FOR IMMEDIATE RELEASE

Gentiva Health Services Reports First Quarter 2001 Results

Company Announces Record Specialty Pharmaceutical Revenues, Improved Home Health Margins and Continued Balance Sheet Improvements

Melville, N.Y., May 15, 2001—Gentiva Health Services (Nasdaq: GTIV), the nation's leading provider of specialty pharmaceutical and home health care services, today reported first quarter 2001 financial results.

First quarter 2001 net revenues were $357.2 million compared to net revenues of $384.6 million for the first quarter of 2000. After adjusting for the sale of the company's staffing and Canadian businesses, both of which were sold during the fourth quarter of 2000, net revenues increased 4.1 percent over the first quarter of 2000.

Net income for the first quarter 2001 was $6.1 million, compared with a loss of $1.9 million for the first quarter of 2000. Diluted earnings per share for the first quarter were $0.26, compared to a loss of $0.09 for the corresponding first quarter of 2000.

"Our first quarter was characterized by solid earnings growth and further solidification of our leadership position in both of our primary divisions: specialty pharmaceutical services and home health care services," said Edward A. Blechschmidt, chairman, chief executive officer and president. "As a result of restructuring and integration activities announced during the fourth quarter, we continued to enhance our operational efficiencies and balance sheet, ending the first quarter with no bank debt and the strongest cash position in our history."

Specialty Pharmaceutical Services
Gentiva reported record quarterly revenues for the company's specialty pharmaceutical services business, with revenues of $195.9 million, representing a 16 percent increase during the first quarter over the corresponding period in 2000. Revenue growth was fueled by increased sales in a number of leading therapies, including Flolan, a pulmonary hypertension therapy, intravenous immune globulin (IVIG), an immunological therapy, Synagis, used in the prevention of respiratory syncytial virus (RSV), and several wholesale pharmaceutical therapies.

Operating contribution during the quarter for the specialty pharmaceutical services business was $16.8 million versus $22.6 million for the corresponding first quarter of 2000. The operating contribution was impacted primarily by the shortage of recombinant and other factor products currently affecting the industry and increased investments in sales, billing and collection personnel, which are intended to improve revenue growth and cash collection. These incremental investments were offset, however, by a decrease in corporate expenses in the first quarter of $3.5 million compared to the first quarter of 2000, which are not included in the specialty pharmaceutical services' operating contribution.

During the quarter, Gentiva also initiated and renewed several agreements for the distribution of specialty pharmaceutical products. Under its agreement with Nouvel Pharma Inc., announced on January 3, Gentiva has now enrolled its first patients in the clinical trials for Duodopa, a Parkinson's disease therapy. Under the agreement, Gentiva will serve as the exclusive distributor of this therapy upon its approval by the FDA.

Gentiva also renewed an agreement during the quarter with Enzon Inc., announced on February 15, under which Gentiva will continue distributing and providing reimbursement management services for ADAGEN®, used in the treatment of ADA Deficient Severe Combined Immunodeficiency Disease (SCID), commonly known as "Bubble Boy Disease."

Gentiva also continues to provide clinical support for the trials relating to United Therapeutics' Remodulin, an investigational pulmonary hypertension therapy currently under review by the FDA; Gentiva will serve as a preferred distributor of Remodulin upon that therapy's FDA approval.

Finally, Gentiva entered into several new managed care contracts during and following the quarter for the provision of specialty pharmaceutical services. These included a national contract with Aetna U.S. Healthcare, initiated in early May, under which Gentiva will provide acute and chronic infusion products to Aetna members. Gentiva also initiated and renewed several contracts with PacifiCare for the provision of infusion and injectable therapies in several western states.

Home Health Services
Net revenues for the company's home health services business decreased two percent during the first quarter, to $185.6 million, over the corresponding period in 2000, due primarily to the transition to the new Medicare reimbursement system, which became effective in October 2000, and closure of nursing branches during the fourth quarter of 2000. The company's home health services first quarter net revenue grew 2.5 percent over the fourth quarter of 2000.

Operating contribution during the quarter for the home health services business was up 34 percent to $14.8 million, compared to $11.0 million for the corresponding first quarter of 2000 and $10.3 million for the fourth quarter of 2000.

Gentiva's home health services division also initiated and renewed several managed care contracts during the quarter. Gentiva's CareCentrix contract with CIGNA HealthCare was renewed for the sixth consecutive year; under this contract, Gentiva and its CareCentrix provider network will provide home health services, home infusion therapy and durable medical and respiratory equipment to CIGNA members nationally. Gentiva also implemented several contracts with PacifiCare plans for the provision of home health services in several western states.

