Accredo Health, Inc. To Make Technical Changes to 10-K and 10-Q's; Changes Do Not Alter Previously Reported Results.

Business Editors & Health/Medical Writers

MEMPHIS, Tenn.--(BUSINESS WIRE)--May 10, 2002

Accredo Health, Incorporated (NASDAQ:ACDO) announced today that at the request of the Securities and Exchange Commission (SEC), it will make minor changes to its Form 10-K for the period ended June 30, 2001 and its 10-Qs for the periods ended September 30, 2001 and December 31, 2001. A Form S-4 Registration Statement was filed jointly with Gentiva Health Services, Inc. (NASDAQ:GTIV) on February 8, 2002, pursuant to Accredo's pending acquisition of Gentiva's specialty pharmaceutical services business (SPS).

As part of its review of the Form S-4, the SEC requested that Accredo make certain minor clarifications to its 10-K for the period ended June 30, 2001 and its 10-Qs for the periods ended September 30, 2001 and December 31, 2001. The amendments do not involve changes to previously reported results. The following summarizes the changes that will be incorporated in the Form 10-K/A and Forms 10-Q/As which will be filed with the SEC later today:

-- The description "Patient service revenue" has been changed to "Patient
revenue" throughout the filings to reflect that Accredo derives revenue from
the sale of products and not the sale of services.

-- The description "Cost of services" has been changed to "Cost of sales"
throughout the filings to reflect that the costs associated with "Patient
revenue" are for the sale of products and not the sale of services.

-- The "Revenues" sections in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" have been amended to reflect
that the growth in revenues is the result of volume growth with the addition of
new patients and additional sales to existing patients.

-- The "Revenue Recognition" policy in the "Notes to the Consolidated Financial
Statements" has been amended to note that patient revenues are from the sale of
biopharmaceutical drugs to patients and are reported at the net amount billed
to patients, third-party payors and others in the period the services are
rendered.

-- The "Revenue Recognition" policy has also been amended to expand the
description of other revenues.