Continental Home Healthcare Reports Third Quarter Results.

Business Editors/Health Writers

GLENDALE, Calif.--(BUSINESS WIRE)--Nov. 27, 2002

Continental Home Healthcare Ltd. (TSX:CHT) today announced results for the third quarter and first nine months of fiscal 2002. All funds are in U.S. dollars unless otherwise stated.

Third Quarter Results: (three months ended September 30, 2002
compared with three months ended September 30, 2001)

                                      Q3-2002             Q3-2001
-----------------------------------------------------------------
Revenue                            $5,527,805          $5,064,291
EBITDA(a) from continuing
 operations                          $182,605            $758,112
Income (Loss) from continuing
 operations                        $(412,809)            $171,279
Income (Loss) from discontinued
 operations                              $nil           $(68,959)
Provision for loss on disposal of
 discontinued operations              $57,833                $nil
Net Income (Loss)                  $(470,642)            $102,320
EPS - basic                           $(0.04)               $0.01
    - diluted                         $(0.04)               $0.01


Year-to-Date Results: (nine months ended September 30, 2002
compared with nine months ended September 30, 2001)

                                         2002                2001
-----------------------------------------------------------------
Revenue                           $15,427,948         $14,855,323
EBITDA(a) from continuing
 operations                          $789,288          $2,251,086
Income (Loss) from continuing
 operations                        $(747,814)            $624,644
Income (Loss) from discontinued
 operations                        $(107,222)          $(172,647)
Provision for loss on disposal of
 discontinued operations             $575,650                $nil
Net Income (Loss)                $(1,430,686)            $451,997
EPS - basic                           $(0.11)               $0.04
    - diluted                         $(0.11)               $0.04

----
(a)Earnings before interest, taxes, depreciation, amortization

Robert Thornton, President and C.E.O., said, "The results for the third quarter reflect positive momentum during what are challenging times for the Company. Revenues from continuing operations increased by $463,514 for the quarter, compared with the same period in the prior year. Year-to-date revenues from continuing operations increased by $572,625 compared with the same period in 2001. During this period of modest revenue growth, management continues to focus on the reduction of general and administrative expenses as well as improved liquidity and cash flow. Pre-tax income from continuing operations was up marginally from the previous quarter and other indicators suggest that operational efficiencies are materializing. For example, general and administrative expenses before the provision for uncollectible accounts continued on its downward trend. The reductions in accounts receivables of $100,618 for the nine months ended September 30, 2002, compared with an increase of $2,152,086 for the same period in the previous year, also signals significant progress. Management is confident that the continued program of cost reductions and efficient operations will lead to long term stability, future growth and improvement to the overall results."

The net loss for the quarter is attributable to an increase in cost of sales and amortization of capital assets as well as an increase in the provision for uncollectible accounts, payroll expenses and employee benefits.

During September, Robert Thornton, purchased 900,000 common shares of Continental Home Healthcare Ltd. on the open market. This purchase was in part a response to a large volume of stock that was being offered from what was believed to be an institutional holding. "I have a great deal of confidence in the future of this Company and I believe this was an appropriate circumstance to support the stock and increase my holdings," added Mr. Thornton.

Also during the quarter Eric Carlson resigned from the Board of the Company. Mr. Carlson had decided to curtail some of his outside business activities in order to focus more attention on his responsibilities as CEO of Anthem Properties Corp. "On behalf of the Board of Continental, I would like to thank Mr. Carlson for his efforts and contributions to the Company and wish him well in his current and future endeavors," commented Mr. Thornton. The Board is currently in discussions with a select number of U.S.-based Board candidates.

The outlook for the remainder of the year is for continued focus on cost reductions and increased revenues.

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; and Las Vegas, Nevada.

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.