GENESIS HEALTH VENTURES REPORTS $2.4 BILLION IN REVENUE.

Genesis Health Ventures, Inc. (OTCBB: ghviq) has reported results for its fiscal year ended September 30, 2000.

Revenues for the fiscal year ended September 30, 2000 were $2.4 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) and excluding impairment of assets and other charges were $201.4 million.

The company recorded impairment of assets and other charges in the fourth quarter of fiscal 2000 of approximately $357.2 million, consisting of the following:

-- Provision for Statement of Financial Accounting Standards No. 121 "Accounting for the impairment of long-lived assets and for long-lived assets to be disposed of" (SFAS 121), terminated operations, and other asset impairments -- $323.6 million

-- Debt restructuring, reorganization and other charges -- $33.6 million

The provision for SFAS 121 impairments, terminated operations, and other asset impairments primarily represents the write-down of goodwill and other long-lived assets of acquired operations which are not deemed recoverable. The provision for debt restructuring, reorganization and other charges principally represents costs associated with Genesis' and its 43.6% owned affiliate, The Multicare Companies, Inc.'s (Multicare) filings under Chapter 11 of the U. S. Bankruptcy Code, severance costs and provision for investments in formerly managed operations.

In addition to the items described above, the company recorded in the fourth quarter incremental operating expenses related to provisions for benefit-related costs, primarily adverse development in self-insured employee health coverage, of $21.5 million and an additional provision of $9.1 million related to accounts receivable which are deemed uncollectible. The company's fourth quarter EBITDA, excluding impairment of assets and other charges as well as the additional provisions for benefit related costs and uncollectible accounts receivable, was $49.3 million, compared to $54.7 million in the preceding third quarter.

Net loss before cumulative effect of a change in accounting principle and preferred stock dividends for the fiscal year ended September 30, 2000 was $831.1 million.

Genesis and Multicare has filed their Form 10-K's with the Securities and Exchange Commission in January 2001 upon completion of their annual audits. Accordingly, Genesis and Multicare have requested a waiver under their debtor-in-possession credit facilities from the 90-day requirement for delivery of audited financial statements.

Genesis Health Ventures provides eldercare in the eastern United States through a network of Genesis ElderCare skilled nursing and assisted living centers plus long term care support services nationwide including pharmacy, medical equipment and supplies, rehabilitation, group purchasing, consulting and facility management.

For more information, call 610/444-6350.