Continental Home Healthcare Announces Nine Month Results; Revenues Increased 47%, EBITDA up 78%.

Business Editors

GLENDALE, Calif.--(BUSINESS WIRE)--Nov. 28, 2001

Continental Home Healthcare Ltd. (TSE:CHT) today announced record revenues and strong profit for the period ending September 30, 2001.

Third Quarter Highlights: (three months ended Sept. 30, 2001
compared with three months ended Sept. 30, 2000)

    --  Revenues up 42%

    --  EBITDA(1) increased 75%

    --  Net Income up 3%

                                     Q3-2001         Q3-2000
                                  ----------      ----------
Revenue                           $8,584,193      $6,049,761
EBITDA(1)                         $1,107,419        $633,246
Net Income                          $162,386        $156,921
EPS - basic                            $0.01           $0.01
- fully diluted                        $0.01           $0.01

Year-to-Date Results: (nine months ended Sept. 30, 2001 compared
with nine months ended Sept. 30, 2000)

    --  Revenues up 47%

    --  EBITDA(1) increased 78%

    --  Net Income up 49%

                                        2001            2000
                                 -----------     -----------
Revenue                          $25,399,149     $17,326,353
EBITDA(1)                         $3,338,825      $1,874,291
Net Income                          $717,343        $481,560
EPS - basic                            $0.06           $0.04
- fully diluted                        $0.06           $0.04

Robert Thornton, President and C.E.O., said, "The Company is extremely pleased with the third quarter and year-to-date results. Our growth continues in both top and bottom line, during what is historically, our slowest quarter of the year. We are especially pleased with our net income performance as we incurred some extraordinary expenses during the third quarter associated with the completion of the integration of the CarePoint acquisition. The Company has now moved all assets from the CarePoint operation into our Glendale facility where we now employ 115 staff." During the quarter the planning of a private placement was announced to raise between C$1.5 million and C$5.0 million, which will provide further funding for this growth trend.

(1) Earnings before interest, taxes, depreciation, amortization

Significant growth was evident in both the overall patient base as well as the high-margin rental revenue business, which increased 94% over the same period last year, contributing $7.6 million to overall revenues for the nine months ending September 30, 2001. Continental also continues to focus on the high-margin respiratory segment of the business.

Continental has built a solid foundation through acquisition and internal expansion and continues to examine strategic acquisitions opportunities which exist within the highly fragmented industry. The Company examines all acquisitions with an eye to strengthening Continental's extensive product offering, enhancing geographic distribution and adding to both top and bottom line growth.

Continental operates within a recession-proof industry which is experiencing tremendous growth as a result of the demographic shift towards an aging North American population combined with the trend of government agencies and private insurance companies to promote in-home rehabilitation. As a result, the industry is forecast to grow at 12-14% into 2005.

Continental Home Healthcare Ltd. acquires, consolidates and manages healthcare equipment retailers that provide equipment such as hospital beds, custom power and manual wheelchairs, scooters, respiratory products and services, bathroom safety products, ambulatory aids, and aids for daily living sold to individuals and healthcare institutions. Branches are located in Glendale and Indian Wells, California; Las Vegas, Nevada; Penticton and Vancouver, British Columbia.

The Company's shares trade on the Toronto Stock Exchange under the symbol "CHT". Current Company updates can be found at the web site: www.continentalhomehealth.com

For Further Information Please Contact:

Ellen Leesti or Cathy Hume, Investor Relations [phone]

Hume, Kieran Inc.

Robert Thornton, President & C.E.O. [phone]

Continental Home Healthcare Ltd.

Toll free Continental investor information 1-800-286-4566