Melville, N.Y., November 6, 2002—Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of home health services, today announced its third quarter 2002 financial results, highlighted by 7.4% net revenue growth compared to the same period of 2001, income from continuing operations of $0.10 per diluted share and total diluted earnings per share (EPS) of $0.13. The company reaffirmed its earlier guidance with respect to 2002 revenues ($760 - $770 million) and second half 2002 EPS ($0.20 - $0.22 per share) and increased its estimated 2002 year-end cash balance forecast from $70 - $80 million to $90 million. In addition, the company announced preliminary 2003 guidance of revenues in the range of $800 - $820 million and EPS in the range of $0.45 - $0.50 per share.

"During our first full quarter of operations as a standalone home health services company, we accomplished several of our key objectives," commented Ron Malone, chairman and chief executive officer of Gentiva Health Services. "We demonstrated growth in both revenue and earnings. We reduced our corporate overhead from an annualized rate of $53 million to the current run rate of less than $43 million. We improved the efficiency of the business, and we continued to invest in our infrastructure to support ongoing growth. In summary, our performance was solid."

Net revenues for the quarter grew to $188.4 million, compared with $175.5 million on a continuing operations basis for the third quarter of 2001. Year-to-date net revenues from continuing operations were $576.9 million, up 6.7% from net revenues of $540.8 million in the corresponding period in 2001. Revenue growth continued to be driven by increases in business with insurance companies and the federal Medicare program.

For the third quarter, income from continuing operations was $2.7 million or $0.10 per share compared to a loss of $5.1 million, or ($0.22) per share, for the corresponding period of 2001. The quarter's performance was driven by a combination of revenue growth, a reduction in corporate expenses and improved home health operating contribution, which increased as a percentage of net revenues from 6.8% in the third quarter of 2001 to 8.9% in the third quarter of 2002.

On June 13, 2002, the company sold its specialty pharmaceutical services (SPS) business to Accredo Health, Incorporated. In connection with the transaction, the company recorded a net charge of approximately $0.5 million in the third quarter of 2002, reflecting the final net book value adjustment to the SPS closing balance sheet. The operating results of the SPS business along with the net gain on the sale of the business are included in discontinued operations.

As previously announced, in the first quarter of 2002, the company adopted FAS 142 (Goodwill and Other Intangible Assets), which resulted in a non-cash charge presented as a cumulative effect of accounting change, net of tax. In the third quarter of 2002, the company recorded a tax benefit of $1.4 million associated with deductible goodwill.

Total company net income was $3.6 million or $0.13 per diluted share in the third quarter of 2002 compared to net income of $6.2 million or $0.26 per diluted share in the third quarter of 2001, which included income from discontinued operations, net of tax of $11.4 million or $0.48 per share.

The results for the first nine months of 2002 reflect a loss from continuing operations, including restructuring and special charges, of $56.9 million, income from discontinued operations of $191.6 million and a net charge of $189.1 million representing the cumulative effect of the accounting change for goodwill. The company recorded a net loss of $54.4 million or ($2.08) per share for the first nine months of 2002 and net income of $14.7 million or $0.65 per share for the corresponding period of 2001, including income from discontinued operations of $30.1 million or $1.34 per share.

The ending cash balance for the quarter was $98.2 million and the company continues to operate with no debt. In October 2002, Gentiva repaid a cash advance related to the October 2000 implementation of the Prospective Payment System of Medicare reimbursement. Concurrently, the company received a payment connected to a preliminary settlement from the Medicare program relating to prior year cost reports. The settlement payment was received earlier than expected, and, as a result, the company has increased its projected year-end cash balance from a range of $70 to $80 million to approximately $90 million.

Operational highlights during the quarter included the expansion of the company's orthopedic services program to additional markets in Florida, Oklahoma, New York, California, Michigan, Arizona and Texas. Gentiva now has 32 orthopedic programs operating across 13 states. The company also continued to advance its support of utilizing technology for the benefit of patients, caregivers and associates. In select service locations, the company tested the effectiveness of home telemonitoring devices and evaluated several types of point-of-care technology. In addition, the company completed 40% of its technology refresh initiative and implemented Gentiva University to provide around-the-clock training, care protocols and patient teaching materials to its caregivers via the World Wide Web.

Conference Call and Webcast Details

The company will comment further on its third quarter operating results and its preliminary 2003 earnings and revenue guidance in its previously announced quarterly conference call and live webcast. The conference call and webcast will be held this morning, November 6, 2002, at 10:00 a.m. Eastern Standard Time. To participate in the call from the United States or Canada, dial: (612) 326-1003. 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 services provider. By serving patients directly and through CareCentrix, its managed care unit, the company is a single source for skilled nursing, rehabilitation services and help with daily living activities, as well as other therapies and services. Gentiva's revenues are generated from commercial insurance, federal and state government programs and individual consumers. For more information, visit Gentiva's web site, www.gentiva.com.