American HomePatient Amends Its Credit Facility With Its Lender Group and Will File Amended Annual and Quarterly Reports.

Business Editors

BRENTWOOD, Tenn.--(BUSINESS WIRE)--June 8, 2001

American HomePatient, Inc. (OTC:AHOM) today reported that it has finalized with its lender group an amendment to its current credit agreement. As previously reported, the Company was in default under its credit facility as a result of breaching several financial covenants and failing to make a principal payment due March 15, 2001. The amended credit agreement cures the current defaults, amends the principal amortization schedule, and extends the term of the agreement to December 31, 2002. The Company also announced that it will soon file an amended annual report on Form 10-K and an amended quarterly report on Form 10-Q for its most recent quarter which consider the impact of this amended credit agreement. The amended Form 10-K and the amended Form 10-Q are expected to include restated financial statements which reflect the appropriate amount of debt reclassified from a current liability to a noncurrent liability. The Company expects that the restated financial statements in the amended Form 10-K will include an opinion from the Company's auditors which does not contain any reference to the Company's ability to continue as a going concern.

American HomePatient is one of the nation's largest home health care providers with over 300 centers in 38 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and medical equipment for patients in their home. American HomePatient's common stock is currently traded over-the-counter 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 are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is 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 statements. 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, changes to the Company's business strategy and operation, the effect of healthcare legislation and regulation, the ability to obtain business, the outcome of ongoing governmental investigations, and the Company's success in operating under the amended credit agreement. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative of future performance.