Chemed Reports Third-Quarter Results.

CINCINNATI--(BUSINESS WIRE)--Oct. 20, 1997--Chemed Corporation (NYSE:CHE) today reported that for the third quarter, ended September 30, 1997, net income, including capital gains, was $11.8 million, or $1.18 per share, as compared with $4.5 million, or $.46 per share, in the same prior-year quarter, for an increase of 165 percent. For the nine months ended September 30, 1997, Chemed's net income was $26.6 million, or $2.65 per share, as compared with $22.3 million, or $2.27 per share, for an increase of 19 percent.

Of major importance, as announced in September 1997, Chemed completed the sale of both National Sanitary Supply Co. and The Omnia Group during the 1997 third quarter. As a result of the sale of these operations, Chemed generated nearly $150 million in net cash proceeds and a capital gain of $9.5 million in the third quarter.

Commenting on the company's results, Chemed Chairman and Chief Executive Officer Edward L. Hutton said, "For Chemed's shareholders, the sale of The Omnia Group and National Sanitary Supply means we can train our focus on the operations of Roto-Rooter, in which we invested $100 million last year to acquire the 42-percent minority interest; Service America Systems Inc., our residential appliance and air-conditioning repair provider; and Patient Care Inc., our home health subsidiary. Furthermore, the proceeds from the sale of Omnia and National will provide capital to pay down debt, as well as to fund acquisitions. Acquisition opportunities are available for Roto-Rooter, Service America, and Patient Care, and we expect to accelerate our acquisition pace for these operations."

Mr. Hutton continued, "Roto-Rooter's net income, on a comparable basis, increased 21 percent over the amount earned in the 1996 third quarter. Total revenues for Roto-Rooter were $39.0 million in the 1997 third quarter, up 12.1 percent over revenues of $34.8 million in 1996. Highlighting its acquisition program, Roto-Rooter announced the purchase of the Indianapolis franchise in early October. This acquisition is expected to bring in additional revenues in excess of $3.5 million on an annualized basis.

"Earnings increased at Service America by 49.5 percent in the third quarter as a result of operating margin improvements, on a revenue increase of 9.5 percent. Total sales and service revenues were $17.3 million in 1997 as compared with $15.8 million in the 1996 third quarter. Based in Florida, Service America markets residential appliance and air-conditioning repair through service contracts, as well as provides 'on demand' repair services. Like Roto-Rooter, Service America has ample opportunities to grow in the home service and repair business, as retirees and two-earner families seek reliable providers to handle household maintenance and repairs.

"Patient Care Inc., Chemed's home-healthcare subsidiary, increased its net income by 20.4 percent over the prior-year third quarter, and revenues totaled $31.1 million, up 26.7 percent over revenues of $24.5 million in the 1996 third quarter. Patient Care continues to focus on the personal care segment of homecare services and employs more than 7,000 home health aides throughout its Northeast market. We are pleased with the initial results of Priority Care, Patient Care's homecare acquisition that was completed in the second quarter. Priority Care, based in Stratford, Conn., generates more than $16 million in revenues on an annualized basis and operates five branch offices in Connecticut. In the coming years, Patient Care expects that other acquisitions will further strengthen its growing market presence."

In September 1997, Chemed paid the company's 105th consecutive quarterly dividend in its 26 years as a public company.

Discussing the company's investments, Mr. Hutton said, "Our portfolio holdings continue to perform well. Our holdings in Omnicare Inc., which provides pharmacy services to long-term-care facilities, represent $21.8 million in unrealized pretax gains for Chemed based on Friday's closing price of $31.75 per share. Likewise, we have unrealized pretax gains of $7.3 million in our holdings of EXEL Ltd., a provider of insurance coverage for large corporate risks. Further, in September, Vitas Healthcare Corp., the hospice company in which we invested $27 million in 1991, made its preliminary filings in connection with an initial public offering."

