Continental Completes Key Acquisition.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 25, 1999--

Continental Home Healthcare Ltd. (VSE:CHT.) (the "Company") is pleased to announce that it has completed the acquisition of substantially all of the assets of the Queen of Angels - Hollywood Presbyterian Medical Center Home Medical Equipment business from Tenet HealthSystem QA, Inc., a nationwide provider of health care services.

The Company has paid US$65,000 for substantially all of the assets of the Home Medical Equipment business operating within the Queen of Angels - Hollywood Presbyterian acute care hospital, including inventory and accounts receivable. The transaction also includes all capital inventory currently rented to over 200 patients in the Los Angeles area and has a retroactive effective date of June 1, 1999.

Mr. Robert Thornton, the Company's CEO states "We are extremely pleased with this transaction as it immediately adds to our rental patient base. The equipment rented to these patients represents approximately US $20,000 - US $25,000 in monthly revenue and with an effective date of June 1, the Company has three months of revenue that will offset a large portion of the purchase price. We also have acquired additional inventory with a total value of US $35,000 for future growth and a considerable accounts receivable balance as of June 1 that we will quantify over the next ninety days as we ascertain the definitive collection value of each and every claim."

"More importantly, we are thrilled that we were chosen by Tenet over many other Home Medical Equipment companies to complete this transaction. When Tenet decided to close their Home Medical Equipment business operating within their hospital, their selection criteria was highly focused on choosing a company whose service quality could best meet the needs of their existing rental patient population. Choosing Continental is a clear indication of our growing reputation as one of southern California's premier Home Medical Equipment companies and a beginning step in what we anticipate will be a lasting relationship with Queen of Angels - Hollywood Presbyterian Medical Center."

The Company plans to service these new patients from its existing operation in Glendale, California and does not expect any additional expenses for this new revenue stream.

Mr. Thornton further states "The purchase price for this transaction has been satisfied from current cash flow, thereby enabling the Company to continue its expansion progress prior to the completion of the debt financing currently being arranged. We are near the completion of putting in place a US $3 million operating line of credit which will facilitate the acceleration of our growth through acquisition strategy well into the new year."

Continental Home Healthcare Ltd. is a provider of durable and home medical equipment to individuals and healthcare institutions with branches in Glendale and Indian Wells, California; Las Vegas, Nevada; and British Columbia, Canada.

ON BEHALF OF THE BOARD

Robert Thornton, Chief Executive Officer

The Vancouver Stock Exchange has neither approved nor disapproved the contents contained herein.