Allied Capital Signs a Definitive Agreement to Sell Housecall Medical Resources, Inc.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has signed a definitive agreement to sell Housecall Medical Resources, Inc. to Amedisys Inc. (NASDAQ:AMED) for a total transaction value of $106.4 million. Completion of the sale is subject to satisfaction of customary closing conditions. Allied Capital will be repaid its $15.9 million of outstanding loans and will realize a gain, including amounts held in escrow, of approximately $51.9 million, subject to post-closing adjustments. Approximately $7.0 million of Allied Capital's proceeds will be held in escrow for up to a three-year period. Allied Capital owns 65.7% of the fully diluted equity of Housecall.

Housecall Medical is among the largest privately held providers of home healthcare and hospice services in the U.S., with a leading presence in Tennessee and Florida. Allied Capital made its initial investment in Housecall in November 2002, when the company was divested by parent company Adventist Health Systems.

"In its three years as an independent entity, the management team of Housecall has successfully executed on a growth strategy that has built Housecall into the leading home health provider it is today," said George Ferris, Principal of Allied Capital. "Specifically, Housecall has invested in new personnel, training and management systems to support the opening of new home care and hospice branches in its core markets. Management has also implemented several operational improvements in the business, as well as introduced new clinical specialty programs for its patients."

"We have been very pleased to have Allied Capital as our financial partner over the last three years," said Housecall CEO, John Heller. "They have provided significant managerial and financial support as we made the transition to a stand-alone company, which has allowed us to create significant equity value for all the stakeholders in the company. The company is now entering its next phase of growth with Amedisys to build one of the largest home health care and hospice companies in the country."

Housecall was represented in the transaction by Harris Williams & Co.

About Allied Capital

Allied Capital Corporation, a leading business development company with total assets of more than $3 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO in 1960, the Company has provided long-term debt and equity financing to thousands of middle market companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of more than $10 billion and employ more than 80,000 people.

Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to participate in the private equity industry through an investment in the Company's New York Stock Exchange-listed stock, which is traded under the symbol ALD. For more information, please visit www.alliedcapital.com, call Allied Capital investor relations toll-free at [phone], or e-mail us at [e-mail]. All media inquiries should be directed to Stan Collender of Financial Dynamics at [phone].

About Housecall Medical Resources, Inc.

Housecall Medical Resources, Inc. is a leading home healthcare provider in the Southeast and one of the largest in the nation. The company's team of dedicated healthcare professionals is committed to providing quality home health services focused on serving the needs of patients, their physicians, managed care organizations and third party payors. With 66 offices in five states, Housecall offers JCAHO accredited home nursing and hospice care to its customers and has a 30-year track record of clinical excellence and innovation. For more information, please visit www.housecall.com.

About Amedisys, Inc.

Amedisys Inc. is a leading provider of home health nursing services and is headquartered in Baton Rouge, Louisiana. Its common stock trades on the Nasdaq under the symbol "AMED." For more information, please visit www.Amedisys.com.

Forward-Looking Statements

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.