Concluding, Mr. Hutton said, "We are pleased with the continuing progress at Roto-Rooter, which looks to achieve future growth through increasing the size and skills of its service force and by accelerating its efforts to acquire independent plumbing companies. Likewise, Service America has the opportunity to grow through expanding its well-trained service force, as well as by moving into other Sunbelt states. Also, it is expected that Roto-Rooter and Service America will offer additional services to the home owner by means of internal development and acquisitions. Patient Care, too, continues to focus on training home health aides to meet the growing demand for personal care services to elderly individuals. Roto-Rooter, Service America, and Patient Care all have opportunities to consolidate fragmented markets and grow through acquisitions. Our balance sheet is extremely healthy, and we look to the future with great optimism."

Chemed Corporation, headquartered in Cincinnati, is a public corporation with strategic positions in plumbing and drain cleaning; home healthcare services; and residential appliance and air-conditioning repair. -0-

                  Chemed Corporation and Subsidiary Companies
                       Comparative Results (Unaudited)
                   (in thousands, except per share data)


                          Three Months Ended     Nine Months Ended
                             September 30,         September 30,
                            1997      1996        1997      1996
                           ______    ______      ______    ______
Continuing Operations
  Sales and Service
  Revenues                $ 87,434   $75,170  $251,110     $221,834
                          ________   _______  ________     ________
                          ________   _______  ________     ________

  Income from Operations  $ 5,226    $ 4,645  $ 14,060     $ 12,491
  Interest Expense         (2,924)    (2,069)   (8,476)      (5,532)
  Other Income, Net         1,298      1,914    16,172(a)    24,012(b)
                          _______    _______  ________     ________

  Income before Income
   Taxes and Minority
   Interest                 3,600      4,490    21,756(a)    30,971(b)
  Income Taxes             (1,494)    (1,801)   (8,329)     (11,647)
  Minority Interest in
   Earnings of Subsidiaries     -       (721)        -       (2,964)
                          _______    _______  ________     ________

    Income from Continuing
     Operations             2,106      1,968    13,427(a)   16,360(b)
Discontinued Operations(c)  9,702      2,496    13,160        5,989
                          _______    _______  ________     ________

Net Income                $11,808    $ 4,464  $ 26,587(a)    22,349(b)
                          _______    _______  ________     ________
                          _______    _______  ________     ________

Earnings Per Common Share
  Income from Continuing
   Operations             $   .21    $   .20  $   1.34(a) $   1.66(b)
                          _______    _______  ________     ________
                          _______    _______  ________     ________

  Net Income              $  1.18    $   .46  $   2.65(a) $   2.27(b)
                          _______    _______  ________     ________
                          _______    _______  ________     ________

  Average Number of
   Shares Outstanding      10,042      9,790    10,026        9,831
                          _______    _______  ________     ________
                          _______    _______  ________     ________

__________________________
(a)  Amounts for 1997 include pretax gains of $12,235,000
     ($7,652,000 aftertax or $.76 per share) from the sales of
     investments

(b)  Amounts for 1996 include pretax gains of $17,731,000
     ($10,919,000 aftertax or $1.11 per share) from the sales of
     investments

(c)  Discontinued operations include the following (in thousands):


                          Three Months Ended   Nine Months Ended
                             September 30,       September 30,
                            1997      1996      1997      1996
                           ______    ______    ______    ______
Income from operations
 discontinued in
 September, 1997           $   209    $ 1,896  $ 3,069  $ 5,389
Net gain on sales of
 operations discontinued
 in September, 1997          9,493         -     9,493        -
Accrual adjustments
 relating to operations
 discontinued in 1991            -        600        -      600
Adjustment relating to the
 settlement of tax issues
 arising from the sale of
 operations discontinued
 in 1994                         -          -      598        -
                           _______    _______  _______  _______

      Total discontinued
       operations          $ 9,702    $ 2,496  $13,160  $ 5,989
                           _______    _______  _______  _______
                           _______    _______  _______  _______

CONTACT: Chemed Corporation

Timothy S. O'Toole, 513/762-6702