Continental Health Affiliates completes exchange offer; increases equity base.

ENGLEWOOD CLIFFS, N.J.--(BUSINESS WIRE)--Oct. 8, 1996-- Continental Health Affiliates Inc. (OTC Bulletin Board: CTHL) announced today that it has completed its recently announced exchange offer for its 14-1/8 percent Subordinated Debentures which expired on Oct. 4, 1996.

Continental Health reported that 42 percent or $504,000 principal of the remaining $1.2 million 14-1/8 percent Subordinated Debentures had elected to exchange into Series A 11 percent Convertible Preferred Stock.

"We are very pleased that a significant number of debentures holders have expressed confidence in the company. The exchange will further strengthen our equity base, which was more than $2 million in June 30, 1996," Colin Neill, Continental Health's chief financial officer, commented.

Continental Health is a leading integrated alternative health care provider. The company owns and operates seven long-term health care facilities and two retirement living communities, located in New Jersey, Pennsylvania and Florida, and owns a majority of the stock of Infu-Tech Inc. (NASDAQ: INFU), a leading provider of infusion therapy and other medical products and services to patients in their homes and in long-term care facilities.

CONTACT: Continental Health Affiliates, Englewood Cliffs

S.C. Neill, 201/567-4600

or

Porter, LeVay & Rose Inc., New York

Michael Polyviou, 212/564-4700