Genesis Health Ventures Reports Fiscal 2000 Results.

Business Editors/Health & Medical Writers

KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Dec. 28, 2000

Genesis Health Ventures, Inc. (OTCBB: ghviq) today announced 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 expect to file their Form 10-K's with the Securities and Exchange Commission in late 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.

Certain statements set forth above, including, but not limited to, statements containing the words "anticipates", "believes", "expects", "intends", "will", "may" and similar words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the Company's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. Such factors may include, without limitation, the delays or the inability to complete the Company's plan of reorganization; the availability and terms of capital in light of recent losses, cash flow shortfalls and the Company's chapter 11 bankruptcy filing; adverse actions which may be taken by creditors and the outcome of various bankruptcy proceedings; the Company's ability to attract patients given its current financial position; and the effects of healthcare reform and legislation on the Company's business strategy and operations. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

                      GENESIS HEALTH VENTURES, INC.
                         (DEBTOR-IN-POSSESSION)
                          FINANCIAL HIGHLIGHTS
                 TWELVE MONTHS ENDED SEPTEMBER 30, 2000
                             (IN THOUSANDS)


                                               Unaudited
                                             Twelve Months
                                                Ended
                                             September 30,
                                                 2000
                                             -------------
Net revenues:
 Pharmacy and
  medical
  supply services                            $   952,350
 Inpatient services                            1,320,151
 Other revenue                                   161,357

                                             -----------
Total net revenues                             2,433,858
                                             -----------
Operating expenses:
 Operating expenses                            2,194,633
 Debt restructuring,
  reorganization and
  other charges                                  121,788

 Loss on impairment
  of assets                                      323,638
 Multicare joint venture
  restructuring                                  420,000
 Depreciation and
  amortization                                   116,945
 Lease expense                                    37,820
 Interest expense, net                           203,570
                                             -----------
Loss before income taxes,
 minority interest and
 cumulative effect of
 accounting change                              (984,536)
  Income tax benefit                             (27,168)
                                             -----------
Loss before minority
 interest and
 cumulative effect
 of accounting change                           (957,368)

 Minority interest                               126,240
                                             -----------
Net loss before
 cumulative effect
 of accounting change                           (831,128)

  Cumulative effect
   of accounting change                          (10,412)
                                             -----------
Net loss before
 preferred dividends                         $  (841,540)
                                             -----------