Genesis Health Ventures Reports Record Fiscal 1995 Results.

KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Nov. 29, 1995--Genesis Health Ventures, Inc. (NYSE:GHV) today announced record results for fiscal 1995. Revenues for the fiscal year ended September 30, 1995 increased 25% to $486.4 million from $388.6 million in fiscal 1994. Net income before the cumulative effect of a change in accounting principle and extraordinary items increased 44% to $25.5 million or $1.55 per share on 19.0 million fully-diluted, weighted average shares outstanding, compared with $17.7 million or $1.26 per share on 16.5 million fully-diluted, weighted average shares outstanding in the previous year.

Revenues for the fourth quarter of fiscal 1995 increased 17% to $131.9 million from revenues of $112.7 million in the fourth quarter of fiscal 1994. Net income for the fourth quarter increased 24% to $8.0 million or $.47 per share on 19.1 million fully-diluted, weighted average shares outstanding, compared with $6.5 million of $.40 per share on 18.8 million fully-diluted, weighted average shares outstanding in the similar period last year.

"Fiscal 1995 was another solid year of growth and performance for Genesis with revenues and earnings reaching new highs," commented Michael R. Walker, Chairman and Chief Executive Officer. "The successful integration of strategic acquisitions such as Therapy Care, Inc., Eastern Medical, Inc. and physician practices in Salisbury, Maryland and, along with a joint venture partner, Delta Drug has further established the company's leading position in our five regional markets, and we have seen greater utilization of services delivered through the Genesis Health Network than ever before."

"We experienced substantial gains in specialty medical revenues in the fourth quarter and for the year. Specialty medical service revenue grew 43% in fiscal 1995 to $180.3 million, accounting for 37% of total revenues, up from approximately $125.7 million in fiscal 1994," Walker added.

"The relationships we established this past year with other providers serve to further expand the reach of the Genesis Health Network and position us to effectively participate in managed care."

"As we enter the new fiscal year, we are confident that Genesis will continue to meet its strategic and financial goals. Our balance sheet is strong and will support internal development and select acquisitions well into 1996. We will continue to expand the Genesis Health Network, enter new markets and introduce additional products designed for a managed care environment, and implement our managed care information systems initiative," Walker concluded.

Genesis Health Ventures, Inc. is a recognized innovator in the delivery of geriatric healthcare. The company, founded in 1985, develops and manages healthcare networks designed to provide cost effective, outcome-oriented services in select regional markets in the eastern United States. -0-

                     GENESIS HEALTH VENTURES, INC.
                         Financial Highlights
               (In thousands, except per share amounts)

                                    Three Months Ended
                                      September 30,
                                    1995          1994

Net revenues                      $131,928      $112,702

Net income                          $8,024        $6,484
Net income per share,
 fully-diluted                        $.47          $.40

Weighted average shares
 outstanding, fully-diluted         19,079        18,783

                                       Fiscal Year Ended
                                         September 30,
                                       1995         1994

Net revenues                         $486,393     $388,616

Earnings before the cumulative
 effect of a change in accounting
  principle for income taxes and
   extraordinary items                $25,531      $17,690

Net income                            $23,608      $17,672

Earnings before the cumulative
 effect of a change in accounting
  principle for income taxes and
   extraordinary items per share,
    fully diluted                       $1.55        $1.26

Net income per share, fully diluted     $1.45        $1.26

Weighted average shares outstanding,
 fully-diluted                         18,968       16,546

CONTACT: Genesis Health Ventures, Inc.

George V. Hager, Jr., 610/444-6350