American HomePatient reports record revenues and net income for 1996.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 24, 1997--Edward K. Wissing, president and chief executive officer of American HomePatient (NASDAQ:AHOM), today announced the company's fifth year of record growth as a public company with $268.4 million in net revenues, $15.2 million in net income and $1.10 in earnings per share for the year ended Dec. 31, 1996.

Financial Results

American HomePatient's 1996 revenues rose 65 percent to a record high $268.4 million from $162.4 million in 1995. Earnings before interest and taxes increased 61 percent to $33.1 million compared to $20.6 million the previous year. Net income rose 60 percent to $15.2 million from $9.5 million and earnings per share increased 25 percent to $1.10 on 13.8 million shares outstanding compared to $0.88 on 10.8 million shares outstanding the previous year. The company attained a 25 percent increase in EPS while also increasing the number of shares outstanding 27 percent during the year.

For the fourth quarter, American HomePatient's revenues increased 62 percent to $78.9 million from $48.8 million. Earnings before interest and taxes rose 55 percent to $9.6 million compared to $6.2 million the previous year. Net income increased 57 percent to $4.4 million from $2.8 million and the earnings per share for the quarter were $0.30 compared to $0.24 in 1995, reflecting an increase of 25 percent on 28 percent more shares outstanding.

Comparative financial results noted above for 1995 are presented before the one-time relocation charge of $700,000 taken in the fourth quarter of 1995.

1996 Operating Highlights

This past year marked several significant accomplishments for the company including the following as highlights:

Acquisitions -- During the latest twelve months American HomePatient acquired 40 home health care companies with 101 centers and approximately $110 million in annualized revenues. This far surpasses the company's 1994 and 1995 acquisition activity when it acquired $45 and $80 million in annualized revenues, respectively.

Joint Ventures and Strategic Alliances -- The company attained its 1996 goal of adding ten new combined joint ventures and strategic alliances with hospitals. In doing so, it developed three new hospital joint ventures in three states and signed strategic alliance agreements with 14 hospitals in Florida, nine hospitals in Oklahoma and nine hospitals in Texas.

To date, American HomePatient provides home health care services and equipment either through an equity joint venture or a contractual strategic alliance agreement for over 70 prestigious hospitals or integrated delivery systems throughout the country.

Same-Store Revenue Growth -- American HomePatient's same store revenue growth continues to be strong, increasing 11 percent for the quarter and 11 percent for the year, excluding the ConPharma acquisition made in 1995. Including the ConPharma centers, the company recorded nine percent growth for the quarter and the year.

Capital Financing -- American HomePatient had three significant capital financing activities in 1996. The company completed a successful secondary offering of common stock in May selling 1.65 million shares resulting in net proceeds of $67 million. Concurrently, it also expanded its bank credit facility to increase borrowing capacity to $225.0 million. American HomePatient also provided stockholders a three-for-two stock split which was effective in late June.

Platform for 1997

According to Wissing, American HomePatient's success is attributed to its focus on its strategic imperatives. "Five years ago, we outlined our strategic imperatives for growth. Every year we revisit, fine-tune and validate their appropriateness for our business in a dynamic market environment. We believe our success and growth over the years are primarily due to our strict adherence to the execution of these imperatives. The important areas of emphasis for 1997 will include:

-- "Completing strategic acquisitions with particular focus on

larger acquisitions to achieve regional density such as the

Miller Medical acquisition which gave us 16 total centers, 12

of which were in Iowa.

-- "Duplication of our focused effort to expand via our `northward 

strategy' with a new initiative into the western United States.

Since we embarked on the `northward strategy' two years ago,

one-third of our total 300 home health care centers are now

located in the northern third of the country. We intend to

apply the same effort and focused approach on our expansion via

the `westward strategy'.

-- "Building upon the successes in developing equity partnerships

and strategic alliance agreements with prestigious hospitals and

integrated health care delivery systems through the direction of

our dedicated strategic alliance team.

"We continue to be very enthused about the opportunities in the home health care sector. We believe the sector is still in the early stages of consolidation and advances in technology are enabling more therapies and equipment to be utilized in the home. Moreover, the evolution of managed care and the emergence of integrated health care delivery systems in key markets presents new opportunities that we believe American HomePatient is well positioned to actively pursue."

American HomePatient is one of the largest home health care providers in the country with 300 centers in 32 states. The company's primary product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition and medical equipment and supplies provided to patients cost-effectively in the home or alternative setting. American HomePatient's common stock is traded on the Nasdaq Stock Market (National Market) under the symbol AHOM.

Forward looking statements made in this release involve a number of risks and uncertainties, including, but not limited to, changes in government reimbursement, government regulation and health care reforms, ability to execute on the company's acquisition and strategic alliance programs, both in finding suitable acquisitions and alliance candidates and financing therefore, changing economic and market conditions and other risk factors detailed in the company's Securities and Exchange Commission filings. -0-

                        AMERICAN HOMEPATIENT INC.
            (In thousands, except per share and percent data)

                       Unaudited Results for     Unaudited Results for
                        Three Months Ended           Year Ended
                             Dec. 31,                  Dec. 31,
                          1996      1995            1996      1995
Revenues                $ 78,897  $ 48,837        $268,348  $162,371
Cost of sales and
 related services         18,111    10,030          58,575    34,031
Operating expenses        39,436    24,686         135,813    81,718
General and
 administrative
 expenses                  5,020     4,152          17,064    12,594
Depreciation and
 amortization              6,753     4,408          23,845    14,081
Earnings before
 interest and taxes        9,577     5,561          33,051    19,947
Pre-tax income             7,208     3,892          24,757    15,118
Net Income                 4,426     2,350          15,201     9,089
Earnings per share         $0.30     $0.20           $1.10     $0.84
Weighted average shares
 outstanding              15,000    11,696          13,761    10,842

Results before one-time
 relocation:
 EBIT (earnings before     9,577     6,237          33,051    20,623
  interest and taxes)
 Net income                4,426     2,771          15,201     9,510
 Earnings per share        $0.30     $0.24           $1.10     $0.88


                                Dec. 31,  Dec. 31,
                                 1995       1996
Cash & Equivalents             $  4,599  $  7,724
Accounts Receivable, Net         47,251    79,460
Other Current Assets             20,063    28,529
  Total Current Assets           71,913   115,713
Property and Equipment, Net      40,661    56,870
Goodwill                        107,234   199,720
Other Assets                     12,708    21,748
  Total Assets                 $232,516  $394,051

Trade Accounts Payable            4,815     8,698
Current Portion of Long
 Term Debt                        8,999    10,245
Other Current Liabilities        11,827    16,758
  Total Current Liabilities      25,641    35,701
LT Debt and Leases, less
 Current Portion                 84,607   139,458
Other Liabilities                 2,837     3,250
  Total Liabilities             113,085   178,409
  Total Stockholders' Equity    119,431   215,642
  Total Liabilities and
   Equity                      $232,516  $394,051

Note: EPS and weighted shares outstanding reflect AHOM's
      three-for-two stock split effective June 28 and distributed to
      stockholders on July 12.  Prior year earnings have been
      adjusted for comparability.

CONTACT: American HomePatient Inc., Brentwood

Ed Wissing, Kathey Palmer or Mary Ellen Rodgers

615/221-8884