Continucare to Dispose of Home Health Business.

Business Editors/Health/Medical Writers

MIAMI--(BUSINESS WIRE)--Dec. 16, 2003

Continucare Corporation (AMEX:CNU) announced today that it will dispose of its home health agencies. The disposition will occur in transactions with three entities that will acquire substantially all of Continucare's existing home health operations in separate transactions that should conclude over the next 30 to 60 days.

During the fiscal year ended June 30, 2003, Continucare derived approximately $4.2 million of revenues and incurred an operating loss of approximately $1.8 million from the operation of its home health agencies. During the three month period ended September 30, 2003, revenue derived from the home health agencies was approximately $1.2 million and the operating loss was approximately $0.4 million.

Continucare estimates that it will incur a charge in its second fiscal quarter ended December 31, 2003 in connection with the disposition of its home health operations of between $0.7 million and $1.0 million. This charge primarily relates to the write-off of goodwill and other assets and the accrual of severance costs and lease obligations.

Commenting on the transactions, Richard C. Pfenniger, Jr., Continucare Corporation's Chief Executive Officer said, "The disposition of our home health agencies should benefit us in two fundamental ways. First, the divestiture of these businesses will permit us to focus our resources and efforts exclusively on our core activity of providing primary care medical services. Second, the disposition will eliminate a portion of our business that has historically incurred operating losses and experienced negative cash flow."

Continucare Corporation (http://www.continucare.com), headquartered in Miami, Florida, is a holding company with subsidiaries engaged in the business of providing outpatient physician care services through managed care, Medicare direct and fee for service arrangements.

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 include risks and uncertainties, which may affect our business and prospects and cause actual results to differ materially from those set forth in the forward-looking statements. These factors include, without limitation, our ability to service our indebtedness and respond to capital needs, the ability to achieve expected levels of patient volumes and control the costs of providing services, pricing pressures exerted on us by managed care organizations as they seek to contain health care costs, the level of payment we receive from governmental programs and other third party payors, the ability to attract and retain qualified medical professionals, future legislation changes in governmental regulations, including possible changes in Medicare programs that may impact reimbursements to health care providers and insurers, technological and pharmaceutical improvements that increase the cost of providing, or reduce the demand, for health care, changes in revenue mix and the ability to enter into and renew managed care provider arrangements on acceptable terms, delays in receiving payments, the collectibility of uninsured accounts and deductible and co-pay amounts, 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 annual report on Form 10-K for the fiscal year ended June 30, 2003 and other filings with the SEC. We undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date hereof.