American HomePatient, Inc. Files Extension for Reporting Fiscal 1998.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--March 31, 1999--American HomePatient, Inc. (Nasdaq:AHOM) today announced it has filed with the Securities and Exchange Commission, under Rule 12b-25, a notification of late filing for its Form 10-K for the year-ended December 31, 1998.

American HomePatient will file its Form 10-K with the Securities and Exchange Commission on or before April 15, 1999. The company's notification stated it was unable to file the Form 10-K for the year-ended December 31, 1998, because the company is negotiating with its lenders to potentially amend the bank credit facility to remedy its covenant default status and modify certain financial and other covenants going forward. The company is currently in default of several financial covenants under its bank credit facility. Because these negotiations are not completed, the Company is unable to finalize the classification of its debt and complete other portions of the company's financial statements.

"American HomePatient believes that it is in the best interests of the company, its shareholders and employees to continue discussions with our bank group to resolve our differing issues," stated Joseph F. Furlong, III, president and chief executive officer. "It is our hope to quickly and satisfactorily resolve our outstanding issues with the bank group."

The company also noted in the Rule 12b-25 notification that it intends to record an accrued severance expense charge and, as required by SFAS 121, a non-recurring pre-tax accounting charge for goodwill during the fourth quarter of 1998.

American HomePatient has over 300 home health care centers in 38 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition and medical equipment for patients in the home. American HomePatient's common stock is traded on the Nasdaq stock market under the symbol AHOM.

Certain statements made in the press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements area based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the company's unable to predict or control, that may cause the company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statement. These statements involve risks, uncertainties and other factors detailed from time to time in the company's filings with the Securities and Exchange Commission. Such factors may include the increased cost of borrowing under the company's credit agreement, possible amendments to the credit agreement as a result of current default thereunder, potential de-listing from the Nasdaq National Market System, changes to the company's business strategy and operation, the effect of healthcare legislation and regulation, the ability to obtain business, and the outcome of ongoing governmental investigations. The company cautions investors that any forward-looking statements made by the company are not necessarily indicative of the future performance.