Curative Health Services Reaches The 1 Million Mark.

HAUPPAUGE, N.Y. -- Curative Health Services, Inc., (Nasdaq: CURE), a pioneer in comprehensive wound management and services, announced today that it has treated its one millionth wound. This is just one of the many facts that make Curative's Wound Management Program(SM) unsurpassed in the wound care industry. The groundbreaking program in the most recent period analyzed reports a 95% patient satisfaction level, an 90% healing rate for patients who complete treatment, and an 84% limb salvage rate for patients reporting that amputation was discussed as a treatment option prior to coming to the program.

Curative pioneered its innovative approach to treating chronic nonhealing wounds that resist conventional treatment methods in 1988 with outpatient Wound Care Centers, and evolved--using advanced therapeutic technologies and best-in-class, proven clinical protocols--into a Wound Care Management Program. Today, the program provides integrated outpatient, inpatient, post-acute and hyperbaric oxygen therapy components, making it one of the only programs in the country to offer the full continuum of wound care services. Curative manages a national network of hospital-based Wound Care Center(R) programs that have treated more than 380,000 patients.

"We are very excited to reach the benchmark of treating our one millionth wound," said John Prior, President of the Company's Wound Care Management business. "This achievement, along with the results, is recognition of the quality of our Wound Management Program and the long-standing relationships we have with a broad range of hospital partners that have helped us reach this milestone."

Curative credits its superior results to its Wound Management Program's unique approach to care, and the support of its hospital partners, physicians and clinicians. "We use a disease management approach throughout the continuum of care, providing each patient with coordinated care management including the appropriate level of support to minimize waste, save money and achieve an effective outcome," explains Prior. "As a result, Curative delivers both clinical and financial success for all constituents involved. Considering that 3 million to 5 million patients have chronic wounds due to diabetes, venous insufficiency and pressure ulcers, Curative can make a difference in many lives. And keeping in mind two key demographic trends--the rise in the elderly population and the epidemic growth rates of diabetes--Curative is positioned well for the future."

It is also important to note that due to clinical and operational excellence, Curative's Wound Management Program(SM) is one of the only programs of its kind to earn the highly coveted designation of "Disease Specific Certification" for wound management by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), the industry's premier accrediting body.

About Curative Health Services

Curative Health Services, Inc. seeks to deliver high-quality care and clinical results for patients with serious or chronic medical conditions.

The Specialty Infusion business, through its national footprint of Critical Care Systems' local pharmacy branches, provides products, related clinical services and disease management support to patients with chronic or severe conditions such as hemophilia and other bleeding disorders, chronic or severe infections, gastrointestinal illnesses that prohibit oral digestion and other severe conditions requiring nutritional support, immune system disorders, cancer and susceptibility to respiratory syncytial virus.

The Wound Care Management business is a leader in the area of disease management specializing in chronic wound care management. The Wound Care Management business manages, on behalf of hospital clients, a nationwide network of Wound Care Center(R) programs that offer a comprehensive range of services for treatment of chronic wounds.

For more information, visit www.curative.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks associated with our acquisition of Critical Care Systems including, but not limited to, integration risks and costs, risks of client retention, and risks associated with the operations of the acquired business, as well as risks in our current businesses such as the termination or non-renewal of a material number of contracts, an inability to obtain new contracts, changes in government regulations relating to the Company's Specialty Infusion or Wound Care Management businesses, changes in the regulations governing third party reimbursements for the Company's services, manufacturing shortages of products sold by Curative's Specialty Infusion business, the impact of competitive products and pricing, the ability to maintain pricing arrangements with suppliers that preserve margins, the seasonality and variability of operating results, the Company's ability to implement its strategies and achieve its objectives and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Readers of this release are referred to the Company's Registration Statement on Form S-4 filed July 29, 2004, as amended, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, for further discussion of these and other risk factors that could affect future results.