Curative Health Services Settles Shareholder Suits.

Business Editors/Health & Medical Writers

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--March 19, 2002

Curative Health Services, Inc., (NASDAQ: CURE) today announced that it has reached an agreement in principle to settle the shareholder litigation pending against it.

The settlement requires the payment of $10.5 million to the class. $6.5 million of the settlement amount will be paid in common stock, cash, or a combination thereof, as determined in Curative's sole discretion. The remaining $4 million will be paid using insurance proceeds. The settlement is subject to court approval and execution of a stipulation of settlement. The settlement is expected to be approved by the end of the third quarter 2002. The settlement is anticipated to result in a one-time after-tax charge to earnings of approximately $3.8 million, or $.35 per share.

"We are pleased to have settled this matter which originated in 1999," said chairman and interim chief executive officer, Joe Feshbach. "Although we believe that the claims are without merit and we were prepared to continue to defend them vigorously, we believe that it is in the best interests of the Company and its shareholders to settle this lawsuit at this time. The structure and timing of the settlement is such that it is not anticipated to adversely impact 2002 operating results as previously forecast."

About Curative Health Services

Curative's Specialty Pharmacy Services (SPS) business unit provides patient-centric services that facilitate the health care management process, and provides related pharmacy products for chronic disease states such as Hemophilia. These services are provided directly to patients and caregivers by community-based representatives.

Curative Health Services' Specialty Healthcare Services (SHS) business unit is the undisputed industry leader in chronic wound care management, consistently achieving an outcome success rate of more than 80 percent, more than twice the industry average. Curative provides a broad continuum of services to health care providers through a nationwide network. This national network of more than 100 hospital-based Wound Care Center programs, has offered comprehensive treatment to over 300,000 patients, achieving more than a 95 percent patient satisfaction rate.

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, including the statements concerning the anticipated approval and timing of approval of the settlement and the expected impact of the settlement on projected earnings. 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, the failure of the settlement to be approved or approved within the expected time frame, termination or non-renewal of a material number of contracts, an inability to obtain new contracts, changes in the government regulations relating to the Company's Specialty Healthcare Services or Specialty Pharmacy Services business units, changes in the regulations governing third party reimbursements for the Company's services, manufacturing shortages of products sold by Curative's Specialty Pharmacy Services business unit 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 Annual Report on Form 10-K for the year ended December 31, 2000 for further discussion of these and other factors that could affect future results.