolan®, a pulmonary hypertension therapy, intravenous immune globulin (IVIG), an immunologic therapy, and coagulation therapies, used in the treatment of Hemophilia.

Operating contribution for the company's specialty pharmaceutical services business for the first quarter 2002 increased nearly four percent to $17.5 million, compared to $16.8 million for the corresponding period of 2001. As expected, the operating contribution was impacted due to seasonal sales increases in lower margin therapies, such as Oxandrin® and Synagis®. "Though we are approaching closure of Gentiva's agreement to sell the SPS business to Accredo Health, we maintain our commitment to growing the specialty pharmaceutical services business, and we continue to view the specialty pharmaceutical market segment with confidence," said Blechschmidt.

Conference Call Details

Gentiva will comment further on its first quarter 2002 operating results in its previously announced quarterly conference call, which will be held this morning, May 15, 2002 at 10 a.m. Eastern Daylight Time. To participate in the call , within or outside of the United States, dial (952) 556-2829.

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

(A) Corporate expenses in Q1 2002 includes approximately $3 million of transaction costs relating to the pending sale of the specialty pharmaceutical services business