RELIFE TO MANAGE REHABILITATION UNIT.

BIRMINGHAM, Ala.--(BUSINESS WIRE)--November 28, 1994--ReLife, Inc. (Nasdaq/NM:RELF) and St. Mary's Hospital, a 440-bed acute care facility in Huntington, West Virginia, today announced an agreement in which ReLife will manage the hospital's rehabilitation department.

Although specific terms of the agreement were not disclosed, the contract is effective January 16, 1995.

"This contract will significantly broaden our current operating base in Huntington," said Michael E. Stephens, ReLife's Chairman and Chief Executive Officer. "By adding outpatient rehabilitation services to ReLife's current services, we'll be able to serve more people in and around the Huntington community."

The agreement will enhance ReLife's existing services at Huntington Rehabilitation Hospital, a 40-bed facility. The hospital, which ReLife acquired in December 1992, provides comprehensive inpatient rehabilitation services, including ReLife's acclaimed brain and spinal cord programs.

"We are enthusiastic about our relationship with ReLife," St. Mary's Executive Director J. Thomas Jones said. "ReLife is well-established in the health care industry as a leader in providing quality-focused, cost-effective rehabilitation. In an industry increasingly driven by managed care, this agreement holds considerable potential for our hospital, and will certainly enhance the hospital's scope of services." The hospital is the largest private employer in Cabell County, with more than 1,700 employees, and was established by the Pallottine Sisters in 1924.

Including the St. Mary's agreement, Birmingham, Alabama-based ReLife owns and operates a system of 47 inpatient and outpatient rehabilitation facilities in 12 states for people who are recovering from disabling injuries and illnesses. The system specializes in treating people with traumatic brain, spinal cord and work-related injuries, in addition to providing general rehabilitation services.

CONTACT: ReLife, Inc., Birmingham

Thomas W. Marshall, 205/870-8099