Continucare Corporation Reports 81% Increase in Operating Profit for Fiscal 2008.

Achieved 34% Increase in Operating Profit for Fourth Quarter of Fiscal 2008

MIAMI -- Continucare Corporation (AMEX:CNU) today reported financial results for its fourth quarter and fiscal year ended June 30, 2008. Financial highlights for the quarter include:

-- Total revenue increased to $66.1 million, compared to $65.4 million in the fourth quarter of fiscal 2007;

-- Income from operations increased to $5.0 million, compared to $3.7 million for the same period last year; and

-- Net income increased to $3.2 million, or $0.05 per diluted share, compared to $2.4 million, or $0.03 per diluted share, for the same period a year ago.

Full Year Results

For the fiscal year ended June 30, 2008, total revenue increased to $254.4 million compared to $217.1 million in the prior fiscal year. Income from operations for fiscal 2008 increased 81% to $17.9 million compared to $9.9 million for fiscal 2007. Net income for fiscal 2008 increased to $11.3 million, or $0.16 per diluted share, compared to $6.3 million, or $0.10 per diluted share, for fiscal 2007.

Balance Sheet

Continucare's cash and cash equivalents were $9.9 million at June 30, 2008 compared to $7.3 million at June 30, 2007, while working capital was $20.3 million at June 30, 2008 compared to $17.5 million at June 30, 2007. Total liabilities were $13.3 million at June 30, 2008 compared to $12.9 million at June 30, 2007. Shareholders' equity increased to $105.2 million at June 30, 2008 from $104.1 million at June 30, 2007.

"Our fourth quarter results provided a strong close to another outstanding fiscal year further reinforcing our proven track record of solid financial performance," said Richard C. Pfenniger, Jr., Continucare's Chairman and Chief Executive Officer. "We posted record revenues and again achieved significant gains in profitability with fourth quarter operating profits increasing 34% and full fiscal year operating profits increasing 81%. These results were highlighted by improved medical utilization outcomes and increased operating efficiencies. Cash flow from operations also increased significantly during the fiscal year, and at fiscal year-end our balance sheet remained virtually debt-free. We continue to be optimistic about our prospects and have actively pursued the repurchase of our shares."

ValuClinic[R]

Continucare also announced that it had decided to terminate its ValuClinic operations and instead establish full service primary care services for walk-in patients at selected existing medical centers. The focus of these services will be on addressing the needs of the uninsured population by offering affordable access to quality primary care medical service. ValuClinics are consumer-oriented, retail-based health centers located within a larger retail host that offer treatment for a limited menu of common ailments and other basic medical needs. Continucare expects to establish its new walk-in services beginning in October. For the fiscal year ended June 30, 2008, Continucare incurred an operating loss of $1.3 million related to the ValuClinic operations. Continucare estimates that it will incur a charge not expected to exceed $100,000 in its first fiscal quarter of 2009 in connection with the termination of ValuClinic operations.

"Consumer acceptance of our ValuClinics and, more broadly, other retail-based convenience clinics has been less than we anticipated," said Mr. Pfenniger. "We believe this is in part due to the relative novelty of the concept and in part due to the limited menu of services offered. Although we continue to believe that retail-based convenience clinics address significant needs of healthcare consumers, slow acceptance undermines the financial attractiveness of the business model. Accordingly, we have decided to terminate our ValuClinic operations and refocus our efforts in this area by adding full service primary care offerings at selected existing Continucare medical centers where we believe we can better address the needs of the uninsured population at a considerably lower operating cost."

Stock Repurchase Program

Since January 1, 2008 Continucare has repurchased 5,131,433 shares of its common stock at a cost of approximately $10.9 million and since the inception of the program in 2005, Continucare has repurchased 6,867,300 shares of its common stock at a total cost of approximately $15.3 million. The Company has the authority to repurchase an additional 3,132,700 shares under its current repurchase plan. The plan authorizes management, at its discretion, to repurchase shares from time to time in the open market or in privately negotiated transactions subject to market conditions and other factors.

About Continucare Corporation

Continucare provides primary care physician services on an outpatient basis through a network of medical facilities and independent physician affiliates (IPAs) in the State of Florida. Continucare has 18 medical offices equipped with state-of-the-practice technology and staffed with experienced physicians and a comprehensive support staff. In addition, Continucare provides health practice management services to IPAs who practice primary care medicine in South Florida. Continucare assists these physicians with medical utilization and pharmacy management and specialist network development, freeing them to devote more time to patient care. For more information please visit www.continucare.com.

Except for historical matters contained herein, statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors and others are cautioned that forward-looking statements are subject to risks and uncertainties that may affect our business and prospects and cause our actual results to differ materially from those set forth in the forward-looking statements. These factors include, without limitation, the risk that the current trend in revenue or income growth may not continue or may be less than anticipated, risks and uncertainties relating to our ability to implement our growth strategy and to manage future growth, including our ability to achieve expected levels of patient volumes and control the costs of providing services, risks relating to our ability to effectively maintain or improve our medical management capabilities and control costs, risks relating to pricing and other pressures exerted on us by managed care organizations, the risk that the impact of the Medicare Risk Adjustment on payments we receive for our managed care operations may not continue to be positive for us and that risk corridor adjustment charges in future periods may be greater than in the past, the risk that future legislation, changes in governmental regulations, including possible changes in Medicare programs, could adversely impact our operations or reduce reimbursements to health care providers and insurers, risks and uncertainties relating to our current dependence on three HMOs for substantially all of our revenues, including the loss of our managed care agreements with any of these HMOs and our ability to work together effectively with our HMO affiliates, uncertainties relating to technological and pharmaceutical improvements that increase the cost of providing, or reduce the demand for, health care, inflationary trends in health care costs, and general economic conditions and uncertainties generally associated with the health care business. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from our forward-looking statements are included in our most recent annual report on Form 10-K and other filings with the SEC and we urge you to read those documents. We undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date hereof except as required by law.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]