Curative Health Signs $18 Million Private Placement; Company reconfirms previous 2002 guidance of $.80 "normalized" EPS.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--February 7, 2002

Curative Health Services, Inc., (NASDAQ: CURE), announced today the signing of an agreement to sell in a private placement 1,059,000 newly issued shares of Common Stock.

The shares were sold to four institutional investors at a price of $17 per share resulting in net proceeds to the Company of approximately $16.9 million. The price represents an approximate 12% discount off the Tuesday closing price of Curative's stock, the date the transaction was priced with investors. Under the terms of the sale, the Company has agreed to register the shares of stock for resale.

"With the signing of this agreement, we will be able to maintain our virtually debt-free status," said Curative's Chief Executive Officer, Gary Blackford. "This transaction leaves us with an extremely strong balance sheet and a full range of options for future acquisitions. The Company retains full access to a $25 million line of credit should we need it to execute our strategy of aggressive growth, both organically and through strategic acquisitions."

Curative also reconfirms its previous 2002 "normalized" earnings per share guidance of $.80 per share. "Normalized" earnings per share excludes one-time restructuring charges, and certain legal and regulatory expenses incurred by the Company relating to its recently settled DOJ matters. "When we provided guidance after the announcement of the Apex Therapeutics agreement, our guidance anticipated a potential equity offering to satisfy the cash requirements of the transaction,' said Blackford. "We remain comfortable with our previous guidance."

About Curative Health Services

Curative Health Services (CURE) delivers superior clinical outcomes and unmatched patient satisfaction for patients experiencing serious medical conditions through two unique business units.

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. 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 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.