Cohen Milstein Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit on Behalf of Shareholders Against VistaCare, Inc.

WASHINGTON -- The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit in the District of Arizona on behalf of its client seeking class action status on behalf of persons who purchased publicly traded securities of VistaCare, Inc. ("VistaCare") (Nasdaq:VSTA), between November 6, 2003, and August 5, 2004, inclusive (the "Class Period').

The Complaint alleges that VistaCare, a provider of hospice services, and certain of its officers and directors, issued materially false statements concerning the Company's financial condition. Specifically, the Complaint alleges that during the Class Period, VistaCare issued quarter after quarter of record financial growth, but failed to disclose that these gains were partially the result of failing to properly reserve for its Medicare reimbursements cap in violation of Generally Accepted Accounting Principles.

On August 5, 2004, VistaCare issued a press release announcing second quarter results for the quarter ending June 30. The release stated that these results were impacted by the decision to accrue $6.2 million in the quarter for VistaCare's annual Medicare cap reserve. On this news, VistaCare's share price declined from a closing price of $18.72 on August 5, 2004, to $15.28 on August 6, 2004, a one day decline of 18%.

If you are a member of the class described above, you may, no later than October 11, 2004, move that the Court appoint you as Lead Plaintiff. A Lead Plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s). To be a member of the class, you need not take any action at this time.

Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To remain an absent class member, you need not take any action at this time.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
          Audrey Braccio
          Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
          1100 New York Avenue, N.W.
          West Tower - Suite 500
          Washington, D.C.  20005
          Telephone: [phone] or 202-408-4600
          E-mail:  [e-mail] or [e-mail]