During the quarter, the company completed its restructuring of its home health division, including aligning Gentiva's CareCentrix network unit and Nursing units to begin identifying greater synergies among the units within the division.

Finally, the company is announcing the launch of its home care consulting business unit, Gentiva Business Services, which will provide information technology, financial, clinical and management consulting services to providers in home health care and related businesses.

Clinical Advisory Board and Conference Call Details
Gentiva also will be announcing this morning the formation of a professional advisory board, comprised of leading physicians, nurses and other health care professionals, to provide the company with ongoing guidance on its clinical protocols and practices.

The company will comment further on its first quarter operating results and provide updated earnings and revenue guidance in its previously announced quarterly conference call, which will be held this morning, May 15, 2001, at 11 a.m. Eastern Daylight Time. To participate in the call from the United States or Canada, call (888) 423-3280. To participate from outside the United States or Canada, call (612) 288-0340.

Gentiva Health Services (Nasdaq: GTIV), a Fortune 1000 company, is the nation's leading provider of specialty pharmaceutical and home health care services. With more than 300 locations in the United States, the company had approximately $1.5 billion in 2000 revenues. For more information, visit Gentiva's Web site, www.gentiva.com.

Information contained in this news release, other than historical information, should be considered forward-looking, and is subject to various risk factors and uncertainties. For instance, the company’s strategies and operations involve risks of competition, changing market conditions, changes in laws and regulations affecting our industries and numerous other factors discussed in this release and in the company’s filings with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those anticipated in any forward-looking statements.

(in 000's except per share) . Q1 2001 . Q1 2000 Statement of Operations Net Revenues $ 357,178 $ 384,607 Cost of Services Sold . 240,748 . 256,105 Gross Profit . 116,430 . 128,502 SG&A Expenses . 109,385 . 127,532 Operating Profit . 7,045 . 970 Interest Expense, net . 433 . 4,236 Income (Loss) before Income Taxes . 6,612 . (3,266) Income Tax Expense (Benefit) . 500 . (1,360) Net Income (Loss) $ 6,112 $ (1,906) Net Income (Loss) per Share - Basic $ 0.28 $ (0.09) Net Income (Loss) per Share - Diluted $ 0.26 $ (0.09) Cash Net Income (1) $ 8,765 $ 166 Cash Net Income per Share - Diluted (1) $ 0.36 $ 0.01 (1) Cash Net Income excludes amortization of goodwill, net of taxes Supplemental Information Depreciation Expense . 4,337 . 5,637 Amortization of Goodwill . 2,653 . 2,850

Key Balance Sheet Information . Apr.1, 2001 . Dec.31, 2000 . Apr.2, 2000 Cash and Cash Equivalents $ 49,553 $ 452 $ 4,386 Net Receivables $ 407,366 $ 419,178 $ 604,504 Inventories $ 51,261 $ 51,111 $ 82,983 Long - Term Debt $ — $ — $ 104,039 Convertible Preferred Trust Securities $ 20,000 $ 20,000 $ 20,000 Shareholders' Equity $ 577,265 $ 566,149 $ 661,642

. 2000 2001 (in 000's)   1st Quarter   2nd Quarter   3rd Quarter   4th Quarter   Year   1st Quarter Segment Information . Net Revenues Specialty Pharmaceutical Services $ 168,995 $ 171,899 $ 174,606 $ 183,827 $ 699,327 $ 195,887 Home Health Services   189,544   187,167   178,715   181,121   736,547   185,617 Intersegment Elimination . (15,611)   (17,885)   (18,250)   (22,702)   (74,448)   (24,326) Subtotal $ 342,928 $ 341,181 $ 335,071 $ 342,246 $ 1,361,426 $ 357,178 Staffing and Canada   41,679   42,089   45,254   16,196   145,218   — Total Net Revenue $ 384,607 $ 383,270 $ 380,325 $ 358,442 $ 1,506,644 $ 357,178 . Operating Contribution Specialty Pharmaceutical Services $ 22,573 $ 20,848 $ 19,975 $ 21,248 $ 84,644 $ 16,847 Home Health Services . 11,033   11,114   7,824   10,346   40,317   14,780 Corporate Expenses . (21,048)   (20,111)   (19,934)   (19,943)   (81,036)   (17,592) Subtotal $ 12,558 $ 11,851 $ 7,865 $ 11,651 $ 43,925 $ 14,035 Staffing and Canada . 2,499   3,153   4,241   909   10,802   — Special Items . (5,600) . (1,191) . (132,025) . 22,255 . (116,561) . — EBITDA $ 9,457 $ 13,813 $ (119,919) $ 34,815 $ (61,834) $ 14,035

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