Melville, N.Y., August 8, 2002—Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation’s leading provider of home health care services, today raised its 2002 revenue guidance to $760-$770 million, on a continuing operations basis. In addition, the company announced initial earnings per share guidance of $0.20 - $0.22 per share for the second half of 2002. Gentiva had previously announced revenue expectations of $750 - $760 million for the year on a continuing operations basis.

Gentiva also today reported its second quarter 2002 operating results, highlighted by 8.9% net revenue growth compared to the same period in 2001 and an ending cash balance of $102.7 million. This is the company’s first quarter of financial reporting since the June 13 sale of its specialty pharmaceutical services (SPS) business.

“The second quarter was significant for Gentiva Health Services as we divested the specialty pharmaceutical services business while simultaneously growing the home health business,” said Ron Malone, chairman and chief executive officer of Gentiva Health Services. “While the reported financial statements reflect the results of activities relating to the sale of the SPS business and the restructuring of Gentiva as a pure home health services company, the company’s core operational business performance was solid, as demonstrated by 8.9% net revenue growth, 7.8% operating contribution, reductions in field operating expenses and a strong cash position. We executed our plan of restructuring our operations for greater efficiency and effectiveness while continuing to build value for our shareholders.”

Net revenues for the quarter, excluding discontinued operations, grew to $195.6 million, compared with $179.7 million on a continuing operations basis for the second quarter of 2001. Year-to-date net revenues from continuing operations were $388.4 million, up 6.3% from net revenues of $365.3 million in the corresponding period in 2001. Revenue growth was driven by increases in business with insurance companies and the federal Medicare program.

After adjusting for the sale of the specialty pharmaceutical services business and excluding restructuring and special charges, operating contribution for the second quarter 2002 was $15.2 million, or 7.8% of net revenues, compared with $12.8 million, or 7.1% of net revenues for the corresponding quarter in 2001.

For the second quarter of 2002, total company net income was $151.3 million, or $5.79 per share, compared with total company net income of $2.3 million or $0.10 per share for the corresponding quarter in 2001. The second quarter 2002 results include income from discontinued operations of $185.0 million or $7.07 per share and a loss from continuing operations of $33.7 million or $1.29 per share, including restructuring and special charges, and net of an income tax benefit of $12.3 million. Results of discontinued operations included the gain associated with the June 13, 2002 sale of the company’s specialty pharmaceutical services business, net of related transaction costs and income taxes.

As previously announced, the company adopted FAS 142 (Goodwill and Other Intangible Assets) in 2002, which resulted in a year-to-date non-cash charge of $217.3 million. After giving effect to the accounting change required by FAS 142, as well as including income of $192.1 million from discontinued operations and a loss from continuing operations of $32.7 million, including restructuring and special charges, the company recorded a net loss of $57.9 million or $2.23 per share during the first six months of 2002. Total company net income for the first half of 2001 was $8.4 million or $0.39 per share.

Restructuring and special charges recorded by Gentiva during the second quarter and first six months of 2002 aggregated $46.1 million. These charges consisted primarily of severance and lease payments associated with the realignment and consolidation of business activities; cash payments and related expenses in connection with the company’s recent offer to purchase and cancel outstanding stock options; settlement costs; and a refinement of the estimation process associated with the company’s actuarially determined workers’ compensation and professional liability insurance reserves.

The ending cash balance for the quarter was $102.7 million, which included a $20.9 million advance from the Medicare program scheduled to be repaid during the third quarter of 2002. The company continues to operate debt-free.

Other highlights during the quarter include the naming of new corporate officers; the expansion of service offerings in Georgia and Massachusetts; further expansion of the company’s orthopedic services program; the conclusion of the Frederickson legal matter; and an agreement in principle to conclude the government investigation concerning prior years’ cost reporting procedures.

Conference Call and Webcast Details

The company will comment further on its second quarter operating results and provide updated earnings and revenue guidance in its previously announced quarterly conference call and live webcast, which will be held this morning, August 8, 2002, at 10:00 a.m. Eastern Daylight Time. To participate in the call from the United States or Canada, dial: (888) 428-4472. Outside the United States and Canada, dial: (612) 332-0530. The webcast is an audio only, one-way event. Viewers of the webcast who may have questions must phone into the conference call. To hear the webcast, log onto http://www.gentiva.com/investor/events.asp.

Gentiva Health Services (Nasdaq: GTIV) is the nation’s leading home health care provider. Its customers include managed care organizations, employers, hospitals and individuals, as well as Medicare and state Medicaid programs. Gentiva is the single source for a variety of home health care services including skilled nursing, rehabilitation services and help with daily living activities, among a variety of other related therapies and services. For more information, visit Gentiva’s web site, www.gentiva.com.